Marketing budgets have increased to 9.5 percent of total company revenue in 2022 vs 6.4 percent in 2021, according to Gartner report.
While marketing budgets are increasing this year, they still lag pre-pandemic spending levels.
Gartner conducted the annual Gartner 2022 CMO Spend and Strategy Survey during February-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.
“Despite inflation, the Russian invasion of Ukraine, supply chain issues exacerbated by China’s lockdown measures and unprecedented talent competition, CMOs appear sanguine. 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,” said Ewan McIntyre, chief of research and vice president analyst in the Gartner for Marketing Leaders practice.
70 percent of respondents reported their budgets had increased this year, however with marketing budgets increasing to 9.5 percent of total company revenue, it is still down from the average budget between 2018 and 2020 of 10.9 percent.
Digital Accounts for 56 percent of Marketing Spend
CMOs have made the shift from digital-first to hybrid multichannel strategies. Online channels take the largest share (56 percent). Offline channels account for almost half the total available budget (44 percent). Looking at the average spend across industries, social advertising tops the list, closely followed by paid search and digital display.
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 percent of company revenue, up from 7.4 percent 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 percent in 2021 to 8 percent in 2022.