What Your Marketing Budget for 2024 Should Look Like

Today, marketing leaders find themselves navigating a complex landscape marked by both?ever-changing consumer behavior and rapid technological advancements. The situation has become even more daunting as the marketing budget continues to shrink while the expectations for net results have skyrocketed. A significant finding, revealed by a Gartner poll done in 2023, highlights a widespread difficulty resonating throughout the marketing spectrum.??

An incredible 71% of CMOs believe they do not have the budgetary resources to adequately implement their strategic ambitions this year.?- Gartner

This surprising fact sparks a deep dive into the challenges and opportunities defining the marketing world in 2024. The tight budgets highlight the delicate balance to be maintained between big goals and available resources and force us to look at marketing trends shaping the industry and dictating the required demarcation between what’s a must-have and what’s must-have for a later time.??

Explore the crossroads of smart budgeting and forward-thinking marketing in an era that requires not just adaptability but a strategic vision to flourish amidst the ever-changing landscape of consumer expectations and industry dynamics.

The marketing landscape today is more dynamic than ever, and technology has become a pivotal force in reshaping strategies and elevating the customer experience to unprecedented heights. ?

Through AI and ML, marketers now decode individual preferences, delivering bespoke content and targeted communications. With the right Martech stack, the CMS and DXP businesses can streamline content delivery, ensuring consistent and personalized experiences across digital touchpoints, while the advent of Generation AI ushers in conversational marketing – with AI-driven chatbots offering real-time interactions and support. ?

Tech-infused approach not only enhances personalization but also cultivates seamless multichannel engagement, redefining how businesses connect with their audience and ultimately delivering a CX that transcends expectations.

Roughly 80% of chief marketing officers are planning to increase their organization’s spending on AI and data for 2024; this number is up from 57% last year. - Accenture

Growth brands are undeterred by budget tightening, and they continue to progressively attain digital maturity tightly knitted with their business strategy – keeping the long-term perspective in mind.?There is a profound impact of technological advancements on achieving unmatched customer experiences that require deep diving –?

Marketing outlook for 2024: Tightening/ Shrinking budgets ?

As marketers chart their course forward, essential questions about the path ahead and the necessary requisites become focal points in light of the looming economic uncertainty. While it is not unexpected that inflation has had a toll on marketing expenditure, optimism about the US economy among marketers is "tepid" at best.?

“Current inflationary pressures” have resulted in a decrease in marketing spend levels, compared to 42% in September – The CMO Survey?

75% of CMOs are facing increased pressure to “do more with less” to deliver profitable growth – Gartner?

Although the pressure is high, the larger picture confirms that brands are now more cognizant of the role of marketing, gaining visibility and importance, with fewer companies reported reducing marketing budgets: ?

the CMO survey indicated that marketing spending now comprises an average of nearly 14% of overall company budgets ?

– an all-time high since it began in 2008.?

And ?

the highest reported investment increase across all major marketing resources by CMOs this year toward marketing technology – Gartner.?

Navigating the Fiscal Horizon of 2024:?

Leading agency Kantar suggests a clear and bold marketing strategy for the coming year. Instead of spreading efforts thin, they advise focusing on a select few impactful ideas. As we approach 2024, let's see how this translates into creating a marketing budget that embraces simplicity, boldness, and strategic focus.?

#1: Determine the maturity level of your organization: ?

Assessing your organization's marketing maturity entails determining how aligned your company is in terms of marketing technology vs. strategic goals and marketing skills vs. technology adaptability. Using the results of this evaluation, you can better allocate your marketing budget to meet targeted goals and requirements. Here's a more detailed breakdown based on types of organizational maturity:?

Newbie:?

Characteristics:?

• Limited marketing capabilities and presence.?
• Minimal data-driven decision-making.?

Marketing?Budget Focus:?

• Allocate the budget to foundational marketing efforts.?
• Invest in basic digital presence and brand building.?

Marketing?Goals:?

• Increase brand visibility.?
• Build foundational marketing infrastructure.?

Developing:?

Characteristics:?

• Emerging digital presence.?
• Basic data collection and analysis.?

Marketing?Budget Focus:?

• Increase digital marketing efforts.?
• Invest in entry-level marketing technologies.?

Marketing?Goals:?

• Expand online reach.?
• Improve customer data utilization.?

Intermediate:?

Characteristics:?

• Established digital presence.?
• Growing data capabilities.?

Marketing?Budget Focus:?

• Strengthen digital marketing channels.?
• Invest in advanced analytics tools.?

Marketing?Goals:?

• Enhance customer engagement.?
• Optimize marketing strategies based on data insights.?

Advanced:?

Characteristics:?

• Robust digital presence across channels.?
• Advanced data analytics and automation.?

Marketing?Budget Focus:?

• Invest in cutting-edge marketing technologies.?
• Allocate budget for personalized marketing initiatives.?

Marketing?Goals:?

• Achieve personalized customer experiences.?
• Implement advanced marketing automation.?

Geriatric:?

Characteristics:?

• A seasoned player with a well-established brand presence and robust relationships or distribution networks.?

Marketing Budget Focus:?

• Allocate budget for nurturing existing relationships.?
• Invest in creating personalized marketing experiences.?

Marketing Goals:?

• Prioritize lead nurturing. ?
• Creating personalized customer experiences.?

#2: Determine your known spending: ?

Why is it crucial to ascertain known marketing expenses? This question lays the groundwork for effective financial planning for successfully initiating and executing your marketing efforts. ?

Content:?

