Officially, Anand” thaker>, was
But a raw count doesn’t tell the full story of what’s actually happened.
The Rise” of the marketing technologist> that I gave at a small search marketing conference:
The point I was making was: look how dependent marketing has become on technology. This is why you need technical talent — marketing technologists — as a native part of the marketing team. As our recent
As you can see above, the vast majority of them have been consolidated. Most were acquired (red circles). A few just went out of business (circles with lines).
Of those that remain, some of them, such as Emma, Lithium, iPerceptions, Marketo, and (sort of) Sitecore, were actually acquired by private equity firms, but kept operating as stand-alone brands — so I didn’t circle them in red. But I suppose we could.
Some, such as Alterian and Aprimo, were acquired — and so I’ve circled them red — but since then, they’ve actually been spun out on their own again. Maybe they should now have a dotted circle?
Add them up and you find that 87 out of 152 were acquired or went out of business. 61.3% were consolidated. (If you add in the private equity deals, it’s 64-65%.)
The Martech Class of 2010 — where are they now?
A number got rolled up by the large enterprise companies seeking to build their suites/clouds. For instance, Oracle could be nicknamed “The Consolidator” — isn’t that a great name for an action/thriller movie? — having acquired Eloqua, Responsys, Market2Lead, ATG, RightNow, Maxymiser, BlueKai, NetSuite, and Endeca (HubSpot,” i work now>, acquired Performable relatively early on.
It’s interesting to see who remained “single” in this field. Firms that were or are now public:, HubSpot, Liveperson, Marin Software, Salesforce, Tableau, and Teradata. Big private companies that have that scale, like Infor and SAS (and Lithium, Marketo, and Sitecore, if you count private equity ownership, which I think we should).
But it’s also interesting to see the smaller ones, such as ClickTale, Demandbase, Kissmetrics, Monetate, Moz, ReachForce, SiteSpect, SugarCRM, Wingify, and WordStream that have carved out and sustained well-known brands for over 8 years — no small feat.
Was this Martechaggedon?
That sea of red circles illustrates a fact: the martech landscape of 2010 did consolidate.
I could creatively theorize why that happened — and why, as a countertrend, the overall landscape continued to grow geometrically (25 growth!) over the past 8 years. But we don’t need hand-wavy explanations. We’ve got data.
The currently published Bureau of Labor Statistics data only goes up through 2015. But if we say that all of the martech companies on that 2010 proto-landscape started at least 8 years ago (2009) — and many started earlier — and then slide back on this chart two more years (2007-2015), we see that the survival rate of any business for that long was 37.5%.
In other words, 62.5% of all US businesses started were, um, consolidated within 9 years.
The marketing technology landscape consolidated 61.3% during that same time frame.
Admittedly, my proto-landscape was far from comprehensive — there were undoubtedly many martech companies that were operating in 2010 that I didn’t capture and may have gone out of business at a higher rate. And certainly not all of them were based in the US.
But with a little hand waving on my part, I’ll suggest that, more or less, martech companies “consolidated” at about the same percentage as any other business.
It wasn’t Martechageddon. It was simply The Law of 65/10. Over 10 years, approximately 65% of businesses end (although I wouldn’t call a good exit-by-acquisition an unhappy ending). Okay, I just made up naming that a “law” — but Anand” thaker>. This would make a fascinating presentation for