As marketing technology continues its rapid evolution, organizations face a pressing question in 2025: Should we consolidate our martech stack or expand it? The answer is far from straightforward. With over 11,000 solutions on the market and continued investments in AI and automation, companies must weigh the benefits of specialized tools against the simplicity and efficiency of integrated platforms.
The Current Martech Landscape
The martech industry in 2025 is more dynamic than ever. New solutions are cropping up almost weekly, promising everything from hyper-personalized marketing automation to real-time customer journey orchestration. But disruptive innovation also brings increasing complexity. The average enterprise marketing team uses between 90 and 120 tools within their stack, and midsized businesses are not far behind.
This abundance fuels two contrasting strategies: consolidation, which seeks to streamline tools and reduce complexity; and expansion, which leverages best-of-breed solutions across individual marketing functions.
The Case for Consolidation
For many organizations, especially those seeking cost savings and operational efficiency, consolidation is the chosen path. By simplifying their martech stack, businesses achieve:
- Lower total cost of ownership – Fewer tools mean fewer software licenses, less overhead, and smaller integration budgets.
- Better data governance – Unified platforms offer centralized databases, making it easier to manage data privacy, compliance, and analytics across channels.
- Improved collaboration – A single platform can enhance alignment between teams by offering a shared source of truth and standardized processes.
- Reduced tech debt – As legacy tools are decommissioned, IT maintains fewer integrations and suppliers.
Platforms like Adobe Experience Cloud and Salesforce Marketing Cloud appeal to this logic. By embedding various capabilities — email automation, customer data platforms (CDPs), journey mapping — into a single ecosystem, they promise a more seamless experience for both marketers and consumers.
Consolidation Risks
Yet, this approach does come with limitations. Consolidated platforms often lack the agility of niche tools. Marketers may find themselves boxed into workflows that do not fit innovative strategies. Integration doesn’t always mean excellence, and performance across sub-features can vary drastically when compared to specialized vendors.
Moreover, consolidation might hinder experimentation. While a unified system simplifies operations, it may reduce marketers’ willingness or ability to trial cutting-edge solutions or pivot strategies quickly.
The Case for Expansion
On the flip side, organizations that prioritize flexibility, innovation, and cutting-edge functionality often opt for expansion of their martech stack. Best-in-class tools in specialized areas — such as account-based marketing, personalization engines, or social listening — frequently outperform broader platforms in both features and speed to adapt.
The advantages of an expanded stack include:
- Agility and innovation – Incorporating new technologies allows marketers to stay ahead of trends and customer expectations.
- Performance optimization – Purpose-built tools tend to offer richer analytics, deeper integrations, and more robust capabilities tailored to specific functions.
- Competitive differentiation – Custom stacks enable unique workflows and customer experiences that set brands apart in crowded markets.
Companies scaling globally or targeting omnichannel engagement frequently build an expanded martech environment around a central data warehouse or CDP — focusing not on the number of tools but on how well the tools work together.
Expansion Challenges
Expansion, however, is not without its pitfalls. A broader stack inevitably increases:
- Integration complexity
- Vendor management overhead
- Training requirements for staff
- Security and compliance risks
Additionally, there’s a danger of creating operational silos, especially if departments adopt different tools for similar purposes. Without strong governance and strategic alignment, expansion can quickly lead to inefficiency.
AI: A New Deciding Factor in 2025
Artificial intelligence has become a central force influencing stack decisions in 2025. From generative content tools to predictive analytics, AI modules are now embedded in nearly every tier-one platform. However, the decision to consolidate or expand often hinges on how well a business can capitalize on AI capabilities.
Consolidated platforms tend to have more advanced embedded AI, developed in tight integration with their data layers. These systems can offer superior personalization, forecasting, and automation across all channels within a single ecosystem.
In contrast, organizations with expanded stacks often cherry-pick AI solutions across vendors, allowing them to deploy best-in-class technologies for specific use cases. While this approach requires stringent data architecture and API scripting, it permits deeper innovation tailored to strategic priorities.
Decision Matrix: Should You Consolidate or Expand?
Choosing between consolidation and expansion ultimately comes down to business goals, resource availability, and market dynamics. Here’s a simplified decision matrix to guide the evaluation:
| Factor | Favors Consolidation | Favors Expansion |
|---|---|---|
| Company Size | Midmarket, Cost-sensitive Enterprises | Large, Global Enterprises |
| Strategic Priority | Efficiency, Stability | Innovation, Growth |
| Data Maturity | Developing Architecture | Advanced Data Governance |
| IT Resources | Lean IT Teams | Dedicated Developer Support |
| AI Readiness | Adopting Embedded AI | Integrating Custom AI Solutions |
The Middle Ground: A Composable Martech Stack
In response to these challenges, many organizations are embracing the composable martech stack. This hybrid approach combines the reliability of a central platform with the flexibility of plug-and-play modules. Powered by APIs and cloud-native architectures, composable stacks let marketers innovate without vendor lock-ins.
This strategy involves:
- Using a robust CDP or data warehouse as the stack’s foundation
- Selecting interchangeable tools via microservices or APIs
- Prioritizing tools that adhere to open standards for smoother integration
Composable stacks are fast becoming the go-to strategy for enterprises that require both control and creativity. They allow rapid response to market shifts while retaining foundational governance and scale.
Key Considerations for 2025 and Beyond
Regardless of which path a company takes, several overarching factors should shape martech decisions this year:
- Customer Expectations: Customers now expect seamless omnichannel experiences — any stack must support real-time, personalized interactions.
- Regulatory Landscape: GDPR, CCPA, and future privacy regulations demand systems capable of transparent data processing and consent management.
- AI Evolution: Tools that fail to integrate AI functionality will likely fall behind, even if they remain easy to use or affordable.
- Implementation Speed: Time-to-value matters. Whether consolidating or expanding, deployments need to be agile and outcomes measurable.
Final Thoughts
As we move deeper into a digital-first future, the martech debate of 2025 is not simply about consolidating or expanding — it’s about aligning technology with business realities. Expect to see more Chief Marketing Technologists and RevOps leaders adopting a strategy that is bimodal: consolidating in areas where repeatability and compliance matter, and expanding in areas critical to innovation and competitive edge.
The best martech strategy isn’t one defined by the number of tools, but by how effectively those tools drive ROI, enhance customer experience, and scale with the business. Consolidate where it streamlines. Expand where it empowers. But always choose with purpose.
