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MARKETING

TECHNOLOGY
2017
Putting Customer Data at
the Center
FEBRUARY 2017
Nicole Perrin
Contributor: Tracy Tang

Read this on
eMarketer for iPad
MARKETING TECHNOLOGY 2017: PUTTING CUSTOMER DATA AT THE CENTER
Marketers continue to adopt technology to support their efforts, and to refine their use of these tools. The
spotlight is on data as customer expectations pressure marketers to provide a personalized brand experience
across channels.

■■ As marketers continue to adopt more tech—and to US Marketers Who Agree that Their Company Invests
improve in their use of it—they’re becoming more the Right Amount in Marketing Technology,
2015 & 2016
satisfied with the tools they have to do their jobs. % of respondents

The best-of-breed tech stack, which uses tools from 9%


■■ 4%
multiple vendors, is winning out over single-vendor 25%
suites and other options. Although integration is 42%
a perennial issue as new tools are adopted, major
platforms have made progress in facilitating it.
47%

■■ Leading marketers are looking to be more strategic


41%
about their use of technology as they focus on making
data-driven decisions across channels. 24%
9%
■■ Marketing technology is just one component of digital 2015 2016
transformation at brands, but it can lead the way as Strongly agree Agree Disagree Strongly disagree

organizations focus on consumer expectations and the Note: numbers may not add up to 100% due to rounding
Source: Walker Sands Communications and Chief Marketing Technologist,
customer experience. "State of Marketing Technology 2017: Closing the Gap Between Martech
Innovation and Adoption," Nov 2, 2016
WHAT’S IN THIS REPORT? This report examines marketing 219256 www.eMarketer.com

tech adoption, which tools are most popular, how KEY STAT: A survey of US marketers by Walker Sands
marketers are dealing with data from across the Communications and Chief Marketing Technologist found
organization and how marketing technology supports that 29% of respondents believed their company had
broader digital transformation goals at brands. not invested the right amount in marketing tech in 2016,
down from 51% in 2015.

CONTENTS
2 Marketing Technology 2017: Putting Customer Data
at the Center
3 More Marketing Tech, Fewer Problems
7 Customer Data Drives Personalized Experiences
10 Better Marketing Through Digital Transformation
10 A Still-Busy Vendor Landscape
11 eMarketer Interviews
12 Related eMarketer Reports
12 Related Links
12 Editorial and Production Contributors

MARKETING TECHNOLOGY 2017: PUTTING CUSTOMER DATA AT THE CENTER ©2017 EMARKETER INC. ALL RIGHTS RESERVED 2
MORE MARKETING TECH, As marketers spend more on tech, practitioner attitudes
toward marketing tech adoption are improving. For
FEWER PROBLEMS example, 71% of respondents to the Walker Sands/Chief
Marketing Technologist survey said their company
Technology accounts for a significant share of invested the right amount in marketing tech, up from
marketer budgets. According to an August 2016 50% who agreed with that statement a year earlier.
survey by Gartner, more than a quarter of marketing
budgets at large firms in North America and the UK US Marketers Who Agree that Their Company Invests
went to technology, including marketing tech as well the Right Amount in Marketing Technology,
2015 & 2016
as general infrastructure. % of respondents
9%
4%
Allocation of Total Marketing vs. Marketing
Technology Budget According to Marketers in 25%
North America and the UK, Aug 2016
42%
% of total
Other
1% Marketing technology
47%
Infrastructure 23%
External services to develop, 21%
implement and integrate 41%
Services Labor marketing apps
22% 28%
Marketing software as a service 20% 24%
Analytics software as a service 19% 9%
Paid
media Cross-charges from internal IT 17% 2015 2016
22% Technology
27% Strongly agree Agree Disagree Strongly disagree

Note: numbers may not add up to 100% due to rounding


Total marketing Source: Walker Sands Communications and Chief Marketing Technologist,
"State of Marketing Technology 2017: Closing the Gap Between Martech
Note: n=377 Innovation and Adoption," Nov 2, 2016
Source: Gartner, "CMO Spend Survey 2016-2017," Oct 24, 2016 219256 www.eMarketer.com
220994 www.eMarketer.com
They were also more likely to agree with the statement
October 2016 polling from Walker Sands Communications that the marketing tech available at their job was
and Chief Marketing Technologist found that most up-to-date and sufficient, at 69% in 2016 vs. 58% a year
US marketers spent under a quarter of their budgets earlier. Respondents still noted obstacles in their way,
on marketing tech, including more than a third who but nearly all of these were significantly less likely to be
allocated between 11% and 25% of their budgets to tech cited than they had been a year earlier. Only the lack of
tools. That spending is likely to go up in 2017: 70% of information had become more of a problem.
respondents said their budgets would rise this year.

