Sign In  |  Register  |  About Walnut Creek Guide  |  Contact Us

Walnut Creek, CA
September 01, 2020 1:43pm
7-Day Forecast | Traffic
  • Search Hotels in Walnut Creek Guide

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Gartner Survey Reveals Marketing Budgets Have Increased to 9.5% of Overall Company Revenue in 2022

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.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 WalnutCreekGuide.com & California Media Partners, LLC. All rights reserved.