If I asked who is the largest MarTech company, with 2014 revenues of $1.3 B, what company would you name? I did an informal poll of 15 people on Twitter just now (decidedly and admittedly very unscientific, although my followers are of course among the smartest people around…) – and no one got it right. Most picked SalesForce.com – a logical choice given their market share, but landed only fourth on the survey at $505 mm in revenues.
The key to getting the right answer is of course understanding the methodology of the survey. The research firm Outsell released their annual Media & Marketing: 2015 Market Size, Share, Forecast, and Trend Report recently, which includes financial estimates including marketing services. Thus, the top winner being Adobe makes sense, as the company has done a great job of combining services with a set of applications. (Full disclosure: Adobe is a TopRight technology partner.) The Outsell results are dominated by the large agency conglomerates, CRM, and the marketing analytics and automation category.
Overall, the category grew 10.7% in 2014 worldwide to a combined revenue of $7.95 billion. Outsell predicts that growth will continue at 11% or so per year for the next four years, up to a total of $12.2 billion in revenue in 2018.
In Outsell’s data, the Top 10 companies accounted for 32% of the revenue in 2014. The growth and investment by Wall Street and private investors in marketing technology firms certainly has continued into 2015, but the growth of some of the smaller players and continued consolidation may change this trend of dominance by the big players. We love independent player Marketo, and are curious to see how the continued expansion of features will resonate with their core of mid-tier B2B marketers. HubSpot is also a company to watch, as they’ve improved stability and increased their market share into mid-size firms over the past nine months.
The marketing technology landscape continues to expand, with more than 2,000 firms on the “superscape” created by Scott Brinker on his popular Chief MarTec blog. In a recent webinar with Target Marketing magazine, the other panelists and I talked about how hard it is for marketers to keep up with the number of new technology firms. Just because something sounds good – or is sold well – doesn’t mean it can be absorbed into your organization’s operation.
An unrelated survey from Ascend2 found that only 9% of marketers are confident that they have all the technology they need and fully utilize it. That means the other 91% of us don’t have the right tools and technology, or are are struggling with talent hiring/development, process, strategy, accountability, training or user adoption challenges. It’s a real vulnerability – our customers expect us to know them, recognize them and cater to them. We can’t do that without integrated and efficient technologies that are responsive to audience insights.
To #StayTopRight, every marketing organization needs to understand their current mar-tech stack, what they have and why, and how those elements are connected. Each needs to be assessed across a matrix that includes strategic fit and contribution, service to customers and adoption by users. A good starter assessment is our IMM Report Card, which can help you quickly see where you might have areas of opportunity – and vulnerability.