In the ever-evolving landscape of marketing technology (martech), building the right stack is crucial. But with countless tools and platforms available, how do you make the right choices for your business? One key distinction is the difference between horizontal and vertical marketing technology players. In this article, we’ll dive into these categories and help you decide which approach best fits your needs.
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Understanding Horizontal Players
Horizontal martech players are those companies that offer a broad range of capabilities. Think of platforms that provide Customer Data Platforms (CDPs), marketing automation, and basic loyalty features. They often market themselves as “experience platforms” and have evolved from earlier email marketing providers.
These platforms aim to be a one-stop shop, offering many functionalities under one roof. While convenient, there’s a limit to how deep they can go in each area. Their loyalty capabilities, for instance, might be somewhat basic compared to specialized solutions. Such companies are Marigold or Capillary.
The Rise of Vertical Players
On the other hand, vertical marketing technology and vertical martech players focus on a specific niche. Companies like Antavo, for example, specialize in loyalty program management. These players offer deep, robust solutions tailored to a particular function.
A martech stack built with vertical players involves selecting best-in-class tools for each area, such as a dedicated CDP, marketing automation platform, and loyalty program management tool. This approach leads to a more comprehensive and specialized architecture.
Composable Architecture: The Power of Vertical Marketing Technology
When you compose a marketing stack using knowledgeable vertical players, you create a “composable architecture.” This means piecing together the best tools in each category to meet your specific needs.
This approach requires careful integration between different solutions, but the long-term benefits are significant. You gain deep functionality and expertise in each area, allowing you to truly understand and engage with your customers.v
Making the Decision: Depth vs. Breadth
The decision between horizontal and vertical players comes down to your business’s specific needs and resources. Here are some factors to consider:
- Depth of Expertise: How deep do you want to go into understanding your customers? Vertical players offer the granular insights and capabilities needed for in-depth customer engagement. This is why, for example, Voyado has such a large customer base in the Nordics region.
- Team Size and Expertise: Smaller teams might find the integrated nature of horizontal players more manageable, while larger, senior teams with long-term plans often benefit from the deep functionality of vertical players.
- Funding and Resources: Building a composable architecture with vertical players might require more implementation time and integration efforts, but it pays off in the long run.
- Strategic Vision: If your strategy involves a deep dive into each area of your marketing stack and a commitment to expertise, a composable architecture with vertical players is the way to go.
What is Composability?
Composability in the context of marketing technology refers to building a martech stack by selecting and integrating best-in-class, specialized tools from various vertical players, rather than relying on a single, broad horizontal platform. This approach creates a flexible and tailored architecture where each component, such as a dedicated CDP, marketing automation platform, and loyalty management system, excels in its specific function.
When it comes to loyalty technology, for example, you can’t go wrong with Antavo. We offer innovative, API-driven loyalty technology that complements your strategy, not the other way around.
The Value of Integration
For a composable architecture to work effectively, seamless integration between different vertical marketing technology players is essential. When these integrations are robust, you can achieve the cohesiveness of a horizontal player while benefiting from the depth of specialized solutions.
Implementing a loyalty program and creating an integrated Martech stack is no small feat. At Antavo, we have certified partners who take care of this job to help our customers. Here is a list of them.
How Can You Learn More About Horizontal vs. Vertical Marketing Technology
Building the right martech stack is a strategic decision that impacts your entire marketing operation. By understanding the difference between vertical and horizontal players, you can make informed choices that align with your business goals.
Whether you opt for the convenience of a horizontal platform or the depth of a composable architecture with vertical marketing technology players, prioritize solutions that enable you to understand and engage with your customers effectively.
Some resources to learn more about the topic:
- Composable.com – education and news, mind you, sponsored by one of the composable tech providers
- The MACH Alliance – those ISVs (independent Software Vendors) and Agencies who fully believe in the power of composability
For martech experts, technical people, and marketers, the key takeaway is this: consider your long-term vision, team capabilities, and the depth of expertise you need. This will guide you in selecting the right martech partners to drive your business forward.
And a bit of biased hope here: I hope you will vote vertical, and then pick the software we are pouring all our product, engineering power, and heart into: Antavo.
Request a demo here, and make sure to send us an RFP.
Don’t forget to check out our new ebook, The 7 Deadly Sins of Data Migration in Loyalty Programs, to learn more about the unquestionable benefits of data migration.
Zsuzsa is the Chief Strategy Officer and Co-founder of Antavo. She has experienced Antavo grow from a startup into a market-leading, global scaleup for loyalty program technology, serving global brands and retailers. She was named Personality of the Year at the 2024 International Loyalty Awards, and listed by Forbes as one of Europe’s top 100 female founders in tech, Zsuzsa is a former journalist recognized by the European Commission.
