The growth of marketing budgets dropped in 2017–2018 after three consecutive years of increases. The year 2017 was full of disruptions in politics and natural disasters. Marketing budgets took a hit, too, falling by 6% to 2015 levels.
What does this mean for CMOs? The 2017–2018 Gartner CMO Spend Survey has crunched the numbers to cite its key results. Among its findings, marketing budgets have dipped from a peak of 12.1% of company revenue in 2016 to 11.3% in 2017. This can spell trouble for CMOs, whose increased budgets did not result in increased sales.
There has always been pressure on CMOs to demonstrate ROI. However, it’s go time for them to prove marketing objectives. The study shows a downward trend in marketing budgets. With the constant threat of budget cuts constantly looming, marketers must build a proactive cost optimization strategy that details every aspect of spending.
Accountability is key to effective management and the future of the CMO.
We’ll have more in a subsequent summary of this source article:
ProRelevant works with CMOs to help them define effective strategies to prove ROI. For more on this topic and other marketing tips, get Marketing Machine, the new book by founder/president Guy R. Powell; click this link to sign up in advance of its publication this summer: https://prorelevant.com/marketing-machine-market-present-future/