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Marketing Tech Budgets Expected to Increase by Double Digits

November 7, 2017 0 Comments

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Research and advisory firm Forrester has predicted that marketing technology budgets will “grow by double digits” as brands integrate consumer experience technology to better appeal to both current and prospective users.

If brands don’t make the leap, “digitally adept” companies like Amazon and Apple will carry on as the gatekeepers between brands and their audiences, providing connectivity, stimulation, and emotional experience for customers.


According to Forrester’s report, released on Monday, CMOs who “blend tech savviness, an insights-driven mindset, and deep emotional empathy with their consumers” will turn their brands into platforms. In order to successfully do so, the focus must be on understanding consumer emotion, as well as learning both how to measure it and how to tap into it.

Some brands are already taking advantage of helpful technology that measures the unconscious, emotion-based decision-making habits of consumers, said Keith Johnston, Forrester VP, who served as research director and author of the report.

“We are seeing strong growth of consumer neuroscience to measure not only communication (ads) but also experience (digital plus physical),” Johnston wrote. “We know that emotion is everywhere, embedded in every customer action.”

Customers are “invested in the experience,” he continued. While advertising budgets are declining and the effectiveness of TV and digital advertising is down, “it could be TV” that comes back to flip the customer’s emotional switch. That is, marketers will still use traditional advertising tactics, he said, but a cogent strategy fusing technology and the product is necessary.

Hearts & Science CEO Scott Hagedorn said he agrees with Johnston’s predictions, add that he believes “modern CMOs must be able to translate business KPIs into integrated technology and service requirements.” In the new, growth-focused business landscape, the demand for what Hagedorn calls “decision-based marketing” has increased, with the “tools and tenets of CRM… employed to enable precise, informed choices that drive growth.”

Hagedorn said that “traditional, consumer-facing companies” haven’t yet made a successful, large-scale innovation effort for mobile-first customers such as millennials. That means there’s a large audience of customers left untapped, ready for marketers willing to take the plunge.

Armed with these insights and considering these experts’ opinions, how will you prepare your dealership to become and remain competitive in the increasingly-digital market of the future?

About the Author:

The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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