CMOs are reducing budgets—however social advert spend is on the rise
Smaller budgets are additionally contributing to the strain. In 2023, advertising budgets represented 9.1% of firm income, in comparison with 9.5% in 2022. As CMOs grapple with easy methods to take advantage of out of their declining {dollars}, social promoting is one class that’s nonetheless on the rise. Greater than half—or 53%—of CMOs mentioned they’re growing spend on social media. On the different finish of the spectrum, 26% mentioned they’re pulling again on search promoting funding.
“Suppressed budgets, growing prices and decrease productiveness are squeezing CMOs’ spending energy,” mentioned Ewan McIntyre, chief of analysis and VP analyst at Gartner’s advertising observe, in an announcement. “As volatility turns into the brand new regular, many CMOs are pricing disruption into their 2023 plans.”
Additionally learn: Fractional advert govt roles develop for manufacturers, companies
The Gartner 2023 CMO Spend and Technique Survey report surveyed 410 North American and European CMOs and advertising leaders between March and April of this yr.
By class, CMOs in monetary providers are coping with the largest price range declines. Final yr, advertising was 10.4% of income for monetary providers—this yr, it’s simply 7.5%, Gartner discovered. By comparability, shopper merchandise’ advertising price range has grown to 10.9% of income this yr from 8% final yr, and retail’s advertising is flat at 9.1% in each years.
Entrepreneurs additionally mentioned they’re growing funding in know-how whereas attempting to spend much less on labor.
