Marketing spending on technology is growing much faster than the spending for traditional IT. By 2017, according to Laura McLellen, the Research VP at Gartner, much more money will be spent on computer and information technology by the Chief Marketing Officer than the Chief Information Officer.
That is a stunning prediction. The corporate IT department supplies the computers, laptops, pads, software and updates, access to the internet and internet security, phone systems and voicemail, email, file sharing, archiving and all the things we use every day at a company, and the spending on tech by marketing will be bigger than all that.
Here are four reasons why this change is inevitable:
1) Competitive advantage will come from leveraging data (“big data”) to effectively target consumers.
2) The CIO’s technology budget is considered overhead – a cost of doing business. The CMO’s budget should be a revenue driver – a measurable way to bring money into the company.
3) There are accurate ways to measure ROI on marketing. Every CEO in the world will give money to a department driving measurable growth and profit.
4) A Marketing Department can spend without permission. What?!? Yes, because technology is media and can be purchased from a media budget. A traditional IT expense is a capital expense and must go through layers of approvals in most organizations.
Here is the point to all marketers: your future success depends on how you leverage technology in the next couple years. Think about it, how would you rather be defined by the C-Suite, as essential to revenue and growth or an overhead expense? Call me anytime if you want to discuss how to measure the ROI from an IT marketing spend.