- Marketing budgets are recovering, reaching 9.5% of total company revenue this year, reaching a record 6.4% in 2021. Latest CMO Spending and Strategy Survey from Gartner. The researchers presented their findings this week at the Gartner Marketing Symposium/Xpo.
- Although marketing budgets are growing again, they are off the pre-pandemic level, when the company’s revenue averaged 10.9% between 2018 and 2020. Silver of marketers surveyed believes that inflationary pressures will have a positive impact on strategy and investment.
- Online marketing channels still receive the most investment from CMOs, accounting for 56% of spend, with social media advertising taking the top spot on the list. The eased COVID-19 restrictions have also enabled offline media, which currently accounts for 44% of the budget. This is a more even division than in recent years, and speaks of a changed environment in the early days of the pandemic, when digital was easily dominated.
The economy may be volatile, but the CMO doesn’t seem too phased out. According to Gartner’s latest research, marketing budgets have been steadily recovering after the collapse after many companies implemented spending freezes early in the pandemic.
Still, volatility persists globally and continued pressure on consumer wallets could create additional headwinds towards the second half of the year. CMO overconfidence is a recurring theme in Gartner’s annual survey.
“While addressing macroeconomic considerations, CMOs remain committed to the belief that their economic prospects are strong,” said Ewan McIntyre, Gartner’s vice president of marketing leadership and research director, Ewan McIntyre, in a press statement. “Despite inflation, Russia’s invasion of Ukraine, supply chain problems exacerbated by China’s lockdown measures, and unprecedented competition for talent, CMOs look optimistic.”
Last year, the digital advertising market rebounded as the media tab revived. Growth in this sector has surpassed that of the general economy and reached new heights. According to Gartner, marketing activity will continue to be healthy in 2022, but it is showing up in a more hybrid way, including offline media.
This survey is the latest in industry analysis that suggests that our focus on digital may shift as more people exit. The growth of e-commerce It’s been quite slow for a lot of companies. After posting huge profits before. Streaming services like Netflix, which once garnered frenzied attention, are now struggling with growing subscribers. But while ads are becoming part of the expansion plan, it’s a development that excites adland.
Looking at Gartner’s results by category, financial services had the strongest recovery, with marketing budgets rising from 10.4% of the company’s revenue today to 7.4% in 2021. Media and technology products both accounted for 10.1%, followed by consumer goods and travel and hospitality. These are relatively low at 8% and 8.4%, respectively. CPG is one of the segments Confronting the challenge of steep inflation.
Gartner surveyed 405 CMOs or equivalent leaders between February and March 2022. Executives are located in North America and Europe and represent a variety of industries and company sizes, with the majority of respondents claiming that their businesses generate more than $1 billion in annual revenue.
Marketers overall have a bright face in a challenging environment, but lack confidence in key areas. More than a quarter (26%) identified data and analytics as a feature gap, which could be an issue as cookies will be deprecated next year. 23% reported problems with customer understanding and experience management, and 22% reported the same problems with increasingly important marketing skills. According to Gartner’s McIntyre, the need to master these disciplines has “historically” surged in demand for talent.