A recent report from Duke University’s Chief Marketing Officer (CMO) Survey, in partnership with Deloitte, reveals a growing trend of businesses embracing marketing technologies (martech). According to the study, 75% of marketers are now utilizing these tools, underscoring their increasing importance in modern marketing strategies. However, despite this widespread use, organizations are only taking advantage of around 56% of the martech tools they’ve invested in. This suggests there is still significant potential for companies to fully capitalize on these resources.
The survey also explored the influence martech has on overall business outcomes, with participants rating its impact at 4.7 out of 7, where 1 represents minimal benefit and 7 indicates maximum effectiveness. This rating exposes a gap between the anticipated advantages of martech and its actual performance, with marketing leaders estimating its benefits to be about 34% lower than expected. Metrics like lead generation (tracked by 76% of organizations) and sales (measured by 68%) are commonly used to assess martech effectiveness.
Meanwhile, 65% of companies monitor lead conversion rates, though customer-centric metrics such as lifetime value (28%), customer loyalty (27%), and pipeline acceleration (23%) are less frequently tracked.
“Marketing teams have been leveraging a variety of technologies for some time now, ranging from analytics and automation tools to customer relationship management systems and social media platforms. Recently, generative AI has emerged as another valuable addition. Each tool offers unique benefits, whether it’s boosting engagement, nurturing leads, or improving conversion rates, but the potential impact can be even greater when these tools are strategically integrated to manage top customers.” said Ruxandra Bandila, Deloitte Central Europe’s Chief Marketing Officer.
The research also spotlights the promising effects of newer technologies like generative AI. While only 7% of current marketing activities involve generative AI, its adoption has already yielded tangible benefits. Marketers have reported a 5% increase in sales productivity, a 6% boost in customer satisfaction, and a 7% drop in marketing costs.
However, incorporating AI into marketing comes with its own set of challenges. Key concerns include addressing potential bias, ensuring fairness, and making the necessary infrastructure investments to support AI capabilities.
The report also notes a reduction in marketing budgets as a share of total company budgets, which fell from 14% in 2022 to 10% in 2024. However, marketing expenditures as a percentage of company revenue have seen a slight rise, moving from 9% in late 2023 to 10% in early 2024.
Looking ahead, overall marketing spending is forecasted to grow by 5% over the next year. However, the growth of digital marketing investments is expected to slow, with an increase of only 8%, down from 9% in 2024. Social media spending is projected to account for 11% of the marketing budget by 2024, with estimates suggesting it will reach 12% within a year and 16% over the next five years.
These insights are drawn from a survey of nearly 300 marketing leaders across more than 15 industries in the United States.
