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What Is MarTech and Why Is It Important to Your Business?

Definition of MarTech: “MarTech” is a portmanteau of marketing and technology. It refers to the use of tools and technologies that marketers use to inform, plan, and execute their campaigns.

 MarTech is becoming an increasingly important term for businesses and marketers to be aware of.

While the use of technology in marketing is not new, the adoption of digital tools and platforms by SMBs to improve their campaigns has seen a dramatic rise in recent years.

The MarTech industry increased 20% in just one year between 2018 and 2019, and this year 70% of businesses in North America upped their marketing budgets by at least 6%.

In short, spend on marketing is rising every year from businesses across the country, and a large proportion of that is being spent on marketing technology and specifically digital tools and platforms.

Why Are Businesses Investing So Much in MarTech? 

The reason a lot of businesses are investing in marketing technology is simply down to competition.

As leading businesses see the results of adopting MarTech solutions, others fear being left behind, and see investment as an opportunity.

More than half of marketers (56%) think the MarTech industry is evolving faster than their companies’ use of marketing technology

This has led to a ramping up of adoption and implementation of marketing tech platforms, specifically solutions that offer automation for their campaigns and data analysis, among other benefits.

There is also an increasing desire among businesses to update their legacy systems and employ tech platforms that can be used company-wide, as opposed to the marketing team (or any other team, for that matter) being siloed and missing out on important information they could be using in their campaigns.

All about data

The prevalence of big data in all businesses, big and small, has brought with it a number of challenges and opportunities.

As regards challenges, SMBs now have to assert their efforts on safeguarding their customers’ data in order to avoid catastrophe should they become the victim of a cyberattack.

As far as opportunities go, more data means more information about customers and prospects.

This gives businesses that have adopted MarTech the chance to aggregate, analyze, and then put into use the vast quantities of data at their disposal.

Additionally, modern MarTech solutions are typically compatible with systems in other departments, helping marketers unify and access information across the whole business that was previously inaccessible, improving productivity. 

What Is MarTech and Why Is It Important to Your Business?

Offering a personalized approach

Central to the utilization of this data is the ability of businesses to offer a more personalized approach than they were able to before.

The more data you have, the more information you have to be able to target your campaigns at specific, segmented groups across all your platforms.

The better you’re able to understand your prospects (and customers) and target your campaigns, the more effective they’ll be and the more leads you’ll convert.

Related Post: What Is Behavioral Segmentation In Marketing?

What’s In a MarTech Stack?

Now you’re probably wondering which technologies go into a MarTech stack. Let’s take a look at some of the most common solutions that are adopted by SMBs today.

Content marketing system (CMS) 

A CMS is what businesses use to manage their website pages, whether it’s a simple blog or an enterprise business site.

CMSs are designed with ease-of-use in mind, meaning they require virtually no knowledge of HTML and can be used effectively by marketers who can’t code.

According to Marketing Profs and the CMI, 63% of businesses don’t have a documented content strategy.

As content marketing in particular becomes a core part of the strategies of many businesses, investing in a CMS is essential to operating and managing those strategies as far as your content output goes.

Email marketing platform 

In spite of the popularity of other digital marketing areas, email still remains a crucial and central aspect of strategies and stacks.

73% of millennials prefer communications from businesses to come via email.

Data analysis combined with email automation makes for a killer combo in today’s marketing environment, allowing businesses to automatically send out highly-targeted campaigns that improve conversion and retention rates.

It’s common for email marketing platforms to come included with general inbound marketing solutions offered today.

What Is MarTech and Why Is It Important to Your Business?

Advertising tech

AdTech refers to the management of digital campaigns.

These solutions allow advertisers to serve targeted ads to the most preferable audiences, measure the success of those campaigns through tracking engagement and clicks, and then use that information to dictate the direction of future campaigns.

Google and Facebook ads make up around 55% of the entire digital ads market.

Using a platform that can track data allows you to focus in on which ads worked and which didn’t, meaning you can further optimize your budget for ad spend and get your advertising in front of prospects most likely to convert.

Social media management

Social media is such a central part of engagement for a modern business, making technology that helps manage these platforms a must-have.

Not only are social media platforms a useful tool for your content strategy, but they are additionally an important resource for prospects and clients for customer service and other queries.

Measuring your engagement on social media with a MarTech solution gives you an opportunity to see which content trends best across your platforms as well as gives you an insight into how effective your interactions are with users.

Of course, social media is a vital source of advertising, so it additionally helps to be able to see how successful particular campaigns are that you’re running through LinkedIn, Google, or Facebook paid ads.

Search engine optimization (SEO) tools

Search engine optimization is another important consideration for businesses to make, and solutions that help them with their SEO are vital.

68% of online experiences begin with a search engine.

SEO tools help businesses determine the best strategy for ranking their content on search engines, and as people are increasingly reliant on the internet to find vendors, SEO becomes even more important.

This is even more the case in 2020, when traditional advertising has seen such a dramatic decline compared to digital advertising—businesses must have a solution that allows them to compete in search rankings to remain competitive. 

Customer relationship management (CRM)

CRMs are useful for aligning marketing and sales and most commonly used by B2B businesses.

A CRM allows your marketers and sales reps to have access to all the customer data they need to manage relationships and help prospects down the funnel.

In 2008, only 12% of businesses used cloud-based CRM; by 2020 this had increased to 87%.

This is typically presented to stakeholders through a single dashboard, where they have access to everything they need like a customer’s previous history with you, outstanding orders, customer service issues, and even things like their social media activity regarding yourself and competitors.

This makes cultivating and retaining better relationships easier, with the added benefit of a more streamlined system for employees that improves productivity and satisfaction.

50% of teams improved their productivity by using a mobile CRM.


As businesses shift more of their marketing to digital rather than traditional means, the emphasis on implementing technologies that aid these means will—and already has—become more pronounced.

This is even more the case when the importance of data is considered in informing campaigns and strategies—the ability of MarTech tools to aggregate and analyze information is key.

Moving forward, expect more businesses to bolster their MarTech stacks as investment in digital marketing continues to rise.

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