India lags behind global averages in the percentage of marketing budgets spent on MarTech, as per the ‘Mirum India MarTech Report’ unveiled today.
According to the report, the global spend on MarTech solutions accounts for around 25.4pc of the total marketing budget (Source: The State of Marketing Budget and Strategy 2022 by Gartner), whereas most organisations in India spend less than 15pc.
MarTech spending is expected to increase in companies of all sizes and sectors, with 88pc of respondents planning to increase their MarTech spending over the next three years, the report found.
In terms of MarTechtool usage, 36pc of respondents admitted to using MarTech tools extensively, while 47pc have used them only sometimes. Seven percent confirmed that they had never used MarTech tools in their organisations.
The report classifies respondents into four categories based on tool usage, namely MarTech Heroes (31pc), MarTech Stagnants (5pc), MarTech Explorers (57pc), and MarTech Laggards (7pc).
Effectiveness of marketing activities is cited as the top driver of MarTech usage by 3 out of 4 respondents, followed by ease of tracking and efficiency.
Lead generation, customer engagement, and brand building were among the top four objectives to be achieved using MarTech last year as well as this year, with sales entering the top four for the first time this year.
Customer-centric technologies are the most effective marketing technology for achieving organizational goals, with CRM and personalisation preferred by over 60pc of respondents, the report found.
Diverse skill sets are required to effectively utilise MarTech tools, with 70pc of respondents using an external partner to some extent for their campaign executions.
Among the required skill sets, data and analytics skills are considered most critical (74pc), followed by omnichannel marketing automation, understanding of CX, creativity, brand strategy, SEO, content creation, social media, and coding/software development.
With the advent of Web3 and the movement towards a cookie-less world, most organisations are rethinking their marketing strategies. However, not everyone seems prepared for this change.
The report found that 70pc of respondents’ organiations are either unaware of the cookie’s end or do not have a plan to handle this change, while 80pc of respondents have limited awareness of Web3, Metaverse, Blockchain, and Crypto.
Speaking on the launch of the report, Hareesh Tibrewala, Joint CEO – Mirum India, said, “The estimated size of the MarTech industry in India is expected to be between $35bn and $50bn by 2026, presenting a sizeable opportunity for businesses. Our latest report highlights how brands are using MarTech solutions to effectively deliver the right brand message to the right customer at the right time, creating fabulous customer experiences and increasing brand loyalty. It is interesting to note that marketers globally spend 25% of their budgets on MarTech solutions, and our report shows the emergence of MarTech EXPLORERS, who are keen to leverage the power of MarTech. This presents an exciting opportunity for businesses to grow and thrive in the ever-evolving digital landscape.”
CVL Srinivas, Country Manager – WPP India said, “To succeed in the rapidly evolving tech and data driven world, organizations need good marketing automation tools and diverse skill sets. The report highlights the need for growth partners, preferred by MarTech HEROES, to ensure strong ROI for clients. It brings clarity to the ecosystem and presents an exciting opportunity for businesses to create fantastic customer experiences and increase brand loyalty. At WPP, we’ve invested heavily in building our tech and data practices, creating a comprehensive ecosystem where value is delivered at every touchpoint.”