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Insights
"Access to new technology remains and increases its role as a key growth driver of Martech investments”
For an organization to truly succeed with Martech, it involves driving a transformation and change within several dimensions. In this report, we are addressing all four dimensions and to clarify what we mean we provide a brief description of them below:
- People - The right Martech competence in the right place
- Process - Ways of working that can make the best use of Martech
- Technology - The right tools to create Martech value
- Data - The right structure and models to make Martech data available and actionable
In this year’s report, we can see that more than 50% of all respondents say that technology will be the main dimension in focus for their Martech efforts in the coming year. This is an increase from last year with +10% putting the technology dimension at the very top out of all four dimensions. The position of the technology dimension is the most important, and it goes across all industries as well as company size. We can also see that the people dimension seems to be dropping in importance, going from 41% to 37% this year.
To read more about the people & process dimension
Click hereLooking at the main reasons/goals behind investing in Martech we see that “access to new technologies” has surpassed the other reasons. 46% of all respondents rate this as the top reason for investing in Martech, with the UK and France standing out even more at 53% and 56%. Even though access to new technology is the main driver for investing in Martech we can also see an increase of respondents stating “company directives” as a reason for investing in Martech, 24% of all respondents this year compared to 18% last year.
It is evident that the technology dimension is clearly taking the focus and attention in the Martech development moving forward. This can be explained by the development of AI where 41% of all respondents believe AI will affect the way their company works with Martech to a high extent. Where does this leave the other dimensions? What consequence will this strong focus on technology have on the other dimensions?!
To read more about the people & process dimension
Click hereIt is clear that the technology dimension is seen as the most important dimension moving forward. But how well-equipped do respondents say they are within this area? According to the respondents in this survey, 57% say they are already well- or even very well-equipped, compared to 42% last year. Looking specifically at low turnover companies we can see that they are rating themselves lower compared to other respondents throughout the whole Martech study. When it comes to maturity within the technology dimension it is clear that also low-turnover companies have made significant progress compared to last year.
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Download PDF"Is the technology dimension stealing all the spotlight? What happened to the softer dimensions of Martech?”
As mentioned previously in this report we can see that more than 50% of all respondents say that technology will be the main dimension in focus for their Martech efforts in the coming year. This is an increase from last year with +10% putting the technology dimension at the very top of all four dimensions. The position of the technology dimension is the most important, and it goes across all industries as well as company size.
In this year's report, we can also see that the people dimension is dropping in importance, going from 41% to 37% this year. At the same time, the two dimensions of data and processes remain unchanged. Why is that? Does this mean that companies are “done” here and that they already have the competencies they need?
When looking at the question “Do you have the right people and skills in place to achieve the goals behind your company's investments in Martech?” it becomes clear that this is not the case and that the majority of all respondents (46%) state that “We have resources but not the right skills.” The situation seems to be unchanged compared to last year!
When looking specifically at Martech competence we get a different picture and can see that 53% of all respondents state that their company is well- or very well-equipped in terms of Martech competence, compared to 36% last year. This improvement, compared to last year, can be seen for all company sizes even though it is clear that low-turnover companies, in general, rate themselves lower
"In your opinion - how well equipped is your company regarding Martech competence?"
We get a similar picture when looking at how adapted companies' processes and way of working are for Martech, where 55% of all respondents state that their company is well adapted compared to 38% last year. Within the process dimension, we see the same patterns as above, with low-turnover companies rating themselves lower compared to medium and high-turnover companies.
What does this mean? Given the increased development pace within Martech and AI, it might be so that companies have realized that it is impossible to ensure the “right” competence within these areas and that they instead put their efforts into making sure they are well-adapted and equipped to handle new requirements coming their way?! Or is it simply so that all efforts are put on getting new tech in place and everything else will need to wait?
