Author: Wendy Case, Incubeta head of partnerships, Africa and MENA
The global martech tsunami
Forrester has predicted the worldwide spending on marketing technology tools to surpass $215bn by 2027, which is a very healthy 13.3% annual growth rate. The current growth has largely been driven by the drive to collect and use first party data, as well as the meteoric rise in AI.
The back and forth when it comes to third party cookie depreciation has left many marketing professionals scratching their heads. Nevertheless, the last two years has forced a fundamental reimagining of how we collect and utilise customer data. This shift towards first-party data and direct customer relationships is not just a trend, it's the new foundation of effective digital marketing.
Similarly, artificial intelligence (AI) and automation are no longer futuristic concepts but essential tools transforming how we analyse data, personalise experiences, and scale our efforts. The increased adoption of Customer Data Platforms (CDPs) is also helping us to create a truly unified view of our customers, while the push for cookieless tracking is driving innovation in measurement and attribution.
South Africa's Martech Moment
While global giants may be leading the charge, South Africa is not far behind. Our marketing landscape is evolving rapidly, with companies increasingly recognising the value of martech investments. However, we still face some unique challenges:
First and foremost is the continued budget constraints. Any martech strategy will have to work within constraints and it’s vital to lean on expert advice before committing to tech that may not be an exact match to your needs.
Second, South Africa still suffers from a serious skills gap when it comes to optimising returns on emerging technologies.
Third, the varying levels of digital maturity across industries, and even within organisations, adds an additional layer of complexity to creating a martech strategy that suits your business. CMOs must be wary of advisors peddling a one-size-fits-all solution.
Fortunately, these challenges are balanced by significant opportunities. South Africa boasts a growing pool of tech talent that are eager to learn new skills and a vibrant startup ecosystem. This local innovation, combined with our unique market insights, positions us to develop martech solutions tailored to African realities and we have much to be optimistic about.
Charting the course for 2025
The chief role for CMOs in the new year will be to navigate this complex landscape and position their brands for success. Here's how the power of martech can best be integrated into your 2025 strategies:
- Prioritise first-party data: Invest in building direct relationships with customers. Truly show you understand your customer when leveraging loyalty programmes, interactive content, and personalised offers to gather valuable data while providing real value to consumers.
- Embrace AI and automation: Don't just automate for efficiency – use AI to unlock new levels of personalisation and insight. Start small, but embrace the extraordinary opportunity these technologies can bring to transform your customer experiences.
- Unify your data with a CDP: Break down data silos and create a single source of truth for customer information. This foundation will enable a 360-degree view of your customer and true omnichannel marketing and personalisation at scale.
- Pioneer conversational marketing: South African consumers are mobile-first and value personal connections. Leverage chatbots and messaging apps to provide real-time, personalised engagement that resonates with our market.
- Explore emerging technologies: While VR might not be mainstream in South Africa yet, AR experiences via smartphones offer exciting possibilities. Consider how these technologies can create memorable brand interactions.
A unique opportunity to leapfrog legacy
The martech revolution is not just about adopting new technologies, it's about fundamentally rethinking how we connect with and provide value to our customers. South African CMOs have the opportunity to leapfrog legacy systems and create marketing strategies that are both globally competitive and locally relevant.
However, we believe success will require continuous learning, experimentation, and collaboration. The smart CMO will partner with local martech specialists who know that the answer is not about throwing tech at every challenge, but understanding how and when to lean into the appropriate technology. It’s also important to remember that no amount of shiny new tech will make up for gaps in your teams. Focus and budget must be invested in upskilling your teams, building capability and, where necessary, working with agencies to augment internal needs.
The future of marketing in South Africa is promising, powered by technology advancements and driven by our unique, deep understanding of the local consumer. By incorporating and adapting these global trends within our market, we can stay competitive on a global scale and also establish new benchmarks for marketing excellence in the region. The martech revolution is here. It's time for South African CMOs to lead the charge.
About Incubeta
Founded in Cape Town, Incubeta is a team of over 800 creators, thinkers, makers and doers working across 20 offices globally to unlock business growth for clients including Google, Sanlam, Shoprite, Netflix, HBO, and L'Oréal. Incubeta combines capabilities across the full spectrum of digital disciplines to deliver standout outcomes at every brand touchpoint, from awareness to fulfilment. Find out more at incubeta.com.
