The marketing strategies of companies for 2023 require more funding than planned. This is how American and European Chief Marketing Officers (CMOs) lamented it in the annual CMO strategy and spending survey presented by Gartner this week.
According to this study, 71% of marketing managers admit that they do not have enough budget to fully execute their strategy for this year.
The survey —carried out between March and April— indicates that marketing budgets represent 9.1% of total company revenue in 2023remaining stable, although decreasing slightly compared to 2022, when it represented 9.5%.
Gartner expert Ewan McIntyre opines that “tight budgets, rising costs and lower productivity are reducing the buying power of marketing managers”. Furthermore, he perceives that “as volatility becomes the new normal, many CMOs are considering budget breaks in their 2023 plans.”
Ensuring profitability in this context is an increasingly complex objective, according to these professionals. He 65% of them acknowledge facing greater pressure to achieve “do more with less”” and thereby achieve financial sustainability.
For this reason, 86% of those surveyed admit that they are obliged to apply changes in their work model to achieve sustainable results. In McIntyre’s opinion, these professionals are also called to reflect on their role.
“In 2023,” he explains, “CMOs must become a new type of business leader. This goes beyond wearing the brand’s rudder. Also must assume a more focused role in the business pivoting towards a period of investing for profitability versus growth”.
Reduced spending on technology
One of the investments that have been progressively reduced are those that have to do with technology. Has passed from 58% in 2020 to 42% in 2022, according to research. A fall that is not expected to stop, at least for now, since this year 75% of marketers admit to dealing with pressure to cut spending on MarTechwhile the commitment to digital is growing, especially driven by Artificial Intelligence.
On the other hand, the paid media dominate budget allocation in marketing (25.6%)very close to the marketing technology (25.4%), the workforce (24.6%) and agencies (23.3%).
Social adswhich currently occupies the largest part of the budget, was identified as the main digital channel that received the most investment this yearfollowed by digital video advertising and influencer marketing.