The later statement fits well in line with the little to no improvements we can see for some of the softer aspects within Martech. For example, looking at the question “Participation in achieving common Martech-related goals requires the power/ strength of all employees. Where are you when it comes to integration?” Here we don’t see any improvement from last year and about half of all respondents state that “Some teams work integrated but not all.” We get a similar picture when looking at cooperation between departments (in terms of sharing insights and data), this does not seem to have improved compared to last year. Only 26% of respondents state that they have “Common processes for procuring and analyzing contextual data/information are used for everyone within the company”.
To sum it up we can see slight improvements within some of the questions related to the people and process dimension but not all. In quite a few areas, development seems to have stood still compared to last year. One can not help to wonder? Is the technology dimension once again taking all the spotlight, leading to companies - again - falling behind in the softer dimensions?
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Download PDF"AI & tech as the main drivers for the significantly increasing development pace”
Martech development pace has significantly sped up
Compared to last year’s report the number of respondents rating their company’s overall martech maturity as high or very high has significantly increased, going from 29% in 2023 to as much as 46% this year. We can also see a decrease in the respondents rating their company as immature, from 22% in 2023 to 11%. This indicates that the pace of Martech development has sped up and that companies are putting more focus and effort into keeping up with this new, higher pace. 34% of all respondents state that the development pace is moving too fast (22% in 2023). Looking specifically at Top Management as many as 40% of all respondents think the pace is currently too high.
The pace of Martech development is perceived to be a bigger challenge in Denmark, Norway, and Austria compared to the other markets in the report.
For a more detailed description of the market-specific answers
Read hereAI & tech as the main drivers for the increased development pace
Looking at the questions related to AI (Artificial Intelligence) solutions we can see the number of companies that already work with AI has increased from 18 to 30% this year. On the other side of the scale, we can also see that only 6% of all respondents say their company won’t work with AI at all, compared to as many as 21% in last year's report.
The most mentioned areas to apply and work with AI are Security and safety, IT and technology, and Financials - these areas have increased the most compared to last year. Interestingly enough we can see a decrease in the sales area where fewer respondents believe this will be a focus area for AI moving forward.
Last year as many as 39% of all respondents said they “don’t see how we can create value by using AI”, this year that number dropped to 16%. Instead, 29% (14% last year) of all respondents seem to “await further development of AI and more specific adaption for our business until we will try ourselves”. It is clear that AI rejectors no longer struggle with seeing the value of AI but rather await further category-specific adoptions before making the move.
In contrast, 52% of Finnish respondents expect their future Martech investments to remain at the same level as today, whereas in Germany, this figure is 43%. These insights highlight the differing investment expectations and priorities in Martech between Finland and Germany.
AI technologies will affect the way their company works with Martech to a high extent
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Download PDF"Top Management vs. All the Others”
Top executives have a significantly more positive view of their company's Martech maturity, competence, and engagement compared to other levels within the organization. They perceive the company's Martech maturity as high, reflecting strong optimism about how well the company has integrated and is utilizing Martech tools. This contrasts with the views of middle and first-level management, who feel that progress has not been as substantial and who often encounter more challenges in this integration process.
"In your opinion - what level of Martech maturity is your company currently at?"
"Does top management and the board members have the right competence to achieve the goals behind your company's investments in Martech?"
Regarding competence, top executives are confident that their own expertise in Martech has improved significantly. They see themselves as well-equipped to handle the technical and strategic demands that Martech entails. However, this perspective is not always shared by other levels within the organization. Middle and first-level management tend to view the leadership's competence in Martech as less impressive than the executives themselves believe. This suggests a potential disconnect between how top management perceives their own competence and how it is viewed by others within the organization.
"How involved is top management in your Martech strategy and efforts?"
The engagement of top executives in Martech initiatives is perceived as much higher by the executives themselves than by other levels within the company—nearly 40% higher. Top executives believe they are deeply involved in Martech strategies and their implementation. However, this perception is not fully shared by middle and first-level management. The latter often feel that the leadership's engagement is not always sufficiently tangible or widespread throughout the organization. This disparity can create gaps in how Martech initiatives are perceived and executed across different levels of the company.
