7 Must-Knows About Digital Marketing Budgets in 2016
Click through the slideshow to learn more about how CMOs plan to use their budgets and what technologies will be targeted areas of investment.
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Did you know that by 2017 the chief marketing officer (CMO) will actually outspend the chief information officer (CIO) on IT? It's been a few years since Gartner made that bold prediction, but it seems to have panned out. Marketing is purchasing significant marketing-related technology and services from their own budgets. Here's what you need to know that spending breaks down and the opportunity for you.
According to Gartner, 11 percent of the digital marketing budget now goes to digital commerce. This is the highest area of increase, and has become the top-ranked area of investment for marketing technology as a result, the report said.
B2C and B2BC are "using digital commerce initiatives to build more direct bridges to their end customers."
Marketers allocate one-third of their budgets to technology. Of that budget, 28 percent is spent on infrastructure, including cloud, hosted infrastructure, servers, networking, and storage.
Roles are shifting to reflect a heavier focus on technology, too. According to Gartner, 80 percent of marketers have a chief marketing technologist in title or role equivalent.
Two out of three marketers expect their budgets to continue to grow in 2016.
Marketing budgets are increasing as senior management’s expectations increase. Digital commerce, marketing innovation, and improvements in customer retention are all part of these growing expectations.
Social marketing is a top priority for marketers. Sixty-five percent of marketers rank social marketing as a top 5 priority for technology investment; digital commerce (64 percent), marketing analytics (61 percent), customer experience (56 percent), and advertising operations (54 percent)
Online and offline marketing budgets are merging. Ninety-eight percent of marketers told Gartner that offline and online marketing are merging; one-third of marketers said digital techniques are fully incorporated into their marketing organization.
Although 56 percent of marketers ranked customer experience as one of their top 5 marketing tech investments, it is the 4th priority, down from the 1st priority last year. Gartner expects this is because customer experience spending is implied in other categories.
Seventy-one percent marketers have an innovation budget, which averages 10 percent of marketing spend. One in three marketers with an innovation budget are piloting or implementing virtual assistants, augmented reality, microsensors, digital marketing hubs, and a real-time social listening center.
Seventy-one percent marketers have an innovation budget, which averages 10 percent of marketing spend. One in three marketers with an innovation budget are piloting or implementing virtual assistants, augmented reality, microsensors, digital marketing hubs, and a real-time social listening center.
Gartner has good news for companies who provide technology that supports marketers. According to its recent Gartner CMO Spend Survey 2015 – 2016, CMO budgets are on the rise, and 33 percent of marketing budgets go to technology. Click through the slideshow to learn more about how CMOs plan to use their budgets and what technologies will be targeted areas of investment.
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