CMOs will drive marketing technology spending to $32.3B by 2018, reaching a compound annual growth rate (CAGR) of 12.4%. From 2014 to 2018, marketing technology spending will reach $130B for the 5 year period.
These and other insights are from IDC’s recent webinar The Marketing Software Revolution: Strategies for Buyers and Sellers, presented by Mary Wardley, Vice President, Enterprise Applications and CRM and Gerry Murray, Research Manager, CMO Advisory Service .
IDC is seeing CMOs influence spending in areas outside the traditional definition of CRM, and has created the 2015 Marketing Technology Map to track these new categories. The additional areas of marketing spending IDC is including in their forecast taxonomy are content, data and analytics, and managementand administration. One of the most valuable insights gained from this webinar was seeing how IDC is seeing CMOs redefine the direction of marketing spending based on client inquiry calls and their analysis of the CRM market.
The following are the key take-aways from the webinar:
· IDC forecasts spending on CRM applications will reach $31.7B in 2018, attaining a CAGR of 6.9%. The following graphic illustrates forecast spending by contact center, customer service, marketing automation and sales automation
IDC’s 2015 Marketing Technology Map is designed to capture CMOs’ total impact on marketing technology spending. The green area of the 2015 Marketing Technology Map titled Interaction is what represents traditional CRM functionality today. IDC’s inclusion of content, data and analytics and management and administration reflects how the role of the Chief Marketing Technologist continues to accelerate in all businesses.
Marketing technology spending will increase from $20.2 billion in 2014 to $32.4 billion in 2018 based on the the 2015 Marketing Technology Map.The following graphic provides forecasts for interaction systems (traditional CRM), Content, Data and Analytics and Management and Administration.
90% of the growth in the IT industry will come from cloud-based solutions. Cloud platforms, creative services and IT services are emerging as a combined catalyst enabling Marketing-as-a-Service (MaaS), which IDC is seeing growing rapidly from a client planning and spending perspective.