Nearly two-thirds of US marketing executives surveyed Obstacles to Implementing New Marketing


Technology According to US Marketers, 2015 & 2016
by web presence management and search engine
% of respondents
optimization firm Conductor said their marketing tech
2015 2016
spending would increase between 1% and 50% this year.
Budget 69% 50%
Just 5% expected tech budgets to decrease, and 19%
Internal resistance to change 33% 25%
said they would stay the same. Difficulty of implementation/integration 35% 24%
Lack of information 10% 13%
According to the Walker Sands/Chief Marketing Lack of executive buy-in 22% 12%
Technologist survey, marketers themselves were more Lack of interest 10% 10%
likely to manage and choose these tech purchases than Nothing meets our needs 7% 7%
any other department: 41% of respondents said this We don't need new marketing technology 20% 10%
responsibility lies with marketing, while 13% said IT. Other 3% -
Note: respondents chose their top 3
Source: Walker Sands Communications and Chief Marketing Technologist,
"State of Marketing Technology 2017: Closing the Gap Between Martech
Innovation and Adoption," Nov 2, 2016
219281 www.eMarketer.com

MARKETING TECHNOLOGY 2017: PUTTING CUSTOMER DATA AT THE CENTER ©2017 EMARKETER INC. ALL RIGHTS RESERVED 3
As technology has become more embedded in marketing Email Marketing Automation Capabilities According
departments, it’s become important for marketers to to In-House Marketers vs. Agencies* Worldwide**,
evaluate how they are using it—and also to evaluate 2014-2016
% of respondents
new tech they aren’t using (yet). The Direct Marketing
Association (now known as the Data & Marketing In-house marketers
2014
Association) and Winterberry Group found that 44.1% of 41% 48% 11%
US marketers polled said evaluating their current use of 2015
marketing tech was a likely or significant priority in Q2 43% 48% 9%
2016, while evaluating new and emerging marketing tech 2016
was even more important, cited by 52.0%. 47% 48% 5%

Agencies*
Duane Schulz, vice president of digital and demand 2014
marketing and technology at Xerox, said this was a key 19% 65% 16%
step in building a marketing tech stack. “We found you 2015
couldn’t really build a stack until you’ve discovered all the 19% 64% 17%

tools and got everyone to be transparent about what they 2016


26% 57% 17%
are using, even to the point of getting procurement to tell
you about POs [purchase orders] you didn’t know about,” Advanced Basic Nonexistent
he said. Note: in-house marketers n=467 in 2014, n=483 in 2015 and n=494 in 2016;
agencies n=236 in 2014, n=246 in 2015 and n=210 in 2016; *agencies were
asked about the capabilities of their brand partners; **57% of 2016
respondents were UK-based

EMAIL AND SOCIAL TOOLS IN THE LEAD


Source: Econsultancy, "Email Marketing Industry Census 2016" in
association with Adestra, April 12, 2016
221379 www.eMarketer.com

