Forrester: Marketing automation spend will reach $25B by 2023
- Global marketing automation spend will reach $25.1 billion by 2023 from $11.4 billion in 2017, according to new Forrester research made available to Marketing Dive.
- Marketing automation technology is expected to grow at a 14% compounded annual growth rate (CAGR) over the next five years. The highest growth for "through-channel marketing automation" platforms will reach 25% annually, with "lead-to-revenue automation" platforms at 19.4%.
- The forecast also shows that by 2022, investment in database and analytics technologies will grow at 10.9% CAGR, while ad tech will grow at 9.6% CAGR and automation at 9.3%. The study also revealed that 55% of CMOs will increase spending on marketing technology over the next year, with 20% planning a 10% or more spending increase.
As marketing becomes increasingly data-driven, marketers have often struggled with data management and analysis, as well as measuring ROI. Forrester's research underscores how many are looking to marketing automation tools as a solution to help control costs, drive marketing strategies, target audiences, analyze the effectiveness of campaigns and achieve higher levels of personalization.
Forrester's forecast is in line with previous research showing the growth of programmatic ad buying. By 2019, about two-thirds of all digital display ads will be programmatic, reaching around $84.9 billion, according to estimates from Publicis Groupe's Zenith. Programmatic offers more automation and efficiency in ad buys, but the process isn't perfect. One of the challenges with programmatic is marketers do not have full control over where their ads appear.
Artificial intelligence is also playing a more prominent role in marketing as an automation tool. Marketers are embracing AI for its predictive abilities and more precise ad targeting. As marketers strive to deliver more personalized experiences, something consumers are growing to expect from their favorite brands, many will likely increase their investments in AI. Spending on the tech is estimated to reach $19.1 billion in 2018, a 54.2% increase over 2017. By 2021, AI spend is expected to reach $52.2 billion, a CAGR of 46.2% from 2016 to 2021, according to the International Data Corporation.