Gartner CMO Spend & Strategy Survey 2024: "Do More With Less"

ICYMI this recent gem of a webinar on "The Gartner CMO Spend and Strategy Survey 2024: Refocus Your Marketing Priorities," presented by VP Analyst Ewan McIntyre, you really need to check it out.? It is available on-demand here. ?Gartner delivered some crucial insights into the shifting landscape of marketing budgets and strategies for the upcoming year. ?Here are some key takeaways from the webinar.

The Current State of Marketing Budgets

The webinar opened with a stark revelation: average marketing budgets have fallen to a post-pandemic low of 7.7% of total revenue, down from the pre-pandemic average of 11%. This decline highlights the pressing need for CMOs to adapt and innovate in an era characterized by reduced resources and heightened expectations.

Key Statistics

• 62% of CEOs cite growth as a top business priority for 2024-2025
• 64% of marketing organizations are being asked to do more with less
• 73% of CMOs report lacking the necessary budget to execute their plans effectively in 2024

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Key Challenges and Strategic Shifts

Managing Marketing in the Era of Less

A central theme of the webinar was the concept of "Managing Marketing in the Era of Less." With 64% of marketing organizations being asked to do more with less (this sounds eerily familiar…I think this is the new buzz word inside organizations), and 73% lacking the necessary budget to execute their plans effectively, CMOs are under intense pressure to prioritize productivity and demonstrate ROI.?

A central theme of the webinar was the concept of "Managing Marketing in the Era of Less." With 64% of marketing organizations being asked to do more with less(this sounds eerily familiar…I think this is the new buzz word inside organizations) and significant budget constraints, CMOs are under intense pressure to prioritize productivity and demonstrate ROI. The data revealed that:

• 64% of CMOs believe their marketing organizations lack sufficient resources to execute their strategies
• 73% of CMOs feel they lack the budget necessary to meet their marketing goals for 2024

Budget Lanes and Industry Insights

The webinar highlighted variations in budget allocations across different industries. For example, media companies allocate an average of 9.3% of their revenue to marketing, while the pharma industry allocates 7%. Understanding these industry-specific nuances can help CMOs benchmark their budgets and make informed decisions.?

Strategic Hurdles

?Inflation, digital ROI, and interest rates were identified as significant strategic hurdles. Almost half of the CMOs report that marketing is regarded as a cost center, reflecting the ongoing struggle to demonstrate marketing's value as a profit center.

Actionable Insights for CMOs

Three Key Actions for Marketing Budgets

1. Prioritize Productivity: Focus on maximizing the efficiency of existing resources. This might involve streamlining processes, leveraging automation, and eliminating waste.
2. Build a Growth-First Marketing Value Case: Clearly articulate how marketing investments drive growth, not just in terms of revenue but also in brand equity and customer engagement.
3. Identify Fiscal Hurdles: Understand and address the financial constraints that could impede your marketing strategy.

Embracing AI and Martech

Despite challenges, the webinar revealed that more than 75% of CMOs still have high hopes for AI, particularly generative AI, to drive efficiencies and cost savings. Investing in AI can help improve time and cost efficiency, optimize customer data, and reduce media spend.

Despite challenges, the webinar revealed that more than 75% of CMOs still have high hopes for AI, particularly generative AI, to drive efficiencies and cost savings. Key insights included:

• 79% of CMOs expect a positive impact from generative AI
• Investments in AI can help improve time and cost efficiency, optimize customer data, and reduce media spend

?Channel Strategy and Allocation

The webinar stressed the importance of focusing on the most impactful channels. Digital channels, including search advertising, social advertising, and digital display, dominate the channel mix. However, CMOs must also consider the journey impact of these channels and adjust their strategies accordingly.

My Conclusion and Key Highlights

As we move into 2024, the webinar urged CMOs to refocus their priorities and adapt to the evolving landscape. By embracing productivity, leveraging AI, and focusing on impactful channels, CMOs can navigate the challenges of reduced budgets and drive significant growth in 2024. In summary...?

• CEOs Expect Higher Returns: 55% of CEOs expect a higher rate of return for internal investments in 2024-2025
• Top Marketing Objectives: The top marketing objectives for 2024 include increasing the performance of key marketing assets, leveraging digital technologies, and measuring the effectiveness of marketing programs
• Radical Reprioritization: There has been a radical reprioritization of the resource mix, with a significant shift towards digital channels and martech investments
• Focus on Channel Measurement: Ensure that all journey stages are measured effectively to understand the impact of different channels
• Reacquaint with Target Audiences: Revisit and refine the understanding of target audiences to tailor marketing strategies more effectively
• Revisit Channel Plans: Adjust channel plans with a sharp focus on journey value and customer impact

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Stay driving demand my friends.?

@ChrisLCampbell

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