CMO Survey Reveals Marketing Resilience Amid Economic Uncertainty

**The CMO Survey** reveals a paradox: while U.S. marketing leaders report **5.8% year-over-year spending growth** despite **election uncertainty** and **inflation fears**, **44.6% of executives** would cut marketing budgets first during profit shortfalls. **Digital marketing** saw **11.1% growth** in 2024, with **customer experience** and **branding** expected to see **5.6%** and **7.0%** increases respectively. [[cmo-survey|CMO Survey]] sampled **260 VP-level marketers**, showing **B2B Services** led hiring growth at **7.6%**. [[~marketing-budgets|Marketing budgets]] now account for **lower percentages** of company revenues, signaling broader economic expansion. [[~digital-marketing|Digital marketing]] now represents **11.1%** of total marketing spend, up from **8.9%** in 2023. [[~marketing-leaders|Marketing leaders]] remain **confident** in **AI** and **martech** adoption, despite **political volatility**. [[~marketing-spending|Marketing spending]] rebounded from a **3.9% dip** in Spring 2024, with **Education** and **Banking** sectors showing **25.3%** and **14.8%** headcount growth. [[~marketing-budgets|Marketing budgets]] as a percentage of revenue remain **lower** than pre-pandemic levels, indicating **revenue growth outpacing** marketing investment. [[~marketing-leaders|Marketing leaders]] report **19.6% more spending** on customer acquisition than retention, with **branding budgets** skewed **68.8%** toward short-term performance. [[~marketing-spending|Marketing spending]] is projected to grow **8.6%** in 2025, outpacing the **2.5%** growth seen in 2023. [[~marketing-budgets|Marketing budgets]] remain **disproportionately targeted** for cuts during downturns, with **46%** of executives prioritizing expense reductions over revenue growth. [[~marketing-leaders|Marketing leaders]] warn of **long-term risks** from **marketing myopia**, as investors adjust valuations for **revenue-cutting strategies**. [[~marketing-budgets|Marketing budgets]] now represent **lower percentages** of company revenues, signaling broader economic expansion. [[~digital-marketing|Digital marketing]] now represents **11.1%** of total marketing spend, up from **8.9%** in 2023. [[~marketing-leaders|Marketing leaders]] remain **confident** in **AI** and **martech** adoption, despite **political volatility**.

• Marketing spending grew 5.8% in 2024 despite economic uncertainty
• Digital marketing saw 11.1% growth, outpacing traditional advertising
• 46% of executives would cut marketing budgets first during profit shortfalls
• Marketing budgets as a percentage of revenue remain lower than pre-pandemic levels
• Projected 8.6% growth in marketing spending for 2025

**The CMO Survey** confirms **5.8% growth** in marketing spending, but notes **confidence levels** dropped from a **three-year high** due to **election uncertainty** and **inflation worries**. [[~marketing-budgets|Marketing budgets]] as a percentage of company revenues remain **lower** than pre-pandemic levels, indicating **revenue growth outpacing** marketing investment. [[~digital-marketing|Digital marketing]] saw **11.1% growth**, with **customer experience** and **branding** expected to see **5.6%** and **7.0%** increases respectively. [[~marketing-leaders|Marketing leaders]] report **19.6% more spending** on customer acquisition than retention, with **branding budgets** skewed **68.8%** toward short-term performance. [[~marketing-spending|Marketing spending]] is projected to grow **8.6%** in 2025, outpacing the **2.5%** growth seen in 2023. [[~marketing-budgets|Marketing budgets]] remain **disproportionately targeted** for cuts during downturns, with **46%** of executives prioritizing expense reductions over revenue growth. [[~marketing-leaders|Marketing leaders]] warn of **long-term risks** from **marketing myopia**, as investors adjust valuations for **revenue-cutting strategies**.

**Marketing resilience** is a clear win for businesses, with **5.8% growth** in spending despite macroeconomic headwinds. [[~marketing-budgets|Marketing budgets]] are now **11.1%** of total spend, up from **8.9%** in 2023, showing digital transformation momentum. [[~digital-marketing|Digital marketing]] is expected to grow **12.7%** in 2025, outpacing traditional ad spending. [[~marketing-leaders|Marketing leaders]] are **confident** in **AI** and **martech** adoption, with **B2B Services** leading hiring growth at **7.6%**. [[~marketing-budgets|Marketing budgets]] as a percentage of revenue remain **lower** than pre-pandemic levels, indicating **revenue growth outpacing** marketing investment. [[~marketing-leaders|Marketing leaders]] report **19.6% more spending** on customer acquisition than retention, with **branding budgets** skewed **68.8%** toward short-term performance. [[~marketing-spending|Marketing spending]] is projected to grow **8.6%** in 2025, outpacing the **2.5%** growth seen in 2023. [[~marketing-budgets|Marketing budgets]] remain **disproportionately targeted** for cuts during downturns, with **46%** of executives prioritizing expense reductions over revenue growth. [[~marketing-leaders|Marketing leaders]] warn of **long-term risks** from **marketing myopia**, as investors adjust valuations for **revenue-cutting strategies**.

**Marketing myopia** persists as **46% of executives** would cut marketing budgets first during profit shortfalls, despite **5.8% growth** in spending. [[~marketing-budgets|Marketing budgets]] as a percentage of company revenues remain **lower** than pre-pandemic levels, indicating **revenue growth outpacing** marketing investment. [[~digital-marketing|Digital marketing]] growth is **11.1%**, but **traditional advertising** remains stagnant at **0.8%**. [[~marketing-leaders|Marketing leaders]] report **19.6% more spending** on customer acquisition than retention, with **branding budgets** skewed **68.8%** toward short-term performance. [[~marketing-spending|Marketing spending]] is projected to grow **8.6%** in 2025, outpacing the **2.5%** growth seen in 2023. [[~marketing-budgets|Marketing budgets]] remain **disproportionately targeted** for cuts during downturns, with **46%** of executives prioritizing expense reductions over revenue growth. [[~marketing-leaders|Marketing leaders]] warn of **long-term risks** from **marketing myopia**, as investors adjust valuations for **revenue-cutting strategies**.

Originally reported by cmosurvey.org