Gartner: Marketing Budgets on the Rebound

A recent survey by Gartner shows a surge in marketing investment by a wide range of companies. Seventy percent of respondents reported their budgets had increased this year, however with marketing budgets increasing to 9.5% of total company revenue, it is still down from the average budget between 2018 and 2020 of 10.9%, according to the market research firm.

“In the face of telling macroeconomic considerations, CMOs hold on to a belief that their own economic outlook is strong,” said Ewan McIntyre, chief of research and vice president analyst in the Gartner for Marketing Leaders practice. “Despite inflation, the Russian invasion of Ukraine, supply chain issues exacerbated by China’s lockdown measures and unprecedented talent competition, CMOs appear sanguine. For example, the majority of CMOs surveyed thought inflationary pressures hitting their business and their customers will have a positive impact on their strategy and investment in the year ahead.”

CMOs have apparently made the shift from digital-first to hybrid multichannel strategies. When asked to report the proportion of their 2022 budget allocated to online and offline channels, online channels take the largest share (56%). However, offline channels account for almost half the total available budget (44%). Looking at the average spend across industries, social advertising tops the list, closely followed by paid search and digital display.

“There has been a lot of discussion around COVID-19 shifting consumers to a digital first mindset. However, as Western Europe and North America relax pandemic protocols, customer journeys have recalibrated,” added McIntyre. “Post-lockdown, CMOs need to listen carefully to their customers and pay attention to the channels they are using, as this more closely resembles a hybrid reality.”

Average marketing spending has increased across almost all of the industries surveyed, with some significant variances. Financial services companies recorded the highest budget, at 10.4% of company revenue, up from 7.4% in 2021. While eight out of the nine industries surveyed reported budget increases, spending for CMOs in consumer goods firms has stagnated, moving from 8.3% in 2021 to 8% in 2022.

The annual Gartner 2022 CMO Spend and Strategy Survey was conducted between February through March 2022 among 405 CMOs and other marketing leaders in North America, as well as Northern and Western Europe across different industries, company sizes and revenue, with the majority of respondents reporting annual revenue of more than $1 billion.

Channel Impact^®
The data provide comparative guideposts for marketing spend, as well as provide some clues as to where channel partners might add additional value.