Organizations are increasingly adopting marketing technology (martech), according to the latest data Duke University Chief Marketing Officer (CMO) Survey.
The study, supported by Deloitte, reveals that 75% of marketers now use these tools. However, despite this widespread adoption, companies are only using about 56% of the martech tools they have purchased. This indicates significant untapped potential to fully exploit these technologies.
The survey also looked at the impact of marketing technology on business success, with a score of 4.7 on a 7-point scale, where 1 is the least beneficial and 7 is the most beneficial. This score highlights a gap between expectations and reality, as marketers believe the benefits of marketing technology are 34% lower than expected. The most common metrics for measuring marketing technology effectiveness are lead generation (used by 76% of businesses) and sales (used by 68%).
Additionally, 65% of companies track lead conversion rates. Customer-centric metrics, such as lifetime value (28%), loyalty (27%), and pipeline acceleration (23%), are less commonly used.
“Marketers have been using a wide range of technologies for years, from data analytics and automation tools to CRM systems and social media platforms, and more recently Gen AI. Each of these solutions generates value, whether by driving engagement, nurturing leads or increasing conversions, but their results can be significantly greater if they are strategically combined to manage their most engaged customers,” said Ruxandra Bandila, Marketing Director, Deloitte Central Europe.
The study also highlights the positive impact that new technologies, such as generative AI, can have in a short period of time. Although only 7% of marketing activities currently involve generative AI, its use has already led to measurable improvements. Marketers reported a 5% increase in sales productivity, a 6% increase in customer satisfaction, and a 7% reduction in marketing overhead.
However, deploying AI in marketing presents unique challenges: mitigating bias and ensuring fairness are essential, as is properly investing in the infrastructure needed to support AI operations.
The report also identified a decline in marketing budgets as a percentage of total company budgets, falling to 10% in 2024 from 14% in 2022. However, marketing budgets as a percentage of company revenue increased slightly, to 10% in spring 2024 from 9% in fall 2023.
Looking ahead, total marketing spending is expected to increase by 5% over the next 12 months. Additionally, digital marketing spending is expected to slow, increasing by just 8% over the next year, compared to 9% in 2024. Social media spending is also expected to increase, reaching 11% of the total marketing budget by 2024. It is expected to reach 12% within a year and 16% over the next five years.
These data are based on a survey of nearly 300 marketing executives in at least 15 industries in the United States.
See also: Cross-channel marketing strategies increase conversion rates by up to 31%
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