As the B2B marketing landscape continues to evolve, organizations must adapt to emerging trends to remain competitive and efficient. The H1 2024 edition of the Lighthouse Labs Marketing Software Trends report, powered by pharosIQ, highlights several significant trends shaping the future of marketing software. Below, we explore these key trends and what they mean for B2B marketing.
The report reveals a 21% decline in engagement with ABM software compared to the second half of 2023. This decline is attributed to an increasingly saturated market and shrinking marketing budgets. In fact, MarTech investments have dropped by 87%, and according to Gartner, MarTech spending has hit its lowest point in a decade, now representing just 23.8% of marketing budgets. Companies are shifting towards agency services that promise immediate revenue generation, with a notable 95% increase in engagement with marketing services over the last six months.
Customer Data Platforms (CDPs) are experiencing significant growth due to the rising demand for customer intelligence and omnichannel experiences. Software vendors are increasingly integrating CDP capabilities into existing systems, meeting the need for comprehensive and accessible customer data. Despite some companies considering building their own customer data systems, the CDP market continues to grow, with over 350,000 engagements with CDP-related content recorded in the last six months.
While investment in events marketing has been growing since early 2022, there has been a recent decline in growth, from 23.1% in Q1 to 17.2% in Q2. This shift is mirrored by a decrease in engagement with event management software (22%) and webinar software (26%) over the past six months. B2B marketers are increasingly turning to digital advertising, with a 36% increase in engagements with digital advertising agencies and a 29% increase in engagements related to paid social advertising.
B2B advertising is increasingly shifting towards digital channels, with digital ad spending projected to account for 49% of media dollars in 2024, up from 29% five years ago. This trend is expected to continue, with growth in digital ad spending, traditional ad spending, and total media ad spending. The last time all three metrics saw simultaneous growth was in 2021, following the pandemic-driven collapse in 2020.
The Lighthouse Labs Marketing Software Trends report underscores the importance of adapting to these strategic shifts. As marketing technology budgets decrease, marketing leaders must focus on more agile and responsive strategies to enhance resilience and performance. By embracing these trends, organizations can better navigate the evolving challenges and demands of the B2B marketing landscape.
For a comprehensive analysis and further insights, access the full report here.
Lighthouse Labs, powered by pharosIQ, offers data-driven insights and industry trends, providing executives and senior managers with actionable intelligence to understand market dynamics. With over four decades of expertise, pharosIQ connects B2B software and services vendors with in-market buyers, transforming sales and marketing strategies worldwide. For more information, visit pharosIQ.com.