By Adam Fraser
A recent survey from Gartner provided some interesting insights about enterprise marketing spend in 2015 and 2016.
The “Gartner CMO Spend Survey 2015-2016” surveyed 330 organisations about their actual marketing spend in 2015 and planned spend for 2016. The companies surveyed were at the enterprise level (>US$500m rev per year, average revenue US$4.8bn) across USA and UK.
Probably the key conclusion was that the distinction between digital marketing and marketing is finally disappearing, with 98% of respondents confirming that online and offline marketing activities are merging. As I recently discussed with Scott Brinker, author of the new book Hacking Marketing, there is no such thing as “digital marketing” anymore – we now “market in a digital world”. The survey affirms this thematic is now playing out in the actual marketing world.
Interestingly the survey showed that most marketing budgets are actually increasing, with 2/3 of respondents stating their budgets would increase in 2016 over 2015.
The areas where senior execs have increased expectation from the marketing function are (in order):
- digital commerce
- innovation in marketing
- converting leads to sales
- improvements in customer retention
The strongest increase in marketing budget allocation was digital commerce, which grew from 8% to 11% of the average marketing budget. Interestingly the budget allocation for digital commerce was equal for B2B and B2C.
The insights relating to the intersection of marketing and IT were particularly interesting:
- 33% of marketing budgets are now allocated to technology
- 80% of companies now have a “Chief Marketing Technologist” or similar role
- The top areas for technology investment were social media marketing, digital commerce and marketing analytics.
Customer experience remains a key battleground, but the survey showed many organisations still lacks a single owner or sponsor within an organisation.
Short and succinct, this is a worthwhile report to review.