Digital Darwinism Will Kick In – and Soon

 

There can’t be more technologies than there are

companies to buy or use them. In the 2015 Chief and VP of Training Email Lists article “The Frankenstein Conundrum,” I discuss the mish-mash of disjointed tech emerging from a heavy year of mergers and acquisitions across the MarTech space. The growth argument at the time seemed to weigh in favor of all-in-one marketing clouds. Although the spirit of unification was there, the execution of it in MarTech was shortsighted. As Brinker notes, the results have been mixed at best – Salesforce played the platform card early — and at least within the CRM space, it has had the largest market share (18.6% as of last year), while Marketo made a big public commitment to being a marketing platform. And Scott is quick to add: “But for many, it seems like platformization has remained a secondary objective.”

Chief and VP of Training Email Lists

There Is a Bubble, and It Will Burst – Soon

Remember the dot.com bubble of the late 90ies? It is hard to ignore the striking similarities of old and new times:

Growth vs. sustainability? One has to wonder if behind all the bombastic MarTech growth numbers lies the little told story of unsustainable business models. Yes, ecommerce and advanced analytics software were among the market segments with the highest rates of growth per Gartner. But this growth is not translating necessarily in increased value for the company, its stakeholders or customers. Twitter’s $100M investment in MoPub is a case in point. In 2013, this projected AdTech darling only pulled in $6.5 million.

Abundance of VC funding – a blessing or a boon? The estimated investments raised by MarTech firms via venture capital and private equity were in the $21.8 billion range in 2014, and this doesn’t include money raised from public offerings or untracked angel contributions. Examining this MarTech investment activity, Brinker tells it like it is – investors continue to believe “there’s room for multiple multi-billion dollar specialist platforms within the marketing domain.” Highly doubtful that this is the case in a MarTech space that continues to fragment, and doesn’t play together well.

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