In the world of marketing technology, 2023 saw a significant decline in both funding and industry activity. This was marked by fewer product launches, feature updates, and mergers and acquisitions compared to previous years.
In total, there were 354 new product announcements in 2023, which is a 6% decrease from the 376 new products in 2022.
One major trend that was seen in 2023 was a shift in investment. Martech investment steadily declined from $39.8 billion in 2021 to $28.4 billion in 2022, and further down to $18.9 billion in 2023. In the last quarter of 2023 alone, total investment sharply dropped from $13.2 billion in Q1 to just $699 million. Interestingly, artificial intelligence companies received the most funding during this quarter, with a total of $156 million, representing 22% of the total funding.
The rise of artificial intelligence also brought about the emergence of new AI tools. Over the past year, CabinetM has been tracking and cataloguing generative AI products and other categories that utilize AI. In Q4 of 2023, four new AI tools were announced, a significant decrease from the 13 in Q1, 34 in Q2, and 15 in Q3.
When it comes to mergers and acquisitions, 2023 saw 121 acquisitions, with a total disclosed purchase amount of $52.5 billion. This is a significant decrease from the 246 acquisitions in 2022, which totaled $54.9 billion. This marks a 51% decrease in acquisitions from 2022 to 2023.
CabinetM's Q4 2023 MarTech Innovation & Year End Review report is now available for download without any requirement for your personal information. This report is a quarterly summary of new technology introductions, feature updates, and acquisitions. You can access this report on LibraryM without any barriers.
In conclusion, 2023 was a slow year for martech activity with less funding and fewer product launches, feature updates, and M&A deals. It is important for businesses and professionals to stay updated on the latest trends and developments in marketing technology in order to stay competitive in the ever-evolving digital landscape. CabinetM's quarterly reports are a valuable resource for staying informed on the latest martech innovations.
Originally reported by Martech: https://martech.org/martech-activity-slows-in-2023-with-less-funding-launches/
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