Magic Quadrant for Marketing Resource Management

4 February 2014 ID:G00258090
Analyst(s): Kimberly Collins

VIEW SUMMARY

We evaluate vendors providing applications that support the management of marketing resources, such as plans, people, budgets, projects, tasks, assets and cycle times. This Magic Quadrant will help marketing leaders and CIOs find an MRM solution to better manage their marketing resources.

Market Definition/Description

Marketing resource management (MRM) is a set of processes and capabilities designed to enhance a company's ability to orchestrate and optimize internal and external marketing resources (see "The Five Competencies of MRM 'Re-' Defined").

MRM applications enable companies to:

  • Plan and budget for marketing activities and programs (strategic planning and financial management).
  • Create and develop marketing programs and content (creative production and project management).
  • Collect and manage content and knowledge (digital asset, content and knowledge management).
  • Fulfill and distribute marketing assets, content and collateral (marketing fulfillment).
  • Measure, analyze and optimize marketing resources (MRM analytics).

Vendors in the MRM Magic Quadrant are assessed on their ability to support each of these five MRM competency areas. Although digital asset management (DAM) is one capability of MRM, this Magic Quadrant does not evaluate DAM vendors that do not provide other MRM functionality. Most MRM vendors offer a light DAM capability to support marketing asset management for creative production management and marketing fulfillment, but the focus is on support of MRM capabilities, not on DAM.

Magic Quadrant

Figure 1. Magic Quadrant for Marketing Resource Management
Figure 1.Magic Quadrant for Marketing Resource Management

Source: Gartner (February 2014)

Vendor Strengths and Cautions

AtTask

AtTask is a Niche Player in this Magic Quadrant for its focus on creative project and resource management.

Strengths
  • Growth: AtTask reported growth of 109% in MRM revenue from 2012 to 2013. Gartner estimates AtTask's 2013 MRM revenue was between $11 million and $12 million.
  • Resource and project management focus: AtTask has solutions in IT project portfolio management. It has adapted its core competency in project management to meet the needs of creative project and resource management for marketing organizations. The robust people resource management capabilities are a competitive differentiator in the market.
  • Product road map: AtTask has completed some DAM integrations; plans for 2014 include further integrations with DAM vendors for DAM and marketing fulfillment capabilities. Planned investments include improved branding features, and billing and invoicing systems for agency clients.
  • SaaS: AtTask can be deployed as a multitenant SaaS or single-tenant hosted solution. Ninety-four percent of AtTask customers are using the SaaS model.
Cautions
  • Marketing asset management and marketing fulfillment: Its DAM capabilities are comparatively weak, and it has no marketing fulfillment capabilities. AtTask has some DAM integration and is working on integration with other DAM vendors.
  • Financial management: Although AtTask has some nice calendaring and resource planning capabilities, it does not have robust budgeting and financial management capabilities compared with the Leaders. AtTask is planning partnerships in this area.
  • On-premises: The majority of new customers use the SaaS solution. AtTask still has customers that have deployed on-premises, but the vendor no longer sells an on-premises version to new customers. However, AtTask Managed Services (AMS) is a viable option for customers that want an on-premises solution.
  • Competition: AtTask's core competency in creative production and resource management differentiates it from other Niche Players that focus on marketing asset and brand management. However, it brings it into more direct competition with some of the larger vendors and Leaders, such as IBM, Infor, SAS, SAP and Teradata, in this Magic Quadrant.

BrandMaker

BrandMaker, headquartered in Germany, is a Leader for its broad and robust MRM solution and expanding presence in North America, Europe and Southeast Asia.

Strengths
  • Growth and geographical expansion: BrandMaker reported more than a 27% increase in MRM revenue from 2012 to 2013. It continues to expand its presence in North America, as well as in Europe, and is entering the Southeast Asia market (Singapore, Hong Kong and Thailand) through its partnership with DHL. Gartner estimates that BrandMaker's MRM revenue for 2013 was between $14 million and $15 million.
  • R&D investment: BrandMaker provides a broad set of MRM capabilities for financial management, creative production management, marketing asset management and marketing fulfillment. A major area of investment in 2013 was building a cloud-based application infrastructure (infrastructure as a service [IaaS]) to support integrations to third-party applications, agencies and suppliers. BrandMaker continued to make functional investments in the solution.
  • Professional services: BrandMaker has developed a standardized implementation process and toolkit, Smart Launch, which its partners can use to implement its solution. Partners must be certified on Smart Launch to implement the solution.
  • Deployment models: BrandMaker provides two main deployment options. Enterprise clients can choose between private and public cloud SaaS options and, if necessary, on-premises options. In Europe, BrandMaker launched a new midmarket offering that offers a lighter version SaaS option at a fixed SaaS price.
Cautions
  • Functional depth: Clients and prospects have cited issues with functional depth, particularly in planning and financial management, and in flexibility in workflow to make changes and adjust processes quickly. BrandMaker is working to close the gaps in these areas.
  • Small or midsize business (SMB) focus: BrandMaker no longer provides a small-scale SaaS solution for SMBs. Instead, it has refocused on selling to upper midmarket and enterprise clients.
  • Market visibility: Although BrandMaker is gaining visibility, it does not yet have the market visibility of the other MRM Leaders. It is known more for its brand and asset management capabilities, particularly in Europe.
  • Competition: Market consolidation continues to create larger global MRM vendors. BrandMaker will be increasingly challenged globally, as integrated marketing management (IMM) vendors (such as IBM, Infor, Microsoft, SAP, SAS and Teradata) expand their traction and capabilities in marketing worldwide. It could be an acquisition target for large companies wanting to provide MRM capabilities.

BrandSystems

BrandSystems is a Visionary for its broad set of MRM capabilities and expanding business and geographical strategy.

Strengths
  • Improved business model: Although BrandSystems had flat revenue growth from 2012 to 2013, it added 150 clients over the past year. The flat revenue growth is primarily due to a shift away from services to focus on software revenue and product development. It has improved its software-to-services ratio with 68% of clients coming from software. Gartner estimates the vendor's 2013 MRM revenue is approximately $10 million.
  • Broad MRM solution: BrandSystems provides a broad set of MRM capabilities across all five competencies of MRM: planning and financial management, creative production management, DAM, marketing fulfillment, and reporting. It is best-known for its brand management capabilities.
  • R&D investment: Investments have included a new MRM platform (Marcom Manager 3.0), a new administration and settings interface, and a new self-service, setup wizard for configuration by Standard SaaS clients. New capabilities focus on a financial forecasting tool. Future investments likely will emphasize planning and budgeting capabilities.
  • Solution repackaging and pricing: BrandSystems has simplified its packaging and pricing. Instead of six separate modules, it now offers two suites: Marcom Manager Suite and Creative DAM Suite. The standard (SaaS) solution is for five to 24 users, with a Professional edition available for 25 or more users.
Cautions
  • Pricing and R&D balance: BrandSystems has lowered its pricing and offloaded services to its partners for new clients. Both can impact revenue potential and, ultimately, R&D investment. Gartner has observed other vendors struggle with R&D investments when pricing is lowered to gain new clients quickly or service partners for hosting that take too large a percentage of the revenue.
  • On-premises: BrandSystems' standard deployment model is hosted, either single-tenant or multitenant SaaS. On-premises solutions are not a preferred deployment option and are only deployed on request by the client.
  • Geographical focus: BrandSystems is focused predominantly on marketing and selling in Europe. It plans to attain partners (possibly managed services providers) to expand internationally, including to the U.S. market, but has not solidified any partnerships for this to date. It has limited visibility outside Europe.
  • Increased competition in Europe: Consolidation in the marketing application market is creating larger players in the MRM space. BrandSystems will be increasingly challenged in its European markets, as larger IMM vendors (such as IBM, Infor, SAP, SAS and Teradata) develop strong MRM client bases in Europe.

