**In 2025, marketing budgets are stabilizing at 7.7% of company revenue, signaling a pivotal moment for Chief Marketing Officers (CMOs)**. After navigating through turbulent waters in recent years, CMOs are now placing their strategic bets on **paid media channels** and optimizing productivity to thrive amid economic challenges.
Key Insights from the Survey
- Marketing budgets have remained steady at **7.7% of company revenue** for the second year running. Yet, it’s worth noting that **half of CMOs** are operating with budgets of **6% or less**.
- Allocations for **paid media** have surged, now comprising nearly **30.6% of the marketing budget**. Simultaneously, spending on talent, technology, and agencies is on the decline.
- In 2025, **digital channels dominate the marketing landscape**. Nearly **two-thirds** of channel budgets are dedicated to digital, with **69%** of that directed towards paid options.
- CMOs are increasingly focused on **productivity improvements**, combining data, technology, and strategic insights to maximize value from stagnant budgets.
2025 Budget Overview: Stability Amid Constraints
The latest survey from Gartner indicates a kind of cautious optimism in the marketing world. **Marketing budgets have hit a plateau**, stabilizing at **7.7% of company revenue**. However, the fact that many CMOs are operating with **cutbacks** highlights ongoing fiscal pressures across several industries. This stability, while encouraging, reflects a reality where marketing spending remains below pre-pandemic levels, with many leaders braced for potential cuts throughout the year due to ongoing economic volatility.
A Tale of Two CMOs: Budget Distribution Insights
The survey unearthing **key divides** reveals two distinct categories of CMOs: the **’budget-conscious’** with allocations of **4% or less** and the **’big spenders’** who are driving over **10.5%** of their revenue into marketing efforts.
- Budget-conscious CMOs focus significantly on **performance marketing**, channeling nearly **two-thirds of their digital spend into search advertising** while prioritizing immediate KPIs over longer-term investments in data and transformation.
- Conversely, the big spenders are not only diversifying their channel mix, including investments in **offline media** like linear TV but are also enhancing their focus on **personalization and analytics** to drive campaign effectiveness.
Industries such as **consumer products, manufacturing**, and **pharmaceuticals** have reported notable increases, with consumer products surging by **45%** to **9.7%** and pharmaceuticals rising **29%** to reach **9%**. However, despite these gains, factors like inflation and geopolitical tensions present ongoing uncertainties that many CMOs must navigate in 2025.
The Shift Towards Paid Media: Why It Matters
The increasing reliance on **paid media**—now representing nearly **30.6%** of total marketing budgets—shows a significant year-over-year increase, reflecting a strategic pivot to ensure targetability and adaptability in an uncertain market. As CMOs prioritize maintaining media spend, paid search remains a frontrunner among digital channels, capturing **13.9%** of digital spending, alongside digital display and social ads.
Investing in Offline Media: A Strategic Counterbalance
Interestingly, **offline media** still retains a substantial share, constituting **38.9%** of marketing budgets. Among offline channels, **events** take the lead at **19.3%**, followed closely by sponsorships (17.4%) and linear TV (16.2%). This sustained investment in linear TV challenges earlier predictions of its decline, underscoring its lasting significance in comprehensive marketing strategies.
Productivity and Strategic Focus: A New Era of Marketing
As they grapple with static budgets, CMOs are investing in **productivity improvements**. With more than half of marketing budgets focusing on consideration and conversion activities, there’s a palpable shift towards **performance marketing** geared for near-term results. While brand awareness remains crucial—accounting for **29% of media spend**—fewer CMOs plan to emphasize brand investments in 2025 compared to performance marketing channels, even though cutting brand spend may not yield immediate benefits.
In summary, the 2025 Gartner CMO Spend Survey reveals the **cautious yet strategic mindset** CMOs are adopting to navigate through budget constraints, focusing on digital transformation and productivity improvement in a fluctuating global environment.
Methodology: The 2025 Gartner CMO Spend Survey was conducted online from January to March 2025, gathering insights from **402 marketing leaders** across **North America, the UK**, and **Europe**.
This insight originally appeared on Campaign Asia-Pacific.
