Marketing Budgets Have Increased to 9.5% of Overall Company Revenue in 2022: Gartner

06 July 2022: Marketing budgets have climbed to 9.5% of total company revenue in 2022, an increase from 6.4% in 2021, according to Gartner, Inc. While marketing budgets are increasing this year, they still lag pre-pandemic spending levels.

“In the face of telling macroeconomic considerations, CMOs hold on to a belief that their own economic outlook is strong,” said Ewan McIntyre, chief of research and vice president analyst in the Gartner for Marketing Leaders practice. “Despite inflation, the Russian invasion of Ukraine, supply chain issues exacerbated by China’s lockdown measures and unprecedented talent competition, CMOs appear sanguine. For example, the majority of CMOs surveyed thought inflationary pressures hitting their business and their customers will have a positive impact on their strategy and investment in the year ahead.”

Seventy percent of respondents reported their budgets had increased this year, however with marketing budgets increasing to 9.5% of total company revenue, it is still down from the average budget between 2018 and 2020 of 10.9%.

When asked to report the proportion of their 2022 budget allocated to online and offline channels, online channels take the largest share (56%). However, offline channels account for almost half the total available budget (44%) – a more equitable split than in recent years.

Average marketing spending has increased across almost all of the industries surveyed, with some significant variances. Financial services companies recorded the highest budget, at 10.4% of company revenue, up from 7.4% in 2021. While eight out of the nine industries surveyed reported budget increases, spending for CMOs in consumer goods firms has stagnated, moving from 8.3% in 2021 to 8% in 2022.

www.gartner.com