Marketing Technology: Overcoming Martech ROI Challenges & Trends
- Sam Hajighasem
- Mar 19
- 3 min read
Marketing technology (MarTech) is growing rapidly, yet many companies struggle to see a strong return on investment (ROI). Despite increasing budgets for martech tools, marketers face challenges including integration issues, underutilization, and unmet expectations. The latest CMO Survey reveals that while martech adoption is rising, 54.9% of CMOs report disappointment with its effectiveness. This article explores key martech trends, ROI challenges, and strategies to maximize value from your marketing stack.
Understanding the Martech ROI Dilemma
Martech spending continues to rise, yet many companies fail to achieve their expected returns. According to recent data, digital marketing spending has increased by 3% in the last year to 11.1%, with further increases projected. However, half of all martech tools remain underutilized, and CMOs struggle to justify marketing budget growth.
What’s Causing Martech Disappointment?
- Budget versus results: Marketing budgets as a percentage of company revenue fell to 7.7% in Fall 2024, the lowest in over three years.
- Underutilized marketing stacks: 45% of marketing activities are not supported by martech tools, limiting their potential impact.
- Integration challenges: 80% of organizations cite martech integration difficulties as a major roadblock to digital transformation.
Key Martech Trends Shaping 2024 and Beyond
To maximize martech ROI, companies must align their strategies with emerging trends. Here’s what’s influencing martech investments this year:
1. AI in Marketing—Hype vs. Reality
Artificial intelligence (AI) and generative AI are touted as game-changers, but expectations must be grounded in reality. While AI is integrated into many new martech tools, companies are realizing that AI alone does not guarantee success.
2. Martech Stacks Are Overcrowded
The martech landscape has expanded from 150 tools in 2011 to over 14,000 in 2024—a 9304% increase. However, many organizations struggle with tool overload, leading to inefficiencies and reduced utilization rates.
3. Integration and Simplification Are Priorities
Martech buyers now prioritize seamless integration and composability. APIs and automation capabilities are top considerations when selecting new platforms, as companies seek to create more agile marketing operations.
Maximizing Martech ROI—Strategies for Success
Despite martech challenges, CMOs can take practical steps to maximize marketing technology investments.
1. Strengthen Data Strategies
Data is at the core of martech success. Ensuring data accuracy, reducing silos, and improving customer segmentation leads to better campaign performance. Marketers should:
- Conduct regular data audits to maintain data quality.
- Implement governance policies for streamlined data management.
- Use customer data platforms (CDPs) to centralize and activate insights.
2. Align Martech with Customer Engagement Goals
Companies must focus martech strategies on customer engagement rather than technology adoption alone. CX-driven martech usage improves personalization and campaign performance.
3. Focus on Martech Utilization, Not Just Investment
Instead of continuously adding new tools, optimize existing martech stacks by:
- Improving cross-functional training for marketing teams.
- Mapping technology to business objectives.
- Conducting tech audits to eliminate redundant tools.
Conclusion
The disconnect between martech investment and ROI underscores the need for a strategic approach. By strengthening data strategies, focusing on customer engagement, and prioritizing the effective utilization of tools, businesses can improve martech success. As AI-driven martech adoption increases, companies must balance the promise of technology with practical execution to ensure lasting value from their investments.
Struggling to see real returns from your martech investments? Our team helps businesses optimize their martech stacks, improve data strategies, and maximize ROI with a clear, results-driven approach.
