Observed Signal · May 11, 2026 · Survey · Source: Digiday · Impact: 3/5 · Sentiment: Neutral
CMOs juggle budgets, AI and CEO expectations
Gartner’s 2026 CMO Spend Survey of more than 400 marketing leaders across North America, the UK and Europe finds marketing budgets are essentially flat — advertisers spend an average 7.8% of company revenue on marketing, up only 0.1% year‑over‑year — while marketers are reallocating portions of those budgets to AI. On average 15.3% of marketing budgets go to AI initiatives, which companies use for chatbots, automated creative, measurement and agentic media planning tools. Gartner and industry executives warn of scaling challenges: 80% of CEOs expect significant change from AI, 70% of marketers list “AI leadership” as critical, but many teams report insufficient budget and are stuck in pilots. Brand examples include Mammut using a Gemini-powered chatbot and AI-generated product imagery, and TripAdvisor handling ~40% of support via AI chatbots.
Gartner’s survey quantifies how much of marketing budgets are shifting to AI and documents CEO expectations and budget constraints — insights that affect advertisers, agencies, MarTech/AdTech vendors and measurement providers as they prioritize product development and go-to-market strategies.
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Key Takeaways & Evidence Grounding
- Gartner’s CMO Spend Survey (2026) of 400+ marketing leaders across North America, the UK and Europe reports advertisers spend an average 7.8% of company revenue on marketing (a 0.1% increase year-over-year).
- Marketers are allocating an average of 15.3% of their marketing budgets to AI initiatives, per Gartner.
- Gartner found 80% of CEOs expect AI to provide a “significant degree of change”; 70% of marketers said AI leadership is a critical goal this year.
- 56% of CMOs surveyed said their teams lack the budget required to meet annual objectives; 56% also said budgets would be cut if goals were missed.
- Brand examples: Mammut used a Gemini-powered chatbot and AI-generated product imagery; TripAdvisor now handles roughly 40% of customer support inquiries through AI chatbots.
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CMOs Spend Big on AI Despite Low Readiness
Gartner’s 2026 CMO Spend Survey finds CMOs now allocate an average of 15.3% of marketing budgets to AI initiatives, even though only 30% report mature or fully developed AI readiness capabilities. Seventy percent of respondents say becoming an AI leader is a critical goal for 2026, but the same share admits internal processes are not mature enough to implement and scale AI. Firms with higher AI readiness allocate 21.3% of marketing budgets to AI and tend to have larger marketing budgets (8.9% of company revenue vs. the 7.8% average). The survey highlights that competitive advantage will increasingly come from operational discipline, data foundations, governance and the ability to connect AI tools to business processes. The survey was conducted January–March 2026 and published May 12, 2026 on MarTech.
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Gartner: Awareness and Conversion 62.6% of Media Spend
Gartner's 2026 CMO Spend Survey found awareness and conversion now account for 62.6% of total media spend as CMOs shift budgets toward acquisition and digital channels. The survey — conducted January–March 2026 among 401 CMOs and marketing leaders in North America, the UK and Europe — reports digital media represents more than two-thirds of media investments in 2026 (an 18% increase since 2024). Spend on customer loyalty and retention fell 29% to under 15% of total media budgets. Labor’s share of marketing budgets rose from 21.9% in 2025 to 24.5% in 2026, and 70% of CMOs say internal marketing processes are not mature enough to scale AI; only 30% report mature AI readiness. Gartner analysts highlighted that AI’s value depends on people, skills and execution, not just technology.
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