Marketing budgets have fallen to 6.4% of companies’ revenue this year from 11% last year, according to the annual CMO Spend Survey by research firm
The new level is the lowest since the survey began in 2012 and the first time it has dipped below 10%, Gartner said.
The online survey collected responses from 400 marketing executives in the U.S., Canada, U.K., France and Germany from March through May on the marketing budgets for their current fiscal years. Respondents came from industries including consumer products, retail, financial services, media, and travel and hospitality. Eighty-one percent came from companies with $1 billion or more in annual revenue.
Ad spending is expected to surge this year as many economies around the world reopen to one degree or another after Covid-19 pandemic shutdowns, with the media-buying giant GroupM forecasting a 19% rise in global ad revenue this year. But some of that increase is being fueled by new small businesses launched during the pandemic, many of them digital-only and investing heavily…