34% of Businesses Intend to Decrease B2B Tech Spend Due to COVID-19
Although many B2B marketers managed to survive the initial impact of the COVID-19 pandemic, new research suggests that its impact will continue to be felt in the coming months, particularly in the technology area.
LinkedIn recently published the “Age of Agility” global report, and statistics showed that most businesses (34%) intend to decrease their technology spending, compared to pre-COVID-19 spending levels. This suggests that it may be more difficult for B2B marketers working in this sector. Only 13% of respondents stated that they will increase their B2B tech spending, when compared to pre-pandemic levels.
Overall, 30% of businesses intend to maintain their B2B tech spend, compared to before the pandemic. Only 13% of respondents said that they were going to suspend their overall B2B technology spending.
Marketing Technology Investment and COVID-19
It may come as a surprise to some that tech spend is decreasing, but previous research has already shed light on the direct impact the pandemic is having on marketing technology (martech) budgets.
Gartner conducted the “2020 Marketing Technology Survey: Cost Pressures Force Martech Optimization and Innovation,” and data indicated that most marketers (58%) were forced to decrease their martech budget as a result of COVID-19.
Of those who reduced their budget, about 39% attempted to focus on existing vendors and internal users to further existing tool adoption strategies without having to buy new martech. Nearly 41% have increased their use of their current martech stack to avoid making new technology investments.