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Go to Market Research – Gartner CMO Spend Survey

Gartner CMO Spend Survey

The Gartner CMO Spend Survey was based on Gartner’s CMO Spend research of 377 marketers in North America and the U.K. at companies whose revenue was at least $250M.

The Gartner CMO Spend Survey Reveals:

  • How much companies spend on marketing and how those budgets will change
  • What marketing budgets reveal about marketing’s priorities
  • What new responsibilities have been assumed by marketing

Gartner CMO Spend Survey – Marketing Budgets Continue Their Steady Ascent

  • 10% of revenue in 2014
  • 11% of revenue in 2015
  • 12% of revenue in 2016

What percent of your company’s total revenue is allocated to total marketing expense?

  • 2014 – Marketers invested 18% of their overall budget to customer experience to drive differentiation, innovation and profitable revenue growth
  • 2015 – Marketers invested 11% of overall budget to digital as accountability to results increased
  • 2016 – CMOs take on more responsibility as some sales, IT and customer experience functions now report into marketing (true in 30% of companies surveyed)
  • The percentage of marketing leaders bracing for a cut has gone from 3% to 14% over the last 2 years

Gartner CMO Spend Survey – CMO Spend Greater Than CIO

CMO Marketing Tech Spending is on Track to Exceed CIO Technology Spend

Marketing Budget Breakdown

  • Labor – 25%
  • Services -22%
  • Paid Media – 22%
  • Technology -21%
  • Marketing Technology Spend Breakdown:
  • Infrastructure – 23%
  • External Services 21%
  • SaaS – 20%
  • Analytics – 19%
  • Cross Charges to Internal IT – 17%

Gartner CMO Spend Survey – Where do They Spend

Marketing Leaders Spend Most on Websites, Digital Commerce and Digital Advertising

  • Web – 8.6%
  • Digital Commerce – 8.5%
  • Digital Advertising – 8.1%
  • Marketing Analytics – 7.5%
  • Mobile Marketing – 7.5%
  • Event Marketing – 7.5%
  • Social Marketing – 7.2%
  • Customer Intelligence – 7.1%
  • Offline Advertising – 6.9%
  • Email Marketing – 6.9%
  • Loyalty Management – 6.6%
  • Partner / Channel Marketing – 6.1%
  • Content Creation & Management – 5.9%

Gartner CMO Spend Survey – Digital Commerce a Priority

Digital Commerce Investments Remain a High Priority

  • Digital Commerce
  • Digital Advertising
  • Marketing Analytics
  • Social Marketing
  • Loyalty management
  • Mobile Marketing
  • Web
  • Customer Intelligence
  • Offline Advertising
  • Event Marketing
  • E-mail Marketing
  • Partner / Channel Marketing
  • Content Creation & Management

Gartner CMO Spend Survey -Digital Advertising Spend

65% of Marketing Leaders Plan to Increase Digital Advertisement Spend

Gartner CMO Spend Survey – The Role of the CMO Expands

The CMO Takes on More Responsibility

Functions That May Report to the CMO

  • Digital Commerce
  • Customer Experience
  • Sales
  • Business / Channel Development
  • Customer Service or Customer Care
  • IT
  • Innovation

The CMO May Report to:

  • CEO – 54%
  • COO / Head of Administration – 22%
  • CRO / Head of Sales – 7%
  • CIO / Head of IT – 7%
  • CFO / Head of Finance – 5%
  • Average CMO Tenure – 4.2 Years

Gartner CMO Spend Survey – Chief Customer Officer

Customer Experience Functions Often Report Into the CMO While the Chief Customer Officer Reports Elsewhere

The Chief Customer Officer May Report to:

  • CEO – 41%
  • COO / Head of Administration – 18%
  • CMO / Head of Marketing – 10%
  • CRO / Head of Sales – 7%
  • CIO / Head of IT – 7%
  • CFO / Head of Finance – 2%

Gartner CMO Spend Survey – Martech Capital Investments

Only a Quarter of IT Organizations Maintain Control Over Martech Capital Investments

88% of Marketing organizations have a Marketing Capital Budget and it is Administered by:

  • Most Senior Marketing Executive – 25%
  • Field or Regional marketing – 25%
  • Line of Business Marketing – 25%
  • Internal IT – 24%

Gartner CMO Spend Survey – P&L Responsibility

Budgets of Marketers Who Own or Share P&L Responsibility Are 20% Higher, on Average, Than Those Without Plans for a P&L

  • Marketing has its own P&L – 42%
  • Marketing Shares P&L With One or More Business Units – 34%
  • No, but plan to within the next 24 months – 15%
  • No and no plans to do so in the next 24 months – 9%

Gartner CMO Spend Survey – Respondents

Respondents to the CMO spend survey were in the following industries:

  • High-tech
  • Financial services
  • Manufacturing
  • Consumer products
  • Media
  • Retail
  • Transportation
  • Hospitality
  • Other industries

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