Marketing technology, or MarTech, encompasses a wide range of digital tools that help businesses achieve their marketing goals. It’s also an important area to watch for growth.
Even with mergers and acquisitions, nearly a fifth of current MarTech solutions are still new. To me, this paints a clear picture of a thriving industry.
As we continue to become a more tech-centric society, the numbers suggest that MarTech will continue to play a significant role. That said, there are some hurdles that need to be addressed. Below, I outline why privacy concerns matter, how social media can drive sustainable growth, why investors are interested in MarTech startups, and where I think the future of the industry is headed.
Privacy: The Elephant in the Room
MarTech is now a $121 billion market, so the challenge of ethical data collection is serious.
No one minds when aggregated data makes life easier with personalized user experiences, streamlined workdays, or better profits. However, the public often feels uncomfortable when they understand that we are tracking and analyzing personal data.
To counter these feelings of uncertainty, regulators are ramping up consumer protections, which is good for privacy but frustrating for marketers. Remember the European Union’s GDPR directive? The entire internet has had to scramble to adapt, costing more than $9 billion.
Statistics show that demand for data protection has skyrocketed, and brands like Apple have been rolling out privacy updates to respond. These policies will continue to be enforced, so we need to be proactive.
Change the story
Did you know that 67% internet users don't know what their country's data protection and privacy rules are? Worse still, 79% internet users worldwide feel they have no control over their data. This means it's our job to educate and empower the public.
So let’s change the conversation around privacy. For my startup, I decided a proactive approach was best. The sooner MarTech and AdTech startups can build transparency into their brand strategies, the sooner they can move forward and address other challenges.
Social Media Marketplace is the Final Frontier
Social media is the final frontier for businesses looking for new avenues to grow active users. Last year, Facebook grew 7.3%, while Reddit, Twitter, Pinterest, and Snapchat grew 20%.
Consumers want to find your products, engage with your brand and share your content. The trick is knowing how and when to give them what they want. For example, my startup launched in 2020 and thanks to a strong social media presence, we have already booked 100,000 customers globally. We make sure our services are visible on all major platforms and we make lead generation an integral part of our marketing strategy.
Show me the money
The MarTech sector is currently awash with VC money. Even in 2020, top projects have closed six-figure deals.
Here are some notable things:
- Engagio, an account-based engagement platform, has been acquired by Demandbase.
- Ceros, a cloud-based design platform, has raised $100 million in investment.
- Evergage, a real-time personalized customer data platform, has been acquired by Salesforce.
Another omnichannel customer engagement platform, Emarsys, was acquired by SAP in October 2020. This shows that the current wave of acquisitions includes global corporations.
Even my startup has attracted investor interest. We raised $2 million in 2021 and solidified our relationships with firms like TMT Investments and YellowRockets.
Where do marketers go from here?
A recent survey found that 69% marketers believe they will produce better results with fewer resources from now on. As a result, only brands with effective, budget-friendly solutions will thrive.
Another avenue to pursue is customer education. According to research, even skeptics will embrace MarTech if marketers can show them how it will improve their marketing strategies.
Ultimately, the ability to communicate across businesses will be essential to successful digital transformation. If you’re still trying to compartmentalize, you’ll be left behind.
Wrap it up
Businesses across all industries are ready to invest in MarTech right now — marketers just need to prove it’s worth their time and money. The industry is 8,000 companies and growing. On-premise acquisitions are becoming more common, and global reach is becoming a make-or-break part of marketing strategies.
Despite the challenges of addressing privacy concerns and finding new avenues of growth, there is still a lot of exciting, unexplored territory to cover in MarTech.
Original post: https://news.crunchbase.com/news/martech-marketing-tech-social-media/
Translated by: Phan Cong Duy
