Marketing budgets are suffering from cuts but CMOs believe COVID-19’s negative impacts will be short-lived, according to the 2020 CMO Spend Survey by industry analysis firm Gartner.
Despite a positive outlook, almost half of CMOs (44%) are facing mid year budget cuts in 2020 as a result of the COVID-19 pandemic.
And one in ten (11%) of CMOs expect budgets to face significant cuts of more than 15%.
"To reconcile their economic optimism with their budget limitations, CMOs continue to pursue relatively conservative growth strategies, with 79% primarily relying on existing markets to fuel growth," says Gartner.
The 2020 CMO Spend Survey -- based on a poll of 432 marketing executives in North America, the UK, France and Germany at companies with $500 million to $20 billion or more annual revenue -- indicates CMOs are confident that negative impacts will be short-lived.
Budgets will take a cut in 2020, but CMOs remain upbeat, expecting them to bounce back in 2021.
When asked about the impact of the overall business and economic climate over the next 18 to 24 months, 73% expect the impact to be positive.
Although the majority of CMOs responding to this year’s survey believe the post-COVID-19 economic curve will be V-shaped, this optimism is not shared by all their colleagues in the executive team.
Gartner data from a poll of CFOs showed that the majority (almost 60%) are building scenario plans that include a second wave of the pandemic.
This concern is shared by CEOs, with data from a World Economic Forum survey reporting that 60% of CEOs believe there will be a U-shaped recession, while 22% believe it could be a double dip, or W-shaped.
"Although very few CMOs expect COVID-19 to positively impact business considerations, their overall outlook remains at odds with other senior leaders," says Gartner.
"This contrast should alarm CMOs and reinforce the need for a collaborative and agile approach to budgeting and planning that ensures marketing’s expectations do not fall out of step with business realities and threaten even the most critical spending priorities."
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