Organisations are increasingly adopting marketing technologies (martech), according to the latest Chief Marketing Officer (CMO) Survey by Duke University.

The study, supported by Deloitte, found 75% of marketers are now utilising these tools. However, despite this widespread adoption, companies are only using about 56% of the martech tools they’ve purchased. This indicates significant untapped potential in fully leveraging these technologies.

The survey also examined how much martech impacts business success, with results scoring 4.7 on a 7-point scale, where 1 is the least beneficial and 7 is the most beneficial. This score highlights a gap between expectations and reality, as marketing executives believe the benefits of martech are 34% less than expected. The most common metrics for measuring martech efficiency include lead generation (used by 76% of companies) and sales (utilised by 68%).

Additionally, 65% of companies track lead conversion rates. Customer-oriented metrics like lifetime value (28%), loyalty (27%), and pipeline acceleration (23%) are less frequently used.

“Marketing professionals have been using numerous technologies for years, from data analytics and automation tools to customer relationship management systems and social media platforms and, more recently, Gen AI. Each of these solutions generates value, either by driving engagement, by nurturing leads or by boosting conversions, but their outcomes can be significantly higher if they are strategically combined to manage their most engaged customers,” said Ruxandra Bandila, chief marketing officer for Deloitte Central Europe.

The study also highlights the positive impact that newer technologies, such as generative AI, can have in a short time. Although only 7% of marketing activities currently involve generative AI, its use has already led to measurable improvements. Marketers have reported a 5% increase in sales productivity, a 6% rise in customer satisfaction, and a 7% reduction in marketing overhead costs.

However, deploying AI in marketing presents unique challenges: mitigating bias and ensuring fairness are critical, as is properly investing in the necessary infrastructure to support AI operations.

The report also identified a decrease in marketing budgets as a percentage of total company budgets, which fell to 10% in 2024 from 14% in 2022. However, marketing budgets as a percentage of company revenues increased slightly, rising to 10% in the spring of 2024 from 9% in the fall of 2023.

Looking to the future, it is anticipated that total marketing spending will increase by 5% over the next 12 months. Furthermore, digital marketing expenditure is expected to slow down, with an increase of only 8% in the coming year, down from 9% in 2024. Social media spending is also predicted to climb, reaching 11% of the entire marketing budget by 2024. It is expected to reach 12% within a year and 16% over the next five years.

This data is based on a survey of nearly 300 marketing leaders across at least 15 industries in the US.

See also: Cross-channel marketing strategies boost conversion rates by up to 31%

Interested in hearing leading global brands discuss subjects like this in person? Find out more about Digital Marketing World Forum (#DMWF) Europe, London, North America, and Singapore.