BrandWizard

BrandWizard is a Niche Player for its creative development processes for brand management.

Strengths
  • Growth and viability: BrandWizard added 15 MRM clients in 2013. Gartner estimates that the vendor's MRM revenue is approximately $10 million. Its parent company is Interbrand, a division of Omnicom Group.
  • Brand management focus: BrandWizard's solutions focus on automating brand management, including creative production management, marketing asset management and marketing fulfillment. It provides some basic budgeting and reporting capabilities for creative projects.
  • R&D investment: Investments in 2013 included collaborative workspaces and communities, permission sets to control content availability, multibrand platforms within one company, knowledge management, template automation, improved project planning and workflow tools with a Gantt view calendar, website governance, shopping cart, media-buy ordering, video preview and markup, product design, and enhanced reporting and dashboard capabilities.
  • Deployment options: BrandWizard supports on-premises and hosted deployment options. It can support a multitenant, SaaS deployment model with its hosted solutions. Few companies are using the solution on-premises or in a SaaS model. Most customers (95% of the active base) choose the hosted solution.
Cautions
  • Strategic planning and financial management: Although BrandWizard has some basic planning (team setting) and budgeting capabilities for creative projects, and can store/market funds, it does not provide a prepackaged solution for strategic planning and financial management at the corporate level. Companies looking for prepackaged enterprise marketing planning, budgeting and automated financial management should consider alternative MRM providers.
  • Market visibility and scalability: BrandWizard must continue to gain broader visibility to grow faster. It is one of the smaller vendors, in terms of MRM revenue and clients, evaluated in this Magic Quadrant.
  • Increased competition: To continue to compete in this market, BrandWizard will need to look to partnerships and acquisitions, or will need to build capabilities in other MRM areas, such as planning and financial management.

Capital ID

Capital ID, headquartered in the Netherlands, is a Niche Player for its regional clients in Europe (particularly Northern Europe) and for its focus on the brand management aspects of MRM.

Strengths
  • Growth: In 2012, Capital ID reported growth of approximately 16%. Gartner estimates Capital ID generated between $11 million and $12 million in MRM revenue in 2013.
  • Brand management and marketing fulfillment: Capital ID's MRM solution (ID Manager) focuses primarily on brand management components, including creative production management, content management, marketing fulfillment and media planning.
  • R&D: Investments for 2013 included a focus on agency management, mobile integration, integration with Facebook, and approval workflows for compliance.
  • Deployment options: ID Manager is available as an on-premises, hosted or SaaS solution. Rackspace provides third-party hosting. Although Capital ID offers a SaaS solution, it has few clients using that deployment model.
Cautions
  • Financial management: The vendor provides planning, budgeting and financial management capabilities, but these are not as robust as some of the leading MRM vendors' solutions and are used primarily for creative projects and marketing content.
  • Market visibility: We do not see Capital ID on as many "longlists" or in as many competitive deals compared with other MRM providers, including those based in Europe. Finding global partners that can bring Capital ID into new geographies, such as North America, has proven to be a challenge since the Pitney Bowes partnership did not materialize as planned.
  • Increased competition in Europe: Consolidation in the marketing application market is creating larger players in the MRM space. Capital ID will be increasingly challenged in its European markets, as larger IMM vendors (such as IBM, Infor, Microsoft, SAP, SAS and Teradata) develop strong MRM client bases in Europe.
  • Market stability: More small vendors are entering the marketing asset management, marketing fulfillment and content marketing area of MRM. As a small vendor, with less than $15 million in revenue, Capital ID is susceptible to strong fluctuations in a market that is rapidly becoming overcrowded. Prospects have cited concerns about the vendor's viability as a reason for not selecting it.

Code Worldwide

Code Worldwide (referred to as Code in this research) is a Visionary for its focus on the end-to-end process for planning, managing, executing and measuring creative advertising campaigns and promotions.

Strengths
  • Growth: Code reported approximately 7% revenue growth in MRM revenue from 2011 to 2012, adding 17 customers. Gartner estimates that MRM-related revenue is approximately $12 million to $13 million. Code is a wholly owned subsidiary of Omnicom Group.
  • Focus on creative advertising and branding: The adZU solution from Code places emphasis on the end-to-end and closed-loop process for creative advertising campaigns and promotions. It supports planning, budgeting, creative production, asset management, fulfillment, and measurement and reporting as part of this process.
  • R&D investment: Key areas of investment in 2013 included a new, thinner OS and platform to allow for the creation of independent apps and more customization, integrated market research planning, media planning and optimization, gamification of the solution for users with leaderboards, competitive print buying, integration with Adobe for asset management, digital advertising and digital media support, including Facebook setup and improved performance dashboards.
  • Deployment options and pricing: The solution can be deployed on-premises or as a hosted, single-tenant application.
Cautions
  • Market perception and visibility: Companies seeking to regain control over agencies and agency spending will be more likely to separate creative work from technology investments, and to move toward more pure-play software companies for MRM investment. Recommendations or reselling by Omnicom Group could present at least a perceived bias to potential clients and prospects. Code has less market awareness and visibility than other vendors on the MRM Magic Quadrant.
  • Financial management: Although Code provides more-advanced capabilities for budgeting and planning, compared with other brand-management-focused vendors, these capabilities are tightly tied to creative advertising and media promotion campaigns, rather than for supporting enterprise budgeting and financial management.
  • Workflow: There is no visual drag-and-drop workflow tool for routing, reviews, approvals and markups. Processes are automated by configuration of the application and the use of templates.
  • Increasing competition: Consolidation in the marketing application market is creating larger players in the MRM space. Code will be increasingly challenged as larger IMM vendors (such as IBM, Infor, SAP, SAS and Teradata) expand their MRM capabilities.

Direxxis

Direxxis, headquartered in the U.S., is a Niche Player for its focus on MRM capabilities regarding asset management and fulfillment as part of a distributed marketing process, primarily in the North American market.

