Less is more: are shrinking marketing budgets an opportunity to innovate?
Last year, research by insights specialist Gartner showed that three quarters of chief marketing officers felt under pressure to do more with less to deliver profitable growth in 2023.
This finding was underpinned by the fact that marketing budgets have remained broadly flat at around nine percent, compared to a pre pandemic high of 12 percent, according to the same study.
It perhaps comes as no surprise then that 71 percent of chief marketing officers felt they lacked sufficient funds to execute their 2023 strategy.
Furthermore, with economic forecasts pointing to slow growth continuing into 2024, it’s unlikely that marketing budgets will see a significant revival in fortunes in the near term.
So what can marketing departments do to ensure positive results in challenging times?
Writing for Harvard Business Review, Gartner Chief of Marketing Research and VP Analyst Ewan McIntyre recommends that leaders focus on three areas – clarity, courage and connection.
When it comes to clarity, McIntyre argues that CMOs must make “clear-eyed decisions” on what will be supported over the life of any strategy.
Courage, he says, requires leaders to “ask difficult questions” of their teams to spot any “spurious assumptions, strategic sentimentality and harmful cultural norms”. This is about evaluating decisions and being aware that previous logic may not apply today.
His final point, on connection, emphasises the need to collaborate with other members of the c-suite.
There is arguably nothing new here. Even before the spending squeeze, marketers should have had a handle on where their function cuts across other functions.
However, McIntyre talks good sense when he encourages marketers to ditch obscure metrics and acronyms, and translate brand speak into business speak to get buy-in from colleagues.
What advice does Tech Partnership offer on doing more with fewer resources?
In this disruptive era, the question we’re regularly asked by businesses is: how do we adapt and deliver at the same time? Invariably, we offer three key points of consideration.
The first is to be prepared to be ruthless. By this we mean companies shouldn’t be scared to tear up plans and drop old ways of doing things. Take control before circumstances do.
The second point is not to forget the long term. Resist the temptation to batten down the hatches in an attempt to ride out the storm. Seek out opportunities to grow your profile in different ways as this will ensure you’re ready to thrive when the economic upcycle kicks in.
Finally, focus on your distinctiveness. This becomes incredibly important when times are tough. Because when buyer activity is depressed, those who stand out are more likely to achieve sales than those who blend in.
To find out what these three key points mean in practice, look out for our next blog on marketing during the downturn. Alternatively, the Tech Partnership team is always available to chat if you can’t wait. Simply drop us a line at chris@tech-agency.co.uk and we’ll set up a call.
ENDS
Marketing When Budgets Are Down (hbr.org)
