Marketing budgets are on the mend, rising to 9.5% of company turnover 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 still lag behind pre-COVID-19 levels of spending. The survey was conducted between February and March 2022 among 405 Chief Marketing Officers and other marketing executives in North America, Northern and Western Europe, across different industries, company sizes and incomes. The majority of survey respondents report revenue over $1 billion.
“Inflationary pressures will have a positive impact on strategy and marketing investments in 2022”
Seventy percent of respondents to Gartner’s survey indicated that their budgets had increased in 2022. But even with marketing budgets increasing to 9.5% of total company revenue, it remains in decrease compared to the average marketing budget between 2018 and 2020 which then amounted to 10.9% of revenue.
Digital in the lead but other channels are bouncing back
Digital accounts for 56% of marketing spend, but non-digital channels are bouncing back. According to Gartner, CMOs have shifted from “digital first” strategies to multi-channel hybrid strategies. When asked about the share of their 2022 budget allocated to online and offline channels, online channels take the largest share with 56% of spend.
Offline channels are not so far from half of the total budget available
” There has been a lot of talk around the Covid-19 outbreak shifting consumers to a digital-first mindset. However, as Western Europe and North America ease pandemic protocols, customer journeys have recalibrated. points out Gartner. “ Post-lockdown, CMOs need to listen carefully to their customers and be careful about the channels they use, as it feels more like a hybrid reality warn the analysts.
Significant increase in marketing spending in financial services
Marketing spending is increasing in almost every industry. Average marketing spend increased in nearly every industry surveyed, with some notable variances. Financial services companies recorded the highest budget, at 10.4% of company revenue, up from 7.4% in 2021.
Branding and activation tops the budget list
Strategic capability gaps persist. Marketing data and business intelligence were identified by 26% of marketers as the top capability gaps, followed by understanding customers and managing their experience (23%) and marketing technology (22%).
A lack of human resources in marketing
There is an important resource issue for marketing managers. The majority (58%) report that their teams lack the capabilities to execute on their strategy. ” Marketing sees historic increase in demand for skills in 2022 says Gartner.
” Prioritizing the right mix of resources should be a key priority for marketers to attract and retain the skills they need to achieve their business goals, such as focusing on brand and customers. concludes Gartner.