According to the Walker Sands/Chief Marketing


Customer relationship management (CRM) tools have
Technologist survey, social media marketing tools were
also seen increasing popularity, and software providers
the most popular planned marketing tech purchase for
are seeing increasing revenues to match. According to a
marketers in 2017, cited by 32% of respondents. That
Gartner study, CRM software revenues worldwide were
compared with 28% who planned to buy ad tech tools
up 12.3% in 2015 over 2014.
and 27% who planned to buy email marketing tools.
Content marketing tools came in fourth place, at 21%,
The rise of account-based marketing—a strategy
and were the only other type of marketing technology
that allows business-to-business (B2B) marketers to
mentioned by more than 15% of respondents.
identify and target the accounts and the stakeholders at
those accounts that are the most valuable—is another
The survey also asked what tools respondents had
catalyst for marketing tech adoption. According to
purchased over the past three years, and the same four
SiriusDecisions, more B2B marketers around the world
came out ahead.
used a slew of tech tools to support the sales technique
in 2016 compared with 2015, including marketing
Marketers are making advancements in automation when
automation (up 7 percentage points), web analytics tools
it comes to email—at least, they think they are. In-house
(up 11 percentage points) and web optimization and
marketers queried worldwide in 2016 by Econsultancy
personalization tools (up 9 percentage points).
and Adestra were more likely to say that their email
automation capabilities were advanced than in the past
two years of the survey. They were also less than half
as likely to say these capabilities were nonexistent, with
the percentages falling from 11% in 2014 to 5% in 2016.
But their agency partners did not report the same kind
of progress.

MARKETING TECHNOLOGY 2017: PUTTING CUSTOMER DATA AT THE CENTER ©2017 EMARKETER INC. ALL RIGHTS RESERVED 4
Technologies Used for Account-Based Marketing According to Real Story Group research, marketers
(ABM) According to B2B Marketers Worldwide, are most likely to report maturity in marketing tech
2015 & 2016 applications that are relatively unsophisticated. For
% of respondents
example, 54% of the marketing technology practitioners
Sales force automation surveyed in January 2016 (most of whom were in North
81%
America) said they were “very” or “reasonably mature”
80%
with respect to social media monitoring, and 53% said
Marketing automation
the same with respect to social media marketing.
67%
74%
When it came to more complex applications, such as lead
Account-based advertising
54% management and nurture, most respondents were “just
62% starting.” Among business-to-consumer (B2C) marketers
Web analytics tools surveyed, just 35% had very or reasonably mature lead
46% and offer management programs, while 39% of B2B
57% respondents were at least reasonably mature.
Web optimization/personalization
43%
52% Best-of-Breed Is Best
Social media monitoring tools According to the Walker Sands/Chief Marketing
33% Technologist research, best-of-breed marketing stacks,
37% which integrate components from multiple vendors, are
Predictive analytics tools winning out over single-vendor solutions. Nearly half of
27% respondents reported using best-of-breed architecture,
2015 2016 including 27% who said theirs was integrated. Just 21%
were still using a single-vendor suite.
Source: SiriusDecisions, "2016 State of Account-Based Marketing (ABM)
Study," April 21, 2016
Best Description of Their Marketing Technology Stack
211370 www.eMarketer.com
According to US Marketers, Oct 2016
The same survey found that 35% of B2B marketers % of respondents
worldwide planned to invest more in marketing Proprietary technology ("dark martech")
4%
automation platforms in 2016, though that was down None
7%
from 41% who said the same in 2015. More than three
Integrated best-of-
in 10 respondents also planned to invest more in website breed architecture
personalization tools, salesforce automation and CRM Single-vendor suite
27%
tools, and web analytics tools. Each of these options was 21%
Fragmented best-of-
also down slightly from 2015. breed architecture
Limited piecemeal 21%
solutions
Email marketing solutions provider dotmailer queried 21%
marketers worldwide in March 2016 about which software
and services they were spending their marketing tech Note: numbers may not add up to 100% due to rounding
Source: Walker Sands Communications and Chief Marketing Technologist,
budgets on over the next year. Two-thirds of respondents "State of Marketing Technology 2017: Closing the Gap Between Martech
Innovation and Adoption," Nov 2, 2016
(65% of whom were in the UK) pointed to email 219257 www.eMarketer.com
marketing tools. Nearly half said they planned to spend
on CRM. Social media management, search engine “The best-of-breed marketing stack has for all practical
optimization and analytics tools all came in ahead of purposes won,” said Scott Brinker, editor of Chief
marketing automation, at 36%. Marketing Technologist and co-founder and chief
technology officer for ion interactive. “For midsize
businesses on up, it’s really hard to find a company now
that isn’t using a best-of-breed stack, and it’s become a lot
more feasible because the major platforms have become
much better at supporting a platform ecosystem.”

