Marketing Budgets Stabilize at 7.7%: Insights from Gartner’s CMO Survey
The latest Gartner CMO Spend Survey reveals a pivotal moment in marketing finance as budgets stabilize at 7.7% of company revenue for the second consecutive year. Amid ongoing economic challenges, Chief Marketing Officers (CMOs) are strategically investing in paid media channels and enhancing productivity to navigate the uncertain waters of 2025.
Key Findings from the Survey
Consistency Amidst Challenge
- Stabilized Budgets: Marketing budgets remain flat at 7.7% of revenue, but notably, 50% of CMOs report budgets of 6% or less. This emphasizes fiscal pressures across various sectors and a cautious optimism as the market adjusts to post-pandemic dynamics.
Strategic Shifts in Budget Allocation
Paid Media at the Forefront: CMOs are increasingly directing resources towards paid media, which now constitutes 30.6% of total marketing budgets. This shift reflects a marked 11% increase year-over-year, showcasing a strategic pivot to safeguard media expenditures in volatile market conditions.
- Digital Channels Dominate: In 2025, digital platforms command an impressive 61% of total marketing budgets, with 69% of that being allocated to paid channels. Paid search leads this digital realm, making up 13.9% of the digital spend, followed closely by digital display and social advertising.
The Budget Divide: Big Spenders vs. Budget-Conscious CMOs
Performance Marketing Focus
The survey highlights a distinct split between ‘budget-conscious’ CMOs, who allocate 4% or less of revenue to marketing, and ‘big spenders’ who invest over 10.5%.
Budget-conscious CMOs focus heavily on performance marketing channels, often dedicating nearly two-thirds of their digital spend to search advertising, while under-investing in data and analytical initiatives.
- Conversely, big spenders channel over a third of their budgets into transformational activities, diversifying their marketing mix and emphasizing analytics and personalization to amplify effectiveness in campaigns.
Industry-Specific Insights
Notable Budget Increases
Marketing budgets have surged in sectors such as:
- Consumer Products: Up 45% to 9.7%.
- Manufacturing: Rebounding to 9.5%.
- Pharmaceuticals: Rising 29% to 9%.
Despite these gains, ongoing challenges such as inflation and geopolitical tensions add layers of uncertainty to forward-looking marketing plans, prompting many CMOs to brace for potential budget adjustments throughout the year.
Embrace of Paid Media and Digital Platforms
Media Mix Evolution
Paid media is increasingly the go-to strategy, reflecting the necessity for actionable insights and agility in decision-making. The increased budget allocations signal a clear intent to target audiences more effectively and adapt campaigns in real-time.
- Offline Media Still Relevant: While digital leads, offline media represents a significant 38.9% of marketing budgets. Events account for 19.3% of this spend, underscoring the continued importance of face-to-face interactions, even in a digital-first world.
Enhancing Productivity and Strategic Focus
Leveraging Data and Technology
With static budgets, there is a pronounced push towards improving productivity. CMOs are harnessing data, technology, and strategic knowledge to maximize value from every dollar:
- Performance Marketing Dominance: More than half of budget allocations focus on immediate conversion activities, reflecting a strong emphasis on performance marketing, while brand awareness efforts have receded slightly.
Overall, CMOs are adopting a cautious but forward-thinking strategy in 2025, balancing fiscal limitations with the imperative to invest in digital transformation, paid media, and enhancing productivity to successfully navigate the complexities of the current market landscape.
Methodology Insights
The findings of the 2025 Gartner CMO Spend Survey were derived from an extensive online survey conducted between January and March 2025, capturing insights from 402 marketing leaders across North America, the UK, and Europe.
Conclusion
As the marketing landscape evolves, CMOs are tasked with not just surviving but thriving amidst challenges. Adapting strategies to prioritize paid media, digital channels, and productivity improvements will be vital for success in the fluid economic environment of 2025.
For more insights on marketing trends, visit Gartner.
