Organizations are increasingly adopting marketing technologies (martech), according to Duke University’s latest Chief Marketing Officer (CMO) Survey, supported by Deloitte.
The survey revealed that 75% of marketers now utilize martech tools. However, while adoption is widespread, companies are only using 56% of the martech tools they’ve purchased, highlighting a large untapped potential in fully leveraging these technologies.
The study also assessed how much martech contributes to business success. Results scored 4.7 out of 7, with 1 being the least beneficial and 7 being the most. This shows a 34% gap between expectations and reality, as marketing executives believe the benefits of martech fall short of what was anticipated. Common metrics used to measure martech efficiency include lead generation (used by 76% of companies) and sales (utilized by 68%).
In addition, 65% of companies track lead conversion rates, while fewer companies focus on customer-oriented metrics like lifetime value (28%), loyalty (27%), and pipeline acceleration (23%).
Deloitte Central Europe’s CMO, Ruxandra Bandila, emphasized, “Marketers have been using technologies like data analytics, automation, CRM systems, and more recently, Generative AI. These tools generate value by driving engagement, nurturing leads, or boosting conversions. But their outcomes could be significantly higher when strategically combined to manage the most engaged customers.”
The survey also noted the positive impact of newer technologies like generative AI. While only 7% of marketing activities currently involve generative AI, its adoption has already delivered measurable results. Marketers reported a 5% increase in sales productivity, a 6% rise in customer satisfaction, and a 7% reduction in marketing overhead costs.
However, integrating AI in marketing poses challenges, such as mitigating bias, ensuring fairness, and investing in the right infrastructure to support AI operations.
Related: What is AI Marketing?
The report highlighted a decline in marketing budgets as a percentage of total company budgets, dropping from 14% in 2022 to 10% in 2024. On the flip side, marketing budgets as a percentage of company revenue saw a slight increase, rising to 10% in spring 2024, compared to 9% in fall 2023.
Looking ahead, total marketing spending is expected to increase by 5% over the next 12 months. Digital marketing growth is projected to slow, with an increase of 8% in the coming year, down from 9% in 2024. Social media spending is anticipated to rise, reaching 11% of the total marketing budget in 2024, and is expected to climb to 16% over the next five years.
This survey collected data from nearly 300 marketing leaders across more than 15 industries in the U.S.
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