Observed Signal · May 1, 2023 · Analysis · Source: CMSWire · Impact: 3/5 · Sentiment: Neutral
CDPs Help Navigate Martech Complexity and Optimize Customer Engagement
This CMSWire editorial analyzes how Customer Data Platforms (CDPs) are helping businesses cope with a rapidly expanding martech landscape. The article notes that the number of martech applications has grown from roughly 200 to over 10,000 in a decade, leading to technical debt as buyers fail to fully integrate new tools. According to IDC, 54% of mid-sized companies plan to increase martech spending in 2023, yet IDG reports that many want to reduce or restructure their stacks. CDPs address two key challenges: unifying customer data and simplifying martech stack integration. They come with connectors, SDKs, and low-code APIs, and can operate across data, services, and engagement layers. With the decline of third-party cookies, CDPs have also absorbed much of the DMP's functionality, and some vendors are now building data ID graphs to enhance targeting. The article positions CDPs as essential for evolving from static complex systems to adaptive, real-time customer engagement.
Relevant analysis of CDP adoption and martech stack trends, touching on industry-wide challenges like technical debt and the shift away from third-party cookies. Provides strategic insights for MarTech buyers.
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Key Takeaways & Evidence Grounding
- Martech applications grew from about 200 to over 10,000 in a decade.
- IDC: 54% of mid-sized companies and 34% of all companies will increase martech spending in 2023.
- IDG: 31% of companies want to reduce their martech stack, 28% to restructure, and 24% to switch vendors.
- CDPs solve customer data integration and simplify martech stack integration.
- CDPs have subsumed DMP functionality following the decline of third-party cookies.
Connected Companies & Entities
2 Entities mapped“According to IDC, 54% of mid-sized companies and 34% of all companies will increase martech spending in 2023....”
“Vernon Tirey manages the RealCDP Certification Program for the CDP Institute where he works with over 60 CDP vendors....”
Ontology Mapping & Concepts
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