Marketing will spend more on technology than IT by 2017--a frequently cited prediction that came out of Gartner nearly two years ago.
Today just about 50 percent of tech spending outside of the IT budget comes from marketing departments. That’s on top of IT's own expenditures on marketing technology. And in three years, 80 percent of marketing tech investments will come outside of IT, Gartner predicts.
It’s already starting to happen within many organizations. “At Jenn-Air we are definitely spending more every year on technology than the last,” confirmed Brian Maynard, the Whirlpool brand’s director of marketing.
With consumers’ lives so dependent on technology, marketers are upping the ante on technology and solutions to drive better results. Here's what some had to say.
Adam Broitman, VP of Global Digital Marketing at MasterCard, told CMO.com:
Without giving specific budget numbers, I can tell you that technology has never been more important to marketing departments everywhere, and MasterCard is no exception. Given that MasterCard is, in fact, a technology company, we already invest significantly in technologies that power our network. That said, we are also investing heavily in emerging payments and other new ways to transact. Can I say we are spending more on tech than IT? Well, I don’t have that knowledge, but perhaps the question needs re-examination as the line between marketing and IT has been obscured. I know this does not answer your question directly, but the principal that marketing and technology are more wedded than ever before in incontestable.
Matt Langie, Senior Director of Strategic Marketing at Adobe, told CMO.com:
I can share my viewpoint of working with Adobe customers. I’d say that the decision making for marketing spend on technology is moving from IT to the marketing department. In many organizations it’s solely marketing’s decision. This has been a trend we are seeing for some time now, but recently it has accelerated because marketers are seeing ROI in ways that drive business. They're seeing greater conversion rates, and it’s giving them higher propensity to spend more. We do see the CIO and IT involved in the decision making, but marketing technology is no longer being lead or driven by IT.
Itai Asseo, VP, Group Creative Architect North America Lead for Digitas Labs, DigitasLBI, told CMO.com:
Technology is no longer something that just drives a business' infrastructure or enables content to be distributed digitally. Technology is becoming more and more a driving force behind strategy, ideation, and creativity. The best ideas can come from smart use of new technological innovation, and in the eyes of the consumer, it isn't intimidating or foreign. It is expected and part of the fabric of everyday life. We see this pronounced in how our clients think of technology. This isn't reflected only in where they invest. It is reflected in how they organize their business. Whereas not too long ago it was viewed mostly as the nuts and bolts that hold beautiful creative and smart thinking, now technology fuels creativity and informs strategy. And, so, expectations are much higher to be digitally savvy, and for us, as their agency, to be able to leverage technology that drives ideas.