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Marketing budgets at large businesses have dropped significantly relative to revenue in 2021, according to recent research from Gartner.

The report was based on data from a survey conducted between March and May, 2021, among 430 CMOs across North America and Europe who work for organizations with annual revenue of over $500 million.

Marketing budgets fell to 6.4% of total company revenue, on average, in 2021—down from 11% in 2020 and 10.5% in 2019:

Marketing budget percent of total revenue in 2021

The researchers found that marketing spend relative to revenue dropped across all industries examined this year, with no sector achieving a double-digit marketing share of budget in 2021.

Companies in the travel and hospitality, manufacturing, and technology-product industries experienced the biggest drops in marketing spend relative to revenue:

Revenue percentage allocated to marketing for 2020 vs 2021

About the research: The report was based on data from a survey conducted between March and May, 2021, among 430 CMOs across North America and Europe who work for organizations with annual revenue of over $500 million.

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ABOUT THE AUTHOR

image of Ayaz Nanji

Ayaz Nanji is a digital strategist and a co-founder of ICW Media, a marketing agency specializing in content and social media services for tech firms. He is also a research writer for MarketingProfs. He has worked for Google/YouTube, the Travel Channel, AOL, and the New York Times.

LinkedIn: Ayaz Nanji

Twitter: @ayaznanji