Economic uncertainty around the world is forcing businesses to do a lot more with less, with 77% of global chief marketing officers (CMO's) feeling the pressure to prove greater short-term return on investment (ROI) on marketing campaigns, according to research from LinkedIn.
The study revealed that 2,900+ C-level executives (including 494 CMOs) from large organisations across the globe are prioritising reducing investment in marketing and advertising, along with technology and talent, due to the current climate.
Of the CMOs interviewed globally, 45% are financially preparing for tough times ahead; this is putting heightened pressure on marketers to prove business impact.
32% of CMOs are concerned that uncertainty will force them to operate more reactively and 30% feel they will need to curb creative campaigns.
The LinkedIn study involving 100+ Australian B2B marketing leaders has highlighted the importance of staying top of mind amongst audiences during this time.
80% of market leaders believe companies that maintain or increase their marketing spend during periods of uncertainty recover faster.
98% say improving the chief financial officer (CFO) understanding of marketing ROI is key to strengthening future budgets.
Prue Cox, director of enterprise SEA, KR & ANZ marketing solutions at LinkedIn, said: "While we know the economy is in a state of flux, it’s important that marketers continue to invest in marketing as by pulling back investment, they risk long term damage to their brand.
"As marketing budgets are often the first to be scrutinised and tightened in times of uncertainty, it’s important that senior leaders can show ROI to their stakeholders.
“Speaking the language of the CFO, to demonstrate an alignment of marketing metrics to business metrics, and pulling the right strategic levers, will help maintain existing budgets and strengthen future ones.
“By nurturing these key relationships with important leaders, like the CFO, and using data as information, marketers can demonstrate business impact and will put brands in a much stronger position now and in the future."
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