cxo voice
  • Home
  • News
  • View Points
  • Leaders Talk
  • Cyber Security
  • AI
  • Blockchain
No Result
View All Result
  • Home
  • News
  • View Points
  • Leaders Talk
  • Cyber Security
  • AI
  • Blockchain
No Result
View All Result
Leaders Interview, IT and Technology News India | CXO VOICE
No Result
View All Result

Home » Press Release » CMOs Remain Optimistic About Budgets Post-COVID19, Despite Bleak Outlook from C-Suite Colleagues : Gartner

CMOs Remain Optimistic About Budgets Post-COVID19, Despite Bleak Outlook from C-Suite Colleagues : Gartner

News Desk by News Desk
July 2, 2020
Reading Time: 3min read
CMOs Remain Optimistic About Budgets Post-COVID19, Despite Bleak Outlook from C-Suite Colleagues : Gartner
Share on FacebookShare on TwitterShare on LinkedinShare via E-Mail

While organizations have cut back on marketing budgets due to the COVID-19 pandemic, 73% of CMOs expect the pandemic’s negative impact to be short-lived, with a positive outlook for business performance in the 18-24 months, according to Gartner’s CMO Spend Survey 2020. 

In fact, CMOs report they expect to increase investments across major channels and resource areas in 2021. Gartner warns that this outlook may be overly optimistic.

While pre-COVID-19 marketing budgets remained flat year-over-year, making up 11% of overall company revenue, more than 44% of CMOs have experienced mid-year budget cuts as a result of the pandemic and 10.7% of those expect their budgets to face significant cuts of more than 15%.

The CMO Spend Survey 2020, conducted with more than 430 marketing executives in North America, the U.K., France and Germany from April 2020 through May 2020, tracks the critical areas marketers are investing in and where cuts are being made from people, programs and technologies. The report looks at how much companies spend on marketing, how those budgets align with strategic priorities, how they will change in 2021 and why. Key findings from the CMO Spend Survey 2020 include:

Brand Strategy Now Prioritized Over Analytics

As a direct result of the COVID-19 pandemic and other market uncertainty this year, CMOs (33%) now rank brand strategy as one of the top three strategic priorities. This is a significant leap from the lowly position near the bottom of the list in 2019 and the first time brand has surpassed other capabilities like analytics, personalization and marketing technology (martech).

“Brand awareness and relevance in times of strife is more important than ever,” said Mr. McIntyre. “We are seeing successful brands take action that is authentically connected to their brand strategy and value proposition.”

Meanwhile, analytics still remains a top priority but has dropped nearly 10 percentage points year-over-year, with only 27% of CMOs ranking it a top three priority. This is because marketers continue to struggle to build even rudimentary analytics capabilities. Another previously strong strategic priority that has lost emphasis in 2020 is personalization, dropping to only 14%. This drop emphasizes the Gartner prediction that 85% of marketers will abandon their personalization efforts by 2025 due to a lack of ROI, the perils of customer data management or both. 

Martech Survives First Round of COVID-19 Cuts, For Now

Despite uncertain times, martech investments have survived unscathed so far – still making up 26% of marketing budgets in 2020. Combine that with the fact that 68% of CMOs report they expect to increase their investments in martech over the next 12 months.

“CMOs believe technology will help them navigate through difficult times and recover faster, and thus will continue to shield these investments – like customer data platforms, mobile marketing platforms and digital commerce – from further cost efficiencies,” added Mr. McIntyre.

However, an ongoing challenge for CMOs remains utilization, as marketers report using only 58% of their martech stack’s full capabilities. If martech investments continue to not deliver the returns expected, they could become an easy target for future cuts.

Digital Dominates Multichannel Marketing Mix

Another area that has seen significant change year-over-year is digital, with the COVID-19 pandemic accelerating many organizations’ moves online. In 2020, investments in paid, owned and earned digital channels now account for almost 80% of multichannel budgets, with digital advertising and search advertising taking nearly a quarter (22%), social marketing (11.3%) and website (10.4%) topping the list. 

While budgets have still been hit in 2020, with 28% of CMOs stating they have canceled media buys, marketers remain confident on the outlook for paid media in the next 12 months. Seventy-four percent of CMOs report they will increase spending on digital advertising, and 66% expect to increase spending on paid search. “CMOs should tread lightly with their expectations for paid media in the months ahead, as solid investments are likely to weaken as economic challenges following the global pandemic persist,” said Mr. McIntyre.

