Marketing and communications decision-makers plan to increase their budgets as well as their use of AI during 2024. A survey by the marketing agency Matter Communications found that 84% plan to increase their marketing spend next year, with more than 40% saying they’ll do so substantially.
In the HR technology space, such widespread growth makes sense. Although the economy still seems lackluster by many measures, changes in employee behavior, employee preferences and even work itself have made it more difficult for HR departments to plan for the future. That means marketing messages must resonate.
While investment in HR technology companies has slipped in the last year, many analysts believe HR technology remains an attractive place for investors to put their money. In an interview with UNLEASH, Houlihan Lokey Managing Director Adrian Reed said the investment activity results from the belief that HR tech has become “mission critical” for businesses.
A Slippery Path Upward
In any case, the market for HCM software will grow at a CAGR of some 38% between 2023 and 2030, from $22 billion to $207 billion, says Verified Market Research. Behind the momentum: More employers recognize the role dedicated technology plays in getting HR work done, not to mention optimizing how practitioners operate.
Still, those who sell HR technology must recognize the hurdles faced by their customers and prospects. For example, while most enterprise companies have realized cost savings from their HR technology investments, fewer than half can demonstrate clear business value from that investment, according to a survey by Information Services Group. Only 46% achieved clear business value by adopting HR SaaS technology, a drop of 18 percentage points from the study ISG conducted in 2021.
Not surprisingly, marketers across the economy are bringing technology to bear to address such and perceptions and their company’s needs. The great majority have adopted AI to create content, leverage predictive analytics for customer insights and, of course, increase efficiency, said Matter Communications. Some 85% already use AI tools in their programs, 41% of them regularly.
As they did in its previous survey, decision-makers will increase their spending despite an uncertain global economy, Matter said. More than half, 52%, planned to increase their social media budgets, while 38% will raise spend on content marketing and 35% will raise their budgets on brand-building. That represents a 40% year-on-year increase on brands, and a 20% YOY increase on social media.