The February 2014 CMO study from Dr. Christine Moorman at Duke’s Fuqua School of Business has just been released. This bi-annual report tracks marketing attitudes held by business leaders across the U.S. The good news is that the optimism rating for the overall economy for the next 6 months is at 66.1, higher than it has been at any point since February 2009. As a result, CMOs are boosting their marketing budgets to support new products and services they're rolling out this year.
B2B and B2C product marketers are more optimistic than services providers. In addition, CMOs have more optimism for their own businesses, 73.2, than they do for the general economy. These positive attitudes are leading 74.7% of executives to believe they'll be able to acquire new customers this year and 69.3% also expect to see increased customer purchase volume.
These marketers plan to increase their marketing budgets by 6.7%. Digital marketing will receive an 8.2% spending boost, slightly less than in the past. Traditional media will be cut by 0.1% which is the smallest cut made to this format in the past 3 years. The intention to keep marketing spending on traditional media nearly level is worth pondering. Perhaps marketers believe they're reaching an equilibrium between traditional and digital.
By sector, B2B product marketers will boost their digital spend by 9.0% while B2C product marketers anticipate boosting traditional spending by 2.8%.
Marketing spending will increase in several categories:
- New product intros: 7.8%
- New service intros: 4.0%
- CRM: 5.1%
- Brand building 4.9%
The average marketing budget as a percentage of revenue for firms participating in this survey is 10.9%, but there's significant variation among sectors and size. For example, B2C product marketers spend the most, 15.2%, as do smaller firms. Enterprises with revenues under than $25 million spend 13.9%. Just the opposite is true for marketers who sell more online. Those with 10% or more of revenue coming from online sources are spending the most on marketing, 18.6%.
How does your marketing budget compare to the statistics revealed in this survey?