MARKETING TECHNOLOGY 2017: PUTTING CUSTOMER DATA AT THE CENTER ©2017 EMARKETER INC. ALL RIGHTS RESERVED 5
Those ecosystems can be large. The Walker Sands/Chief Annuitas found improvements in integration between
Marketing Technologist survey found that about one in 10 marketing automation and CRM systems among US B2B
marketers who had integrated best-of-breed architecture marketers in 2016. A year before, 29.5% of respondents
were using at least 10 marketing tech tools. Xerox’s Schulz had said they either had no integration between these
explained that his team uses a “core” stack of about 15
systems, or they didn’t know if they did. In 2016, that
tools, but also relies on “another 70 or 80 that are what we
number fell to 23.0%, due to small increases in the
call independent or satellite tools.”
shares with bidirectional integration as well as one-way
One reason for the success of best-of-breed stacks is the integration between the two systems.
subjective nature of “best”—they aren’t the same for
every firm. “These are winning out because there’s a lot of
variance from one business to another in how they want to US B2B Enterprise Marketers Whose Marketing
market and who their audience is,” said Brinker. “The best Automation (MAS) and CRM Systems Are Integrated,
2015 & 2016
stack for one company could be a very different set of tools
% of respondents
than one of their competitors, even in the same industry.”
Yes, but Yes, Yes,
strictly bidirectional Yes, but bidirectional
one-way integration with strictly Don't integration with
CRM changes one-way know CRM changes
THE CHALLENGES OF INTEGRATION
marketing
automation applied to MAS marketing 9.2% applied to MAS
to CRM 43.2% automation 45.9%
27.4% Don't to CRM
Integrating various components of the marketing tech know 31.2%
stack has been a pain point for marketers, but there are 13.7%
No
signs of improvement. Two in five marketers surveyed No 13.8%
15.8%
worldwide in October 2016 by demand generation
firm Ascend2 said their marketing technologies were
“extensively” integrated, though a larger share reported
only marginal integration. Among the B2B marketers
surveyed worldwide in March 2016 by Dimensional 2015 2016
Research for digital business transformation firm Note: numbers may not add up to 100% due to rounding
Progress, 44% said that all their marketing systems Source: Annuitas, "2016 B2B Enterprise Demand Generation Survey," Oct
27, 2016
were integrated and share data. A majority said some 219248 www.eMarketer.com
systems were.
But other systems may remain unintegrated. For
example, 51% of US B2B marketers surveyed by
Extent to Which Their Marketing Technologies Are Demand Metric and Socedo in August 2016 said their
Integrated According to Marketers Worldwide,
Oct 2016 social media marketing systems were not integrated at all
% of respondents with their marketing automation or CRM platforms. Just
15% reported integration with both automation and CRM.
Not
integrated
5% And integration may not be real-time. Significant numbers
Extensively
of systems are still integrated via batch processes,
integrated where they share data only on a scheduled basis,
40%
according to the Progress research. Rishi Dave, CMO
Marginally integrated
55% at Dun & Bradstreet, noted that a big challenge they
would be focused on this year was surfacing data and
analytics to the right groups on the marketing team in
Source: Ascend2, "Marketing Technology Trends Survey Summary Report," real time, so they could use it to make decisions and
Oct 12, 2016 create campaigns.
217991 www.eMarketer.com

MARKETING TECHNOLOGY 2017: PUTTING CUSTOMER DATA AT THE CENTER ©2017 EMARKETER INC. ALL RIGHTS RESERVED 6
Integration is also about more than just plugging one
piece of technology into another—marketing tech
CUSTOMER DATA DRIVES
must also be integrated into organizations in terms of PERSONALIZED EXPERIENCES
people and processes. This might mean reorganizing
marketing teams, or finding other new ways to work When marketers are surveyed about what they
together. Dave described Dun & Bradstreet’s use of hope to gain from adopting marketing tech, “data”
“tiger teams,” which comprised experts from various is one common response. This is something of a
departments and were put together in hopes of getting tautology: Any new tech tool is guaranteed to collect
the most out of marketing technology. While the process
and generate marketing data. But data—specifically,
of cross-functional experts learning to work together
was sometimes painful, he said, it was working so well customer data—is nevertheless at the undisputed
that the company is now rolling out the experiment to center of the marketing tech ecosystem.
other departments.
Sean Brown, chief technology officer at agency Organic,
At Xerox, the organic changes in structure that bubbled up noted that recognition of the importance of data
thanks to adoption of technology ended up significantly goes hand in hand with successful use of marketing
changing Schulz’s role. When he was interviewed a year technology. “Those [marketers] that have already begun
ago for the previous edition of this report, he was Xerox’s to put the effort in to put marketing technologies in
chief marketing technologist. Over the course of 2016, place are the ones that recognize that the data that they
he took on the digital, social and content marketing have—about their customers, about their clients, about
team. This year, as vice president of digital and demand their own systems, where consumers are going—is a
marketing and technology, he’s taking on a unified real asset,” he said. “They are the ones that have moved
demand generation center. the furthest.”

