There is too much martech. And now there is going to be too much AI martech. This week we complain about it.
Announcement: Cloudy will be published less frequently over the next month as I am trying to finish up an AI webinar and a longer piece on AI and branding and doing some travelling. Too many “ands” in that sentence.
Also, short week, short Cloudy
Ok, now we begin
Imagine a situation where aliens have landed on the earth and they do not come in peace. In fact, they are looking to take over the planet and enslave the human population. However, they are nice enough to give you a chance to convince them that trying to take over the earth is not worth their effort. Essentially, they are looking for a reason that humans are not worth the time to enslave.
For example, you could educate them about global warming and how we are stupid enough to essentially melt our planet. Or maybe you show them the proportion of the internet that consists of cat videos. OR, you can show them this chart
It doesn’t look like much, just a bunch of colors and little dots. But if you scroll in, you realize that this chart is an overview of the entire marketing technology landscape. There are 6,242 companies on this list
Six thousand, two hundred and forty two companies.
The human race has somehow decided “Why stop at 6,000” when you can have 6,242. I can see the aliens packing up and flying off already.
A little context here:
(Actually, it’s kind of more ridiculous that there are more colleges then banks. It’s not counting bank branches, but rather the companies themselves, but still, i mean, the large majority of people need to put money somewhere.)
What’s even better is global ad spending for 2018 is projected to be $628 bn. Google’s revenue for 2018 will be about $120 bn and Facebook’s will be about $50 bn, which means that 0.03% of marketing technology companies, account for 27% of revenue. Who needs the 80/20 rule when you have the the 0.03/27% rule. It’s not as bad as the Bitcoin wealth distribution, but it’s close.
The reason why I am complaining about this chart is originally I was thinking of putting something like this together for the AI/ML marketing landscape, but then saw this picture and I just thought forget about it. Even if you try and filter for the “AI” companies, there are still tons of companies claiming to be an “AI” company. Did you know that Datorama is “AI Powered Marketing Intelligence” and that in the About Us section of Sizmek, in the third sentence they mention their “AI-driven decisioning engine.”
I was happy to read that Mark Read, the new CEO of WPP said in an interview “I don’t think we can realistically compete with Google and other companies in building fundamental ad tech,” said Read. “We need to be the best people at integrating that technology.”
Totally agree. Let’s stop this martech madness.