By Brian Carlson
Marketing budgets are back on track in 2022 after a challenging 2021, when budgets dropped from 11 percent to 6.4 percent of overall company revenue. This was primarily due to the Covid-19 pandemic and related issues, such as like supply chain disruptions.
In fact, according to the Gartner 2022 CMO Spend and Strategy Survey, marketing budgets have mostly recovered, having increased from 6.4 percent in 2021 to 9.5 percent of overall company revenue in 2022. This is close to full recovery. Seventy percent of survey respondents report their budgets increased in 2022.
But where is all that money going and will it continue into 2023, or will economic headwinds and uncertain global political and public health conditions put a shade on the resurgence of marketing?
Digital Transformations Accelerate
As companies have accelerated their digital transformation plans to meet consumer and industry needs, they have modernized their strategies to be delivered in an omnichannel capacity. CMOs have already begun to make the shift to hybrid multichannel strategies.
CMOs’ top three investments in 2022 were:
- Campaign creation and management (10.1 percent)
- Brand strategy (9.7 percent)
- Marketing operations (9.6 percent)
CMOs report that digital channels used 56 percent of their marketing budgets in 2022, with social media the top channel for spend. Digital spend shows social advertising in the lead, followed by paid search and digital display.
But it’s important to note that offline channels accounted for 44 percent of the total budget in 2022, so hybrid marketing models that deliver both physical and digital messaging should be a serious consideration for marketers as 2023 budget season looms if they want to stave off increasing consumer digital fatigue.
This is confirmed by the finding of a recent Forrester-PFL research report, Hybrid Experiences Bring Direct Mail into the Digital Age, which…