| What the numbers say: A survey by Gartner has found that among 410 CMOs and marketing leaders, 71% believe they lack the budget needed to fully execute their strategy in 2023. According to the survey, thus far, in 2023, marketing budgets comprise 9.1% of total company revenue, down from the 9.5% reported in 2022. Overall trends reveal that marketing firms are investing more in marketing technology, reporting a 63% increase in such investments YoY, and have cut labor spending the most, reporting a 35% decrease. Despite this affinity for martech, a separate Garner survey from Oct. 2022 found that marketers are not utilizing the full capabilities of their martech stack, with just 42% reporting the use of all the capabilities, down from 58% in 2020. Failing to use these resources and maximize their potential can result in reduced productivity and a poor ROI for companies. Relevance: Data from eMarketer predicts that marketing technology spending in the U.S. will reach $27.11B by 2024, up from $15.31B in 2020. This growth in spending will likely be driven by the generative AI craze. However, the threat of a recession may hinder marketing investments in the near future. Gartner reports that 22% of respondents expect a recession to negatively impact marketing investments. Investments in labor are dropping as layoffs continue to affect various business sectors. Linkedin's Workforce Confidence Index report shows that in the tech industry, the workers who feel most at risk of being laid off include those in project management (46%), quality assurance (40%), marketing (39%), finance (37%), and IT roles (37%). Brands that should care: Companies that have invested in martech should ensure that marketers are using all of the capabilities in their stack. Moreover, it should be noted that the company should also invest in training programs to teach marketers how and when to use these different martech capabilities. Companies should also maximize their human workforce and technology to achieve the best business outcomes. |