The world’s top information technology research and advisory firm, Gartner has said that marketing budgets continue to rise in the United States and the United Kingdom. A survey conducted on marketing executives shows that marketing budgets rose from 11% in 2015 to 12% of company revenue in 2016. More than half of marketing leaders expect their budgets to increase further next year. This year’s Chief Marketing Officer Spend Survey was conducted on more than 370 marketers and organizations with over $250 million in annual revenue.
As the roles of marketing executives broaden, the CMO’s marketing tech spending near the levels of CIOs’ (chief information officer) technology spending. Based on 2016 budgets, the spending is expected to focus on three key areas of marketing: digital advertising, web, and digital commerce.
Digital commerce is a recurring area in the CMO Spend Survey conducted this year and last year with marketing leaders spending approximately 8% of company budget on this sector. Investments in digital marketing have a high priority and are a crucial way of meeting an organization’s growth objectives. The area is also an important element to marketers on various levels such as measuring performance, boosting revenue and attaining consumer insight through direct engagement.
Digital advertising, on the other hand, stays to be a strong area despite the rise in the number of ad blocking software users and ad effectiveness concerns. According to the survey, 65% of marketers plan to increase their spending in digital advertising. One of the factors that contribute to this increase is the rising importance of video.