We've been hearing this for a while, but it's still imperative that companies recognize the fact that marketing budgets are shifting. Companies continue to invest in marketing technology to assist their acquisition, retention, and upsell strategies without adding human resources. While IT investments are primarily a security and risk investment – in other words, a “have to” – marketing investments continue to demand a return on investment and full evaluation.
Although CIOs still lead the way in terms of IT investments, marketers are catching up quickly. Business-led IT spending accounts for 40% of CIOs' budgets, according to recent data by advisory company CEB. In addition to this expenditure, marketing dedicates 25% of its budget to technology and sales allocates 23%. Direct Marketing News
Joe Staples, CMO at AtTask, a work management software provider for marketing companies of all sizes, shared his insights on what this new tech wave means for marketing professionals:
- Technology is not always a panacea: marketing executives can underestimate technology costs and risks while overestimating the benefits certain new products.
- For many years corporate IT has fallen into the trap of measuring success in terms of on-time, on-budget delivery of new capabilities, ignoring whether the capabilities create value. Marketing executives must be wary of the same trap: if the technology is not effectively adopted, employees may fail to exploit the productivity gains that your new solution promised. You must avoid under-investing in usability and always take into account employee skill gaps.
- Build solutions to help employees share and improve technologies – Compared to corporate IT, marketing employees are more likely to find the best solutions for collaborating and working productively, but typically they don’t share these tech discoveries their team. To overcome this, marketing executives should showcase technologies identified by their employees.