North America’s appetite for martech knows no bounds as the region’s total marketing budget allocation reached 30% this year, according to new survey data from WARC and BDO. This means that over two years, overall budget allocation has increased by 16 percentage points. This illustrates that North America is not only using martech, but actively investing in opportunities to do so. This contrasts with the UK, as although the total budget allocation has increased by four percentage points from 2017, overall it has stabilised, decreasing by one percentage point from 2018 (23%) to 2019 (22%).

Although there has been substantial discussion in the industry regarding in-housing, the split between in-house and outsourced technology is around 50:50 in all regions – a ratio that offers room for growth both in the outsourced and in-house tech vendor markets. 

This opportunity comes from the client’s need for assistance with martech due to the growth of the industry. For agencies, this is a clear opening to be a source of expertise and to gain trust. As Mark Wainwright, Associate Director, Teneo noted, “the value agencies can add for brands is to provide them with independent, objective advice on the best tools to use. They can help brands filter through the bombardment of trial and demo requests, by knowing what's out there and worth experimenting with, and providing objective, independent advice.”

Martech: 2020 and beyond, published in association with accountancy and business advisory firm BDO, is based on an annual survey of more than 750 brands and agencies in North America, UK, Europe and Asia-Pacific to assess the current state and future expectations of the marketing technology industry, including automation software, analytics tools and emerging tech such as AI.

Martech: 2020 and beyond

WARC subscribers can read the full report here.

Non-subscribers can access a sample here.