Opening purse strings? CMOs looking to increase marketing spend

In a time where we’ve been fearful of possible marketing budget cuts owing to the current economic uncertainty, new research has shown that CMOs are more willing to open purse strings when it comes to their marketing spend over the next year.

A survey from digital marketing consultants ConsultMyApp has found that more than three-quarters (77%) of CMOs will be increasing their marketing budgets over the next 12 months.

Marketing budgets are expected to grow by an average of 20% throughout 2022/23, found ConsultMyApp’s survey of 100 CMOs in businesses with more than 250 employees. This is despite 44% acknowledging that the recession will likely have a negative impact on their business.

Brand building and new launches top priorities

Across the survey, brand building and ‘new service introductions’ were the areas of marketing expected to see the highest levels of investment over the next year, each cited by 42% of the survey’s respondents as a priority.

Traditional ad spend was slightly behind (41%) while online and mobile web marketing spend would see higher investment levels, according to 38% of the panel.

More than half (52%) of CMOs were expecting to outsource their marketing activities, in a positive nugget of news for agencies – while just over a third (36%) said they would be hiring internally instead.

Platform implementation and migration as well as digital strategy and consulting were the most sought-after areas of support, noted by almost a third of those surveyed, while 31% would require agency support with SEO, and 27% with data integration, analytics and insight.

Mike Rhodes, Founder and CEO of ConsultMyApp.com, said: “Any sign of a recession usually sends jitters through the marketing industry – particularly for those working agency-side. So, it’s encouraging to see an upbeat outlook from CMOs, with ongoing investment in key services like martech platform implementation and digital consulting services.

“Having said that, ahead of any economic downturn, it’s always vital for CMOs to review their entire marketing stack, to see what’s working and delivering, and what isn’t. Making sure marketing budgets are being utilised effectively and delivering consistently strong ROI is critical in these uncertain times.”