New research released by Gartner shows marketing budgets are on the rise for a third consecutive year. According to the 2016-2017 “CMO Spend Survey,” marketing budgets increased to 12% of company revenue this year, and CMO marketing technology spend is on track to exceed CIO tech spend in 2017.
There are multiple factors driving this trend, ranging from the continued rise of digital to increased accountability within companies. Some key drivers include growing pressure to be transparent about ROI, deliver a better consumer experience, keep up with emerging marketing channels and trends, and drive more revenue.
How are marketing leaders spending this growing budget? 28% goes to paying for personnel, followed by technology, services, and paid media. Here Gartner breaks down the percentages and details around how marketing technology spend is allocated:
The majority of 2016 Marketing Technology Budget—23%—went toward digital infrastructure. The next biggest expense? Resources for managing that infrastructure: external services, as Gartner put it, to develop, implement, and integrate marketing applications. CMO.com dug into this research further with a research VP at Gartner, and recommended that optimizing this expense means finding the right balance of in-house and outsourced resources for your team’s short- and long-term plans.
In-house resources are needed for ongoing work and projects, and are critical to keeping your team’s work running smoothly on a day-to-day basis.
Outsourcing is a great way to tackle project based work, especially when you need emerging or scarce talent. A high-profile rebrand, onboarding a new tool, creating omni-channel strategies, or coding the next immersive digital consumer experience are just a few examples that would lend themselves well to using on-demand talent.
About the AuthorMore Content by Ashley Beckord