Marketing budgets continue to rise, according to Gartner’s latest CMO spending survey – now falling roughly at 12 percent of revenue; up from 11 percent one year ago. And more than half, 57 percent, expect budgets to increase in 2017.
Not All Hearts and Flowers
Digging into Gartner’s fifth annual survey tracking primarily large enterprise ($1B>) North American marketing spending, CMOs who say they anticipate a budget decrease in the year ahead has jumped from 3 percent to 14 percent over the last two years. That’s a big jump in a short time – what does it mean? Marketers are going to be focusing on more metrics, better metrics, and tighter alignment with the business.
Getting Serious: CMO’s Tech Spend
A few years ago, Gartner predicted the CMO would spend more on technology than the CIO – which raised some eyebrows. This year’s spending data shows marketing leaders spend 27 percent of their expense budget on technology, or 3.24% of overall revenue. Compare this with the CIO technology spend, at 3.4% of revenue…. 2017 looks like the year this prediction will be real. More collaboration/coordination with the IT team ahead, and continued need for technology expertise on the marketing team and their agency partners.
Digital Advertising & Marketers: Still in Love
“Two-thirds of marketing leaders plan to increase spending on digital advertising in 2017, suggesting that reports of advertising’s demise may be overstated,” writes Gartner. They point to a few factors – continued shift from offline to online media spending; rise of paid social, and more emphasis on video, which is more expensive than other digital content to product and place. This category will continue to grow – logically. There may be a lot of fish in the sea, but we all fish where the fish are.
What’s Working – 2017 Growth Tactics
The report predicts growth in other areas including marketing analytics, content creation and management, partner/channel marketing, social marketing, and customer intelligence. All of these areas are an opportunity to produce new insights and data-driven improvement.
You can track engagement and impressions by topic. You can measure effectiveness of new tactics against a specific goal – event registrations, demo requests, etc. You can identify key influencers in your market and for your brand.
The take away is that good relationships take work. Marketing leaders have more of an opportunity than ever to contribute – more tools, more tactics, and more visibility into success/failure. What’s not to love?
Read the full report, here.