The first half of 2025 has been a challenge for pretty much everyone, and CMOs are no exception. TikTok’s future, antitrust issues for Meta and Alphabet, AI advances, and global conflict are just a few of the factors affecting consumers and marketers. 

The effects of the current situation are tighter budgets, less time for campaign planning, changing back to performance marketing rather than brand building, and the necessity to figure out the impact of AI on marketing operations. CMOs have seen flat budgets so far this year, and cuts are on the horizon if the economic situation does not improve. For H1, CMOs have basically “hunkered down” in a holding pattern, but H2 may require some decisions about budgets.

Some anticipatory moves for H2 include budget shifts – increasing paid media spending to 30.6% from 27.9% - and decreasing agency spending and inhouse resources. But budget cuts are still looming. AI is making an impact with time and cost efficiencies.

Budget pressures are nothing new for marketers. The trick is managing those pressures in a thoughtful, effective manner.