TECH BYTE: Feeling overwhelmed by digital marketing? Well its 5000 strong and growing fast!
First the writer’s credit as this is written (and copied) in the first person to retain context – Thank you Scott Brinker.
Statistics from the 2017 Marketing Technology Landscape
The official stats for this year:
• There are now 5,381 solutions on the main graphic, 39% more than 2016
• There are now 4,891 unique companies on the graphic, up 40% from last year
• Only 4.7% of the solutions from 2016 were removed (and another 3.5% changed in some fundamental way — their name, their focus, or their ownership)
That’s a non-trivial amount of churn, but still for this year, the rate by which new companies were added exceeds the rate by which others were removed.
Of course, not all of the new companies were launched in the year in which we added them to the landscape — many had been around earlier before we discovered them.
Another interesting statistic is the distribution of their size and funding:
• 6.9% are enterprises, with more than 1,000 employees or are public
• 44.2% are private businesses, less than 1,000 employees or no funding data
• 48.8% are investor-funded startups at any pre-exit stage
So for those who assumed most of these companies are tiny, it’s worth noting that over 300 are enterprises of significant scale. It’s also true that over 2,300 others have received some sort of investor funding — which implies scale beyond a couple of rouge developers in a garage (or, for a more modern-day cliché, two people in a coffee shop).
I’m actually most intrigued by the 2,000+ that are private companies that appear to be fully bootstrapped. I’ve written about the dynamics of modern software and marketing that make this feasible for a few years. But for a second opinion, I highly recommend reading The Rise of Non „VC compatible” SaaS Companies by Clement Vouillon, a research analyst at Point Nine Capital. The barriers to entry are extremely low.
Essentially, this market is a „long tail” distribution of martech vendors: a few $1+ billion giants, dozens of leaders with $100 million or more in revenue, and then THOUSANDS of smaller firms — from 1-3 person micro-SaaS companies to substantial firms with millions in revenue:
The Platformization of Marketing Technology
This long tail distribution above is interesting, because it reflects a pattern that we commonly see in open digital platforms: a few massive blockbusters and a vast stretch of niche offerings. Quintessential examples of this pattern are books on Amazon, music on Spotify, movies on Netflix, apps on Apple’s iOS app store, and so on. The martech space has been a little different, however, since it wasn’t built up around a specific platform. In fact, most of the major providers downplayed this blossoming ecosystem because they wanted to position their offering as „everything you need you’ll get from us.” But the spectacular scope explosion of marketing — and the rate at which new disruptions and innovations continue to roil marketing and business at large — has made it impossible for any one vendor to deliver everything that every marketer needs in a digital world. Almost all of the major providers now acknowledge this, and they’ve shifted their strategies to embrace the ecosystem — becoming true „platforms” that make it easier for marketers to plug in a variety of more specialized and vertical solutions.
Sourced by Chris Harrison
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