How Sustainable Marketing Tech is The Next Frontier for Tech Leaders

Think of a trailblazing SaaS business with innovative products transforming businesses worldwide, streamlining operations, and boosting efficiency. As their client base grew, so did the demand for their cloud-based services.

They expanded their data centers to meet this demand, investing heavily in the latest marketing technology. Their systems ran around the clock, processing vast amounts of user data, enabling personalized marketing campaigns, and driving impressive revenue growth for their clients.

However, as they celebrated their digital success, the hidden environmental cost gently swept under the rug. Their expanded data centers consumed a staggering amount of energy, emitting a significant carbon footprint.

The MarTech (and, honestly, the ENTIRE WORLD) operates the EXACT. SAME. WAY.

Interesting data indicates that the United States will invest over $27 billion in MarTech by 2024, a significant leap from the $15 billion spent in 2020.

Another discovery explains that 48% OF MARTECH BUDGETS HAVE INCREASED IN THE LAST SIX MONTHS, which means more threat to the environment. Unknowingly? No.

It illustrates how innovation saps the environment. And most SaaS companies can inadvertently contribute to environmental challenges through their relentless pursuit of digital excellence.

But at the same time, the findings from Statista tell a different story. Between 2022 and 2030, the global green technology and sustainability market is forecast to grow.

How will it happen when the marketing engine is constantly revving up, and apparently, what once seemed like a technological triumph now poses an ecological dilemma?

Let's do some research!

Beyond Metrics to Environmental Impact

Marketers today work on many digital tools, each serving a unique purpose. Their toolkit likely spans from SEO and publishing management to ad campaigns, audience engagement, media tracking, and performance measurement. They tackle a Herculean task: master agility, respond swiftly, and unravel complex data puzzles.

And not to miss, the social media content explosion and the ascent of [generative AI](https://en.wikipedia.org/wiki/Generative_artificial_intelligence#:~:text=Generative%20artificial%20intelligence%20(also%20generative,data%20that%20has%20similar%20characteristics) in marketing have revolutionized visual content.

However, while digital marketing fuels buyer engagement, it exacts a price – from data consolidation to digital ads, the energy demand for servers and campaigns is substantial, leaving an undeniable carbon footprint.

Amidst the surge, it serves as a compelling reminder that reevaluating the environmental impact of marketing technology is not just a choice but an imperative.

94% of marketers agree they should be bolder and practice innovative approaches for enhanced sustainability. This means it's a matter of identifying how to manage MarTech effectively.

Greening Marketing Technology for a Sustainable Future

The future of marketing is at an exciting crossroads of sustainability and technology. But here's the twist – more MarTech often equals more problems, right?

Fortunately, a bit of human oversight will go a long way in mitigating the MarTech impact on the environment.

At this point, consider these practical steps to navigate the intricate relationship between marketing and sustainability effectively:

Step 1: Assess Your Current State

Understanding where you stand environmentally is crucial in aligning your MarTech strategy with sustainability.

According to a recent survey by Deloitte, 57% of CEOs believe that sustainability efforts lead to increased operational efficiency within their organizations. It highlights how evaluating your current state can uncover opportunities for both sustainability and efficiency gains in your martech operations.

Assessing your current state involves evaluating core areas like:

• data storage efficiency
• energy consumption patterns in running marketing campaigns
• resource utilization effectiveness
• your carbon footprint.

It guides you in setting achievable sustainability goals and aids in tracking your progress accurately.

For instance, by analyzing data storage practices, you uncover redundancies that could be minimized, reducing your ecological footprint and optimizing energy usage. It's foundational to making informed decisions for a greener MarTech future.

2. Streamline Your Martech Stack

Before you navigate the external factors, start with streamlining your MarTech stack.

Gartner's research reveals that marketers harness just 58% of the full potential offered by their MarTech stack.

Armed with this insight, it is pivotal to check these points:

• [ ]Identify Redundant or Underutilised Martech Tools

Begin by conducting a thorough audit of your MarTech stack. Look for tools that perform similar functions or need to be more utilized.

• [ ]Optimize for Sustainability

Once you've identified unnecessary tools, replace them with energy-efficient and eco-friendly alternatives. Consider cloud-based solutions that can scale resources up or down based on demand, reducing energy consumption. This approach aligns with the sustainability goals of many organizations.

Talking about larger scale impact, Adobe reduced its carbon footprint by 17% by migrating to more energy-efficient data centers.

Note: Streamlining your Martech stack reduces costs and contributes to a more sustainable marketing ecosystem.

3. Measure & Adapt

In a survey of 560 companies for the report 'Uniting Technology and Sustainability,' all rated technology as crucial for their sustainability goals. However, they face barriers such as a lack of solutions and standards (40%), complexity (33%), and limited awareness of unintended consequences (20%).

Bridging this gap is possible with a holistic tech strategy, reducing the need for trade-offs between business and sustainability objectives.

Embracing change holds another compelling advantage. Companies at the forefront of environmental, social, and governance (ESG) initiatives also deliver superior financial performance, creating shareholder value that can be up to 2.6 times greater than that of their counterparts.

“Companies that adopt sustainable technology to a significant extent achieve 4% higher ESG scores on Arabesque S-Ray dataset than those that don't, translating to +11% in ESG ranking.”

It is as simple as: measuring and adapting!

For instance, one more interesting finding indicates that implementing sustainable data storage and processing practices can result in a 30% reduction in operational costs.

In the realm where marketing technology meets sustainability, measuring your impact is crucial.

• Monitor Key Performance Indicators (KPIs) to see how your strategies are faring.
• Analyze these metrics over time and across various campaigns to ensure your content remains pertinent and potent.

4. Working in Synergy

A compatible framework under one roof works best for efficient MarTech efforts towards sustainability. A "connected framework" that leverages both technical and human assets. This framework should seamlessly integrate various elements, including technologies and the skills and expertise of the workforce.

Shifting your strategy doesn't mean abandoning past investments. Optimize what you have instead of adding more tools. It's like fine-tuning a car for better performance. Find that sweet spot for your marketing setup to work brilliantly.

"According to Benjamin Bloom, a senior director analyst at Gartner for Marketers, marketing teams risk their credibility and effectiveness by underutilizing martech. Instead of adding more technology, the key lies in translating martech into business results, which hinges on better utilization. In times of economic uncertainty, agility is paramount, emphasizing training, talent, and system integration."

That's what you’re aiming for with your marketing setup—efficiency and peak performance without excess waste.

The Ideal Intersection of Sustainability and Marketing Tech

In the grand sustainability scheme, marketing shouldn't be compared to the waste-heavy air travel industry.

While many leaders in marketing are voicing support for sustainability, there's still much ground to cover.

MarTech has undeniably brought efficiency, but moving forward, the world needs a harmonious balance. Prioritizing ROI shouldn't come at the expense of sustainability goals. The right intersection of marketing and sustainability in tech promises a more responsible and efficient future. It's time to soar to new heights while keeping our planet in mind.