Lincoln International experts examine current MarTech trends and deal activity shaping the sector.

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This sustained growth underscores the need for robust MarTech solutions to support and capitalize on expanding market opportunities. The growth of e-commerce naturally drives investment in various MarTech solutions. Businesses are increasingly focusing on e-commerce marketplaces and enablement solutions as well as digital experience platforms (DXP). These technologies are essential for delivering seamless and personalized customer experiences, optimizing operational efficiency and ultimately driving growth in e-commerce.

Looking ahead, it’s evident that MarTech will remain a key driver of e-commerce success. Companies that invest in and skillfully leverage these technologies will be well-equipped to excel in the increasingly competitive e-commerce landscape.

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Personalization is a powerful tool that makes consumers feel valued and understood, fostering loyalty, satisfaction and engagement. When customers perceive that a brand truly understands them, they are more likely to remain loyal and engaged, ultimately leading to increased sales. According to a study by LEK, a staggering 80% of consumers are more likely to purchase from a business if they feel their experience is personalized. Furthermore, 74% of marketers believe that personalization substantially impacts customer relationships.

This growing demand for personalized experiences is driving significant investment in various technologies. Companies are increasingly investing in personalization engines, content management systems (CMS), digital asset management (DAM) and customer experience (CX) platforms. These tools enable brands to deliver personalized content and experiences that resonate with individual consumers, enhancing their overall journey with the brand.

Personalization will continue to play a crucial role in marketing strategies. Brands that embrace this approach will meet consumer expectations and build stronger, more meaningful customer relationships.

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While email continues to be a cornerstone of brand communication, marketers are increasingly utilizing a variety of channels to reach their target audiences. SMS, app push notifications, and numerous social media platforms are now integral components of a comprehensive marketing strategy.

The shift towards multi-channel capabilities has driven significant investment in customer journey analytics, marketing automation and mobile messaging platforms. These technologies are essential for understanding customer behavior, automating marketing efforts and delivering messages at the right time and place.

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According to LEK, a significant 87% of consumers review sites, blogs, video blogs and social media posts before making a purchase. This shift in consumer behavior has prompted marketers to expand their use of social platforms and invest in generating reviews and managing their online reputation.

Social shopping platforms are revolutionizing the customer experience by offering a seamless and frictionless buying process. This focus on social shopping drives substantial investment in social media marketing, affiliate marketing and online reputation management software.

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The attractiveness of customer journey automation is growing as AI improvements lead to more immersive customer experiences and smarter products and services. For example, advancements in AI chatbots enhance automated customer service quality, and AI enables greater personalization. The increasing trend toward orchestrating customer journeys drives investment in analytics and mapping, marketing automation and customer data platforms.

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AI is revolutionizing marketing. It streamlines the content creation process through topic and outline production, tailors messages to individual user preferences, provides insights into campaign performance and customer behavior and enhances targeting and engagement strategies by recognizing user patterns and behavior.

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Since 2020, the number of marketing ops professionals has surged by 66%, driven by the emphasis on ROI and data-driven decision-making. This focus has led to increased investment in software for attribution, conversion rate optimization and marketing resource management.

Lincoln Perspective

Despite numerous macroeconomic challenges impacting deal activity in the first half of 2024, there are reasons to be optimistic about the remainder of 2024 and 2025 as inflation continues to normalize and the impact of interest rate cuts starts to take effect. Private equity firms, with record dry powder, face pressure to realize returns. The valuation gap between buyers and sellers is narrowing, signaling better dealmaking conditions. The rise of AI and other emerging technologies is driving overall activity.

In the technology, media, and telecom (TMT) sector, activity is steadily recovering, with private company valuations buoyed by the rising value of public equity. However, IPO exits remain confined to large firms, making smaller TMT companies attractive targets for private equity takeovers. Lincoln is beginning to see a backlog of high-quality assets converting into active sell-side processes. We expect dealmakers to adapt to these dynamic conditions, with the pendulum swinging back in favor of M&A in the broader TMT and MarTech sectors.