Only three things in life are certain: death, taxes and that marketers will change their technology tools, so-called martechs Martech Replacement 2024 from marketing automation tools to CRM, ESP (and beyond), the insatiable thirst of marketers for change continues unabated.
Low adoption, contract renewals, consolidation of new tools, new leadership, and many other reasons are catalysts that drive this constant state of technology tool flow.
In 2024, the main factor driving the martech shift was, unsurprisingly, the cost, the most visible part of any martech investment & the one that is often kept under a microscope by CFOs Gartner CMO Spend, from Gartner, show martech spending at its lowest level in 10 years.
But it was the second factor that drove the replacement of the martech integration capabilities/open API that caught my attention.
Consolidation and fragmentation at the same time
Thanks to the explosion of martech applications in the last decade, much has been done predicting an inexorable transition toward the consolidation of technology tools.The premise is that the fewer applications in its technology structure, the cheaper and better it will be to manage it.
While the proliferation of tools is real, and some consolidation is certainly happening, the data tells us that companies are using it more software than ever, Using specialized tools and applications to fulfill specific and business-critical needs.Look at the technology tools of most modern enterprises and you will see core platforms supporting a Jenga tower of interconnected tools, not a single, universal platform.
The report Martech State despite having found fundamental platforms (such as CRM, ZIP codes, CDPs or data warehouses), around 82% of the organizations surveyed 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 their data well with other tools, marketers will find a different tool that does.
A wolf in sheep's clothing
Large martech packages, of course, have realized this growing demand for interoperability and have created seemingly robust application ecosystems that allow you to use a variety of different tools in combination with your core platform.
But attention, buyer: these integrations are not free.
These large software packages have built their domain by acquiring and uniting smaller, independent technology companies.As a result, these enterprise software packages span multiple applications, each operating on different data models that lack internal compatibility, let alone integration capabilities with third-party systems.
This means that while it is technically possible to integrate third-party point solutions into them, they are so complex and clumsy - if virtually undocumented - that most end up paying dearly for consulting service providers and building integrations on their behalf.
Looking forward to 2025
Given the importance marketers have given to integration capabilities in 2024, this interoperability veneer is unlikely to be enough.
With the rise of APIs and the growing demand for composable technology tools, the level for martech vendors has never been higher. They need to ensure compatibility between different tools and logging systems, ensure that data flows accurately between tools in real time, provide easy-to-use interfaces for teams to leverage their API, and serve best-in-class documentation and tools to support them in building their technology stack.
If this seems like a daunting task, it shows how marketing, data, analytics and digital teams are maturing within organizations. With this maturity come greater skills and experience in technology, and a desire to move beyond out-of-the-box functionality.
It is important to embrace platforms designed to be used with other systems, rather than holding you back.We believe brands should have the flexibility to choose the best channel solutions for themselves, and marketing, data and development teams should not 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.
