Marketing Tech Investment Grows, Despite Controversies
With Google, Facebook and other tech firms grabbing headlines in 2017 for less than desirable reasons, it may be tempting to think that marketing technology investment is slowing down. It’s exactly the opposite, reports Recode.
“Tech investors have grown increasingly bullish about the companies they fund over the last six months,” writes Recode on Wednesday, “even after a series of much-anticipated IPOs proved to pack more fizzle than pop in 2017. Sixty-eight percent of investors told SharesPost, an industry research firm, that valuations for private companies will increase over the next 12 months. Only 49 percent said the same six months ago.”
That means marketers will still have plenty of tech to choose from when that startup investment results in products or allows products to stay on the market. (This, despite a changing workforce reported in another Recode headline on Wednesday: “U.S. Companies Aren’t Trying to Hire as Many Foreign Tech Workers Since Trump’s Election.” Plus recent Silicon Valley sexism scandals at Google and Uber, a video metrics kerfuffle at Facebook and a hate speech/video juxtaposition problem at YouTube haven’t seemed to permanently slow revenue and investment.)
And marketers are definitely investing in that end-product, recent Target Marketing research shows.
Target Marketing Editor-in-Chief Thorin McGee summarizes what tech brands want on Wednesday in his article about the “Marketing Technology Buying Process” report:
- Email 53%
- CRM 47%
- Social Media Marketing 39%
- Marketing Automation 38%
- Web Analytics/Web Design/Web Optimization 33%
- Content Marketing 32%
- Database Marketing/Personalization 30%
- Direct Mail 29%
- SEM/SEO 29%
- E-commerce Platforms 25%
In another sign of a risk-tolerant venture capital trend, Recode reports that investors are willing to “purchase existing shares from existing shareholders — even though the companies are private.” (Marketers who think that sounds a little like the derivatives trend that helped kick off the Great Recession may not be completely off-base. InvestorWords calls a derivate: “A financial instrument whose characteristics and value depend upon the characteristics and value of an underlier, typically a commodity, bond, equity or currency.”)
What do you think, marketers? Does the SharesPost make you more or less likely to invest in marketing technology?
Please respond in the comments section below.
Related story: Top 10 Technologies Marketers Are Buying