Despite these differences, it is encouraging to see that the Martech strategy is now increasingly defined and decided upon by a more engaged and competent leadership team. There is a strong belief within the leadership group that the strategy and technology will deliver a better customer experience, and consequently, a better business outcome. At the same time, operational ownership has been pushed down into the organization, with detailed decisions about systems and other specifics being made by the operational teams themselves.
In other areas, such as IT and technology, top executives maintain a more optimistic view of how well the company’s technology supports Martech compared to other levels within the organization. They perceive access to new technology as better than middle and first-level management do, which may indicate a disconnect between the strategic and operational levels in how the technology is actually utilized. When it comes to processes, top executives believe that the company’s processes are better suited to Martech, while lower levels often encounter more obstacles and deficiencies in process adaptation.
In summary, top executives view their competence and engagement more favorably than other parts of the organization do. It is important to be mindful of this discrepancy, as it could create challenges in how strategic decisions and investments are perceived and implemented throughout the company. There is a clear tendency for top executives to overestimate how their efforts are perceived lower down in the organization, which can lead to less effective Martech integration and a lack of alignment of Martech strategies within the operational levels.
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Download PDF“Development areas in different countries since last year”
Significant Improvements Across All Countries
Austria, UK, and Finland have shown the most notable advancements in Martech maturity. In Austria, the percentage of organizations reporting a high level of maturity surged by 120%, while Finland witnessed an even more remarkable increase of 142%. This substantial growth in Martech maturity is reflective of these countries’ strategic focus on enhancing their digital infrastructures and adapting their business processes to leverage Martech effectively. The marked decrease in low maturity levels, 69% in the UK and 60% in Austria indicates that these countries are successfully addressing foundational gaps and moving towards a more advanced state of digital marketing capabilities. These improvements align with the insight that development globally in Martech is driven by fast-forward AI development. This development enables companies to integrate diverse tools and platforms more seamlessly, enhancing their overall Martech maturity.
Germany, on the other hand, exhibited more modest improvements. The proportion of organizations with a high level of Martech maturity increased by only 6%. This incremental growth could suggest that Germany, which might already have a high baseline, is focusing on refining its existing Martech frameworks rather than overhauling them. The reduction in low maturity levels by 40% still points to positive momentum, albeit at a slower pace compared to the UK and Austria.
Increased Awareness and Adaptation
On a broader scale, most countries have made progress in enhancing their Martech maturity. The reduction in low maturity levels in both Austria and Finland, alongside the more gradual improvements in Germany, suggests that the gap between countries with high and low Martech maturity is narrowing. This convergence could lead to a more level playing field internationally, allowing a wider array of countries to compete more effectively in the realm of digital marketing.
The concept of Martech stack rationalization, as discussed in the report "The State of Martech 2024," supports this observation. Many companies are now focusing on reducing the complexity of their stacks while maintaining or even enhancing their capabilities, which helps to close the maturity gap between different markets.
To Data crunch
Read hereAdaptation of Processes and Workflows to Martech
Countries across the board have made significant strides in adapting their processes to accommodate Martech. This progress can be attributed to a growing awareness of the strategic importance of Martech and concerted efforts to refine internal workflows to meet increasing digital demands. The data suggests that organizations are not only investing in new technologies but are also re-engineering their processes to maximize the value derived from these investments.
Again, Austria and the UK stand out with the most significant improvements, with the percentage of organizations reporting well-adapted processes for Martech increasing by 107% and 58%, respectively. This surge reflects a deliberate and effective effort to integrate Martech into the fabric of these organizations' operations. The simultaneous decrease in poorly adapted processes by 64% in both countries further underscores their commitment to operational excellence in Martech.
These countries exemplify the findings that organizations with more mature Martech stacks tend to achieve better business outcomes, such as higher revenue per employee, by effectively integrating and utilizing their Martech tools.
Germany and the Netherlands, while showing positive trends, exhibited more moderate improvements. Germany saw a 12% increase in organizations with well-adapted processes, while the Netherlands experienced a 40% increase. These figures suggest that while there is progress, these countries may be encountering more complex challenges in aligning their processes with Martech.