“What we find is as you develop clarity around your “[Data is] the one area where we have the most work
stack, it’s really not about the stack anymore; it’s about to do,” Xerox’s Schulz said. “If you think of these
the business impact and purpose of the tools,” Schulz technologies as kind of a combination of content,
said. “Then how you are using these tools does have technology engine and data, data is the weakest link
organizational implications.” for us.” He added that a high priority for 2017 is “putting
together a whole new kind of marketing data model
that will allow for the data to influence the customer’s
experience instead of just teaching us things we want to
know after the fact.”

One theme of the interviews conducted for this report


was that while digital marketing and technology had
already helped marketers make more data-driven
decisions within channels, the next step would be making
those decisions across channels, incorporating data
from email, offline, the website and more to drive the
customer experience across the board. Brown felt that
last year was a turning point.

“In years past, I’ve seen plenty of clients who still looked
at their website as a siloed means of communication, and
their proactive email communications as a completely
separate endeavor,” he said. “Over 2016, the majority
of our clients have really begun to make those moves
to integrate all their consumer touchpoints, and do that
using marketing technology.” He expects the trend to
accelerate in 2017.

MARKETING TECHNOLOGY 2017: PUTTING CUSTOMER DATA AT THE CENTER ©2017 EMARKETER INC. ALL RIGHTS RESERVED 7
Wayne Townsend, president of technology practice at Data-Related Strategies that Would Offer the Greatest
Epsilon, pointed to a similar shift among his company’s ROI According to UK/US Marketers, Sep 2016
clients and noted that customer expectations around a % of respondents
unified multichannel brand experience are driving the Bringing many data sources together into a cleansed and
marketing-ready 360-degree customer view
change. “They’ve gone from looking at it tactically, by
43.1%
channel, to looking at it from a consumer standpoint,
Effectively segmenting specific customer audiences in real time
and realized that this siloed or channel-specific view is based on behavior, demographics, etc.
insufficient,” he said. “They have to flip it back to what 40.1%
the consumer expectations are, and those have changed Automatically coordinating concurrent campaigns to prevent
customers being inundated with multiple communications
dramatically over the past five years.”
38.1%
Connecting all channels for a consistent omnichannel customer
Using data to create a personalized customer experience experience
is what many marketers point to as the holy grail for 35.1%
marketing technology. According to February 2016 Automatically predicting customer behaviors before they
research from The Economist Intelligence Unit (EIU) happen
34.7%
and marketing automation platform Marketo, marketing
Reacting to and changing data and campaigns in a timely fashion
execs around the world believed that personalization to optimize marketing performance
technologies would be one of the biggest tech trends 25.7%
affecting them in coming years. Nearly half said it would Accurately calculating the value of each customer
have a major impact by 2020, ahead of those who 21.8%
expected to be jolted by predictive analytics, artificial
Source: BlueVenn, "Myths of Marketing Survey," Nov 24, 2016
intelligence or wearables, among other trends. And 221160 www.eMarketer.com
according to November 2016 research from customer
data platform and orchestration engine Boxever, many Relatively few of these marketers were actually doing
US senior-level marketers are already automating either, however. BlueVenn found that just 18.3%
personalization, especially on their websites (82%), in of respondents were unifying their data sources to
email (81%) and on mobile apps (78%). provide a 360-degree customer view, and 19.3%
were doing real-time customer segmentation—fewer
But high levels of omnichannel personalization or than had implemented any of the other, less valuable
customization require a strong foundation: cross-channel marketing strategies in the chart above. More than half
data collected, cleansed and integrated to provide a of respondents were working to implement each of the
360-degree view of the customer, sometimes referred to leading two strategies.
as a single customer view. When marketing automation
software company BlueVenn surveyed US and UK Similarly, just 25% of client-side marketers surveyed
marketers in September 2016 about the most valuable worldwide by Econsultancy and Adobe in August 2016
data-related strategies, this foundation ranked at the top had a single customer view at their company, with an
of the list. In second place was using the single customer additional 38% working toward this capability. Only 12%
view to provide personalized communications to audience had joined up digital with offline data, and the same share
segments in real time. were making data-driven marketing decisions in real
time. Still, this was up from a similar survey conducted in
November 2015, also by Econsultancy and Adobe, which
found that 13% of client-side marketers worldwide were
“currently implementing” a single customer view.