Strengths
  • Growth: Direxxis reported approximately 28% revenue growth in MRM from 2012 to 2013, with 15 new clients. Gartner estimates Direxxis generated between $15 million and $16 million in MRM revenue in 2013.
  • Marketing asset management and marketing fulfillment: The core value proposition for the MRM solution is focused on marketing asset management and marketing fulfillment capabilities to support a distributed marketing process in decentralized marketing organizations, with local marketing enablement.
  • MRM R&D and road map: Direxxis spent most of the investment for 2013 on replatforming its dmEDGE 5.0 solution. The new platform is focused on the front end to modernize and simplify navigation in the UI, and to make it accessible on laptops, tablets and mobile devices. The underlying architecture remains the same. New MRM capabilities include the ability to create campaign/program bundles, a My Plan dashboard for budgeting and tracking against plan by individual agents, an improved social media module, and the ability for field users to participate in corporate-sponsored digital media campaigns.
  • Deployment options: Direxxis prefers to deploy the application as a multitenant, SaaS solution or as a hosted solution.
Cautions
  • Creative production management: Although Direxxis has added an approval module to dmEDGE, it has historically not provided robust MRM capabilities via workflow and project management for managing the creative review and production processes. Direxxis plans to make enhancements in this area.
  • Financial management: Although dmEDGE has some financial management capabilities, it does not currently have the robust capabilities of the market leaders. It plans to add a financial planning module.
  • On-premises deployment option: This is not a standard option, but is a custom option on request.
  • Competition and acquisition target: Direxxis will face increased competition as European brand management and marketing fulfillment vendors (e.g., BrandMaker, Elateral and North Plains) enter the North American MRM market. As consolidation continues, Gartner expects that large global MRM and IMM players (such as Infor, Microsoft, Teradata, SAP and SAS) will also acquire stronger marketing fulfillment capabilities. Direxxis could be an attractive acquisition target for vendors looking to expand their solutions in those areas.

Elateral

Elateral is a Visionary for its innovative focus on marketing fulfillment and brand management, and expanding MRM focus.

Strengths
  • Growth: Elateral reported an approximately 24% increase in revenue from 2012 to 2013, adding more than 18 clients in 2013. Elateral generated approximately $11 million to $12 million in MRM revenue in 2013.
  • R&D investment: Key areas of investment in 2013 focused on infrastructural investments to support private and public cloud IaaS, service-oriented architecture (SOA) services and an API portfolio for integration with third-party applications, a new widget-based UI with the ability to create sub-brand home pages, a new mobile tablet application, 2D sizing and kitting, 3D customization, cloud-based DAM, a new planning and budgeting solution to formulate national and local campaigns and track costs, and new analytics dashboards.
  • Innovation: Elateral has five patents pending, including two that are in process for providing capabilities such as multichannel kitting, interactive queuing, content analytics, 3D displays, template recognition and packaging.
  • Deployment options: Elateral supports SaaS (public and private cloud options) and on-premises deployments. Its new IaaS architecture enables a hybrid deployment option with integration between hosted and on-premises applications.
Cautions
  • Planning and financial management: Although Elateral has invested in planning and budgeting capabilities, they are not as robust as those from the Leaders. These capabilities lack depth of financial management and advanced features for quoting and procurement.
  • Creative production management: Elateral lacks a robust workflow tool for managing creative projects, generating reviews and approvals, and allocating and managing people, teams and resources for creative projects.
  • Increasing competition: Small vendors targeting the marketing asset management, marketing fulfillment and content marketing areas of MRM are rapidly increasing. Many of the larger MRM vendors are likely to make acquisitions to expand their MRM capabilities, thus increasing the competition. Elateral will need to continue to raise its visibility in this market and expand its MRM capabilities to grow revenue
  • Potential acquisition target: As consolidation in the MRM market continues and MRM requirements for marketing fulfillment solutions increase, ElateraI's innovative value proposition in marketing fulfillment could make it an attractive acquisition target. Some of the leading MRM vendors in this Magic Quadrant lack robust capabilities in marketing fulfillment. However, Elateral's movement into other MRM areas, such as planning and budgeting, also makes it a competitor to potential suitors.

IBM

IBM is a Leader in MRM for its broad MRM solution and growing traction.

Strengths
  • Viability and growth: IBM is a large global company with $104.5 billion in revenue in 2012, making it one of the more viable vendors in this market. IBM reported 175% revenue growth for MRM solutions from 2012 to 2013. Gartner estimates MRM-related revenue of between $30 million and $40 million for 2013.
  • Broad solution: IBM provides a broad MRM solution across all five competencies with strength in planning, financial management and creative production management. It leverages internal partnerships (IBM Enterprise Content Management [ECM] and IBM Exceptional Digital Experience [XDX]) and external partnerships (Quark) for content management and marketing fulfillment.
  • Deployment options: IBM offers IBM Marketing Operations as an on-premises solution and as a hosted solution through third-party vendors (such as Accenture, Acxiom, Merkle and Epsilon). IBM Marketing Operations OnDemand is an on-demand, multitenant SaaS solution.
  • Renewed MRM focus and R&D investment: IBM has renewed its focus and prioritized MRM as an area of future marketing investments for its on-premises and on-demand products. Investments in 2013 for IBM Marketing Operations 9.0 included project health status, quick link portlets, deny reasons for approval, workflow enhancements stoplight status icons for project status, out-of-office enhancements, a reintroduction of creative URL support and integration with Coremetrics Intelligent Offer. Usability was improved with a redesigned dashboard with user configuration, new approval flows and a new marketing calendar. Investments in 2013 for IBM Marketing Operations OnDemand featured enhancements to approval workflows and mobile support for approvals.
Cautions
  • Marketing asset management and marketing fulfillment: IBM relies on partnerships with external vendors like Quark, and internal partnerships with IBM ECM and IBM XDX to support marketing asset management and marketing fulfillment capabilities. Gartner has observed that clients prefer to have a vendor fully own the MRM functionality, rather than rely on partnerships or purchase multiple products across a vendor's portfolio.
  • Partner risk: IBM will rely on its partnerships for marketing asset management and marketing fulfillment capabilities. There is always the risk that partners will be acquired by a competitor, which would put the partnership at risk. Although internal partnerships are less risky, their products may not have the same robustness or level of marketing requirements.
  • Innovation in MRM: Although IBM has renewed its focus and doubled investments in MRM, it still has gaps to close between it and other MRM leaders. References for this Magic Quadrant gave less than average ratings for IBM on its ability to meet current or planned requirements, and with ongoing R&D investment in the MRM solution.
  • Increased competition: As market consolidation continues, IBM will face increased competition from vendors such as Infor, Microsoft, SAP, SAS and Teradata. Some clients prefer to work with stand-alone MRM vendors, rather than larger enterprise application vendors. Consequently, IBM will face increasing competition from stand-alone providers such as AtTask and BrandMaker.

Infor

Infor is a Leader for its broad MRM vision and robust capabilities for planning, financial management and creative production management, as well as its increasing market traction.