This shows that as companies work to integrate new Martech solutions, those with more advanced integration capabilities tend to perform better. This may explain why countries like Germany, which might already have sophisticated infrastructures, show slower yet steady progress.
Competence Readiness for Martech
Over all - 69% of respondents state that they have a ”Lack of competence and resources” - one of last year's insights when the figure was largely the same, 70%. No positive movement in this area. Despite the fact that in previous measurements this has been indicated as an upcoming focus area.
But some markets stand out, Austria and Denmark have taken big steps forward regarding competence. They have made the most substantial progress in developing Martech competence. Austria increased the percentage of organizations that consider themselves well-prepared from 21% to 52%, a 149% increase. This significant improvement highlights Austria’s focused investment in Martech education and skills development. Denmark’s rise from 40% to 63% (an increase of approximately 58%) reflects a similar trend, where a systematic approach to upskilling has resulted in a more competent workforce capable of leveraging Martech effectively.
Germany and Belgium have shown more modest improvements. Belgium’s 22% increase is relatively modest in comparison, and notably, Germany has not seen any change in the percentage of organizations that consider themselves well-prepared for Martech, with 49% reporting good competence in both 2023 and 2024. The lack of change in Germany could suggest that the country is focusing on maintaining its existing high standards rather than pursuing further rapid advancements. We can also see that in Germany the focus during the past year has been on training existing staff, while in Belgium external partners and consults have been used in to a greater extent.
However, maintaining high standards in Martech competence is still advantageous, as it positions organizations to better adapt to future challenges and opportunities within the digital marketing landscape.
Austria and the United Kingdom are leading the Technology investments
Austria has seen the largest percentage increase in organizations that consider themselves highly prepared technically for Martech, with an increase of approximately 78%. This significant growth is likely a result of targeted investments in cutting-edge technologies and robust infrastructure. The United Kingdom has also made substantial gains, with a 67% reduction in the percentage of organizations that consider themselves less prepared, marking the largest improvement in this category among all countries.
The Netherlands and Germany have seen the lowest percentage increases in the number of organizations that consider themselves highly prepared for Martech, with 16% and 12% respectively. Last year's report showed a very high self-assessed Martech maturity from the German market. So this might indicate a saturation point in technological advancements or a critical self-assessment of their existing capabilities. It is also possible that these countries already had a high level of technical preparedness, making further significant improvements more challenging.
General Improvement in Technical Infrastructure:
Despite these variations, all countries have experienced an increase in the percentage of organizations that consider themselves highly prepared for Martech. This indicates a general improvement in technical infrastructure and an enhanced capability to manage and deploy Martech solutions effectively across diverse markets. The overall trend points to a more robust and resilient Martech environment internationally, with countries increasingly equipped to harness the full potential of digital marketing technologies.
Future investments in Martech continue to increase. 59% of all respondents state that they will have increased investment compared to earlier in the coming year. The markets that will place most of the investors on the technology side are Belgium, Norway, and Denmark.
Finland will also spend a lot of resources on strengthening the technology. This strengthens last year's thesis that the Finnish market was an early adopter of Martech, both in terms of technology and working methods (processes). They had already surpassed the initial peak of excitement, where new technologies were seen as the ultimate solution to all challenges, with the potential for significant impact. Currently, they have reached a stage of realizing that achieving complete Martech maturity requires a comprehensive focus on all four dimensions and their initial techniques are getting old.
Next after technology investments how the investments should be prioritized is creating new customers and increasing sales to existing customers.
Which areas of Martech will be the focus of your efforts coming year?
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Download PDF“The Martech Journey on the Swedish Market 2017-2024”
Over the past seven years, the Martech journey on the Swedish market has undergone significant development. This report highlights the key changes, year-over-year comparisons, and the challenges and successes that have shaped this evolution. The focus lies on four key dimensions: People, Data, Technology, and Processes.
