- The Martech landscape is abuzz with various activities, such as product launches and investments. So, how did Q1 2023 fare in terms of activities in the landscape compared to previous quarters?
- CabinetM recently released a report that compares the activities in the Martech space across various quarters.
The marketing technology (Martech) space is abuzz with activities. The landscape is witnessing new tools and platforms being launched. With rapid advancements in new technologies, such as AI and immersive technologies, more advanced products and features can be expected to be released this year.
Besides product launches, a few other factors, such as investments, feature updates, mergers, and acquisitions, are contributing to the buzz in the martech space. The recent Q1 2023 MarTech Innovation ReportOpens a new window by CabinetM highlighted the key activities in the martech space in the first quarter of this year. A key finding from the study was an uptick in new product launches than previous quarters, while the number of acquisitions declined.
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The Martech Landscape Saw an Uptick in New Product and Feature Launches
The study found that new product announcements saw an uptick during the first quarter of this year compared to the corresponding quarters in the last two years. There were 121 new products in the quarter across various categories compared to 59 in Q1 2021 and 85 in Q1 2022.
The results seem to agree with Chief Marketing Technologist’s recent studyOpens a new window . According to it, the 2023 marketing technology landscape consists of 11,038 solutions. This is an 11% increase from the 9,932 solutions available last year. This may not be surprising, given that significant advancements and investments are being made in technology. The advent of large learning models (LLM) and generative AI has also led to companies and brands launching new solutions and offerings.
The Martech landscape also witnessed an uptick in feature announcements, according to CabinetM’s report. There were 98 new features announced in Q1 2023 compared to 65 in Q1 2021 and 89 in Q1 2022.
Investments Skyrocketed This Quarter
Talking about investments, they were spread across 36 categories and skyrocketed from $3 billion in the last quarter of 2022 to $13.2 billion in Q1 2023. Of course, this was skewed by a single investment of $10 billion by MicrosoftOpens a new window in OpenAI. Nonetheless, ignoring this, investments remained consistent with Q4 2022, which indicates continuing innovation and investments in martech.
AI Regained Spotlight
Artificial intelligence (AI) has been a widely discussed topic in marketing technology over the last few years. However, many businesses had a mix of excitement and a wait-and-watch attitude. With the emergence of generative AI, there is renewed excitement around the technology’s potential for martech innovation. The massive investment by Microsoft into OpenAI and other huge investments by technology leaders show AI’s potential to transform marketing technology. These tools are user-friendly and easily accessible, making it easier for marketers to incorporate them into their plans and strategies.
According to the report, 13 new AI tools were announced, while four vendors announced new AI capabilities for their existing products. That said, several brands and companies have announced AI capabilities in their offerings over the last few months. However, some can be classified as egregious, i.e., products that claim to leverage AI in their marketing campaigns but do not do so. Hence, companies should do their due diligence before buying solutions that claim to use AI.
See more: FTC Warns Companies Against Abusing the Term AI in Advertising
M&A Activities Fell in Q1
According to the study, Q1 2023 saw a decline in mergers and acquisitions (M&A) compared to the corresponding quarters in the last two years. There were only 40 M&As in Q1 this year compared to 52 in Q1 2021 and 74 in Q1 2022. That said, the number remained flat compared to Q4 2022. Hence, it is a little too early to conclude that there is an actual downward trend in M&As.
Given the slew of announcements and investments in the martech landscape, we may expect the space to be more active over the year ahead.
Where do you think the martech landscape is headed this year? Let us know on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We’d love to hear from you!
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