Strengths
  • Growth and continued execution: As part of Infor, the Orbis MRM solution has continued to gain market momentum. Gartner estimates that Infor's MRM revenue in 2013 was between $15 million and $20 million. Gartner often sees Infor on shortlists for vendor selection.
  • R&D investment: Infor offers a broad MRM solution across all five MRM competency areas, with a focus on closing the operational marketing loop, from planning to execution to measurement and optimization. Key investments in 2013 included a rebuilt UI, snapshots of financial periods, reallocation of unspent funds, new financial planning and forecast functionality, improvements to tasks and workflows, new manage-work capabilities, improved asset search functionality, further integration with Epiphany for marketing fulfillment and enhanced marketing analytics.
  • Deployment models: Infor supports on-premises, multitenant SaaS and separate-instance hosted (by Infor or third party) models. Its rapid implementation program enables midmarket clients to implement the application in as little as a few days, and enterprise clients in as little as one month.
  • Industry solutions: The MRM team is working with other groups at Infor to build industry solutions for healthcare (patient engagement), public sector (citizen engagement) and distribution/fashion (digital marketing/commerce).
Cautions
  • Marketing fulfillment: Infor provides some capabilities for marketing fulfillment, but these are not as robust as some of the niche, specialty vendors in the market.
  • Depth of functionality: Although Orbis MRM provides a broad set of MRM functionality with mature capabilities, some clients state they buy the solution for its ease of use and are willing to sacrifice some functionality from other vendors. When Infor loses a deal, it is typically because the client requires deep or advanced functionality.
  • Increased competition: Infor will continue to face competition from IBM, Microsoft, SAP, SAS and Teradata. Some clients prefer to work with stand-alone MRM vendors rather than larger enterprise application vendors. Therefore, smaller vendors, such as AtTask and BrandMaker, also will challenge Infor.
  • Market visibility: Infor is not known as an MRM provider. It needs to improve its visibility in the market and to continue to work on its MRM marketing to raise its visibility as an MRM Leader.

Microsoft

With the added viability and architectural investment in MarketingPilot from Microsoft, Microsoft is a Challenger in the MRM Magic Quadrant for its broad solution and midmarket appeal.

Strengths
  • Increased viability and international expansion: In 2012, Microsoft acquired MarketingPilot, thus increasing its overall viability and expanding its opportunity for growth. Gartner estimates that Microsoft's MRM revenue for 2012 at between $12 million and $14 million.
  • Broad solution: Microsoft provides a broad set of MRM capabilities for planning, budgeting, procurement, project management, content/asset management, media buying and performance management. However, its capabilities are not as deep or complex as some of the market Leaders, making it more attractive to midmarket buyers.
  • R&D investment: Investments in 2013 were predominantly on overhauling the UI to be consistent with Microsoft Dynamics CRM, integration with CRM via a connector, information architecture and general security improvements, and enhancements to DAM. Plans for 2014 are focused on international expansion of the product capabilities to 32 new markets and 10 new languages, continued DAM enhancements, an improved CRM connector, and leveraging the Microsoft Data Center for hosting.
  • Deployment options: Microsoft offers two delivery options: hosting managed by Microsoft and on-demand (SaaS).
Cautions
  • Marketing fulfillment: Although Microsoft offers some capabilities in this area, these are not as robust as the specialty marketing fulfillment vendors in the Niche Players quadrant.
  • Increased competition in the large enterprise market: Microsoft is an attractive solution for the midmarket, but will face increasing competition from other large vendors (such as IBM, Infor, SAP, SAS and Teradata) as it moves upmarket toward larger enterprises.
  • R&D balance: Balancing investments in architectural improvements with features and functions can be challenging, particularly when areas like campaign and lead management have more functional gaps than MRM. Most of the R&D investment was directed to architectural and UI improvements in 2013. Many of the plans for future R&D focus on campaign and lead management improvements. We expect to continue to see investment in MRM, but also we expect campaign management will take more priority to close gaps between it and competitors. We are seeing less innovation and visionary focus from Microsoft, compared with other MRM vendors.
  • Account management: References for this Magic Quadrant gave low ratings to account management, indicating they were dissatisfied with Microsoft in that area.

North Plains

North Plains is a Niche Player for its focus on managing the creative life cycle.

Strengths
  • Combined product revenue and new clients: Gartner estimates MRM revenue from North Plains' Xinet, Telescope, On Brand and Unify products is between $20 million and $23 million. Across the product line, it added 73 new clients in 2013, including 18 for On Brand, 19 for Telescope and 36 for Xinet.
  • Focus on the creative marketing life cycle: North Plains offers customers prepackaged solutions for managing the creative marketing life cycle from idea to fulfillment across its combined set of products. Xinet is used for managing the production of creative assets. Telescope is the DAM solution responsible for managing visual assets. On Brand is used for managing the fulfillment, distribution and brand compliance of the visual assets.
  • R&D investment: North Plains invests 20% of its revenue back into R&D. In 2013, Xinet 17.6 was released. New capabilities included enhanced asset accessibility, a more modern search engine, extensible archiving backup via third parties and faster file ingestion through Xinet Pilot. On Brand 2.7 was released in January 2014. New features include user-configurable dashboards, out-of-the-box localizations in Japanese, French and German, asset linking, asset rating, an HTML5 uploader, and social media integration, starting with Twitter trending. North Plains' current plans for subsequent releases are to include polling, tracking, and analysis, as well as support for a wider range of social networks, such as Facebook and LinkedIn. Collaboration is another area of future investment.
  • Deployment options: North Plains' solutions are available on-premises, on-demand (SaaS) and via a dedicated hosting environment. Xinet is only available on-premises.
Cautions
  • Financial management: Although On Brand provides some planning and budgeting capabilities, it does not offer the same level of complexity and advanced features, compared with the MRM Leaders. Planning and financial management are not strong focus areas for North Plains R&D.
  • Separate products and codebases: Although some integrations have been made between Xinet, Telescope and On Brand, these products remain on separate codebases and are not yet fully integrated. It primarily sells these products separately. Many clients do not like to buy multiple MRM products from the same vendor, given there are alternatives with a more integrated solution.
  • Software-to-service ratio: North Plains has a low software-to-service ratio, compared with many other MRM vendors. Software represented less than 50% of the company's revenue for 2013.
  • Increased competition: North Plains will face increased competition from companies such as BrandMaker, BrandWizard, Direxxis, Elateral, PTI Marketing Technologies and Saepio. Gartner expects that the larger IMM vendors will ultimately make an acquisition in the areas of marketing asset management and marketing fulfillment, generating competition from even larger vendors.

PTI Marketing Technologies

PTI Marketing Technologies, a U.S.-based company, is a Niche Player for its focus on marketing asset management, fulfillment and distribution within the broader MRM context. MarcomCentral is PTI's MRM solution and its most well-known brand.

