Martech is booming, but companies are only scratching the surface
Marketing technologies (martech) have become a core part of modern marketing strategies. The Duke University CMO Survey, backed by Deloitte, reports that 75% of marketers have already adopted these tools. Broad adoption here is pointing to a clear shift towards tech-driven marketing.
These technologies, which range from automation tools and analytics platforms to customer relationship management (CRM) systems and social media management solutions, are changing how businesses interact with customers, generate leads, and drive conversions.
75% of marketers are on board with martech, are you?
Martech tools help marketers execute complex, multi-channel campaigns and deliver personalized customer experiences. With such a large percentage already onboard, any company not using martech risks falling behind in competitive industries. Even then, simply having access to these technologies isn’t enough.
Businesses are leaving 44% of their martech potential on the table
Despite the high adoption rates, companies are only using 56% of the martech tools they’ve purchased. Nearly half of these resources remain untapped, suggesting a lack of strategy or expertise in fully leveraging the tools.
Underutilization here may lead to missed opportunities to improve efficiency, optimize customer engagement, and increase sales. Many companies struggle with integrating different platforms or training staff, leaving the full potential of martech unrealized.
Martech drives success, but expectations don’t always match reality
Marketers expect martech to drive substantial results, but reality often falls short. The Duke University survey rated martech’s impact on business success at 4.7 out of 7, indicating moderate effectiveness.
While martech undoubtedly brings benefits, there is a 34% gap between what marketers anticipate and what martech actually delivers.
Discrepancies here point to potential inefficiencies, such as lack of training or fragmented tool implementation, that can prevent companies from extracting full value from their martech investments.
Most companies are tracking leads and sales but overlook customer value
Metrics are key in assessing martech’s effectiveness, with lead generation being the most commonly tracked performance indicator. A majority (76%) of companies use lead generation as a primary metric, while 68% focus on sales performance. Conversion rates, tracked by 65% of companies, also provide insights into how well martech tools are working.
Despite this focus on leads and sales, customer-oriented metrics receive less attention.
Only 28% of companies track customer lifetime value, and 27% measure loyalty. Pipeline acceleration, another critical metric, is monitored by just 23% of businesses, suggesting a gap in fully understanding long-term customer engagement and retention.
GenAI is starting to make a difference in marketing
Generative AI is still in the early stages of adoption, with only 7% of marketing activities currently using it. Even so, its impact is already measurable across several key areas.
AI tools are helping marketers automate content creation, improve customer targeting, and personalize campaigns at scale—suggesting that generative AI has the potential to become a much more integral part of marketing strategies in the near future.
Generative AI boosts sales, customer satisfaction, and cuts costs
Despite its limited use, generative AI has already shown clear benefits. The survey highlights a 5% increase in sales productivity, attributed to AI-driven efficiencies.
Customer satisfaction has also improved by 6%, thanks to more personalized and timely interactions powered by AI tools. Adding to this, marketing overhead costs have dropped by 7%, further proving that AI-driven automation can reduce manual efforts and streamline processes.
Rolling out AI in marketing comes with its own set of challenges
1. Tackling AI bias and fairness is key to successful implementation
One of the main challenges in implementing AI in marketing is addressing bias and fairness. AI models can unintentionally reinforce existing biases in data, leading to unfair outcomes in customer segmentation or targeting.
Marketers must carefully monitor these models to manage biases and make sure AI-driven decisions don’t unfairly impact specific customer groups. This requires constant vigilance and updating of data sets to maintain fairness and inclusivity.
2. Companies need the right infrastructure to unlock AI’s full potential
Beyond managing bias, deploying AI in marketing requires major infrastructure investments. To support AI operations, businesses need robust data systems, advanced analytics capabilities, and high-quality IT support.
Without this foundation, AI tools may fail to deliver their promised value, or worse, introduce inefficiencies. Companies must assess their infrastructure readiness before scaling AI solutions to avoid disruptions and maximize return on investment.
Marketing budgets are shrinking, but spending in key areas is still growing
While martech and AI adoption grow, marketing budgets are shrinking. The survey shows that marketing budgets, as a percentage of total company budgets, have fallen from 14% in 2022 to just 10% in 2024. This decline signals tighter financial controls and shifting priorities within businesses.
Despite this, marketing budgets as a percentage of company revenue have slightly increased, rising from 9% in fall 2023 to 10% in spring 2024—suggesting that while overall budgets are shrinking, marketing’s contribution to driving revenue is still recognized.
Digital marketing growth slows, but still projected to rise by 8%
Digital marketing spending is also expected to increase, but at a slower pace. After growing by 9% in 2024, the projected increase for the coming year is only 8%.
This slowdown most likely reflects a maturing market, wherein digital marketing channels are becoming more saturated. Companies may focus more on optimizing their current digital efforts rather than expanding into new platforms.
Social media spending will hit 16% of budgets in the next five years
Social media marketing remains a key growth area, with spending expected to reach 11% of marketing budgets by 2024. Over the next five years, this figure is projected to rise to 16%, due to the ongoing shift towards social platforms for customer engagement, brand building, and lead generation.
Final thoughts
As martech and GenAI continue to disrupt the marketing world, the question every brand must ask is: Are you fully using the tools at your disposal, or are you leaving potential untapped?
It’s time to consider how optimizing your martech strategy and integrating AI can push your brand ahead of the competition. Are you ready to make the leap and unlock new growth opportunities?
