Three in Four CMOs Report Increased Budgets
Compared to Last Year
Marketing budgets have climbed to 9.5% of total company revenue
in 2022, an increase from 6.4% in 2021, according to Gartner, Inc.
While marketing budgets are increasing this year, they still lag
pre-pandemic spending levels.
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. Gartner experts presented the findings
today during the Gartner Marketing Symposium/Xpo, which is taking
place virtually through Wednesday.
“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.”
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% (see Table 1).
Table 1: 2022 Marketing Budget of % Total Revenue
(Mean Percentage of Budget Shown)
2022
2021
2020
2019
2018
Marketing Budget (% of Total
Revenue)
9.5
6.4
11.0
10.5
11.2
N = 405 CMOs (2022); 400 (2021); 342
(2020); 342 (2019); 618 (2018); excluding “don’t know”
Q. What percentage of your revenue is
being allocated to your total marketing expense budget in 2022?
Source: 2022 Gartner CMO Strategy and Spend Survey
Digital Accounts for 56% of Marketing Spend, But Offline
Channels Rebound
CMOs have 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%) - a more
equitable split than in recent years. 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,” said 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.”
Marketing Spend Increasing Across Nearly All
Industries
Average marketing spending has increased across almost all of
the industries surveyed, with some significant variances (see Table
2). 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.
Table 2: Percentage of Revenue Allocated to Marketing
2021-2022
Industry
2022
2021
Consumer Products
8.0%
8.3%
Financial Services
10.4%
7.4%
Healthcare
9.7%
7.2%
Retail
9.1%
6.3%
Travel and Hospitality
8.4%
5.4%
Media
10.1%
5.8%
Manufacturing
9.8%
5.8%
IT & Business Services
9.6%
5.9%
Tech Product
10.1%
5.0%
Total
9.5%
6.4%
N = 405 CMOs (2022); 400 (2021); Q: What
percentage of your revenue is being allocated to your total
marketing expense budget in 2022?
Q: What percentage of your revenue is being allocated to your total
marketing expense budget in 2022? Source: 2022 Gartner CMO Strategy
and Spend Survey
CMOs Confident On Brand Capabilities, But 58% Lack In-House
Resources
Brand was one of the lowest ranked capability gaps in the
survey, showing that CMOs are confident in their capabilities to
manage brands. In fact, when asked to report their budget
allocations across marketing's program and operational areas, brand
strategy and activation are near the top of the list, accounting
for nearly 10% of the budget. However, other strategic capabilities
gaps still persist: Marketing data and analytics was identified by
26% of CMOs as a top capability gap, followed by customer
understanding and experience management (23%), and marketing
technology (22%).
These specific instances illustrate a larger resource challenge
for CMOs, with the majority (58%) of CMOs reporting that their
teams lack the capabilities required to deliver their strategy.
“Marketing is experiencing a historic surge in talent demand in
2022,” continued McIntyre. “Prioritizing the proper mix of
resources should be a mission critical priority for CMOs in order
to attract and retain the capabilities they need to deliver against
their CEO’s goals, such as focusing on brand and customers.”
Learn more in the upcoming complimentary webinar, “The Gartner
CMO Spend Survey 2022: The State of Marketing Budget and
Strategy.”
About the Gartner Marketing Symposium/Xpo
The Gartner Marketing Symposium/Xpo is taking place virtually
May 23-25, 2022, providing marketing leaders with actionable advice
about the trends, tools and emerging technologies they need to
deliver business results. Follow news and updates coming out of the
conference on the Gartner Newsroom on Twitter and LinkedIn using
#GartnerMKTG.
About Gartner for Marketers
Gartner for Marketers provides the objective, expert advice, and
proven tools that CMOs and other marketing leaders need to seize
the right opportunities with clarity and confidence, and to stay
ahead of the trends that matter. With in-depth research and
analysis, Gartner for Marketers helps you focus on the
opportunities with the greatest potential to deliver results. More
information on Gartner for Marketers is available online at
www.gartner.com/marketing. Follow news and updates from the Gartner
Marketing practice on Twitter and LinkedIn using #GartnerMKTG.
Members of the media can find additional information and insights
in the Gartner Marketing Newsroom.
About Gartner
Gartner, Inc. (NYSE: IT) delivers actionable, objective insight
to executives and their teams. Our expert guidance and tools enable
faster, smarter decisions and stronger performance on an
organization’s mission critical priorities. To learn more, visit
gartner.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220523005731/en/
Matt LoDolce Gartner +1 646 675 5897
matt.lodolce@gartner.com
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