Strengths
  • Growth: PTI reported MRM revenue growth of approximately 18% from 2012 to 2013. Gartner estimates PTI's 2013 MRM-related revenue was between $12 million and $13 million.
  • Marketing fulfillment: The MarcomCentral solution provides robust capabilities for marketing fulfillment, with budgeting, workflow and asset management used to enhance the marketing fulfillment process and capabilities.
  • Product improvements: Product improvements include a new administration portal for ease of use and configuration with touchscreen enablement, internationalization to 34 languages, including Japanese and Hebrew, customizable output formats (e.g., PowerPoint) and improved reporting and analytics with charts and report menus, and asset feedback forms to track usage and effectiveness.
  • Marketing and service improvements: PTI's Marketing Operations Executive Summit in March 2013 was sold out, and raised PTI's visibility among marketing operations executives and larger vendors. A larger event is planned for 2014. PTI also launched a new, support solution that is easy to search and use.
Cautions
  • Financial management and workflow: MarcomCentral has some capabilities for budgeting for content and collateral, but does not provide a robust enterprise financial management and planning solution for marketing. The workflow is tied primarily to the customization and fulfillment of marketing content and has not been prepackaged for creative reviews.
  • Global sales and support: Although PTI has a sales presence in Europe, it sells predominantly in the North American market, with few nonsalespeople located outside the U.S.
  • Increasing competition: Small vendors targeting the marketing asset management, marketing fulfillment and content marketing areas of MRM are increasing rapidly. Many of the larger MRM vendors are likely to make acquisitions to expand their MRM capabilities, increasing the competition from larger players.
  • Potential acquisition target: As consolidation in the MRM market continues and MRM requirements for marketing fulfillment solutions increase, PTI's value proposition in marketing fulfillment could make it an attractive acquisition. Some of the leading MRM vendors in this Magic Quadrant lack robust capabilities in marketing fulfillment.

Saepio

Saepio, a U.S.-based company, is a Niche Player focused on marketing asset management and marketing fulfillment, with an industry concentration on healthcare, automotive and retail (including restaurants and hospitality).

Strengths
  • Improving business model: Saepio has several new partnerships with agencies and integrators in the pipeline that could boost its market traction. It has a partnership with Acuity in London for reselling Saepio MarketPort in European deals. Saepio has been investing in and overhauling its customer service and support strategy. It has improved its implementation services with a dedicated team that can deploy solutions in 90 to 120 days from time of the sale.
  • Local marketing enablement focus: The hallmark of Saepio's software is its spotlight on sales enablement and brand management in local markets. The vendor's distributed marketing solution provides capabilities focused on dynamic assembly of localized advertising and marketing communications assets for use in local markets.
  • R&D investment: Saepio made more than 75 product enhancements to its MarketPort platform in 2013. Enhancements included improvements to the user experience, workflow improvements for ease of use, advanced contextual search enhancements, a new integration framework, faster dynamic content creation and packaging industry offerings for healthcare and automotive. Plans for 2014 include enhancements to distributed email functionality, expansion of multichannel campaign execution management workflow and standardized integration with campaign management and real-time decision technologies.
  • Deployment models: Saepio offers on-premises, hosted and multitenant SaaS options.
Cautions
  • Declining revenue: Saepio reported an approximately 10% decline in revenue from 2012 to 2013. The decline was largely due to key client losses that occurred when a major solution-delivery partner was acquired by one of Saepio's competitors. Saepio falls just below the minimum revenue criteria for this Magic Quadrant and will need to improve its growth rate in 2014 to remain on this Magic Quadrant.
  • Partner/agency reliance: Saepio's reliance on its partners, particularly agencies, to sell its solutions is risky. As was the case in 2013, if the agency buys or partners with one of its competitors, then revenue loss can be significant if only one or two major clients decide to leave as a result.
  • Financial management and creative production: Saepio has some basic financial management capabilities, but they are not as robust or complex as the leading MRM vendors. Saepio has some creative production and workflow capabilities, which are used primarily to support downstream fulfillment and distribution of content.
  • Increased competition: Small vendors targeting the marketing asset management, marketing fulfillment and content marketing areas of MRM are increasing quickly. Many of the larger MRM vendors are likely to make acquisitions to expand their MRM capabilities, bringing increased competition from larger players. As consolidation in the MRM market increases, Saepio's specialty and innovative focus could make it an attractive vendor for acquisition.

SAP

SAP is a Leader for its broad and robust set of MRM capabilities and market execution and traction, particularly in its installed client base.

Strengths
  • Market momentum: SAP reported a 41% year-over-year increase in live marketing customers. Most of its marketing customers are in EMEA and North America, but MRM has been gaining clients in South America, Mexico and Eastern Europe. Gartner estimates MRM-related revenue is between $30 million and $40 million.
  • MRM R&D: Updates from OpenText's DAM 7.2 release are available in SAP Digital Asset Management by OpenText. SAP has incorporated more advanced predictive analysis into its MRM solution for different business users. New work pattern capabilities in SAP Jam offer prebuilt collaborative processes that combine expertise, content, and best practices with real-time business data and applications, which could be leveraged to support planning activities such as strategic planning. The road map for 2014 calls for the release of a Customer Insights for Marketing dashboard as part of a cloud-based marketing solution and a new annual marketing planning and optimization solution.
  • Deployment options and marketing cloud vision: SAP supports on-premises, hosted, on-demand and hybrid deployment options. Most MRM capabilities are deployed on-premises or hosted via private cloud. The Customer Insights for Marketing dashboard scheduled for release in 1Q14 will be a public cloud offering. The vision is to provide a cloud-based ecosystem where SAP and third-party applications can be deployed on-premises, hosted or SaaS in a hybrid model.
  • Marketing awareness and thought leadership: SAP is intent on winning the mind share of chief marketing officers (CMOs). It established its CMO Council several years ago, and has continued to evolve its thought leadership activities within and outside SAP through speaking engagements, writing/publishing books, online communities (e.g., Customer Edge) and with CMO Executive Summits at Sapphire, the company's end-user conference.
Cautions
  • On demand: SAP does not currently have a multitenant SaaS option for its broad set of MRM functionality. However, SAP is building a cloud-based marketing solution that will support private and public cloud deployments.
  • Workflow and financial management: Business rules and workflow remain less flexible than those of the more mainstream MRM vendors and are areas of concern cited by some clients.
  • Partner risk: SAP relies on OpenText integration for DAM and marketing fulfillment capabilities. There is always the risk that OpenText could be acquired by a competitor, which would put the partnership between SAP and OpenText at risk. Gartner has witnessed that clients prefer to have a vendor fully own its MRM functionality, rather than to rely on partnerships.
  • Market perception: Some prospects will not consider SAP, because they think it is too difficult to engage large vendors for an MRM solution. Some prospects believe that if they are not considering other areas of CRM and ERP, then it does not make sense to pursue SAP as an option for MRM.

SAS

SAS is a Leader in MRM for its broad and robust set of MRM capabilities across the five competencies, and for its vision for next-generation MRM capabilities.