The BlueVenn survey found that the biggest barrier to


a single customer view was internal capabilities, cited
by 29.2% of respondents, with cost not far behind, at
26.7%. The Econsultancy/Adobe research, in both 2015
and 2016, found client-side marketers worldwide pointing
fingers at tech platforms that were not integrated. And
that integration did not appear to be improving.

MARKETING TECHNOLOGY 2017: PUTTING CUSTOMER DATA AT THE CENTER ©2017 EMARKETER INC. ALL RIGHTS RESERVED 8
Type of Technology/Platform Used by Their Company Likely thanks to these problems, marketers also lack
to Manage Data Across Channels According to confidence in what they’re learning from data. For
Client-Side Marketers Worldwide, 2015 & 2016 example, according to a July 2016 survey of data and
% of respondents
analytics decision-makers worldwide conducted by
Separate, nonconnected technologies managing data for Forrester Consulting for KPMG, just 38% of respondents
different channels
50% said they were confident in the customer insights they
51% got from data and analytics. Even fewer were confident
Separate but connected technologies for different channels about what data and analytics taught them about
30% business operations.
29%
Single platform that can manage data from some channels, but Chris Curtin, chief brand and innovation marketing officer
not others
at Visa, emphasized that using data is not a strictly
12%
objective affair. The best approach to data, in his view,
15%
is to collect information and then “formalize how you
Single platform that manages data across multiple channels
8%
subjectively will apply whatever comes from that data to
5% future action.” After all, the data gleaned from marketing
technology shouldn’t just be a “rear-view mirror,” he said,
2015 2016
but would be “used to inform future action—and at that
Source: Econsultancy, "Digital Intelligence Briefing: Succeeding in the point you are into the interpretation business.”
Omnichannel Age" in association with Adobe, Sep 22, 2016
216991 www.eMarketer.com
And the interpretation business is a human one. Drew
Nearly six in 10 marketing professionals surveyed Neisser, founder and CEO of agency Renegade, said that
worldwide in November 2016 by the Customer Data his recent conversations with CMOs pointed to “a swing
Platform (CDP) Institute, a vendor-neutral firm dedicated away from overreliance on data” among marketers, who
to helping marketers manage customer data, said a single had an appreciation of data but who did “not believe
customer view was an obstacle to their success. That they could be replaced by 100% logic-based computers.
surpassed any other problem, including budgeting and They all can cite recent examples in which either the data
staffing. The same survey found more than two-thirds of they held was incomplete or inclusive yet a decision was
respondents considered a single customer view “very” required, one they ultimately made based on experience
or “extremely” important. Just 6% thought it wasn’t and intuition.”
important. Respondents pointed to budgets, as well as
the difficulty of extracting data from their sources, as their Even with a solid data foundation in place, that’s just the
main obstacles. first step toward orchestrating customized experiences
across channels. “We draw the picture in three layers,”
Obstacles to Building a Single Customer View said David Raab, principal at Raab Associates and founder
According to Marketing Professionals Worldwide*, of the CDP Institute. “We have a data layer, which
Nov 2016 includes all the data assembly. We have a decision layer,
% of respondents
which is where you decide what messages to send. And
Budget 41% then we have an execution layer, which is the email, the
Extract from source 39% website and all the systems that actually connect directly
Organizational roadblocks 31%
with the consumer.”

