According to our recent State of Martech report, 57% of marketers will consider changing their marketing technology platform over the next few years, in spite of an 82.5% satisfaction rate with those very platforms. Migration has become the new implementation, and it is now standard procedure for many organisations for a multitude of reasons, ranging from acquisitions to a shift in vendor vision. If you would like to find out more about those other reasons, you can read our 8 reasons marketers migrate technology platform here.
Some of the biggest drivers of change in the martech industry are the market forces themselves. The exponential growth of the MA sector is still at a staggering rate of 13.9% as of 2020, and it’s not a new industry anymore either. As a result, market penetration has increased from 10% in 2015 to 50% in 2020. This makes sense as now over 60% of B2B organisations have adopted Marketing Automation. It is becoming ever clearer that optimisation and migration programmes are now major drivers of market growth, but the question posed however, is how this explosive growth has contributed to this migratory mentality, and that begins with Gartner’s magic quadrant.
The Magic Quadrant for digital marketing hubs: 2014 to Today
Every year, Gartner release a visualisation of the different marketing automation platforms and where they believe they are in the market, based on their own research. This sets out the platforms on a quadrant divided by four categories:
- Niche Players
As you can see, according to Gartner, in 2014 there weren’t really any clear market leaders, although Salesforce and Adobe were on that trajectory by this time. In reality, Eloqua was the clear leader of 2014, but a lot of organisations couldn’t afford their licence fees, so it didn’t count for much in terms of growth and wide scale market penetration at this time. This was a problem for those smaller organisations that were just beginning to invest in Marketing Automation, simply because there wasn’t an obvious choice for investment. This resulted in large numbers of organisations investing in martech that may not have actually met their needs because, in 2015, the industry was only really starting to become more mainstream, and businesses didn’t really know what they wanted.
Fast forward to 2020 and there are 3 very obvious market leaders, and the other platforms seem to have found themselves and settled on their visions, be that as a niche player or a market leader. 2020 is also a clearer time for organisations and what they want out of martech. Consequently, with clarity comes awareness of past mistakes, and organisations are now wanting to move to the platform and vendor that best aligns with their vision. Many organisations in 2014 invested in ESP’s, because that was what they believed was required at the time, and now, as their organisation has grown and they’ve become aware of the clear martech market leaders, they want a change.
2020 - is your martech set up to succeed?
2014 and before that, in essence, was a free for all in martech as the vendors sought to gain their first clients, and the world in general woke up to the power and opportunities of marketing technology. Now, in 2020, organisation’s and vendors want to consolidate on their vision, and if that requires changing platforms in light of the changing martech landscape, then that is an inevitability of investing in a growth industry, one that is ever evolving.
Is your organisation struggling to make the most out of a platform that isn’t right for it? Read our handy guide to find out if Migration is right for you.