Chief marketing officers in the US will spend over $122 billion on marketing technology (martech) and services by the year 2022, according to Forrester’s US Marketing Technology and Services Outlook.
Forrester’s predictions, released on Monday, spans 2017-2022. The company states that growth in CMO technology spend will outpace that of services as marketers emphasize building customer experiences, automating more processes, investing in innovation and supporting more forms of mobile engagement.
This growth in martech and services will create a new marketing economy, Forrester predicts. The report sizes and explains the trends behind the growth in marketing, advertising, and data and analytics technologies as well as operations, advertising, and strategy services between 2017 and 2022.
CMOs scaled back on martech spending last year, however, according to the 2017-2018 Gartner CMO Spend Survey. Martech spending accounted for 22 percent of the marketing budget last year, compared to 27 percent in 2016. Paying for marketing services rose slightly last year, constituting 25 percent of budgets compared to 22 percent in the prior year.
“There has been a trend toward insourcing, with CMOs bringing strategically important capabilities such as analytics and digital commerce in-house,” Gartner noted with the findings.
Forrester predictions regarding marketing technology and services are similar in dollar amount to those made last year regarding digital marketing. According to a report released in January 2017, CMOs will spend nearly $119 billion on search marketing, display advertising, online video, and email marketing by the year 2021.
“These changes reflect a new emphasis on quality over quantity, a dynamic that will reintroduce human intervention into programmatic ad buying, turn marketers into growth hackers, and put long-tail publishers out of business,” predicted Forrester.
In addition, CMO spend on search will lose share to display and social advertising while video will scale.