The relentless march of technology has seen human marketers overtaken by so called ‘martech’ for the first time with chief marketing officers now allocating a greater proportion of their budgets to digital tools than internal staff.
The historically significant moment was captured in a survey of senior marketing executives across the US and UK carried out by Gartner, which found that marketing technology expenditure had risen from 22% last year to 29% this year while staff costs headed in the opposite direction, dropping from 27 to 24% over the same period.
Among the top tech priorities for today’s chief marketing officers are email marketing, online management and digital analytics but these favored sectors are expected to shift in future, with artificial intelligence rising to the fore, such as artificial intelligence which could one day be used to design marketing campaigns in place of people.
Movements elsewhere saw 23% of budgets head toward external agencies, a 2% fall from last year, figures which were replicated exactly by paid media spend.
Looking to the future some 63% of CMOs expect budgets to increase next year with 49% stating that they would increase their TV and offline media budgets. In the digital realm Amazon continues to make headway at the expense of Google with brands such as L’Oreal turning to the e-commerce giant to advertise their own web stores and products.
The CMO Spend Survey 2018-19 was compiled from the responses of 621 executives between July and August this year.