The Dark Side of Marketing Clouds – AdExchanger

Cory Munchbach BlueConic

Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Cory Munchbach, president and chief operating officer at BlueConic.

Today’s marketing technology is vast and complex – much like medicine. Bear with me.

Writer Charlie Warzel recently linked to a piece by University of Chicago’s Dr. Richard I. Cook called ‘How Complex Systems Fail.”

It’s a theoretical framework for assessing failure within medical systems. But in reading it, I couldn’t help but notice that Cook’s findings of complex system failure could apply to marketing technology, too.

In marketing, some things never change

I hold a few things as self-evident truths when it comes to marketing, technology and marketing technology (deliberately separated as three distinct but related concepts).

  1. Marketers are perpetually caught between competing priorities: be cutting edge without compromising current campaigns; invest in new channels and media without additional resources; prioritize customer experience without sacrificing sales performance.
  2. Few companies take full advantage of their marketing technology. Related: the latest technology is always ahead of even the most advanced buyer.
  3. Marketing technology trends swing every seven to 10 years. Strategies vacillate between building and buying, centralization and decentralization, and IT-owned and marketing-owned.

All of the above are symptoms of the same core problem: Technology is always ill-fitting, never perfectly snug. For a long time, the industry’s response to these challenges was the marketing cloud. But the category has evolved substantially over time.

According to Forrester“After years of focusing on market share growth and brute force functional breadth, our evaluation found that the enterprise marketing software suite market is addressing marketers’ challenges – nay, opportunities – by finally establishing category segments [emphasis mine] to meet the varied needs of buyers: customer experience, marketing, and analytics.” In other words, the core components of a world-class marketing stack vary by user and necessitate a more composite approach.

But I believe the problem goes one layer deeper. I would argue that solutions have gotten too big to bring the kind of value that the modern organization requires.

This brings me back to the article about how complex systems fail, in which the author argues “…that complex systems run as broken systems. The system continues to function because it contains so many redundancies and because people can make it function, despite the presence of many flaws.”

That’s today’s marketing cloud stacks – monstrously large entities of various ages, technical maturity, interoperability and purpose that are supposedly going to solve additional problems with additional acquisitions, but instead introduce weakness throughout.

Scott Brinker reached a similar conclusion in his 2021 Year in Review blog post for ChiefMarTec. “Instead of products fighting to consolidate tech stacks to a small number of apps, many market leaders have adopted a strategy of embracing app diversity and serving as aggregation platforms instead.”

Making the case for reducing marketing complexity

As we enter 2022, we are at a pivotal juncture in the lifecycle of the dominant source of marketing technologies. I expect to see them retire key functionality entirely while also shifting to explicitly sell point solutions and small bundles, rather than the full marketing cloud proposition.

Increasingly, use cases will take center stage as the primary lens with which to evaluate the business/technology fit. Integrating seamlessly and comprehensively into other systems in a privacy-compliant framework will be the highest-priority technical evaluation criteria.

Ultimately, there’s a growing need to reduce complexity (though not necessarily redundancy) in marketing technology. This remit will be widely adopted as a driver of organizational agility and technological effectiveness.

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