Marketing budgets as a share of company revenue have dipped to the lowest level since 2014. This is according to the latest research from Gartner in their survey of 342 North American and UK marketing executives.

In 2019, just 10.5% of company revenue was spent on marketing budgets. This is a year-on-year decrease of 0.7 percentage points and below the 2014-2019 average of 11.1%.

For companies with growing revenue, this suggests marketing budgets are failing to rise proportionally. For those in revenue decline, increased marketing isn't being viewed as the solution. While smaller budgets have a minimal impact in the short-term, long-term reductions can damage brand health and market share.

If marketing budgets are shrinking and CMOs face continued pressure to show a positive ROI, improving efficiency should be an area of focus. This is a particular issue for adtech spend – one study found audience targeting was between 11% and 87% accurate.