The CMO Survey Mission

The CMO Survey Mission

The CMO Survey collects and disseminates the opinions of top marketers in order to predict the future of markets, track marketing excellence, and improve the value of marketing in firms and in society.

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View February 2014 Results from The CMO Survey

View February 2014 Results from The CMO Survey

Read three different reports and watch a video of survey director Professor Christine Moorman discussing results. Learn More

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Best Practice From Marketing Leaders

Best Practice From Marketing Leaders

Interviews with CMOs offer insights into best practices in marketing strategy, organization, and metrics. Learn More

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The CMO Survey Award for Marketing Excellence

The CMO Survey Award for Marketing Excellence

For the 7th consecutive time, Apple has been identified as the company that sets the standard for excellence in marketing across all industries. Learn More about industry winners.

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Who Has the Biggest Marketing Budgets?

March 6, 2014

Marketing budgets are rebounding. They are expected to increase 6.7% in the next twelve months according to the February 2014 edition of The CMO Survey. This is a sizable increase over projected increases of 4.3% in August 2013 and a massive boost over the 0.5% increase reported in February 2009. Bounce!

To put these figures in perspective, The CMO Survey reports that marketing budgets represent approximately 10.9% of overall firm budgets. These figures have hovered around this average since this question was first asked in February 2011. On the other hand, marketing budgets as a percent of firm revenues improved to 9.3% from 7.9% in 2013 indicating that marketing budget growth outpaced revenue growth. One question that survey users often ask about these figures is whether or not they include salaries for marketing employees. Analysis indicates that these marketing spend estimates include both employee and non-employee investments in marketing.

I examined all three marketing spending metrics across several firm and industry characteristics. These are summarized in Tables 1-3. As shown in Table 1 across these three indicators, B2C-Product companies have the largest marketing budgets (as a percent of budgets and revenues) and the largest expected growth in marketing budgets across the four economic sectors. I expected a large increase over the B2B companies which may be reaching customers with their own or their channel’s salesforce. However, I did not expect to find B2C-Product companies also dominating B2C-Service companies by 20-30% differences. Would love to hear from marketing leaders in this sector about this differential.

table_1_1_1

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