Declining MarTech budgets reflect skepticism about value
MarTech budgets have seen a sharp 18% decline over the past six years. It’s a wake-up call about the growing mistrust in the value these tools claim to deliver. As Gartner points out, this dip coincides with a transfer of decision-making power away from CMOs to IT leaders and CFOs—those who prioritize spreadsheets over customer experience.
Let’s be clear: this shift isn’t focused on killing MarTech, it’s more about cutting costs. And often, that trimming looks like consolidation. On the surface, merging tools like MailChimp (newsletter delivery), Marketo (automation), and SendGrid (transactional email) might seem like a savvy financial move. After all, they all send emails, right? But dig deeper, and you’ll find that each of these tools excels in completely different arenas:
- MailChimp focuses on deliverability, managing IP reputation, and optimizing bounce rates.
- Marketo excels in automation sequences, drip campaigns, and audience segmentation.
- SendGrid scales up for time-sensitive, high-volume email delivery.
Throwing them into one bucket might save some immediate dollars, but the cracks show fast. Systems can’t compensate for missing capabilities, leading to costly fixes and frustrating workarounds down the line.
The bigger issue? These cost-cutting strategies often fail to account for missed opportunities. Imagine a CFO replacing the company’s vehicles with bicycles because they’re cheaper. Sure, it saves money, but what about the opportunity costs of reduced productivity and limited range?
Overemphasis on cost-efficiency metrics undermines MarTech value
Too many companies obsess over cost-focused numbers—how much money we saved, how efficiently the systems run. Unfortunately, these metrics often miss the forest for the trees.
When businesses fixate on cutting costs, they risk falling into what Rory Sutherland calls a “race to the bottom.” It’s predictable, yes, but predictably harmful. Every dollar saved on MarTech may seem like a win until you realize the hidden price: frustrated customers, outdated campaigns, and missed revenue opportunities.
What’s the fix? Metrics that measure external outcomes like revenue per employee. These numbers show how MarTech actually drives business growth, not just how well it trims the fat. And the companies that get this right? They’re the ones that see their MarTech budgets expand because they’ve proven the value.
Balance internal agendas to maximize MarTech potential
Here’s the internal tug-of-war: IT departments want control, cost savings, and scalability. They’re focused on reducing redundancy and keeping systems secure. Marketing, on the other hand, wants agility. They want tools that let them innovate, test new ideas, and connect with customers in creative ways.
When these agendas clash, trust breaks down. IT accuses marketing of building “Shadow IT” (systems brought in without approval) and marketing fires back, blaming IT for slowing down innovation. It’s a vicious cycle.
The truth? Both sides are right. IT’s discipline keeps costs manageable and systems scalable, while marketing’s creativity fuels growth and relevance. The key is alignment—getting everyone on the same page about goals and priorities. As Dr. Phil says, “You can’t change what you don’t acknowledge.” In this case, that means recognizing and addressing these internal tensions head-on.
Align stakeholders for better MarTech usage
MarTech doesn’t live in a vacuum. It succeeds, or fails, based on the people managing it. And within most organizations, three groups steer the ship:
1. CIO/CTO/CFO group
These people care about one thing: keeping costs low and operations scalable. Their job is to simplify architecture, reduce duplication, and maintain reliable revenue streams. They focus on what’s called “red MarTech,” cutting out redundant or overlapping tools.
2. MarketingOps/admin/data group
This group sits at the intersection of efficiency and innovation. They’re tasked with optimizing MarTech usage, resolving technical backlogs, and reducing workloads. Their focus is “amber MarTech,” meaning they prioritize refining and improving what’s already in place.
3. CMO/marketing/CX group
These are the visionaries, constantly hunting for new ways to connect with customers and drive revenue. They’re focused on experimenting with cutting-edge tools and strategies, diving into “green MarTech” to expand the tech stack and pursue untapped opportunities.
Aligning these groups may not be easy, but it’s a must. A stakeholder matrix can map out responsibilities, clarify priorities, and prevent the kind of miscommunication that derails progress. Don’t try to create a hierarchy here. Instead, build a team that works toward shared goals.
With the right alignment, MarTech can stop being a budgetary question and start being a growth engine. And that’s where the real value lies.
Final thoughts
Are you treating MarTech as a cost to cut or as a tool to dominate your market? The brands that succeed build systems that anticipate tomorrow’s demands. Will your team align, innovate, and create real value, or will you be left scrambling while competitors seize the future?