Strengths
  • Viability and growth: SAS is a large, privately owned company with approximately $2.87 billion in revenue in 2012. Gartner estimates that MRM revenue grew between 5% and 10% from 2012 to 2013, and estimates SAS had more than $35 million in MRM revenue in 2013.
  • Robust MRM solution: The Marketing Operations Management solution from SAS provides a strong set of capabilities in planning, financial management, creative production management, marketing asset management, marketing performance management and marketing mix optimization.
  • R&D investment: Investments for 2013 were for capabilities such as improved performance, reporting and analytics, internationalization and localization with support for Japanese and German, integration with marketing fulfillment, and Microsoft Office with new integration with SharePoint and Microsoft Lync, as well as new capabilities for Resource Management. A new Product Information Management offering for a marketing module may be available mid-2014. In parallel, SAS is refactoring the acquired Assetlink platform from being a .NET-based to SAS (Java-based) platform. This will enable SAS to more rapidly develop the product, improve overall performance and quality, and enable full integration with SAS's other IMM solutions. Full replacement of the current suite is expected to span several releases, with the first release featuring DAM capabilities.
  • Deployment options: SAS Marketing Operations Management is available on-premises, hosted and SaaS. SAS Marketing Mix Advisor is only available via hosted delivery.
Cautions
  • Marketing fulfillment: SAS provides the framework for marketing fulfillment capabilities. It is not a pure-play marketing fulfillment or content marketing vendor, such as Balihoo, Elateral, PTI Marketing Technologies, Saepio, SproutLoud, Thunderhead and Wedia.
  • MRM execution: There continues to be some confusion in the market regarding SAS's MRM capabilities. Gartner has noted that SAS is missing in some MRM deals where it would have been an ideal candidate for the shortlist.
  • Investment migration: SAS is planning to refactor and extend its MRM solution during the next couple years. Gartner expects that once SAS's new version has most of the capabilities of the current suite (Marketing Operations Management), new capabilities will be added to the new, Java-based version. While long term, the move will be beneficial, meaning that clients and prospects should plan accordingly.

Teradata

Teradata is a Leader for its several reasons: its broad and deep solution, MRM experience, client maturity, client value focus, and continued market traction.

Strengths
  • Viability and growth: Teradata is a large global company with $2.665 billion in revenue in 2012. Gartner estimates MRM-related revenue for 2013 will be between $70 million and $80 million. Gartner routinely sees Teradata on client shortlists or in contract negotiations.
  • Robust solution with mature implementations: The Teradata offering, Marketing Studio 9, provides a broad set of MRM functionality, with capabilities in each of the five competency areas, including deep functionality in planning, budgeting and creative production management. Teradata continues to have some of the most advanced MRM clients in the market.
  • R&D investment: Key areas of investment in Marketing Studio 9 during 2013 were a new and improved calendar, enhancements to spend central, the introduction of chat boards for collaboration, improved annotations with the ability to do side-by-side comparisons, an improved user experience, and technology and platform enhancements. Teradata simplified its SaaS offering, now called Marketing Operations Cloud Select, with two tiers of product modules. Tier 1 includes production, or plan and spend modules. Tier 2 includes capabilities of production, and plan and spend.
  • Deployment options: Teradata offers on-premises, hosted and SaaS options. The vendor offers two products: Marketing Operations Cloud Select (a multitenant SaaS architecture) and Marketing Studio 9 (a single-tenant architecture that can be hosted by Teradata and Teradata's partners, or on-premises by the customer or in a hybrid combination).
Cautions
  • Marketing asset management and marketing fulfillment: Teradata has some capabilities for DAM and marketing fulfillment, but they are not as robust as the specialty/niche vendors in the market. Teradata has a partnership with Adam Software for DAM and marketing fulfillment capabilities. Teradata will need to increase its investment in this area during the next few years, or acquire one of the technology providers in marketing asset management and marketing fulfillment.
  • Increased competition: Teradata has been a longtime Leader in the MRM Magic Quadrant; however, as the market matures, it will find itself being increasingly challenged to maintain a commanding lead. Teradata will face increasing competition from larger vendors, such as IBM, Infor, SAS and SAP, as well as from smaller players like AtTask and BrandMaker. Some clients prefer to work with stand-alone MRM vendors, rather than larger enterprise application vendors; thus, smaller vendors will challenge Teradata as well.
  • Midmarket: Teradata will not be marketing to the midmarket, but has established a dedicated field force and will offer solutions through its SaaS capabilities for MRM.

Wedia

Wedia, based in France, is a Niche Player for its focus on marketing asset management and its predominantly regional focus in Europe.

Strengths
  • MRM focus and growth: Wedia is refocusing its strategy from being solely on content management to MRM to grow revenue faster. Gartner estimates that it had approximately $10 million in revenue in 2013, with the majority coming from MRM and not pure content management
  • Marketing asset management: Wedia's strength is in managing creative projects and review cycles, storing digital assets and marketing content, and fulfilling marketing content to local markets. The Wedia CrossMedia marketing resource management platform supports brand consistency and compliance, global marketing, improved brand experience and better productivity regarding creative projects. It has a strong focus on three MRM competencies: creative production management, DAM and marketing fulfillment. The solution is built on DAM, provides project management capabilities, and supports fulfillment via mobile, print and the Web.
  • Deployment options: The solution is SaaS-based, but can be deployed on-premises, hosted (single tenant) or on-demand (multitenant).
Cautions
  • Financial management and creative workflow: Although Wedia provides some cost information and tracking for creative projects, it does not provide an enterprise budgeting and financial management tool across the marketing organization. Visual drag-and-drop workflows are geared to creative content campaign execution as part of marketing fulfillment instead of the creative review and approval process. The creative production management capabilities are focused more on project management than on creative review cycles.
  • Software-to-service ratio: Approximately 44% of Wedia's revenue comes from services. It will need to improve its software revenue margins to compete long term with the more software-focused MRM vendors.
  • Regional focus and increased competition: Although Wedia has one U.S.-based client and large brand-name clients, most of its clients come from France or European divisions of larger companies. As companies consolidate MRM providers for a more global solution, Wedia faces the risk of being replaced by more global MRM providers. Competition, particularly in the marketing asset management area of MRM, is increasing, and not all vendors will survive. Larger MRM vendors are likely to expand their MRM capabilities into stronger marketing asset management through acquisition. Wedia is a potential acquisition candidate for larger vendors, longer term.

Vendors Added and Dropped

We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant or MarketScope may change over time. A vendor's appearance in a Magic Quadrant or MarketScope one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. It may be a reflection of a change in the market and, therefore, changed evaluation criteria, or of a change of focus by that vendor.

Added

  • AtTask
  • Wedia

Dropped

  • Adnovate did not meet the minimum MRM revenue criteria for inclusion in this MRM Magic Quadrant update.

Inclusion and Exclusion Criteria

To be included in the 2014 update of the MRM Magic Quadrant, a vendor must demonstrate:

  • Market traction and momentum:
    • Vendor has at least 30 production customers for MRM functionality, each with at least an average of 25 users per week.
    • Vendor had at least 15 new customers for MRM in the past four quarters.
    • Vendor generated at least $10 million in revenue for MRM in the past four quarters.
    • Vendor supports clients across three or more countries in two or more major geographies (North America, EMEA, the Asia/Pacific region, South America and Central America).
    • Vendor has appeared on Gartner client lists at least once per quarter in each of the past four quarters.
  • MRM product capabilities:
    • Vendor provides a prepackaged software solution targeted to MRM buyers, and supports ongoing R&D of its software.
    • The solution must be sold independently from other solutions (e.g., a client can purchase the solution without having to purchase other business applications first).
    • Software (as opposed to consulting services) must account for 50% or more of the solution.
    • Vendor must support MRM functionality for at least four of the following components:
      • Planning and financial management
      • Creative production management
      • Marketing asset/knowledge management
      • Marketing fulfillment
      • MRM analytics and optimization
    • At least one of those components must be for budgeting and financial management, or for creative production management (e.g., for internal project management and reviews/approvals).
    • The vendor must manage multiple types of marketing resources, which is the purpose of MRM solutions. As the market has evolved, clients are seeking solutions that manage various types of resources. Vendors whose primary focus is on one of the resources (e.g., content/assets/information) were not considered for this Magic Quadrant. Vendors must support at least three of the following resources:
      • Budgets/financials
      • Projects
      • People/skills
      • Content/assets/information
  • Short-term viability:
    • Vendor has sufficient professional services to fulfill customer demand during the next 12 months.
    • Vendor has at least enough cash to fund a year of operations at its current burn rate.

