The martech ecosystem in transition: make-or-buy in 2019

With the consolidation of the online marketing provider landscape, marketers are faced with the question of how they can position themselves so that all partners and solutions mesh seamlessly. The first step is to make a rough strategic decision. Do I want to work with a large provider that offers many services under one roof - and perhaps even more in the near future through further acquisitions? Do I want to select the providers that suit me best at all levels and trust that they will work well together? Or am I perhaps even so well positioned in terms of personnel that I would like to map individual components in the company myself and invest money to "build" them myself?

On the surface, the DIY method may sound superfluous in a martech landscape that currently has well over 7,000 players of all kinds, but in the long term, the decision should reflect one thing above all: a company's data strategy. The more partners and middlemen are part of the marketing plan, the greater the risk of losing control of your own data.

So what is the case for a make-decision in the face of a martech ecosystem that is already so diverse and shows itself in a different light every day?

1. no dependence on suppliers

Control over deadlines and quality is entirely in the hands of your own employees. Urgent projects can be prioritized and changes can be made faster and more agile thanks to shorter paths.

2. transparency guarantee

Sensitive data always remains within the company's own walls and it is always possible to track which costs are incurred at which point.

3. cheaper in the long term

A solution that you set up yourself is a high cost factor at the beginning, but it pays for itself over time. While external providers charge ongoing costs for their services and maintenance, your own solution may only incur care and maintenance costs at some point.

4. cultural fit

In many places, cultural fit can determine the success or failure of a collaboration. If the teams in new branches of the company share the existing values, this is a safe bet.

So far so good, but what are the advantages of buying in services?

1. cheaper in the short term

Developing a technical solution that can keep up with the competition is time-consuming and costly in the short term. The capital and resources must first be available and this is likely to be an initial (perhaps even insurmountable) hurdle for many companies. Especially when you don't even know what the end result will be.

2. less risky

Once the investment is underway and a make decision has been made, you can only hope that the end product meets your expectations and is as good or better than the solutions you could have bought in.

3. in-house team of experts and corresponding manpower is decisive in the war

Providers of very niche and leading technologies in their field in particular gather the most promising talents in their field to develop pioneering products. To get qualified specialists in the fields of AI and marketing technology for a new solution out of the ground only works if you are well networked and can offer excellent working conditions.

4. lower research & development costs 

Anyone who expects to send the developers home after completing a tool should know that the market is moving so fast that standing still is not an option. Technical solutions must be constantly maintained, serviced, overhauled and further developed. "Buyers" save themselves this work.

5. more flexibility

If an investment in a solution does not pay off, the contract can simply be terminated. With products developed in-house, the best case scenario is to enter into a long-term relationship.

The current study "AI - The Future of Marketing 2019" by Claudia Bünte provides an initial impression of the mood of marketers with regard to the make-or-buy topic of AI tools. While 34% use standardized solutions from external providers, 32% stated that they develop their own products or have them developed - almost 50/50. This is a further indication that the decision should therefore be made on the basis of the data strategy and, not least, the expert knowledge within the company. The new European General Data Protection Regulation (GDPR) also plays a major role and should not be neglected in the considerations. 

1. no dependence on suppliers

Control over deadlines and quality is entirely in the hands of your own employees. Urgent projects can be prioritized and changes can be made faster and more agile thanks to shorter paths.

2. transparency guarantee

Sensitive data always remains within the company's own walls and it is always possible to track which costs are incurred at which point.

3. cheaper in the long term

A solution that you set up yourself is a high cost factor at the beginning, but it pays for itself over time. While external providers charge ongoing costs for their services and maintenance, your own solution may only incur care and maintenance costs at some point.

4. cultural fit

In many places, cultural fit can determine the success or failure of a collaboration. If the teams in new branches of the company share the existing values, this is a safe bet.

1. cheaper in the short term

Developing a technical solution that can keep up with the competition is time-consuming and costly in the short term. The capital and resources must first be available and this is likely to be an initial (perhaps even insurmountable) hurdle for many companies. Especially when you don't even know what the end result will be.

2. less risky

Once the investment is underway and a make decision has been made, you can only hope that the end product meets your expectations and is as good or better than the solutions you could have bought in.

3. in-house team of experts and corresponding manpower is decisive in the war

Providers of very niche and leading technologies in their field in particular gather the most promising talents in their field to develop pioneering products. To get qualified specialists in the fields of AI and marketing technology for a new solution out of the ground only works if you are well networked and can offer excellent working conditions.

4. lower research & development costs 

Anyone who expects to send the developers home after completing a tool should know that the market is moving so fast that standing still is not an option. Technical solutions must be constantly maintained, serviced, overhauled and further developed. "Buyers" save themselves this work.

5. more flexibility

If an investment in a solution does not pay off, the contract can simply be terminated. With products developed in-house, the best case scenario is to enter into a long-term relationship.

The current study "AI - The Future of Marketing 2019" by Claudia Bünte provides an initial impression of the mood of marketers with regard to the make-or-buy topic of AI tools. While 34% use standardized solutions from external providers, 32% stated that they develop their own products or have them developed - almost 50/50. This is a further indication that the decision should therefore be made on the basis of the data strategy and, not least, the expert knowledge within the company. The new European General Data Protection Regulation (GDPR) also plays a major role and should not be neglected in the considerations.