Other priorities in IT 29%


Fully automating these processes is possible, but few
Other priorities in marketing 29% marketers are there yet. “It’s still very much leading
Systems can't use 29% edge,” Raab said.
Skills to build 17%

Skills to use 15%

Technology 14%

Note: *72% of respondents were from North America


Source: Customer Data Platform (CDP) Institute, "Best Practices in Building
a Unified Customer Database," Nov 22, 2016
220370 www.eMarketer.com

MARKETING TECHNOLOGY 2017: PUTTING CUSTOMER DATA AT THE CENTER ©2017 EMARKETER INC. ALL RIGHTS RESERVED 9
BETTER MARKETING THROUGH A STILL-BUSY
DIGITAL TRANSFORMATION VENDOR LANDSCAPE
Marketing technology is about more than just Marketing technology is maturing, as brands get more
marketing, especially at companies leading the comfortable with and sophisticated about the tools
way in their sophisticated use of tech tools. It available. But on the vendor side, startup activity
supports overall organizational goals of digital continues to be faster than consolidation—which is
transformation—and in many cases gives marketing also proceeding quickly.
teams a chance to help lead that transformation and
PitchBook data reported in The Wall Street Journal in
take responsibility for customer experience in the
August 2016 indicated that US venture capital spending
new digital world.
on marketing tech and ad tech firms was in decline.
Marketing tech companies were seeing significantly more
At Xerox, implementing marketing tech has meant more
investment than those more focused on ad tech, a trend
than just doing the same-old marketing activities at
that began in 2013 and looks set to continue.
greater scale. Now, instead of spray-and-pray outbound
email, the organization has a lead nurture program based
“Investors have invested an incredible amount in ad
on an individual’s history, for example. “Our website
tech,” said Brian Andersen, partner at digital media- and
alone has moved from being a marketing-centric product
marketing tech-focused investment bank Luma Partners.
environment to a storytelling editorial environment
“If you’re a new small company in ad tech, it’s tough to
because our tools caused us to start thinking about what
get funding. Martech is where we’ve seen more investing
we were delivering as opposed to thinking everything as
lately, but that’s starting to taper off and now it’s more
just a big catalog,” said Schulz.
about sales tech,” as well as other emerging tech. Still,
he believed that there is capital available for leading firms
Curtin said digital transformation was absolutely central to
who have proven their value: “Investors realize this is still
Visa as an organization. “It’s the epicenter in that so much
a growing market.”
of the innovation is coming from the digital world, and
that innovation is beginning to cross-pollinate its way into
According to Luma Partners, mergers and acquisitions
everything else that we have been doing traditionally.”
of US ad tech firms continued in early 2016 at about the
same pace shown in 2015, after a lull in Q4 2015. But
“Everything is about digital transformation, across
marketing tech merger and acquisition activity in the US
everything we do,” said Dun & Bradstreet’s Dave.
was down in Q1 2016 for the second quarter in a row,
“We’re increasingly moving our products to ‘as-a-service’
after peaking in Q3 2015.
because our customers are demanding it, so digital
transformation is fundamental, to marketing as well as
Results International analyzed worldwide merger and
product strategy, development and customer support.”
acquisition activity collected from press releases as well
as from Capital IQ, Mergermarket and 451 Research
While digital transformation may be occurring across
between 2013 and Q2 2016 and found the number of
the organization, Epsilon’s Townsend believes there
deals each quarter were steady between early 2014 and
is value in approaching the problem specifically from
mid-2016.
a marketing perspective. “It has to be a customer- or
consumer-centric view of digital transformation, or you
miss a lot of the point,” he said. “If you start with the
consumer transformation and flow downhill from that to
the people, processes and technology in an enterprise,
it does all hang together. [But] if you just take the
technology view across the enterprise, you miss a lot of
the point of what a digital transformation is and why it’s
happening from a marketing standpoint.”

