More than half of Chief Financial Officers (CFOs) expect to increase their marketing budgets by at least 3% in the current year, according to a Gartner survey of 300 top financial executives. However, one quarter of CFOs plan to cut their marketing budget by at least 3%, while the remaining half are sitting somewhere in between.
The survey results come amid a backdrop of mixed economic indicators, with job cuts, banking problems and rising interest rates on one hand, and low unemployment rates, wage increases and increased consumer spending in some sectors on the other.
The current figures are an improvement from last year’s, when 8 in 10 CFOs planned to cut their marketing budget in the first half of 2023. Of the 43% now expecting to send more money to marketing, more than half indicated it would be a double-digit increase.
When it comes to other corporate functions, CFOs are most likely to give double-digit budget increases to sales and corporate IT. Human resources and legal & compliance are at the bottom of the list.
Overall, CFOs’ split decision on marketing budgets is an example of the current confusing economic climate. As they do not want to scale marketing down at the wrong time in the business cycle, it is important to keep a close eye on the situation in order to make informed decisions.
Originally reported by Martech: https://martech.org/cfos-split-on-increasing-or-cutting-marketing-budgets/
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