Source: Gartner

Tags: CMOsCoronavirus DisruptionsCOVID-19Gartner
News Desk

News Desk

by CXO VOICE team memebrs, [email protected]

Related Posts

impact of Covid-19 on retirement planning
Insurance

The impact of Covid-19 on retirement planning

December 1, 2020
Business productivity
Business

How Technology Can Help Leaders Boost Business Productivity During Pandemic Outbreak

November 27, 2020
Enterprises, and MSMEs IoT
Leaders Talk

IoT is now seen as an essential enabler for the enterprises to be future ready : Joyjeet Bose

November 30, 2020
Cloud Security and Digital Transformation, the Top Priority for Enterprises as Pandemic Drags On
Cloud

Cloud Security and Digital Transformation, the Top Priority for Enterprises as Pandemic Drags On

November 17, 2020
Employer-Employee
Featured Stories

3 Dimensions that define the new employer-employee relationship: Gartner

October 14, 2020
Wi-Fi 6 Technology, Marthesh Nagendra
Technology

Wi-Fi 6: India Gears Up for the Next Generation of Wi-Fi Technology

September 15, 2020
Cyber Threats evolution During Pandemic
Cyber Security

Evolution Of Cyber Threats During Pandemic: McAfee

July 22, 2020
Supply Chain Technology Trends in 2020
Featured Stories

Top 8 Supply Chain Technology Trends in 2020: Gartner

July 16, 2020
Load More
Next Post
New Ericsson software makes the shift to Standalone 5G easier

New Ericsson software makes the shift to Standalone 5G easier

Discussion about this post

ADVERTISEMENT

Expert Views

Key Fintech Trends to look out for in 2021
Finance

Key Fintech Trends to look out for in 2021

January 8, 2021
Banking cybersecurity
Cyber Security

Why Banks and NBFCs must exercise extra cybersecurity measures during festival times?

December 11, 2020
impact of Covid-19 on retirement planning
Insurance

The impact of Covid-19 on retirement planning

December 1, 2020
Cyber Security Awareness
Cyber Security

Five Ways To Enhance Cyber Security Awareness

November 18, 2020
Low Code: Transforming Banking, Today and Tomorrow
Banking

Low Code: Transforming Banking, Today and Tomorrow

November 9, 2020

Get Latest Update

Subscribe to our mailing list to receives newsletter direct to your inbox!

ADVERTISEMENT

Leaders Inerviews

Enterprises, and MSMEs IoT
Leaders Talk

IoT is now seen as an essential enabler for the enterprises to be future ready : Joyjeet Bose

-
Security While Working Remotely interview with Filip Coftas
Cyber Security

Security While Working Remotely [Interview]

-
Akita Security Device Help you Protect your Security During COVID-19 [Interview with Zakir Hussain]
COVID-19

Can Akita Security Device Help you Protect your Security During COVID-19 [Interview]

-
digital transformation and customer experience Newgen software
Interview

Digital Transformation Journey helps Newgen Software Improve Customer Experience [Interview]

-

Entrepreneur

Technology Adoption For Entrepreneurs

Volunteering management is the need of the Hour

Significance Of Ethical Entrepreneurship In The Post COVID-19 Economy

Five tips for entrepreneurs to tide over the coronavirus crisis

CXO VOICE is a premier resource for the enterprises, SMBs and Startups CXOs and business leaders, It enables CXOs and business executives gain access key insights, experts views, analysis, business strategy, and leaders interviews on what’s happening in the market and its impact.

Connect with us

Easy Links

  • Cryptocurrency
  • Event
  • Blockchain
  • Press Release
  • Resources & Downloads

Write Us

[email protected]

Newsletter

Subscribe to our mailing list to receives newsletter direct to your inbox!

  • Home
  • About
  • Contact Us
  • Advertise
  • Privacy & Policy
  • Feedback

© 2018 CXO VOICE

No Result
View All Result
  • Home
  • News
  • View Points
  • Leaders Talk
  • Cyber Security
  • AI
  • Blockchain

© 2018 CXO VOICE