Marketing budgets have climbed to an average 9.5% of total company revenue in 2022, an increase from 6.4% in 2021, according to global consultancy Gartner.
However, marketing budgets still lag pre-pandemic spending.
The annual Gartner 2022 CMO Spend and Strategy Survey was conducted February through March, among 405 CMOs. The majority of respondents had annual revenue of more than $1 billion.
“In the face of telling macroeconomic considerations, CMOs hold on to a belief that their own economic outlook is strong,” said Ewan McIntyre, chief of research and vice president analyst in the Gartner for Marketing Leaders practice.
“Despite inflation, the Russian invasion of Ukraine, supply chain issues exacerbated by China’s lockdown measures and unprecedented talent competition, CMOs appear sanguine.
“For example, the 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.”
Most (70%) respondents reported their budgets had increased this year but the rise was still down from the average budget between 2018 and 2020 of 10.9%.
Average 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% of company revenue, up from 7.4% in 2021.
Eight out of the nine industries surveyed reported budget increases.
However, spending for CMOs in consumer goods firms has stagnated, moving to 8% in 2022 from 8.3% in 2021.
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