The Expansion Of Marketing Ecosystem And MarTech In The Us
The first decade of 2010s has been called The First Golden Age of Marketing Technology according to Scott Brinker. It came with the birth of the martech industry and the increase of marketing technology specialists.
In a research of BCG, it found that the growth of the marketing ecosystem in the US has grown 50% faster than GDP of this country in the past 10 years.
The above chart elegantly illustrates several significant changes in the marketing industry of the US over the last 20 years:
- Over the past 10 years, the marketing ecosystem – agencies, traditional media , digital media, and martech – has grown to a total of $300 billion from around $120 billion.
- Paid media continued to constitute the largest share of industry spending — in fact, it rose to over $200 billion last year — but digital media has steadily surpassed traditional media that has been decreasing.
- Overall, spending on agencies remained roughly the same, ~$50 billion / year, but thus decreased as a percentage of spending.
- At around $2 billion in 2010 to about $35 billion in 2019, martech grew by 1.650% in ten years. It contributed for almost 30% of the overall marketing industry’s economic growth over the past decade.
- The entire marketing ecosystem in the US grew about 50% faster than GDP, at an compound annual growth rate ( CAGR) of 6% compared to GDP growth of 3.8 per cent.
According to an estimation of BCG, the marketing ecosystem consists of around 60,000 organizations- a $300 billion pie. The number of martech companies, however, is only 10% from a research of Brinker.
The advancement of technology for the time being and its promising potential in the future will probably expand the pie share of martech which can be the commencement of The second golden age. At that moment, various solutions would be able to fit to any operating systems of companies in every industry.
An agency executive said, “Consolidation of platforms is actually creating whitespace for point solutions.”