By: Sarah Scudder
- The CMO Survey (August 2019) by Duke University’s Fuqua School of Business, the American Marketing Association and Deloitte
- The Annual CMO Spend Survey 2019-2020 (October 2019) by Gartner, Inc.
- Martech: 2020 and Beyond (October 2019) by WARC and BDO (with interviews by the University of Bristol) Collectively, these studies identify three macro spending trends that marketing procurement professionals need to keep in mind for 2020.
Key Procurement Takeaway
Most marketers are naturally optimistic, and therefore the expectations for budget increases next year may be a little overdone. In its survey report, Gartner observed that many economists have noted that global economic growth is slowing and is likely to remain slow in 2020. So, marketing procurement professionals should prepare for some level of marketing budget uncertainty in the coming year.
Technology Spending Remains Robust
Key Procurement Takeaway
For most of its history, much of the conversation about marketing procurement has focused on its role in sourcing agency services and managing agency relationships. This is understandable because in many larger enterprises, agencies have traditionally represented one of the largest components of external marketing spend. Over the past few years, however, spending on marketing technology solutions has grown to rival agency spending in importance. Therefore, if they haven’t already done so, marketing procurement professionals will need to become proficient at sourcing technology solutions, particularly cloud-based SaaS solutions.
Social/Mobile Still on a Roll
Spending on social media and mobile marketing is likely to continue growing in 2020. The CMO Survey found that on average, marketers are currently spending 11.9% of their total budget on social media marketing, and survey respondents expect that percentage to increase to 15.3% of the budget over the 12 months following the survey.
According to The CMO Survey, spending on social media has grown steadily since 2009 even though survey respondents have not believed that it makes a significant impact on company performance. Since 2016, the survey has asked participants to rate the contribution of social media marketing to company performance using a seven-point scale, where 1 = “not at all,” and 7 = “very highly.” In the eight surveys conducted over that four-year period, the average rating given by respondents has ranged from 3.1 to 3.4.
Spending on mobile marketing exhibits a similar growth trajectory. The CMO Survey found that on average, marketers are currently devoting 12.8% of their total budget to mobile marketing, and survey respondents expect that percentage to grow to 21.8% of the budget over the five years following the survey.