MARKETING TECHNOLOGY 2017: PUTTING CUSTOMER DATA AT THE CENTER ©2017 EMARKETER INC. ALL RIGHTS RESERVED 10
Ad Tech and Marketing Tech Company Mergers and
Acquisitions Activity Worldwide, Q1 2013-Q2 2016
EMARKETER INTERVIEWS
number of transactions
113 112
What’s Next for the Marketing Technology Landscape
108 111
106 107 in 2017
101 98 101 100
Brian Andersen
Partner
74
Luma Partners
Interview conducted on January 12, 2017
54 52
43
Chief Marketing Technologist Editor Excited
About Ambiguity
Scott Brinker
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Editor
Chief Marketing Technologist
2013 2014 2015 2016
Co-Founder and Chief Technology Officer
Source: Results International, "AdTech & MarTech Barometer: Q2 2016 ion interactive
Market Review," July 12, 2016
Interview conducted on December 12, 2016
221457 www.eMarketer.com

The value of those deals varied widely, however, The Technology Challenges Holding Marketers Back
with spikes in Q3 2014 when Alliance Data acquired from Single Customer View
Conversant, as well as in Q2 2015 thanks to Verizon’s
Sean Brown
acquisition of AOL and in Q2 2016 when Demandware,
Chief Technology Officer
Marketo, Cvent and Sitecore were all bought.
Organic
Interview conducted on January 9, 2017
When Chief Marketing Technologist editor Brinker
constructed his annual compilation of marketing tech Boxever Tackles the Challenge of the Single Customer
company logos in March 2016, he found his list had more View to Personalize Across Channels
than doubled since the previous year. However, he noted
that many of the “solutions” he listed fit in more than one John Callan
category, and thus were double- or even triple-counted. Vice President, Marketing
Boxever
Interview conducted on January 11, 2017
Andersen suggested that in the future, more of these
specialized vendors will continue to be gobbled up by the
major marketing cloud platforms as the focus turns to At Xerox, the Marketing Technology Stack Leaves
Center Stage
cross-channel integration of customer data and marketing
offers. To that end, he said, “I think you’re going to see Duane Schulz
more pure blocking-and-tackling integration within the Vice President, Digital and
clouds, but also adding capabilities to their portfolio that Demand Marketing and Technology
will enable better orchestration.” Xerox

Interview conducted on January 5, 2017

Similarly, Raab pointed to growth among firms that are


enabling marketers to build the customer databases that Chris Curtin
are fundamental to these orchestration efforts. Chief Brand and Innovation Marketing Officer
Visa
Interview conducted on January 3, 2017

Rishi Dave
CMO
Dun & Bradstreet
Interview conducted on January 12, 2017

MARKETING TECHNOLOGY 2017: PUTTING CUSTOMER DATA AT THE CENTER ©2017 EMARKETER INC. ALL RIGHTS RESERVED 11
Drew Neisser RELATED LINKS
Founder and CEO
Renegade
Adestra
Interview conducted on January 10, 2017
Adobe
David Raab Annuitas
Principal
Raab Associates Ascend2
Founder BlueVenn
Customer Data Platform (CDP) Institute
Interview conducted on January 5, 2017
Boxever
Chief Marketing Technologist
Wayne Townsend Conductor
President, Technology Practice
Epsilon
Customer Data Platform (CDP) Institute
Interview conducted on January 9, 2017 Data & Marketing Association (DMA)
Demand Metric
Pini Yakuel
Founder and CEO
Dimensional Research
Optimove dotmailer
Interview conducted on January 10, 2017
Econsultancy
Forrester Consulting
Fred Moretti
Associate Director, Marketing Sciences Gartner
Mindshare North America KPMG
Interview conducted on January 13, 2017
Luma Partners
Marketo
RELATED EMARKETER REPORTS Progress
Real Story Group
Cross-Device Targeting: A More Holistic Audience View
and a More Compelling Customer Experience Results International

The New Display Ad Tech Stack: A Simple Guide to a SiriusDecisions


Complex Topic Socedo
Marketing Technology: The Six Developments that The Economist Intelligence Unit (EIU)
Matter the Most in 2016
Walker Sands Communications
Winterberry Group

EDITORIAL AND
PRODUCTION CONTRIBUTORS
Michael Balletti Copy Editor
Joanne DiCamillo Senior Production Artist
Katie Hamblin Chart Editorial Manager
Dana Hill Director of Production
Eden Kelley Chart Editor
Stephanie Meyer Senior Production Artist
Kris Oser Deputy Editorial Director
Heather Price Managing Editor, Reports
John Rambow Executive Editor, Reports
Erica Walker Copy Editor

MARKETING TECHNOLOGY 2017: PUTTING CUSTOMER DATA AT THE CENTER ©2017 EMARKETER INC. ALL RIGHTS RESERVED 12
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