fbpx

MARKETING BUDGETS

Annual CMO survey reveals marketing budgets continue to decrease

By our African Marketing Confederation News Team | 2024

In the four years preceding the pandemic, average marketing budgets were 11% of overall revenue. Now they’re an anaemic 8.2%.

The annual ‘CMO Spend Survey’ conducted by research and consulting firm Gartner reveals that average marketing budgets have fallen to 7.7% of overall company revenue, down from 9.1% in 2023. 

Gartner’s survey results are based on input from 395 CMOs and marketing leaders in North America and Europe across 10 different industries, company sizes and revenues. 

“CMOs are living in an ‘era of less’,” commented Ewan McIntyre, a senior executive with the company, when speaking at a recent marketing symposium in London.  

“In the four years preceding the pandemic, average marketing budgets were 11% of overall revenue. In the four years since, they’ve dropped to an anaemic 8.2%. 

“Despite financial challenges, the majority of CMOs believe AI may save the day,” said McIntyre. “Sixty-four percent of CMOs say they lack the budget to execute their 2024 strategy, but GenAI offers the opportunity to grow the marketing function’s impact far beyond its budgetary constraints.”

Photo by Mikhail Nilov from Pexels

 

While paid media investments grew to 27.9% of marketing budgets in 2024, spending fell across marketing technology (martech), staffing, and payments to agencies. Technology investments continued their downward trend, reaching the lowest level for a decade. 

Tightened budgets and higher growth aspirations  

“We’ve seen a major shift in investment strategies, reflecting tightened budgets and higher growth aspirations,” noted McIntyre.  

“The drop in martech investment doesn’t signal a dulled appetite for technology, rather it reflects CMOs’ diminishing influence over martech as other enterprise leaders, such as IT, take more control.  

“Meanwhile, CMOs are clearly prioritising media spend as they seek to drive revenue growth.” 

Digital dominates a growing share of paid media spend, taking 57.1% of budgets in 2024, up from 54.9% in 2023.  

Top channels include search (13.6%), social advertising (12.2%) and digital display advertising (10.7%). Among offline channels, event marketing (17.1%), sponsorship (16.4%) and TV (16%) were the top channels for investment. 

“In these tough times, CMOs are prioritising investments that have demonstrable impact,” McIntyre stated.  

“However, there’s a mismatch between the channels CMOs are investing in, and their perceived impact. For example, CMOs ranked digital video/streaming as the most impactful digital channel, despite it only coming in fourth when it comes to spend.” 

View all articles »
author avatar
Rozanne
See Full Bio

PUBLICATIONS

Strategic Marketing for Africa Magazine

CONTACT INFORMATION

info@africanmarketingconfederation.org

Upcoming Events

AMC CONFERENCE
0
    0
    Your Cart
    Your cart is emptyReturn to Shop
    Continue Shopping

    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.