STAMFORD, CT: CMOs are gaining bigger budgets in the 2016-17 period for the third year in a row, according to a study released on Tuesday by Gartner.
Marketing budgets are equal to 12% of company revenue, a 2% increase from 2014-15, with marketing technology spending on track to outpace technology expenditures by CIOs by next year, according to the survey of 377 marketing leaders in July and August.
Technology took up the second-largest piece of the marketing spending pie, at 27% of the expense budget, just behind labor and ahead of paid media.
"Marketing is now also responsible for critical customer-facing, revenue-generating systems and applications. They ought to appoint a chief marketing technologist in title or role equivalent to look after this growing technology estate," the report stated. "Crucially, it means marketing has a responsibility to collaborate with enterprise IT."
Researchers from Gartner were not immediately available for comment on the report.
Large companies, with $5 billion in revenue or more, siphon greater portions of their budget to marketing than smaller organizations, or those with $250 million to $500 million in revenue, according to the report. One reason: big companies spend more on marketing to fend off "scrappy disrupters."
More than half (57%) said they anticipate their budgets to increase next year. However, 14% said they expect budget cuts, the highest percentage in the five years the study has been commissioned. Nearly one-quarter (24%) said they think their advertising budget will increase "significantly."
The report also found that marketing leaders who hold themselves accountable for profit and loss receive budgets that are 20% higher than those who do not.