Marketing budgets had begun to rebound post-COVID but have since started a downturn since 2023. According to Gartner, marketing budgets in relation to company revenue were up to 9.5% in 2022 (up from 6.4% in 2021) but are back down to 7.7% in 2024. 

Prior to the pandemic, marketing budgets comprised about 11% of overall revenue, but have dropped to 8.2% in the four years since that mark.

Marketing technology, labor and agency investments are decreasing but paid media is increasing (27.9% of marketing budgets in 2024). The biggest chunk of paid media spending is digital at 57.1% of the marketing budget.

The Gartner study found that nearly two-thirds of CMOs said they were unable to carry out their 2024 strategies “properly” due to a lack of resources. The study included almost 400 respondents at the CMO or equivalent level, and most represented organizations with a median annual revenue of $5.3 billion.

One strategy CMOs are looking to for help in stretching their budgets is generative AI. They see AI as a means to enhanced productivity. They are also looking to paid media to make an impact, with search, social and display receiving the largest investments.