Evaluation Criteria

Ability to Execute

Product/Service: This criterion remains one of the key differentiators in vendor capabilities, and is important for vendor selection among leading companies looking for a competitive advantage. Therefore, this capability has the highest weighting, compared with other criteria. Subcriteria include specific functionality and solution capabilities for planning and financial management (20%); creative production management (25%); marketing asset and content management (10%); marketing fulfillment (20%); measurement, reporting, dashboards, analysis and optimization (15%); and architecture (10%) — for example, openness, flexibility, usability and workflow. (Weighting: High)

Overall Viability (Business Unit, Financial, Strategy, Organization): In a market with many small vendors, viability is an important criterion, and gets a High weighting. Subcriteria include overall financials (50%), MRM-related revenue (40%) and partner strategy (10%). (High)

Sales Execution/Pricing: This refers to the ability of the vendor to provide global sales and distribution coverage of its MRM solution directly and/or through partnerships. Vendors must have experience selling MRM to the appropriate buying center (marketing and IT), and offer consistent and transparent pricing models and structures. Pricing structures that support large enterprises and SMBs, and in-house and SaaS-based deployments, are important. Although less important than product capability or the overall viability of the vendor, other criteria, such as the flexibility of deployment models (on-premises, hosted and on-demand) and pricing, are important client considerations. Subcriteria include flexibility in deployment models (75%) and pricing models (25%). (Medium)

Market Responsiveness and Track Record: This is the assessment of the desire, expertise and organizational flexibility needed to address evolving customer requirements and articulate that insight back to the market, as well as create MRM products in line with this change. The key evaluation criteria are the responsiveness of the vendor to the market, as well as of the market to a vendor and its solution, and the customer's experience working with that solution in its geography and industry. (High)

Marketing Execution: This is the ability of the vendor to consistently generate market demand and awareness of its MRM solution through marketing programs and press visibility. The clarity, quality and creativity that go into this are just as important as the revenue assigned to generate new leads and reinforce/increase brand awareness. This evaluates the vendor's marketing strategy and execution to build recognition for the MRM solution in ways that gain traction for the MRM solution across geographies and industries. (Medium)

Customer Experience: We evaluate the vendor's commitment to ensuring that each customer has ongoing success with its MRM deployment. Aspects considered include implementation services and partners, global technical support (direct and via partners), account management, user groups/panels and customer communities. Each vendor must provide a sufficient number of recent references to prove the ongoing viability and acceptance of its product in the marketplace. This evaluation criterion takes into account customer ratings, reviews and evaluations of the vendor's MRM solution (functionality, architecture, usability), implementation services, account management and ongoing customer support. (High)

Operations: This criterion explores each vendor's ability to meet its goals and commitments. Factors include the quality of the organizational structure, such as skills, experiences, programs, systems and other vehicles, which enables the vendor to operate effectively and efficiently. This includes management experience and track record, and the depth of staff experience, specifically in the MRM market. The vendor must have sufficient professional services (in-house or through third-party business consultants and system integrators) to meet evolving customer requirements. Implementation and support are relevant considerations during vendor evaluation, although they are less important than product capability and viability. Subcriteria include customer service and support (50%), and professional services (50%). (Medium)

Table 1. Ability to Execute Evaluation Criteria

Criteria

Weighting

Product or Service

High

Overall Viability

High

Sales Execution/Pricing

Medium

Market Responsiveness/Record

High

Marketing Execution

Medium

Customer Experience

High

Operations

Medium

Source: Gartner (February 2014)

Completeness of Vision

Market Understanding: The vendor's understanding of the MRM market and its specific value proposition to marketing personnel are critical when selecting a vendor with a vision that meets your needs. Therefore, this criterion receives one of the highest weightings. (Weighting: High)

Marketing Strategy: The vendor's marketing strategy is critical to its ability to gain broader recognition for its MRM solutions. We assess the strategy's consistency, clarity and degree of associated differentiation with regard to the positioning of MRM internally and externally to the company, and in line with the company's overall vision and brand values. (Medium)

Sales Strategy: The company's sales strategy is critical to market penetration and global expansion. We assess the go-to-market approach for selling the MRM product and services, directly and through partnership networks globally. A diverse range of aspects spanning strategic account management to industry expertise/targeting is assessed. (Medium)

Offering (Product) Strategy: Innovation and vision across the breadth and depth of product capabilities are critical for the vendor to continue to meet the needs of a maturing market in the five competency areas of MRM. Subcriteria include specific functionality and solution capabilities for planning and financial management (25%); creative production management (15%); marketing asset and content management (5%); marketing fulfillment (25%); measurement, reporting, dashboards, analysis and optimization (20%); and architecture (10%) — for example, openness, flexibility, usability and workflow. (High)

Business Model: The business model for how a vendor aligns marketing and sales strategies for particular industries and geographies to deliver on its MRM value proposition is an important component of its vision, although less than market understanding and product capability. It includes an evaluation of how well the vendor mobilizes resources and leverages partners to go to market and successfully execute. (Medium)

Vertical/Industry Strategy: We evaluate the vendor's go-to-market strategy for industries, solution capabilities (product verticalization), industry templates and packaging, and plans for vertical industries. (Medium)

Innovation: We assess the vendor's innovation in new and emerging areas of MRM, such as knowledge management, social networking, mobile connectivity, marketing mix optimization, scenario planning/forecasting and order management. (High)

Geographic Strategy: This criterion assesses the vendor's global understanding of MRM requirements and its strategy and plans for geographical expansion, including marketing, sales, implementation and customer support. (Medium)

Table 2. Completeness of Vision Evaluation Criteria

Evaluation Criteria

Weighting

Market Understanding

High

Marketing Strategy

Medium

Sales Strategy

Medium

Offering (Product) Strategy

High

Business Model

Medium

Vertical/Industry Strategy

Medium

Innovation

High

Geographic Strategy

Medium

Source: Gartner (February 2014)

Quadrant Descriptions

Leaders

Leaders in the MRM market demonstrate exemplary performance. They deliver breadth and depth of integrated MRM functionality on large, enterprisewide and global implementations that extend MRM across the marketing organization. Leaders successfully articulate business propositions that resonate with buyers.

