Chief marketing officers are under increasing pressure to cut their spend on marketing technology solutions, according to Gartner.
The organisation’s 2023 study, entitled The State of Marketing Budget and Strategy, found 75% of 408 cross-sector CMOs polled, said they were under growing pressure to cut spend on martech, despite recognising the importance of analytics in the current trading environment.
“In an environment focussed on the promise of the new, it is easy to discard legacy investments but CMOs must face today’s challenges with what they have in their toolbox today, not tools they plan to have tomorrow,” said Ewan McIntyre, chief of research for marketing at Gartner.
“Tech utilisation rates are falling, hitting a low of 42% in 2022, down from 58% in 2020. CMOs indicated that they were most likely to defund continuous optimisation programmes.”
Lisa Marie-Mallier, founder of strategic marketing agency No Fluff Communications, said it is still possible for marketers to reduce spend by identifying more cost-effective technology and harnessing AI solutions.
“In today’s fiercely competitive world, standing out is an absolute must. For marketers, it’s time to strike the balance between tech magic and simplicity to make it big. As digital channels reshape customer interactions, agility is our superpower,” she said.
“Amid budget pressures, optimising tech for measurable ROI and smart resource allocation keeps us ahead of the game. Never forget, customer experience is the ultimate key to unlocking loyalty and driving profits. Let’s keep our customers at the heart of everything we do, no matter the channel.”