Spending on marketing technology “martech” has surged into the stratosphere. Worldwide enterprises are expected to invest approximately $160 billion this year on tools and platforms designed to automate, personalise, and optimise how they connect with customers. But behind the numbers is a stark reality: Most buyers can’t clearly articulate how these technologies turned into incremental revenue, higher profits, or measurable business growth. In other words: they bought the stack, but they didn’t get the return.
Consulting firm McKinsey & Company recently surveyed more than two hundred senior tech and marketing leaders each overseeing significant martech investment and found a surprising fact: none could confidently map their technology spend to business outcomes like lifetime value, incremental sales or margin improvement. Meanwhile, analysts report that usage of martech stacks has declined. Organisations are utilising only about one-third of the capability of their current martech systems. So what’s going wrong?
One root cause lies in complexity and fragmentation. Many companies have layered on dozens of point solutions analytics, CRM, automation, AI personalisation, adtech, and more without fully integrating them or clarifying desired outcomes. In the McKinsey study, 47% of respondents said their stack’s complexity or poor integration blocked value realisation. With tools operating in silos, marketing teams find themselves measuring opens, clicks and impressions rather than connecting them to revenue metrics or business growth.
Another issue: adoption and utilisation. Even when tools are implemented, many sit idle or under-used. According to recent data, firms are using only 33% of their stack’s functionality on average. That means expensive licences sit dormant while marketing teams struggle to tie activity back to profit.
Then there’s the human factor. Martech isn’t plug-and-play. It requires training, process alignment and clear governance. When an organisation treats the stack as a “toolbox” rather than a strategic ecosystem, the result is often wasted spend and minimal impact. Indeed, one vendor study found that across companies, as much as 60% of martech budgets may go unused or mis-applied due to such issues.
The consequences are serious. CFOs are beginning to view martech investment as a cost of doing business rather than a driver of growth. That shift undermines marketing’s credibility and weakens the executive support needed to evolve tech stacks from experiment to engine. Meanwhile, vendors face pressure. If buyers can’t articulate value, renewal cycles lengthen, churn increases and innovation slows. One blog covering vendor strategies warns that martech companies must shift from selling software to driving customer success and measurable outcomes.
This moment may mark one of the biggest cracks in digital transformation ambitions across business. For years, martech was sold as the answer to better targeting, smarter automation and endless personalisation. But if the tools aren’t delivering profit, the promise starts to look hollow.
What can companies do to fix the gap? Three steps stand out:
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Define clear business outcomes before purchasing any tool. Ask: “What specific revenue or margin improvement do we expect?”
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Measure what matters. Instead of just tracking clicks or installs, link data to customer lifetime value, repeat purchase rates and cost-to-serve metrics.
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Prioritise stack simplicity and alignment. Consolidate redundant tools, strengthen data governance, and ensure teams are trained and processes defined.
The martech industry remains massive and for many vendors it is still growing. But for the broader market of buyers, the question is becoming urgent: Can these tools move from lining up checkboxes to moving the bottom line? Until that happens, spending will keep growing and so will the scrutiny.
