Marketing Technology Sector Overview - Q3 2018

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The marketing technology sector has seen an abundance of activity over the past few years. The blog post examines the different components of the martech sector and how they make up this startup ecosystem. We will illustrate what the major sector categories are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.

Marketing Automation Software Is the Largest Martech Category

Let’s start off by looking at the Sector Map. We have classified 1801 martech startups into 15 categories that have raised $37 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Marketing Technology Sector Map

We see that Marketing Automation Software is the largest category with 284 companies. These companies enable marketers to automate or enhance the process of inbound and outbound marketing. Some example companies are Sailthru, Infusionsoft, Tinyclues, and Salesfusion.

We have seen what the different categories making up this sector are and the number of companies in each. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

The Pioneers Quadrant Has the Most Martech Categories

Our Innovation Quadrant divides the martech categories into four different quadrants.

Marketing Technology Innovation Quadrant

We see that the Pioneers quadrant has the most martech categories with 8. The Pioneer categories are in the earlier stages of funding and maturity. The Disruptors quadrant has 5 categories that have acquired significant financings at a young age. The Established quadrant has SEO as its one category, which has reached maturity with less financing. The Heavyweights quadrant also contains one category, SEM. This category has reached maturity with significant financings. 

We've analyzed the martech categories and their relative stages of innovation. Let’s now look at how they stack up against one another in terms of their total funding versus company counts.

Marketing Platform Startups Have the Most Funding

The graph below shows the total amount of venture funding and company count in each category.

Marketing Technology Total Category Funding

As the above graphic implies, the Marketing Platforms category leads in total funding with $11 billion. Its funding is 1.6 times the funding of the next category, Marketing Automation Software with almost $7 billion.

Marketing Platform companies enable businesses to execute and manage marketing campaigns. It also contains customer relationship management tools used to improve customer engagement. Some example companies in this category include Showpad, Sprinklr, Gainsight, and Medallia.

Conclusion: Marketing Automation Software and Marketing Platforms Lead the Sector

The analysis above demonstrates Marketing Automation Software leads the sector in total companies. The Marketing Platforms category leads in total funding. We'll see how things evolve during the rest of 2018.

To learn more about our complete marketing technology report and research platform, visit us at www.venturescanner.com or contact us at [email protected].

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