How MarTech is changing the landscape of marketing? How to select and invest in technology? And finally - what is the future of the marketing & technology marriage? - find out the answers for these and more questions in an interview with Scott Brinker, CEO HubSpot and ChiefMartec.com. The interview took place during the InfoShare conference 8-9 May 2019.
Artur Maciorowski: According to research (e.g. eMarketer) we spend from 5 to 20% of our digital budgets investing in marketing technology. How could you explain this approach?
Scott Brinker, CEO HubSpot/ChiefMarket.com: This a great place to start. Technology is still new item on marketing budgets. You know so far marketers have focused on investing in staff or considered outsourcing like cooperation with agencies, and of course investing in media. We should also remember that investing in technology was not a task for marketing departments.
But it changes. Now we can observe an explosion of marketing tools and we can see more and more marketers spending money on purchasing different types of software. An interesting thing is coming - marketers taking greater responsibility for LTV - lifetime value cycle. And that’s a need for technology to get better attribution to influence some revenue.
But still we try to find a tradeoff between media spending, technology and...people.
Artur Maciorowski: What is your recommendation for technology investment? How to split the marketing budget thinking about MARTECH?
Scott Brinker: The budget allocation… I’ll be reluctant to give one number (laugh). It is a ratio between technology and talent investment. I think 80% should be invested in talent and 20% in technology. Talent is much more important than technology. Certainly I don’t consider media.
Artur Maciorowski: Scott, you are publishing a MARTECH map every single year. How do you actually select and assess vendors on this infographic? Are they basically leaders of a category?
Scott Brinker: Sure. It is an imperfect process. We don’t actually capture every single company in every single category. These categories are constantly changing and products and categories on this map may cross, multiple. This, this map can be imperfect.
But the idea is to provide people with some sort of sense of the overall skill of the marketing technology landscape. It’s incredible how it develops… but the process we use to collect the companies based on it is complex - we do a lot of google searches, we go to review websites, we attend different conferences, etc. What is more important, on this map you will find not only leaders but also small companies - very innovative and in some cases really disrupted.
Artur Maciorowski: Do you remember any Polish vendors on your map?
Scott Brinker: Well, I don’t look carefully on country location, but the company that comes to my mind is SalesManago (laugh)
Artur Maciorowski: What is a key expectation of Martech activities? How is the technology changing and in which direction?
Scott Brinker: Technology is used to two primary missions in marketing. The first is greater efficiency. I mean using and collecting of all these data from different digital touchpoints. And we use this data to create a much richer analytical capabilities to help us in optimization knowledge where we are getting right traffic from, what is a conversion rate on different ads or what is a right segment of customers and therefore create higher LTV.
Artur Maciorowski: And how about cross-device activities or online and offline data integration?
Scott Brinker: Yes, that is challenging, but there is a lot of innovation in this field. There are some companies helping to build a bridge between different touchpoints. But still it is focused on greater efficiency - to get higher ROI and significant increase in revenue.
The second approach is focused on improving customer experience. It is much more than advertising and landing pages. It is the effort to better understand entire customer journey - how do they discover us, how do they first engage with us, how do they evaluate us and make their first purchase - are they happy or just satisfied?
Artur Maciorowski: Can we imagine a new role of Digital Marketer or CMO that actually doesn’t hire people but uses technology and with support of artificial intelligence manages marketing activities in nearly future?
Scott Brinker: This is a certainly a way of frontier of marketing technology - using machine learning and artificial intelligence to...
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