The 2024 Gartner CMO Spend Survey unveils a pivotal shift in marketing budgets: welcome to the “era of less.” Budgets are tighter, and growth must be strategically earned. This survey offers critical insights for CMOs to benchmark their budgets, identify key investment areas, and gather essential data to advocate for budget allocations.
Key Insights You Can’t Ignore
- Dramatic Budget Cuts: Marketing budgets have plummeted from 9.1% of total revenue in 2023 to just 7.7% in 2024. This stark 15% decrease year-over-year signals a pressing need for strategic allocation.
- Budget Shortfalls: A staggering 76% of CMOs report insufficient budgets to execute their 2024 strategies, highlighting a widespread struggle to meet objectives with limited resources.
- AI’s Promising Impact: Over three-quarters of CMOs are investing in AI, expecting significant improvements in cost efficiency, segmentation, ad targeting, and personalization. Only 5% are not prioritizing AI in 2024.
Actionable Strategies to Stay Ahead
Maximize Impact with Smart Investments:
- Embrace catalytic marketing to create impactful customer experiences efficiently.
- Ruthlessly eliminate waste and prioritize high-yield investments to maximize budget impact.
Transform Marketing’s Internal Image:
- Shift perceptions from marketing being a cost center to a profit driver through compelling data and storytelling.
- Enhance cross-functional collaboration and align marketing initiatives with enterprise goals to demonstrate value.
Harness the Power of Cutting-Edge Technology:
- Leverage AI and emerging technologies to boost productivity and efficiency in marketing efforts.
- Build strong business cases for AI implementation that clearly connect to key business outcomes like revenue and profit.
Thriving in the Era of Less
The 2024 Gartner CMO Spend Survey highlights the urgent need for CMOs to adapt to tighter marketing budgets. By focusing on strategic investments, reshaping internal perceptions, and leveraging technology, CMOs can overcome these challenges and drive growth. The future of marketing lies in demonstrating tangible value, achieving operational efficiency, and aligning closely with enterprise objectives. In this new era, success will come to those who can do more with less.
