Marketing Budgets: Spend Drops Relative to Revenue at Enterprises

Marketing Budgets: Spend Drops Relative to Revenue at Enterprises

Marketing Strategy — Wed., Jul. 28, 2021

According to research from Gartner, marketing budgets at large businesses have dropped significantly relative to revenue in 2021. The report was based on data from a survey of 430 CMOs, and found that the average marketing budget dropped to 6.4% of total company revenue in 2021, down from 11% in 2020 and 10.5% in 2019.

The researchers found that marketing spend relative to revenue dropped across all industries examined this year, with no sector achieving a double-digit marketing share of budget. Companies in the travel and hospitality, manufacturing, and technology-product industries experienced the biggest drops.

The survey was conducted between March and May 2021, among CMOs across North America and Europe who work for organizations with annual revenue of over $500 million. This data is reflected in the two graphs provided, showing the marketing budget percent of total revenue and the revenue percentage allocated to marketing for 2020 vs 2021.

... continue reading below
Sign up for free to read the full article.
Enter your email address to continue reading

Marketing Budgets: Spend Drops Relative to Revenue at Enterprises

Don't worry ... it's FREE!

Already a member? Sign in now.

Related Articles

Martech 2024: Three Trend Predictions

Martech 2024: Three Trend Predictions

Another year in martech has passed at a blistering pace—with the discussion on new trends, technologies, and issues consuming our days. The author builds on his (mostly borne out) 2023 predictions about three martech trends.

Fundamental Change Is Coming to B2B Marketing in 2024

Fundamental Change Is Coming to B2B Marketing in 2024

The next few years will bring fundamental shifts to marketing. First things first, though: Prepare for what's to come in 2024 before looking further out into the future. Here's where 2024's most successful marketers and media agencies will direct their focus this year.

Knuckle Down in 2024: Three Predictions for Tough B2B Marketers

Knuckle Down in 2024: Three Predictions for Tough B2B Marketers

The bad news is that marketing isn't going to get any easier in 2024. The good news is that your marketing output is sure to improve if you use these three predictions to work both smarter and harder in the new year. See what's ahead...

Do More With Less: Six Smart Ways to Balance Brand & Demand to Drive Growth in Tough Times

Do More With Less: Six Smart Ways to Balance Brand & Demand to Drive Growth in Tough Times

For marketers, belt-tightening is back for 2024. Balancing brand and demand investments, however, doesn't have to hurt. In fact, taking these six steps can increase impact, build resilience, and pave the way for long-term growth. Do more with less.

What to Keep In-House and When to Use an Agency: A Four-Part Decision Framework

What to Keep In-House and When to Use an Agency: A Four-Part Decision Framework

"What should I keep in-house, and when should I use an agency?" That marketing and advertising dilemma may be one of the most persistent. And the decision can be hugely consequential. Here's how to weigh your options.

B2B Marketing Budget and Spend Trends for 2024

B2B Marketing Budget and Spend Trends for 2024

Most B2B marketers do not expect their marketing budget to decrease in 2024, according to recent research.

Subscribe to the MarketingProfs Today newsletter