A further +13.6% increase in marketing budgets is expected this year.
These are finding from “The CMO Survey”, Feb 2022 of 320, predominantly VP-level or above respondents of U.S. for-profit companies. Research was led by Professor Christine Moorman of Duke University’s Fuqua School of Business and sponsored by Deloitte and American Marketing Association.
Overall we are seeing Marketing roles increase in importance in companies, with greater expectations for CMOs to align with broader company objectives to help grow the business while also improving ROI on their spend.
Here are some highlights of what Marketers are upto based on the latest CMO Survey:
Investments:
The largest marketing investment has been in data analytics which grew by about +40% vs year ago.
Digital marketing spend is high (57% of marketing budget) and expected to grow but continues to be challenged figuring out digital and physical data integration across all customer journey touch points.
There is higher spend expected across all categories, “including brand building (+11.8%), customer relationship management (+9.5%), new product introductions (+8.8%), customer experience spending (+8.6%), and new service introductions (+5.3%).
Customer acquisition budgets are reported to be 14.7% larger than customer retention budgets”
What investments did your company make to improve the performance
of your digital marketing activities over the last year?
Source: The CMO Survey Feb 2022
Climate Change:
While we continue to hear its importance, 40% of companies are taking NO climate-related marketing actions. This may be due to only ¼ customers being willing to pay more for such offerings.
Privacy:
With 3rd party data restrictions (incl cookies) enforced by Apple, Facebook and other digital platforms and Google doing next year, Marketers are growing first party data use by 75% in next 2 years.
However, while marketers are investing in building brand trust, their concern on privacy is at a “moderate” level, with 2/3rd believing customers won’t switch brands due to this, and as 90%+ customers don’t even read or understand privacy disclosures.
Source: The CMO Survey Feb 2022
Lots of rich data and insights in Professor Moorman’s CMO Survey Feb 2022 reports:
- The Topline Report offers an aggregate view of survey results
- The Highlights and Insights Report shares key survey metrics, trends, and insights over time
- The Firm and Industry Breakout Report displays survey results by sectors, size, and sales
Comments