Marketers continue to increase the number of data sources they use. As a reflection of the importance that data-driven marketing has taken on, almost 3 in 4 (71% of) marketers plan to increase their data / technology budgets this year, according to a survey from Lytics.
Alongside those expected budget hikes, the 100 go-to-market decision makers polled will also be making numerous changes to their data strategies. Most commonly, 58% will be adding new software and tools, while 56% will be updating their data infrastructure. These changes may be necessary in light of recent research from Informatica, in which data leaders said they need at least 5 data management tools. A majority (55%) of the respondents to that study also said there are more than 1,000 sources of data at their organization, making the need for those tools understandable.
Meanwhile, 44% of marketers surveyed by Lytics plan to hire new data-savvy talent, which makes sense given that this has been a key impediment to progress in data-driven marketing. Others plan to increase privacy compliance initiatives (43%), increase investment in first-party data collection and use (31%) and limit third-party cookie use (28%).
Ad Budget Optimism
US ad spend growth is expected to slightly decelerate this year, but the marketers surveyed by Lytics are quite bullish: 85% expect their marketing and advertising budgets to grow, including more than one-third (36%) who predict an increase exceeding 10%.
Certain channels are set to benefit more than others. Paid search is most likely to see an influx of spend, per the results, as 65% of respondents intend to increase their outlays, versus just 8% who will pull back. Total spending on paid search in the US this year is projected to well exceed $100 billion ($107.6). For context, that would be larger than the two biggest offline spending categories (linear TV and direct mail), combined.
A majority (55%) of marketers also plan to increase their spend on TikTok, while just 9% will cut back. However, the majority of those planning to increase their spend on TikTok will do so by less than 10%.
Around half will hike their spending on Facebook, Instagram, and LinkedIn. Despite the bright outlook for Facebook, more respondents (16%) plan to decrease their spending on the platform than on any other channel.
In other highlights, fully 58% will pour more money into owned channels such as website and email, while 47% will double down on retail advertising platforms, a popular choice for ad buyers this year.
Finally, somewhat surprisingly, ad spending intentions are fairly similar for TV (39% to increase; 14% to decrease) as for connected TV (38% and 10%, respectively).
For more, check out the survey here.