Challengers

Challengers have entered the MRM market primarily to provide offerings that complement their established business applications. In doing so, they expect to leverage their large installed bases. They typically offer breadth of functionality, although often at the expense of depth and innovation. They provide value in terms of ease of integration with their enterprise applications, but have a limited understanding of market trends and marketing buyers. Challengers are unable to consistently and effectively articulate their visions, or they have not mobilized their resources to excel in the market segment.

Visionaries

Visionaries have a strong vision for applying technology to MRM-related issues, but have not yet mobilized resources or developed a robust business model for global expansion on a large scale. A Visionary vendor is a market thought leader and an innovator across most of the five competency areas of MRM. Visionaries will need to grow to achieve sufficient scale in the MRM market and to provide more consistent execution to become Leaders.

Niche Players

Niche Players perform well in a small segment of the MRM market. They have a limited ability to innovate or outperform other vendors. They are focused on a specific geography or industry, or they focus primarily on a portion of the MRM competencies and functionality. Niche Players have limited implementations and support services for MRM, and may not have achieved the necessary scale to solidify their market positions.

Context

MRM continues to mature, with expanding business requirements across the five MRM competencies, requests for next-generation functionality and more global implementations. MRM investments continued to grow in 2013, particularly in North America and Europe. We are seeing more interest in the Asia/Pacific region and Latin America. Most vendors continued to grow their revenue. A few vendors, particularly those in the marketing fulfillment area, were flat in terms of growth, and a few had slightly declining revenue. Adnovate, which was on the previous Magic Quadrant, failed to meet the inclusion criteria; and two new vendors, AtTask and Wedia, were added this year.

Based on the vendors that Gartner tracks, we estimate there are more than 5,200 MRM implementations in midsize and large companies worldwide, an increase of 32% from last year. In 2013, there were more than 780 new MRM implementations. Gartner estimates that the vendors included in this Magic Quadrant have combined MRM revenue of approximately $375 million, and that the total market of all MRM vendors is approximately $400 million to $450 million. Gartner sees the majority (over 90%) of its clients are looking to buy, rather than build, MRM solutions. Many are replacing legacy homegrown applications or those built by agencies on their behalf.

Gartner sees MRM growing within organizations via: (1) a company's global expansion, (2) an increase in the number of users within a region, and (3) an expansion of MRM capabilities across the five areas of MRM competency. MRM also is moving more firmly into the midmarket, particularly with the SaaS and hosted-deployment options.

We expect to continue to see new entrants in the MRM market. However, the pace of consolidation will increase during the next two years. Vendors, particularly those with less than $15 million in revenue, may not survive and are increasingly likely to be acquired by larger players. We expect approximately 50% of these smaller players to be acquired or go out of business during the next three years.

In this updated MRM Magic Quadrant, numerous vendor positions have changed, and cannot be compared with last year's Magic Quadrant. The changes are due to:

  • One vendor (Adnovate) in the lower left of the Niche Players quadrant in 2013 was dropped, resetting the parameters for all vendors on this Magic Quadrant.
  • Two new vendors — AtTask and Wedia — were added, further changing the shape of the market.
  • Vendors were divided between focusing on functional innovation and overhauling their platforms and architecture. This dichotomy created positioning shifts for some vendors.
  • Some vendors expanded their vision and product focus, whereas others contracted their views of the market. This created some vendor movement between the Visionaries and Niche Players quadrants.
  • The MRM market matured; thus, emphasis for Completeness of Vision was on the breadth of an integrated MRM solution. Vendors with a specialty focus are likely to appear as Niche Players in the market for their focus on fewer MRM competencies.
  • Execution varied greatly, with some vendors showing decreasing or flat revenue and signs of attrition, others continuing their steady growth, and some displaying strong growth and greatly improved business models.

Market Overview

Clients are more sophisticated and more astute about their requirements. First-time buyers are looking across a broader set of MRM competencies and at the global impact of the initiatives, whereas MRM veterans are looking to expand functionality, as well as to expand globally, while consolidating prior purchases. Early buyers are re-evaluating their choices as the market matures.

The market is becoming somewhat polarized, with megavendors like IBM, Infor, Microsoft, SAP, SAS and Teradata becoming major players, and smaller providers, such as AtTask, entering the market. Most of the other MRM vendors concentrating on MRM have less than $15 million in total revenue. Therefore, buyers will have to make trade-offs between overall vendor viability and breadth and depth of functionality based on their requirements, and the relationships the vendor brings to clients' issues.

Consolidation is driven predominantly by: (1) the need to expand MRM capabilities to meet client requirements; and (2) the growing interest and investment in MRM among larger application vendors. New entrants are expected in the MRM market, but the window of opportunity is closing for small vendors as consolidation increases among larger players.

According to references, the most important reasons for selecting a vendor were that the MRM functionality met the organization's requirements (32%) and MRM functionality was robust (19%). Among the reasons for not selecting a vendor's solution were that the MRM functionality did not meet the organization's requirements (25%), lacked robust MRM functionality (25%), pricing was too high (25%) or the vendor did not demonstrate an understanding of marketing's business requirements (25%). Furthermore, of the vendor references surveyed, 33% used an on-demand/SaaS solution, 24% had deployed an on-premises solution, 19% were using a solution hosted by a third party, and 12% were using a hybrid model.

In terms of implementation (time to full production deployment), it took references three to 24 months, averaging out to nine months. Sixty-six percent of references stated the implementation time generally met their expectations, with 23% reporting it was longer than expected, 10% reporting it was shorter than expected and 1% didn't know. Eighty percent of references used their internal staff for implementation, 46% used professional services from the vendor, and 14% used one or more external system integrators. Forty-five percent stated that the solution required configuration and customization, 22% said configuration only (no custom writing of code), 14% said customization (writing of code) only, and the remaining responded they didn't know. Sixteen percent reported using the solution out of the box with no configuration or customization. The range of customization varied greatly, from less than 11% to 80%.

To help further evaluate MRM vendors based on your requirements, see "Toolkit: How to Create a Marketing Resource Management Application RFP."

Evaluation Criteria Definitions

Ability to Execute

Product/Service: Core goods and services offered by the vendor for the defined market. This includes current product/service capabilities, quality, feature sets, skills and so on, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria.

Overall Viability: Viability includes an assessment of the overall organization's financial health, the financial and practical success of the business unit, and the likelihood that the individual business unit will continue investing in the product, will continue offering the product and will advance the state of the art within the organization's portfolio of products.

Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel.

Market Responsiveness/Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendor's history of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization's message to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This "mind share" can be driven by a combination of publicity, promotional initiatives, thought leadership, word of mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements and so on.

Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis.

Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen to and understand buyers' wants and needs, and can shape or enhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the website, advertising, customer programs and positioning statements.

Sales Strategy: The strategy for selling products that uses the appropriate network of direct and indirect sales, marketing, service, and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base.

Offering (Product) Strategy: The vendor's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets as they map to current and future requirements.

Business Model: The soundness and logic of the vendor's underlying business proposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including vertical markets.

Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the "home" or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market.