Marketing budgets have climbed to 9.5% of total company revenue in 2022, an increase from 6.4% in 2021, according to Gartner, Inc. While marketing budgets are increasing this year, they still lag pre-pandemic spending levels.
The annual Gartner 2022 CMO Spend and Strategy Survey was conducted between February through March 2022 among 405 CMOs and other marketing leaders in North America, as well as Northern and Western Europe across different industries, company sizes and revenue, with the majority of respondents reporting annual revenue of more than $1 billion. Gartner experts presented the findings today during the Gartner Marketing Symposium/Xpo, which is taking place virtually through Wednesday.
“In the face of telling macroeconomic considerations, CMOs hold on to a belief that their own economic outlook is strong,” said Ewan McIntyre, chief of research and vice president analyst in the Gartner for Marketing Leaders practice. “Despite inflation, the Russian invasion of Ukraine, supply chain issues exacerbated by China’s lockdown measures and unprecedented talent competition, CMOs appear sanguine. For example, the majority of CMOs surveyed thought inflationary pressures hitting their business and their customers will have a positive impact on their strategy and investment in the year ahead.”
Seventy percent of respondents reported their budgets had increased this year, however with marketing budgets increasing to 9.5% of total company revenue, it is still down from the average budget between 2018 and 2020 of 10.9% (see Figure 1).