How CMOs can tackle budget constraints

Scenario planning, sensitivity analysis and flexibility are going to be crucial aspects of the CMO’s role in the coming months, according to Gartner.

Why marketing budgets matter

With average marketing budgets declining (from 9.5% of total revenue to 9.1%) and costs rising, CMOs are under pressure to do more with less. A report from the consulting firm – The State of Marketing Budget and Strategy in 2023 – highlights three areas where spending is especially challenged to return value.

Three things for CMOs to do

• Recalibrate marketing’s capabilities and investments. Look at resources, channels, and programs to identify areas where spending can be increased or decreased in order to best drive growth and returns.
• Prioritize technology optimization. Tech utilization rates have fallen sharply in recent years (from 58% in 2020 to 42% in 2022) with the majority of CMOs under pressure to cut martech spending. 
• Identify multichannel KPIs that clearly connect to business outcomes. Balancing complex multichannel journeys will require a clear view of goals and the prevailing market condition. 

Key quote

“The watchword for CMOs is that it’s not the dollar in your pocket that counts, it’s what it buys” – Ewan McIntyre, Chief of Research for Marketing at Gartner.

Sourced from Gartner