Like the running of the bulls in Pamplona — an apt simile? — it’s become a yearly tradition for me to release the marketing technology landscape at Marketing Technology Landscape Supergraphic (2018) — 4.6MB Slide
I’ve kept the nickname of the Martech 5000 — it has a certain ring to it — but this year’s graphic actually charts 6,829 marketing technology solutions from 6,242 unique marketing technology vendors.
While that represents “only” 27% growth over last year’s landscape, which mapped a grand total of 5,381 solutions, the percentage of growth belies the absolute scale of this space.
To appreciate the magnitude of martech’s diversity (and the effort behind this project), the size of the 2018 landscape is equivalent to all of the marketing tech landscapes we assembled from 2011 through 2016 added together:
Some important notes, and then I’ll share with you how to get a free Excel spreadsheet of all the solutions on the landscape and a super high-resolution version of the graphic suitable for zooming and printing:
- My collaborator from last year, IntelliPhi.” once we had all the data and logos harvested however turned over visualization of landscape to eckman> and his team at 3,200×1,800 pixels. (Or embed the graphic from my CDN). For higher resolutions or uses, please ask first. A backlink to this post would be greatly appreciated.
- This graphic is only our personal approximation of the marketing technology space and is surely rife with errors and omissions (our apologies). It is intended only to stir discussion. You can publicly identify or clarify your company in the comments section below and fill out this form to be added to our research spreadsheet for the next edition.
- Key resources used in our research to build this graphic: Google,” partners>, LUMAscapes.
Take our martech data, please (and a high resolution graphic)
If you would like to download an Excel file of all of the solutions on the landscape and/or a high-resolution version of the graphic that you can zoom into print — up to wall-sized, if you’d like — I would simply ask you to subscribe to my blog (I won’t share your email with anyone else):
Fill out the form linked above, and we’ll email you links to both the Excel file and a high-resolution graphic suitable for printing (be sure to save that email).
Martech consolidation fails to materialize… again
Four years ago, when I released the 2014 martech landscape, I wrote an article that asked:
Admittedly, this marketing technology landscape doesn’t accurately reflect the sizes of these different martech companies. If we were to organize them by valuation, the resulting graph would illustrate a classic long tail: a handful of multi-billion dollar giants in the “head,” quickly tapering out across a very long “tail” of thousands of smaller firms.
You really need to click on the graphic above to appreciate the full length of that long tail (the tiny line underneath the zoomed-in section of the first 51% of the products near the head).
That’s not to say that consolidation isn’t happening. Indeed, acquisitions continue to be made across martech and companies do go out of business. But from 2017 to 2018, only 4.5% of the solutions from the previous year “churned” — were acquired or exited the market in some less graceful fashion. Another 2.7% changed their name or pivoted to a different category.
It’s just that new companies still enter or grow in the market — either organically or venture-funded — at a rate that continues to outpace the rate of consolidation.
Water continues to flow into the martech tub faster than it’s draining out.
In fact, venture capital and private equity investment in companies across the marketing tech landscape has remained high over the past several years. Indeed, 2017 was a record year with over $14 billion invested in the sector.
Like the pig in the python, that investment is going to take some time to be digested among the current crop of marketing technology vendors. I expect we’ll see some very exciting activity in martech through 2019, even if new companies completely stopped entering the space.
Yet such a “martech freeze” of new entrants is unlikely.
While it’s conceivable that we may witness a massive “crunch” of martech vendors over the next 12 months, it’s also possible that the space will remain at its current size or — gasp! — continue to grow even more.
“How is that possible?!?” you might be asking incredulously.
I’ve written about this dozens of times over the years. My article from three years ago on the system dynamics of 2,000+ marketing technology vendors still holds true and explains the many forces at work in this environment in the most detail. But the short answer is:
- On the supply side, there are effectively zero barriers to entry in software today, thanks to tons of incredible open source projects, cheap infrastructure-as-a-service (IaaS), global on-demand talent markets, and low-cost channels for digital marketing.
- On the demand side, marketing continues to expand in scope and scale, wrestle with ever-advancing buyer expectations, assimilate new marketing innovations, face new market disruptions, and strive to differentiate themselves from a global multitude of competitors.
As much amazing marketing software as there is today, there is still opportunity for new ideas. Marketing should be — and can be — better.
One way that Anand describes this is the increasing resolution we seek in understanding and serving our customers as marketing technology continues to improve. Back in the days of the 2011 martech landscape, our digital representation of the customer was as sophisticated as a stick figure.
But as marketing technology has advanced — and as ever more specialized capabilities have emerged — we’re putting more flesh on our digital customers and striving to serve them in more human ways.
We still have a ways to go, but we aim to understand and empower customers as fully-fleshed out superheroes. As we pursue that goal, the marketing technology landscape must continue to evolve.
Changes in the 2018 marketing technology landscape
Aside from its growth, what else changed with the 2018 marketing technology landscape?
Well, for one thing, we got rid of the category for Predictive Analytics.
The largest category — i.e., the category with the greatest number of vendors — this year was Sales Automation, Enablement & Intelligence with 490 solutions.
“Salestech” is on fire!
So why keep the salestech category on the martech landscape? Because marketing and sales are deeply entwined — and only becoming more so.
It’s the same reason why Customer Experience, Service & Success are on the martech landscape too.
The rise of Bots & Live Chat over the past year clearly warranted its own category in 2018.
Both text-based and voice-based chatbots have had an incredible year of innovation and adoption — and I’m confident that’s just a prelude to a spectacular 12-24 months ahead.
The last big change that I’ll point out is the addition of a new category in the Data column for Compliance and Privacy.
The” average enterprise today now uses over cloud services> across every department: marketing, sales, customer service, finance, IT, HR, etc. While I’m pretty sure marketing has the largest vendor landscape of all of them, there are hundreds and hundreds of SaaS vendors serving all of these other departments too.
The thriving category of iPaaS (integration-platform-as-a-service) solutions on the martech landscape is a testament to the immense demand for orchestrating all of these different components, making the whole greater than the sum of its parts.