The survey showcases a snapshot of marketing budgets, spending and strategic priorities of CMOs this year and beyond.
The study found that marketing budgets - as a proportion of company revenue - have hit their lowest point this year. The budgets have fallen from 11% in 2020 to 6.4% in 2021. Because of the COVID-19 pandemic, CMOs faced significant budget cuts last year. But, they anticipated a swift recovery and expected budgets to bounce back this year.
Around 56% of CMOs expected their budgets to grow by 5% in 2021. Marketing budgets have traditionally always been between 10.2% and 12.1% of the total business revenue but dropped to 6.4% this year.
As a result of record budget cuts this year, CMOs have reprioritised the spending commitments across channels and programs. As a result, digital channels make up 72.7% of the total marketing budget.
[6 minute read]