Martech is consolidating, but what will the 2022 landscape reveal?

Martech Acquisitions 2019-2020
Next Tuesday, May 3 — Martech Working day! — we’ll release the 2022 marketing technological know-how landscape, together with a Condition of Martech report. You can be a person of the initial to see it and understand about the key traits it reveals by becoming a member of Frans Riemersma and me for a live webinar at 11am Eastern. You can sign-up for absolutely free in this article.

You may possibly previously be leaping to a conclusion. “It looks like each other week, I read about a big acquisition. Certainly the 2020 martech landscape with its 8,000 solutions was Peak Martech! The only query is by how a great deal has the 2022 landscape shrunk.”


Certainly, the martech industry sees a remarkable total of M&A action. LUMA Associates, a person of the primary financial commitment banking institutions in martech — and the creators of the original adtech landscape that influenced us over a 10 years back — publishes quarterly experiences of known discounts. There have been 157 in 2019, 85 in 2020, and 166 in 2021.

About 1 out of each and every five of people was a deal valued at $100 million or additional. These kinds of massive acquisitions just about normally make the information. Last 12 months, there ended up 37. On average, that is 3 for each month that most likely garnered headlines in field publications.

It is a testomony to just how large the martech market is that so numerous substantial acquisitions are continually developing. All those people headlines obviously give the impact of massive consolidation.

Still although that consolidation is serious, as a share of the whole amount of martech options, these acknowledged acquisitions are 2% or so of the whole landscape. In the meantime, new martech startups and other more set up organizations carry on to enter the house. Ironically, consolidation is normally a catalyst for more application to be created.

Martech Platform Leverage

Consolidated platforms make it easier for computer software developers to establish applications on best of them. If you’re standing on the shoulders of giants, the even bigger the big the superior. And the much less giants you have to pick out among the, the much better way too, as it’s additional very likely it is that the a person(s) you pick out will have scale and staying ability.

These good responses loop dynamics — generally framed as “winner usually takes all,” even if in fact there are generally several big winners — is why AWS, Microsoft Azure, and Google Cloud are so dominant as cloud platforms. And they’re however increasing at a amazing speed. But in the method, they’re birthing thousands and thousands of applications constructed on leading of their foundations.

The increase of ecosystems and marketplaces in SaaS enterprises even more enables the Cambrian explosion of commercial professional applications as very well as tons of custom made apps customized to unique businesses. They assist clear up the problems of discovery and integration.

In the meantime, demand for specialized computer software continues to grow much too, as described by the amount of SaaS apps that corporations have in their stacks:

SaaS App Adoption

We’re moving into a article-electronic-transformation era, where by businesses are no for a longer time scheduling to become “digital.” They are digital. And as they now contend ferociously for competitive advantages in their digital functions and digital purchaser experiences, they are progressively comfy getting and making far more specialised software.

Advertising remains one of the most extreme domains in which that levels of competition normally takes place — offering martech entrepreneurs ample options to produce value.

Traders continue to think in these chances way too. They proceed to fund new and expanding martech ventures. If you select up a duplicate of LUMA’s Q1 2022 Marketplace Report, you’ll see the hundreds of tens of millions of bucks in money put into martech firms just in the 1st 3 months of this yr.

That claimed, there are rational boundaries for how a lot of martech firms can exist at just one time and how a lot of martech apps any a single corporation can usefully adopt. Whilst new martech products are frequently born, old types fade away into mergers, pivots, and discontinued oblivion.

The concerns the martech landscape has answered each individual yr are: (1) what is the stability amongst martech expansion and consolidation and (2) what’s the composition of solutions within the all round martech market? Those answers expose a ton about the ongoing evolution of advertising.

What will the 2022 martech landscape reveal? Tune in up coming Tuesday to uncover out.

We’re likely to release one thing seriously unique this year that I ensure you’ll want to be one particular of the first to have obtain to.

P.S. Researching the martech landscape has become a venture of epic proportion more than the yrs. And with the particular surprise we will be unveiling this 12 months, the effort and hard work to produce it has developed even more. We would not have been in a position to do this without having the economical aid of various generous sponsors:

If you have not taken a seem a short while ago at the impressive martech remedies these corporations are developing, check them out. It’s amazing.

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