Demand for Results Pushes Marketing Budgets Down
Do you know that growth in marketing budgets has stalled after continued increases over recent years? Do you know that as a result of that, marketing leaders must justify past budget commitments and look into the future to ensure successful returns on their investments?
According to a recent study conducted by Gartner among 353 CMOs…
· 67% of respondents plan to increase their spending in digital advertising.
· 64% of respondents planning to boost social media marketing budgets.
· 63% of respondents state they expect flat growth or cuts in offline advertising investment.
· 62% of respondents expect to increase their investment in marketing analytics.
· 61% of respondents expect to increase investment in website design and structure.
· 59% of respondents expect to increase mobile ad spending.
It is evident that traditional marketing channels have been hit the hardest when CMOs shift major parts of their budgets to digital media. The shift to digital marketing reflects changing media consumption habits among target audiences and potential customers.
The process of the customer journey is rapidly changing. The customer’s journey now includes a range of digital touchpoints which interplay and integrate with each other. Financial management credentials must be accounted for at every touchpoint a customer is expected to enter and exit.
Beyond that, CMOs will shift their focus from analytics that reflect marketing and advertising efforts to effectiveness and results of these efforts. Digital channels are built to feed metric requirements given by CMOs. Such channels also facilitate easy calculations in marketing program performance in terms of reach, engagement, and conversion.
However, the multichannel journey is a work in progress as it demands that marketing leaders go further than channel performance metrics and challenges to employ advanced analytics and answer vague marketing ROI questions.
As CMOs look at the big picture of the marketing landscape, it is quite clear that previous budget increases now come with weighty expectations, of which many have yet to be met. Marketers must now prove that they can handle financial constraints, assume accountability for performance, build budgets based on future results, and grow the business by making the hard decisions.
If you want to know more about defining the role of innovation in the marketing organization and proactively communicating the levels of risk associated with innovation and future results, click the link below for more information.