The complexity of martech stacks is a growing barrier

Marketing is a data game, and martech stacks are the tools we use to play it. But here’s the catch: more tools don’t necessarily mean better results. In fact, the opposite is often true. When your stack grows too complex, you’re building silos. And silos are where insights go to die.

Imagine a marketer using 16 or more tools, each generating its own stream of data. Sounds impressive, right? Not really. What they’ve created is a maze where valuable audience insights get lost. This fragmentation makes it harder to identify customers across touchpoints, be it social media, email, or your website. Without that clarity, delivering personalized experiences becomes a guessing game. And let’s not forget the cost: inefficiencies in scaling campaigns and wasted marketing spend.

“If your stack is working against you, it’s not a stack, it’s an anchor. Simplifying and integrating your tools is the only way forward.”

The power of identity resolution tools

Now, there’s good news in all this. Identity resolution tools are a potential solution. These are the glue that holds your fragmented data together. In connecting customer information across platforms, these tools give you what every marketer craves: a 360-degree view of the customer.

Instead of piecing together disjointed fragments, you get a full picture of your audience. You can tailor campaigns with precision, segment audiences more effectively, and deliver a smoother customer experience.

93% of marketers using identity resolution tools report hitting their customer experience goals. Of course, implementing them requires effort, there are privacy laws and integration challenges to navigate. But once they’re up and running, they become the engine driving your marketing success.

Why martech complexity will keep growing

Here’s a truth few people want to admit: the marketing landscape isn’t going to simplify itself. The number of channels is expanding, think retail media networks and connected TV (CTV), and the tools to manage them are growing just as fast. Yes, economic pressures might consolidate some stacks, but don’t bet on a full-scale reduction. Innovation keeps pushing the boundaries.

Take retail media networks, for example. Platforms like Amazon or Walmart give you direct access to highly targeted audiences. That’s powerful, but it requires specialized tools to maximize value. The same goes for CTV, which merges traditional TV’s reach with the targeting of digital. These are exciting opportunities, but they add complexity.

The number of martech applications grew by 27.8% last year. Someone is using those tools. If you want to stay competitive, you need a strategy to manage the chaos. That doesn’t mean adopting every shiny new app, it means choosing the right ones and making sure they work together.

Key takeaways:

  1. Fragmentation hinders insights: Over 66% of marketers use 16+ tools, creating data silos that make audience identification across touchpoints inefficient and personalization ineffective. Leaders should streamline their martech stacks to reduce complexity and integrate tools effectively.

  2. Identity resolution drives results: Tools that unify fragmented data into a single customer view improve personalization, scalability, and ROI. With 93% of marketers using these tools achieving customer experience goals, prioritizing identity resolution is a clear strategic advantage.

  3. Channel expansion adds pressure: Emerging platforms like retail media networks and connected TV (CTV) are valuable but demand additional tools, further complicating martech ecosystems. Decision-makers must focus on prioritizing adaptable, scalable tools to manage this growth sustainably.

  4. Invest in simplification and integration: Leaders should evaluate existing stacks, eliminate redundant tools, and invest in solutions that unify data while aligning with privacy regulations. Simplification is key to future-proofing marketing efforts in a growing and fragmented digital market.

Alexander Procter

January 22, 2025

3 Min