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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