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January 11, 2018

This Ain’t Your Daddy’s Marketing Strategy – Marketing and Technology Continue to Blend Together

MHT Partners  | Business & Information Services Investment Bank

Digital marketing has evolved at a furious pace and there is no sign of deceleration. Driven by shifting consumer preferences and the continued penetration of mobile and other platforms in the consumption of content, the line between marketing and technology has continued to blur. For marketing savvy companies, what used to be two separate business functions with little interaction has evolved into a nearly seamless integration whereby the Chief Technology Officer and Chief Marketing Officer are increasingly looking like the same person.
The quest for a consistent brand experience across mediums has created a complex, intertwined web of marketing strategies and complementary technology. Omni-channel, native, programmatic, video, print and even experiential marketing are all strategies that need to be leveraged in conjunction with a company’s CRM, email, website and other systems in order to launch a coordinated, effective marketing effort. Further, marketers are increasingly utilizing data and artificial intelligence to better target the appropriate audience, whether business-to-business or business-to-consumer. This dynamic has created a surge to find technology solutions that not only streamline the creation and delivery of content, but also allow companies to measure the effectiveness of various campaigns and allocate resources to strategies and methods that deliver the highest return on investment.

This arms race has also fueled significant M&A activity. Large marketing companies are consolidating technologies and capabilities under one roof in an attempt to offer a “one-stop-shop” and to crowd out competitors by generating a network effect. On the smaller end of the market, there remains a fragmented group of independent companies that have carved out specific vertical niches or developed proprietary tools and unique service offerings. These smaller companies often compete with the larger agencies through industry-specific knowledge, better service and innovative and cost-effective methods/technologies.

MHT Partners believes that there will continue to be significant consolidation by large players in the space, as well as compelling opportunities for financial buyers to invest in great independent platforms.

At the current rate of change in the industry, it is difficult to gauge where things will go from here. As they used to say in the days of the radio, stay tuned….

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