• Content Assets: Content is a multifaceted tool that drives engagement and communicates value. Infographics visually distill complex information, blogs establish thought leadership and landing pages strategically guide visitors on websites. Together, these assets create a dynamic narrative, building credibility and guiding B2B audiences seamlessly through their journey of discovery and decision-making. As a marketing leader, you must ascertain if you have the required content repository to achieve success. Your 2024 budget planning would require an inventory-taking – based on your first-party data – to enlist the type of content that is most effective and then chalk how much more similar to new content you intend to grow that repository, and accordingly, your budget will get redistributed.?
• Content Architecture and Distribution: It is the blueprint that shapes a cohesive and strategic narrative. It involves the intentional structuring of various content elements to ensure seamless navigation and optimized user experiences. A well-designed content architecture not only facilitates the easy discovery of information but also strategically guides the audience through the stages of their journey.?Consider having a robust content management system?that functions as a centralized platform for developing, managing, and publishing digital information, assuring efficiency and uniformity. It enables teams to simplify content development and distribution across several media.?

Digital?

• Tech Stack / Tools: A well-chosen technology stack provides marketing teams with tools for data analysis, automation, and tailored consumer engagements, increasing productivity and effectiveness. Every component, from CRM systems to marketing automation platforms and analytics tools, is critical to optimizing workflows, reducing operations, and generating useful insights. ?

Poor technology adaptability and patchy Martech stack result in unsatisfactory results.?

CMOs have seen technology investments tumble into new lows of unproductivity, with utilization rates falling from 58% in 2020 to 42% in 2022 - Gartner

In 2024, it is crucial to re-evaluate the current setup, eliminate redundancies, and ensure that the team has the necessary skills to make the most of the existing technology. Additionally, aligning the technology with the overall strategy and integrating any gaps in the system will ensure that the desired results are achieved, thereby preventing unnecessary budget drains.?In a tech-driven world, a well-functioning tech stack is an investment in remaining competitive and profitable. ?

• Digital Marketing Spends:?From social media and email campaigns to SEO and online advertising, the diverse avenues within digital marketing empower businesses to connect authentically with their audience, foster brand loyalty, and achieve measurable results, making it an indispensable component of any forward-thinking marketing budget.??

• Search Engine Optimization (SEO)?
• Pay-Per-Click Advertising (PPC)?
• Content Marketing?
• Email Marketing?
• Social Media Marketing?

See how your marketing budget compares to others in your industry.?

Based on survey results of eMarketer, here's a look at the digital marketing spend as a percentage of revenue across various industries. ?

1. Traditional ?

• Business Events: Business events remain a cornerstone of marketing strategies, offering unparalleled opportunities for direct engagement. Whether hosting seminars, conferences, or workshops, these events provide a platform for building relationships, fostering trust, and creating lasting impressions. ?
• Trade Shows: Trade shows serve as concentrated hubs of industry activity, bringing together professionals, businesses, and potential clients under one roof. The value lies in the targeted exposure to a specific audience, allowing brands to showcase products, generate leads, and stay abreast of industry trends. ?

#3: Budget to stay ahead of the curve:?

While carving out a budget for the key resources that are essential to the marketing function is key, brands that are looking to stay ahead of the curve and stand out in a competitive market must aim to stay on top of trends and technologies that are not only going to increase the efficiency of the marketing efforts but also work to enrich the entire marketing experience for the business and its customers. Here is a glance at a few technologies that will help you have a leg up on your competitors:?

• Generative AI: Gen AI offers a lot of possibilities for producing tailored content. With the use of patterns and insights, this technology creates original content in addition to analyzing data, going beyond conventional AI. Businesses may employ Gen AI to personalize information to individual interests, improving user experiences and engagement. For more in-depth insights into harnessing AI-driven personalization strategies, you can refer to the provided link:

CMS and DXP for content optimization: ?

• A content management system (CMS) functions as a centralized platform for developing, managing, and publishing digital information, assuring efficiency and uniformity. It enables teams to simplify content development and distribution across several media.?
• In contrast, a Digital Experience Platform (DXP)extends beyond content management. It offers a complete solution for designing and delivering seamless digital experiences across different touchpoints. This involves optimization of content, customization, and user journey management. For a more in-depth knowledge of constructing a modular future using Sitecore, see:

• Machine Learning: In marketing, ML shines in predictive analytics, helping forecast customer behaviors and trends, and allowing for personalized targeting based on shared characteristics. ML also powers recommendation systems, churn prediction, and ad targeting optimization, enhancing the precision and effectiveness of marketing strategies. For instance; Netflix leverages ML algorithms to analyze user viewing patterns, preferences, and historical data to predict and suggest content. The algorithms continually learn and adapt, refining recommendations based on users' interactions, creating a dynamic and personalized viewing experience.?
• Voice Commerce: Voice search and voice-activated marketing are cutting-edge technologies reshaping the way businesses engage with their audiences. Voice search allows users to interact with devices using spoken commands, while voice-activated marketing leverages this technology for promotional purposes. By integrating voice capabilities into marketing strategies, businesses can offer a seamless and convenient experience for users. For a deeper understanding of how voice commerce is transforming online retail and its implications for marketing, you can explore: ?

To conquer the varied landscape of marketing in 2024, a strategic and adaptable masterstroke is required, rather than a conventional budgetary strategy. The appeal is not for the outright rejection of marketing resources, but for the development of a realistic and adaptable attitude. Budgets in many businesses and marketplaces remained at pre-pandemic levels in 2023, leaving us to contemplate the riddle of 2024. Predicting the future has always been a risky business. But even in the face of uncertainty, can we learn any important lessons from the age of limitation? Lessons that may, even with additional resources, turn marketing into a model of efficiency and leanness. ?