B2B martech spending growth slows, may hit $8.5 billion by 2024
B2B martech spending may increase an average 13.5% over the next two years, down significantly from the 17.4% average increases since 2020.
Martech spending by U.S. B2B companies is expected to grow by 30% over the next two years, according to a new study. This would be a lower increase compared to the past three years.
By 2024 the spend is expected to hit $ 8.5 billion, up from this year’s $ 6.5 billion, according to a report from Insider Intelligence. This would mean an average annual spending increase of 13.5%, down significantly from the 17.4% average increase since 2020.
Even with the slowdown, the B2B martech average spend will slightly outpace B2C’s 13% projected average.
The increased B2B spending is being driven by changing customer behavior. Like B2C consumers, B2B buyers want a self-serve, personalized experience that doesn’t require them to speak to a salesperson, according to the Insider Intelligence report.
They have higher expectations for their customer experience. As a result, B2B marketers have been investing in new technology which creates customizable content and messaging and delivers it via the person’s preferred channels.
Why we care. Has B2B martech caught up with B2C yet? That’s the big question as we head into increasingly troubled economic waters. Inflation is hurting consumer spending, which generally leads to tighter budgets in every type of organization. If you aren’t already all-in on personalization and customization then it could be a very tough time.
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About The Author
Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.
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