Marketing budgets are on the mend, climbing to 9.5% of corporate revenue in 2022, according to Gartner. It was 6.4% in 2021. Three out of four CMOs say they have increased their budgets.
Lower levels of marketing spend than before the pandemic
But although marketing budgets are increasing this year, they are still lagging behind pre-COVID-19 spending levels. The survey was conducted between February and March 2022 among 405 Chief Marketing Officers and other marketing executives across North America, Northern and Western Europe, across industries, company sizes and revenues. Most respondents report revenues in excess of $ 1 billion.
“ Despite inflation, the Russian invasion of Ukraine, supply chain problems exacerbated by China’s containment measures, and competition over hiring, marketers seem optimistic. observes Gartner. ” For example, most CMOs surveyed believe that inflationary pressures affecting their business and their clients would have a positive impact on their strategy and investments in 2022. the analysts continue.
70% of Gartner survey respondents indicated that their budgets had increased in 2022, but even with marketing budgets increasing to 9.5% of the company’s total revenue, it is still down from the average budget between 2018 and 2020, which therefore amounted to 10.9% of revenue.
Digital is leading but the other channels are falling back
Digital accounts for 56% of marketing spend, but non-digital channels are picking up. According to Gartner, CMOs have moved from digital first strategies to multi-channel hybrid strategies. When asked about the share of the 2022 budget allocated to online and offline channels, online channels get the largest share with 56% of the spend.
However, offline channels aren’t that far off half the total budget available at 44% of the spend. ” This distribution is fairer than in recent years observes Gartner. Looking at average spend across all industries, social media advertising tops the list, closely followed by paid search and digital display advertising.
” There has been a lot of talk about the Covid-19 epidemic which has shifted consumers towards a digital mindset. However, as Western Europe and North America ease pandemic protocols, customer journeys have been recalibrated. Gartner points out. “ After the lockdown, CMOs need to listen carefully to their customers and pay attention to the channels they use, as it feels more like a hybrid reality warn analysts.
Significant increase in marketing spend in financial services
Marketing spending is on the rise in almost every industry. Average marketing spend increased in nearly all sectors surveyed, with some notable variations. Financial services firms had the highest budget, with 10.4% of corporate revenue, up from 7.4% in 2021.
While eight of the nine sectors surveyed reported budget increases, CMO spending at consumer goods companies stagnated from 8.3% in 2021 to 8% in 2022. own brand capacity, but 58% did not has internal resources, according to the survey. Brand strategy and activation tops the budget list, accounting for nearly 10% of marketing spend.
Other gaps in strategic capabilities persist. Marketing data and analytics were identified by 26% of marketers as the main skill gaps, followed by understanding and managing customer experience (23%) and marketing technology (22%).
Lack of human resources in marketing
There is an important resource issue for marketers. Most of them (58%) reported that their teams lack the skills to execute their strategy. ” Marketing sees an historic increase in the demand for skills in 2022 says Gartner. ” Prioritizing the right mix of human resources should be a key priority for marketing managers to attract and retain the skills they need to achieve their business goals, such as focusing on the brand and customers. concludes Gartner.
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