Study: CMOs shifting marketing investments

New York -- Technology-related spending by chief marketing officers (CMOs) is on the rise.



According to a study from Foundation Capital, technology spend by CMOs will increase 10 fold in 10 years, growing from $12 billion to $120 billion.



The study titled, “Marketing is a (Buyer) Journey, Not a Destination,” finds that CMOs and top marketing executives are shifting budgets towards customer retention and advocacy. Conductedout by The CMO Club in collaboration with IBM, the report also shows that CMOs are increasing their budgets and allocating a greater part of this investments across the entire customer journey rather than individual channels. 


Key findings from the study include:



• 57% of CMOs expect their marketing budgets to increase over the next two to three years.



• Marketers are aligning spending across every stage of the buyer journey with social and digital channels emerging as top areas of investment.



• 53% of respondents stated that the main reason for spreading their budgets across the entire customer journey is the need to generate higher revenue.



• While there is strong momentum towards digital marketing capabilities, traditional marketing channels still play a role in the marketing mix. According to the study, traditional marketing still accounts for 52% of their budgets.



"The brand/customer dynamic is no longer built on insolated interactions. It's an ongoing relationship that must span all touch points in the customer's journey," said Deepak Advani, general manager, IBM Commerce. “The shifting dynamic and the changing role of the CMO also illuminates a tremendous opportunity for CMOs to further expand their influence, cut through organizational silos, and make an impact beyond just marketing by owning the overall customer experience.




The survey features feedback from 100 leading CMO Club members, which includes CMOs and heads of marketing, all with budgets of $1 million and above.