Gartner: Marketing Budgets Plummet to 6.4% of Overall Company Revenue in 2021
Marketing budgets have fallen to their lowest recorded level, dropping to 6.4% of company revenue in 2021 from 11% in 2020, according to Gartner’s CMO Spend Survey, which surveyed 400 CMO and marketing leaders in North America, the UK, France and Germany from March 2021 through May 2021. The survey tracks the critical areas marketers are investing in and where cuts are being made from people, programs and technologies.
“Despite facing in-year budget cuts in 2020 due to the pandemic, most CMOs expected budgets to bounce back in 2021,” said Ewan McIntyre, co-chief of research and vice president analyst in the Gartner for Marketers practice. “This budgetary optimism was misplaced, as marketing budgets have fallen to their lowest level in the history of Gartner’s CMO Spend Survey. However, these cuts have been a slow burn over the course of the last year, where many marketing budgets have not recovered what was originally lost.”
Consumer products and goods (CPG) companies reported the strongest 2021 marketing budgets at 8.3% of company revenue. Large enterprises got hit the hardest – companies with revenue of more than $2 billion reported the lowest average marketing budget of just 5.7%. On the other hand, companies with revenue of under $500 million reported the highest allocation to marketing with an average budget of 8.6% of revenue.
The research shows CMOs have shifted spending commitments across their channels and programs, with pure-play digital channels – owned, paid and earned – dominating those priorities and accounting for 72.2% of the total marketing budget.
When looking at the largest resource allocation – agencies, media, labor and paid media – agency spend continues to decline.
CMOs report that 29% of work previously carried out by agencies has moved in-house in just the last 12-months alone. The focus of in-housing is changing as well – with brand strategy, innovation and technology, and marketing strategy development making up the top three capabilities areas CMOs are moving to internal teams. Meanwhile, marketing technology (martech) continues to dominate, taking up 26.6% of the total budget.
The trends of marketing have a profound impact on sales efforts, and the overall position of channel partners.
Reciprocity Expands Partner Program
Reciprocity, a San Francisco-based information security risk and compliance vendor, has expanded its Reciprocity Partner Program to enable InfoSec solution providers and VARs to develop and deliver products and services supported by the company’s ZenGRC platform. In addition, the company signed an agreement with Synnex, a prominent distributor, to manage the onboarding and ordering process for partners.
The updated program now includes free access to partner demo licenses, enhanced margin protection, referral-based financial incentives, and an updated partner portal supporting sales operations, marketing, and training activities.
“We enhanced the channel program to enable better alignment with their business models, whether they resell or influence GRC solutions,” said Stephen Thomas, Senior Vice President of Sales at Reciprocity. “We are thrilled to be working with SYNNEX, a leading provider of distribution, systems design and integration services for the technology industry. Together, we will make it even easier for our partners to deliver innovative products and services supported by the award-winning ZenGRC platform.”
“The addition of Reciprocity to our product portfolio enhances our ability to provide a market-leading information security risk and compliance platform to our partners and customers,” said Reyna Thompson, Senior Vice President, Product Management, North America at SYNNEX. “As a GRC platform, Reciprocity’s comprehensive risk management and compliance capabilities will help deliver the scalable solutions our customers are looking for.”
InfoSec has emerged as a prominent channel opportunity. Programs like this one are intended to help partners to engage.
Reflect Systems Announces Reflect Ovation Partner Program
Reflect Systems, a Dallas based digital signage company, has announced the official launch of “Ovation,” its new partner program.
“Though we have been partnering with other companies in our industry for years, we felt it was time to accelerate this effort and bring more packaged resources and structure to our program,” said Lee Summers, CEO at Reflect. “With the growing importance and increased complexity of enterprise digital signage initiatives, effective partnering is absolutely essential to helping our clients achieve their objectives.”
Program components include training, joint marketing programs, consulting and creative assistance. Eligible partners also receive a referral incentive on deals that the partner introduces to Reflect.
“The incentive program is a great way to reward our partners for connecting Reflect with companies needing digital signage,” said Mark Daniel, vice president of partner development at Reflect. “When Reflect and our partners work together, we are able to further deliver compelling solutions that drive great business outcomes for everyone involved.”
Reflect provides creative agency services, content management, ad trafficking systems, and media sales.
The program potentially provides new opportunities for partners seeking to expand their product and service portfolios.