McKinsey: CMOs and CFOs must unite to solve marketing tech ROI gap — with help from AI

Core Insights - The marketing technology (martech) sector is experiencing significant growth, with a global market value of $131 billion in 2023, projected to reach over $215 billion by 2027, reflecting a compound annual growth rate of 13.3% [3] Martech Landscape - Examples of martech include email marketing tools, customer data platforms, automation systems, and social media management tools, with usage varying by industry [2] - Many companies, particularly in financial services, integrate risk compliance tools into their marketing strategies [2] Current Challenges - Despite growth, many marketers are still in early maturity stages, focusing on automating legacy processes and struggling to measure return on investment (ROI) [4] - A survey of over 200 senior marketing and technology leaders revealed that most companies spend millions on martech without understanding its direct business impact [5][7] - Nearly half of martech leaders cite stack complexity and poor data integration as significant barriers to realizing value [6] ROI Measurement - None of the senior marketing leaders interviewed could clearly articulate the ROI of their martech investments, often tracking operational metrics instead of tying outcomes to revenue or business growth [7] Strategic Integration - Companies are encouraged to reposition martech as a strategic enterprise asset, integrated into business strategy and supported by governance and skilled talent [9] - Chief Marketing Officers (CMOs) must advocate for martech funding and training, elevating its importance within the executive agenda [10] Accountability and Leadership - Organizations need to hold accountability for martech investments similar to capital expenditures like building a new manufacturing plant [12] - Chief Financial Officers (CFOs) are expected to play a crucial role in driving martech transformation and reshaping the martech stack [13]