Observed Signal · Mar 27, 2023 · Market Analysis · Source: CMSWire · Impact: 2/5 · Sentiment: Positive
Marketing Budgets Remain Strong Amid Economic Uncertainty
Despite concerns over a potential US recession and recent banking shocks, marketing budgets are expected to remain strong in 2023, according to multiple analyst surveys. Over 63% of CMOs surveyed by LXA in November 2022 expected marketing technology budgets to increase over the next 12 months. Forrester's Joe Stanhope noted most clients expect single-digit budget increases for the 2023/2024 cycle. CMOs are prioritizing tech stack consolidation, data platforms, personalization, and generative AI. An IDC survey found more than half of large companies will increase marketing spend, with marketing administration and management solutions receiving the largest share. Data from LXA indicates planned investments in digital commerce, digital experience, analytics, customer data platforms, and content management systems. The release of OpenAI's GPT-4 is expected to accelerate interest in generative AI for marketing.
Provides data on marketing budget resilience and martech investment priorities during economic uncertainty, indicating continued demand for adtech/martech platforms, but is not a singular industry-shifting event.
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Key Takeaways & Evidence Grounding
- Over 63% of CMOs in a November 2022 LXA survey expected marketing technology budgets to increase over the next 12 months, up 2% from 2021.
- Forrester Principal Analyst Joe Stanhope said 63% of his clients expect single-digit budget increases for the 2023/2024 budget cycle.
- A February IDC survey of 105 companies with over 1,000 employees found more than half will increase marketing spending in 2023.
- LXA research found 67% of respondents plan to invest in digital commerce platforms and 49% in customer data platforms.
- OpenAI released GPT-4, which experts say will significantly impact marketing through generative AI.
Connected Companies & Entities
8 Entities mapped“Scott Mager, CMO of Deloitte Consulting...”
“said Forrester Principal Analyst Joe Stanhope...”
“Even though most (91%) US CMOs polled by MarketingCharts...”
“data platforms from the likes of Salesforce and Adobe...”
“data platforms from the likes of Salesforce and Adobe...”
“now that OpenAI has released ChatGPT 4...”
“recent demise of the Silicon Valley Bank...”
“A February International Data Corporation (IDC) survey of 105 companies...”
Ontology Mapping & Concepts
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