CMOs are reporting that marketing budgets are being slashed. Here’s what that means, and practical ideas that go beyond the bad news to how B2B marketers to adapt.
According to Gartner’s annual CMO Spend Survey, as reported by Laurie Sullivan in MediaPost, “Marketing budgets as a percentage of revenue fell to their lowest level in recent history…Marketing budgets as a proportion of company revenue fell from 11% in 2020 to 6.4% in 2021, their lowest point in the history of Gartner’s CMO Spend Survey.”
As bad as that news is, the situation isn’t entirely gloom and doom. Most CMOs expect budgets to increase modestly this year after the deep cuts during the pandemic. And as the article points out, “It’s not a secret that marketing budgets have always been the first of the enterprise budgets to be cut, and the last to be restored.”
Here are five likely impacts of those budget cuts. But first…