U.S. marketing technology spending is expected to increase 14.3% this year — surpassing $20 billion, according to a new report.
While this is a substantial increase, it is down from last year’s 20.9% growth, said Insider Intelligence. Last year companies spent to keep up with the pandemic-driven shift to online by customers and businesses. This followed huge growth between 2018 and 2020 when martech spending nearly doubled in size.
Martech spending is still ahead of spending on marketing overall. Marketing budgets have climbed to 9.5% of total company revenue in 2022, an increase from 6.4% in 2021, according to Gartner. While marketing budgets are increasing this year, they still lag pre-pandemic spending levels.
The marketing resource budget mix is largely unchanged this year, the study found, with martech accounting for 25.4% share of resource budgets, down from 26.6% in 2021.
Why we care. If this is a slowdown in comparison with the last few years, it still shows a willingness to spend even in an uncertain economy. And $20 billion is quite a milestone.
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