While our maturity level has evolved, a clear trend emerges from the past three years: a significant decrease in low maturity ratings (1 or 2) while we see a sloer pace but still a gradual increase in high maturity ratings (4 or 5).
People
From 2017 to 2024, the skill requirements within Martech have changed dramatically. In 2017, the demand for analytical expertise was high due to the rapid increase in the use of big data. Companies recognized the need to hire specialists with niche knowledge in areas such as SEO, SEM, and marketing automation. By 2023, the trend of high demand for analysts continued, but the challenge lay in finding the right talent and developing existing staff to meet all digital needs. According to the 2023 report, 70% of companies lack the resources or proper skills to achieve their Martech goals, and unfortunately, this figure has only decreased by one percentage point in this year's survey to 69%.
During the period from 2017 to 2024, companies increasingly prioritized cross-departmental collaboration to improve customer journeys and improve customer experiences. A clear strategy and support from top management have been crucial in attracting and retaining relevant talent. This was already evident in the first report in 2017 and is still considered one of the most important factors.
Data
Data management has been a central challenge throughout the entire period. In 2017, many companies struggled to structure and analyze data effectively, often due to outdated systems that were not integrated. Today, it has become clearer that data quality and access to analytical tools are critical for success within Martech. Many companies still face difficulties in automating processes and fully utilizing data due to a lack of structure and tools. There has also been, and to some extent still is, an overestimation of the value of vast amounts of data, which has instead complicated the work of maintaining quality and structure in system integrations.
Technology
The role of technology has gone from being a support function to becoming a strategic advantage. In 2017, Martech stacks began to be established, but the concept was still relatively unknown to many. Between 2019 and 2024, the number of available technology tools and solutions increased dramatically, putting pressure on businesses to navigate this rapidly changing environment. According to Scott Brinker's super graphic, the number of Martech tools has nearly doubled globally, with the most recent increase driven largely by generative AI, which in recent years accounts for 73% of the increase. This trend is also reflected in the Swedish market. Today, many companies have advanced Martech solutions but cannot often fully utilize them due to limitations in other dimensions such as people and processes.
Processes
Processes have been a critical dimension where companies have tried to adapt to new technologies and data management methods. In 2017, one of the biggest challenges was transitioning from silos to a more integrated customer journey-based strategy. In recent years, companies have begun to realize the importance of improving their ways of working to maximize the benefits of Martech. This includes implementing agile methods and ensuring that the entire organization works towards common goals and KPIs in cross-functional teams.
Challenges and Shifts Over Time
The challenges within Martech have shifted from technical obstacles to organizational and competence-related issues. The early years were marked by difficulties in integrating new systems and technologies with existing structures. Over time, the focus has shifted to developing the right skills and adapting internal processes to support more data-driven and customer-focused marketing. The most significant challenges in recent years relate to the lack of time, budget, and skills, with budget constraints identified as the most significant obstacle in 2023. This reflects an increased awareness of the importance of having the right skills and using resources efficiently to achieve Martech's investment goals.
What are the biggest challenges you've faced trying to achieve the goals behind our company's investments in Martech?
Sweden continues its Martech Journey
The Martech journey on the Swedish market has been characterized by significant developments and changes between 2017 and 2024. Companies have shifted their focus from merely implementing new technology to developing internal processes and skills to fully exploit the opportunities that Martech offers. The challenges have moved from technical integration issues to organizational and competence-related barriers. The future of Martech in Sweden depends on the ability to continue adapting and developing all four dimensions: People, Data, Technology, and Processes.
This development has required and will continue to require, commitment from top management, investments in skill development, and a constantly improved strategy for managing and utilizing data effectively. Therefore, we are pleased to see that maturity is increasing at a rapid pace, primarily driven by AI technology that is evolving and increasingly integrated into our system solutions.
Do you predict that your company's investments in Martech over the next couple of years, will be?
Already in 2019, had the insight not to overinvest in technology without ensuring competence and the process that gives the customer experience a boost:
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