Strict Approval Processes Slow Down Tech Adoption - eMarketer

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Strict Approval Processes Slow Down Tech Adoption

Marketers, tech buyers must prove value for approval

August 20, 2015

Technology is more important than ever. But to increase spending, marketers and tech professionals must go through a rigorous approval process, and they better be able to prove the value of the buy if they want the final answer to be yes—something easier said than done.

Process Used for Approving Marketing Software/Tool Purchases at Their Company According to Marketers Worldwide, April 2015 (% of respondents)

When April 2015 polling by Moz asked marketers worldwide about the process used for approving marketing software and tool purchases at their companies, respondents were most likely to say that all purchases were heavily scrutinized and went through a structured approval process, at 27.7%. And for more than one-fifth of respondents each, software purchases over $100 or $1,000 required approval. Just 15.5% could spend freely.

Overall, marketers were most likely to say that between two and three employees were involved in purchasing marketing software and tools at their companies, cited by nearly six in 10. Just 16.7% said the decision relied in the hands of just one individual, and 16.6% said it was up to between four and five. That left nearly 10% with six or more decision-makers.

Biggest Challenges of Embracing New Technology* According to Business/Technology Managers Worldwide, July 2015 (% of respondents)

July 2015 research by Business Performance Innovation (BPI) Network looked beyond marketing tools and at technology companywide. According to business and technology managers worldwide, the biggest challenge of embracing new technology for their companies was gaining consensus and support for new technology investments, cited by 44% of respondents.

Managers who can get buy-in stand to reap benefits from all aspects of the business. When asked about the leading ways in which tech was transforming their businesses, BPI respondents cited everything from making it simpler for people to do business with them and improved customer experiences and interactions to better efficiency, productivity and effectiveness as well as innovation and expansion.

However, proving the value of technology hasn’t been too easy. According to an April 2015 study by the Direct Marketing Association and Winterberry Group, fewer than half of US marketing professionals worldwide said that proving the value from new technology implementations had been easy.

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