Only three things in life are certain: death, taxes, and that marketers will change their technology tools, the so-called martechs. When the Martech Replacement 2024 survey landed on my desk, this change became extremely clear. From marketing automation tools to CRM, ESP (and beyond), the insatiable hunger of marketers for change remains unshakeable.
But what is interesting are the factors driving these changes. Low adoption, contract renewals, consolidation of new tools, new leadership, and many other reasons are catalysts driving this constant state of technology tool flux.
In 2024, the primary factor driving martech change was, unsurprisingly, cost, the most visible part of any martech investment – and one that is often scrutinized under a microscope by CFOs. It’s no wonder the latest Gartner CMO Spend research shows martech spending at its lowest level in 10 years.
But it was the second factor driving martech replacement – integration capabilities/open APIs – that caught my attention.
Consolidation and fragmentation, simultaneously
Thanks to the explosion of martech apps in the last decade, much has been done anticipating an inexorable shift towards consolidating technology tools. The premise is that the fewer apps in your tech stack, the cheaper and better it will be to manage.
Although the proliferation of tools is real, and some consolidation is certainly happening, the data tells us that companies are using more software than ever, using specialized tools and applications to fill specific and critical business needs. Look at the tech tools of most modern companies and you’ll see core platforms supporting a Jenga tower of interconnected tools, not a single, universal platform.
The 2024 State of Martech report found a similar pattern. Despite having core platforms (like CRM, CEPs, CDPs, or data warehouses), about 82% of surveyed organizations said they also used alternative products and applications.
It is precisely in this context that integration/openness becomes so important. To be frank, if a vendor does not integrate your data well with other tools, marketers will find a different tool that does.
A wolf in sheep’s clothing
The major martech suites, of course, have realized this growing demand for interoperability and have created seemingly robust app ecosystems that allow you to use a variety of different tools in conjunction with their core platform.
But buyer beware: these integrations are not free.
These large software packages have built their dominance by acquiring and merging smaller, independent technology companies. As a result, these enterprise software packages encompass various applications, each operating on different data models that lack internal compatibility, let alone integration features with third-party systems.
This means that while it is technically possible to integrate third-party point solutions with them, they are so complex and unwieldy – virtually undocumented – that most end up paying a premium for consultancy and integration build services on their behalf.
Eager for 2025
Given the importance marketing professionals have placed on integration capabilities in 2024, it is unlikely that this veneer of interoperability will suffice.
With the rise of APIs and the growing demand for modular technology tools, the bar for martech vendors has never been higher. They need to ensure compatibility between different tools and record systems, ensure data flows accurately between tools in real-time, provide user-friendly interfaces for teams to leverage their API, and deliver best-in-class documentation and tools to support them in building their technology stack.
If this sounds like a challenging task, it shows how marketing, data, analytics, and digital teams are maturing within organizations. With this maturity comes greater technology skills and experience, and a desire to move beyond off-the-shelf functionality.
It’s important to embrace platforms designed to be used with others systems instead of locking you in. We believe brands should have the flexibility to choose the best channel solutions for themselves, and marketing, data, and development teams shouldn’t have to spend months creating manual point integrations to get their data from these platforms.
In 2025 and beyond, I see a much more integrated future than before.
