With over 14,000 martech tools currently available, the sheer variety of platforms and services can overwhelm even the most experienced marketing professionals. An ongoing question is: Which technology should marketers back to make sure they stay competitive in an evolving digital marketplace? While there may not be a single definitive solution, understanding key trends like consolidation and the rise of dominant players such as Salesforce can guide more informed decisions.
The number of martech tools has skyrocketed to over 14,000, according to ChiefMartec and MartechTribe. This number reflects the rapid expansion of marketing technologies, each designed to solve a specific pain point or optimize a particular aspect of a campaign. While this growth signals innovation, it also creates a fragmented and chaotic ecosystem that many marketers struggle to manage.
For businesses, this presents a dilemma. On one hand, having a tool for every conceivable function could offer advantages in areas like automation, analytics, customer engagement, and social media management. On the other hand, using too many tools can lead to inefficiencies.
Each tool often creates its own silo of data, leading to gaps in customer insight, duplicated work, and unnecessary complexity. The sheer number of choices available complicates decision-making, making it challenging for marketers to determine which tools will deliver long-term value.
The great martech consolidation, what’s coming?
Why martech’s data islands are holding you back
The idea of “data islands” refers to the isolated pockets of information generated by many specialized martech tools. Each platform collects its own data, which often doesn’t integrate seamlessly with others. Fragmentation results in a narrowed view of your customers, limiting your ability to develop comprehensive strategies based on full customer insights.
For example, a social media management tool may capture engagement metrics, while an email marketing platform tracks open rates. But if these data streams don’t talk to each other, it’s hard to understand the full customer journey. This creates friction for both marketers and audiences, as marketers must repeatedly request the same information from their customers, leading to frustration and, ultimately, decreased campaign performance.
More critically, the lack of data integration across platforms can prevent companies from capitalizing on more sophisticated techniques like predictive analytics or AI-driven personalization, which rely on large, unified datasets.
Martech costs are skyrocketing, can we keep up?
Building a martech tool is no small investment. Research, development, and continuous updates require many resources, and most marketing budgets can’t absorb these costs indefinitely. As a result, many companies are now leaning toward fewer, more comprehensive solutions that can deliver comprehensive services at a lower cost.
This drive for simplicity and efficiency is pushing the industry toward consolidation. The expectation is that instead of an array of specialized tools, there will be fewer, more integrated platforms that serve as all-in-one marketing solutions. This trend is already visible in the acquisitions of niche platforms by larger companies, reducing competition but also reducing the complexity marketers face when managing their tech stacks.
For businesses, this change suggests that investing in tools that are poised to become integrated into larger ecosystems could be a smarter, more sustainable approach. It allows for cost savings and minimizes the disruption caused by using too many fragmented systems.
Surviving martech’s Darwinism
The martech industry is in the midst of what some call “technological Darwinism.” In this phase, the most resilient, scalable tools will survive, while weaker tools that can’t keep up will be eliminated. Larger companies with deep pockets are acquiring smaller, specialized platforms to build integrated systems that can do more under one roof.
For example, Salesforce’s acquisition strategy has turned it into a dominant force, expanding its CRM capabilities to include marketing automation, customer data platforms, and more. Similarly, Adobe has moved from being a design software company to a comprehensive marketing solution provider, thanks to its financial resources and strategic acquisitions.
A process of consolidation is expected to continue, with a few major players absorbing smaller companies and building ever-larger ecosystems. Marketers must watch this trend closely to avoid investing in tools that may not survive the inevitable consolidation.
The martech gold rush
In pole position of the martech race is Salesforce (SFDC). Originally known as a CRM powerhouse, Salesforce has grown its platform into much more by adding marketing automation, customer data platforms (CDP), and app hosting capabilities. With its integration capabilities, Salesforce connects with many of the 14,000 martech tools, allowing businesses to unify their tech stacks around its ecosystem.
Salesforce’s rise to dominance has been fueled by its continuous acquisition of smaller tech firms and its ability to offer comprehensive solutions that go beyond traditional CRM. An integrated approach pulls customers deeper into its ecosystem, providing a compelling advantage over competitors that can’t offer such breadth of services. While Salesforce may be too complex or costly for SMEs, it is undoubtedly the most powerful tool for large enterprises.
Can anyone challenge Salesforce?
Salesforce may be the clear leader, but the CRM market isn’t entirely without challengers. Marketing automation platforms (MAPs) such as Pardot, Marketo, and SharpSpring have also seen success. Platforms are designed to consolidate marketing activities across various channels, from email to social media. However, many of these platforms have been acquired by larger companies, creating a situation where new development is funded but innovation may slow.
Still, new marketing automation platforms continue to emerge, suggesting that this sector is still maturing. For example, HubSpot has gained traction, especially among SMEs, thanks to its versatility and its ability to offer a wide range of features under one roof. HubSpot’s lower cost and ease of use make it a strong option for smaller businesses that may not need Salesforce’s enterprise-level complexity.
How big organizations are playing their role in the martech battlefield
Adobe is a prime example of how financial resources can help a company to grow beyond its original purpose. Known initially for its design tools, Adobe has transformed into a full-service marketing vendor. Its financial strength has allowed it to acquire tools that address every aspect of marketing, from analytics to customer journey mapping.
Adobe’s move to consolidate various marketing functions under its umbrella is a testament to the power of financial resources in the martech industry. With its ability to invest in cutting-edge technologies and integrate them into its suite, Adobe is positioning itself as a major player in the martech race.
As the martech industry consolidates, companies with the financial resources to acquire and grow will inevitably dominate. Large firms like Salesforce, Adobe, and Oracle have the ability to acquire smaller players and integrate their technologies into comprehensive ecosystems. This financial muscle allows them to stay ahead in the race and expand their capabilities continuously.
For marketers, this means that betting on financially strong companies could be the safest strategy in an uncertain market. Smaller tools that may offer niche services are less likely to survive long-term unless they are acquired by a bigger player with the resources to continue developing them.
Who will lose in martech’s race to the top?
Martech companies that try to remain independent face risks. As the market consolidates, standalone tools will struggle to compete with integrated platforms offering more comprehensive services. Companies that resist acquisition may find it harder to attract customers, leading to slower development and eventual obsolescence.
On the other hand, companies that sell too early risk being undervalued if their products haven’t yet reached their full potential. Striking the right balance between independence and acquisition is key for martech vendors looking to survive in a consolidating market.
Are you betting on the wrong martech horse?
For martech users, the biggest risk is investing in tools that may not last. As consolidation accelerates, switching from a defunct or underperforming tool can be costly, both in terms of time and resources. It is particularly concerning for SMEs, which often operate on tighter budgets and can’t afford repeated migrations to new platforms. Choosing the wrong tool could result in lost data, disrupted operations, and increased operational costs.
Marketers must carefully evaluate the long-term viability of their martech stack, favoring tools that are either part of a larger ecosystem or have clear potential for future acquisition by a major player.
