2022 saw a significant increase in product announcements, but investment in martech companies dropped from $39.8B in 2021 to $28.4B in 2022. Mergers and acquisitions activity was also up, with 246 acquisitions for a total value of $54.9B in disclosed purchase amounts compared to 196 in 2021 for a higher total value of $101B. Despite economic concerns, the outlook for martech is still positive, with innovation driven by changing consumer behaviour, new channels to market, an increasingly fragmented prospect base, regulations and technology innovation.
As we move into 2023, most companies are taking a more conservative approach to marketing, spending and technology. Budgets are tightening and the pressure to meet revenue objectives will be intense, so it’s more important than ever to rationalise, review and refine marketing tech stacks. This should involve eliminating contract, product and functional redundancies, discarding products that no one is using, and ensuring that tools are fully utilised and contributing to marketing and corporate objectives.
Scott Brinker predicts that growth in the next seven years will dwarf anything that we’ve seen to date, driven by new technology S-curves such as artificial intelligence (AI), augmented and virtual reality (AR/VR), composability and Web3, as well as data collection, compliance, compilation and enabling personalisation. So, while 2023 may be a difficult year, the outlook for martech remains positive.
Originally reported by Martech: https://martech.org/the-state-of-martech-in-2023/
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