In its annual Martech Report, Top Ten international accountancy firm Moore Stephens, along with WARC, the worldwide authority on advertising and media effectiveness, has valued the global marketing technology market at an estimated $99.9 billion.
The study, carried out amongst more than 800 UK, North American, Asia-Pacific and European brands and agencies was initiated to better understand the scale of opportunity, and reveals not only a huge existing market, but one that continues to grow exponentially. Indeed, when asked about the outlook for the market, brands expect to increase their investment in martech for the year ahead. This is particularly true in the case of Europe (excluding UK), where nearly two thirds (63%) said they expect their budgets to increase.
In the UK and North America, brands have increased their martech budgets by 44%, meaning it’s now worth up to $52 billion. These brands are spending nearly a quarter (23%) of their budgets on martech, up from 16% 12 months ago. Interestingly, brands in the UK and North America are also keen to spend on in-house technology.
63% of technology budgets were spent in-house – compared to 44% last year – a figure Moore Stephens believes is driven by a desire from brands to excel in their customer experience, coupled with an element of mistrust in agencies.
Damian Ryan, Partner, Moore Stephens, said: “Investment in martech has reached a tipping point over the last 12 months. Established marketers in disrupted industries, such as insurance and financial services, realise they need to invest if they are to future-proof themselves, and view martech as a key area of investment. Just look at Nationwide Building Society’s recent announcement of £1 billion investment in tech. Staying relevant is key, but taking on the new breed of competitors – such as Revolut is creating a big rethink.”
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