The $160 billion martech industry can't answer a simple question: How does it make its customers money?

"McKinsey recently surveyed 233 senior global marketing and technology leaders who each invest more than $500,000 annually in martech and adtech tools and services. As part of the study, published on Tuesday, the consultancy conducted in-depth interviews with 50 senior Fortune 500 marketers. There was a clear trend: Not one could clearly articulate how they were quantifying the return on investment of that spending, McKinsey said."

"One of the core issues, the report's authors said, is that all the investment in this tech over the years - from email campaign management software to website personalization and marketing analytics tools - means companies' martech stacks have become bloated and the tools often operate in silos. In McKinsey's survey, 47% of martech leaders said "stack complexity" and system and data integration challenges were preventing them from realizing the value of these tools."

Global businesses are forecast to spend $160 billion on martech this year and roughly $215 billion by 2027. A survey of 233 senior marketing and technology leaders investing more than $500,000 annually in martech and adtech found none could clearly articulate martech ROI. More than a quarter of marketing decision-makers expect martech spending to increase by up to 25% in the next three to five years. Many martech stacks have become bloated and siloed; 47% reported stack complexity and integration challenges that prevent value realization. Teams often measure superficial metrics instead of tying outcomes to strategic goals, and AI agents are suggested to help fill ROI gaps.

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