2024 CMO Survey Insights: Navigating Marketing Challenges in an Evolving Landscape

Table of Contents

• Economic Outlook: Moderate Optimism Amidst Market Pressures
• Marketing Budgets: Strategic Adjustments in Response to Economic Pressures
• Technology Adoption and Martech Utilization: Gaps and Opportunities
• Digital Transformation and Data Privacy: Balancing Innovation and Trust
• Marketing’s Evolving Role: The Shift from Acquisition to Retention
• Diversity and Inclusion: Building Stronger, More Resilient Marketing Teams
• Looking Forward: Embracing Agile, Customer-Centric Marketing
• Final Thoughts

The latest CMO Survey, supported by Duke University’s Fuqua School of Business, Deloitte LLP, and the American Marketing Association, offers an insightful look into the trends, challenges, and future directions marketing leaders face across industries. This year’s findings, which reflect perspectives from 2231 marketing leaders in U.S. for-profit companies, address economic forecasts, technology usage, budget allocations, and strategic shifts in response to market dynamics. Below are some highlights and key take-aways from the survey along with insights from the Well Connected Brands’ team. 

Economic Outlook: Moderate Optimism Amidst Market Pressures

Marketing leaders are approaching the U.S. economy with caution yet maintaining some optimism. The survey reveals a sentiment of “moderate optimism,” with a rating of 63.77 out of 100—indicating a more hopeful outlook than in recent years​. This tempered optimism is reflected across sectors, particularly in finance and tech, which reported the highest confidence scores.

“The optimism among marketing leaders resonates with our experience working with diverse clients at Well Connected Brands. Many are cautiously hopeful, recognizing that while economic headwinds exist, there’s also significant potential for growth if marketing investments are strategically focused,” according to Rochelle Reiter, CEO of Well Connected Brands. 

Marketing Budgets: Strategic Adjustments in Response to Economic Pressures

Marketing budgets across various sectors now average about 10.1% of overall company expenses, but this percentage varies widely depending on company size and industry. In comparison to R&D budgets, marketing expenses are notably lower, especially in sectors like manufacturing and energy, highlighting an area where companies might see an opportunity for greater alignment​.

Below is a table summarizing marketing budgets as a percentage of revenue, broken down by sector based on insights from the CMO Survey Fall 2024:

Below is a table summarizing marketing budgets as a percentage of revenue, broken down by annual sales based on insights from the CMO Survey Fall 2024:

Below is a table summarizing marketing budgets as a percentage of revenue, broken down by primary economic sector based on insights from the CMO Survey Fall 2024:

Pulling data points from each of the tables above can provide your organization with a great guidepost as to where you could fall in terms of benchmarked marketing spend. 

Reflecting on these trends, VP of Marketing Strategy Michelle Komala adds, “We’re seeing many brands navigating these budget challenges by prioritizing digital transformation and customer retention over costly new acquisitions. At Well Connected Brands, we guide clients to allocate resources where they have the most measurable impact, focusing on sustaining brand value and deepening customer relationships.”

Technology Adoption and Martech Utilization: Gaps and Opportunities

Marketing technology (martech) remains essential, yet its integration is mixed. While 86% of companies report using martech tools, only 43% of these tools are reportedly used to their full potential​. Companies continue to seek ways to close the gap between the promised and actual returns on martech investments, with the survey highlighting a noticeable disparity between expectations and performance.

AI adoption is also expanding, with 67% of firms using artificial intelligence to enhance their marketing capabilities. AI is particularly transformative in optimizing content delivery, personalizing customer experiences, and enabling predictive analytics. Generative AI tools, for example, are increasingly leveraged to automate routine tasks, allowing marketers to focus on strategic initiatives that require human insight​.

“At Well Connected Brands, we’re excited by AI’s potential in marketing, but we also understand the importance of a clear strategy,” said Kelsey Phillips, Creative Services Director. “Adopting AI for AI’s sake can lead to resource drains. We help our clients prioritize AI tools that directly align with their customer engagement goals, ultimately improving efficiency without sacrificing creativity.”

Digital Transformation and Data Privacy: Balancing Innovation and Trust

Digital transformation continues to be a priority, with 52% of survey respondents noting that their companies are led by marketing in these efforts. However, companies are also mindful of the impact on customer trust, especially as data privacy becomes a significant factor in brand loyalty​. The survey reveals that 82% of consumers would switch to a brand offering better data privacy, emphasizing the need for transparency and secure digital practices.

In response to the phase-out of third-party cookies, companies are exploring alternatives like first-party data strategies, enhanced customer relationships, and privacy-focused tech​. These efforts underscore the growing intersection between digital innovation and consumer trust, with marketers recognizing that protecting data is not just a regulatory requirement but a brand promise.

Marketing’s Evolving Role: The Shift from Acquisition to Retention

Customer retention is becoming a central focus. The report shows that budgets for retention are increasingly on par with, or even exceeding, acquisition in some sectors, highlighting a trend towards sustaining and deepening relationships with existing customers over seeking new ones​. This shift is influenced by the higher costs of customer acquisition amidst economic challenges, prompting companies to invest in loyalty programs, personalized outreach, and enhanced customer experiences.

Client Success Supervisor Aubrey Closson feels this trend aligns closely with the advice she provides: “The brands that thrive are those that view retention as an investment rather than a cost. Existing customers are often a company’s best advocates, and at Well Connected Brands, we emphasize the importance of nurturing these relationships. It’s more cost-effective and impactful to turn loyal customers into brand champions than to constantly chase new audiences.”

Diversity and Inclusion: Building Stronger, More Resilient Marketing Teams

The survey also highlights a commitment to diversity, equity, and inclusion (DEI) within marketing teams, with budgets for DEI initiatives continuing to grow. Marketing leaders recognize that diverse teams bring broader perspectives, enabling creativity and resilience. Yet, the survey indicates that many companies still have room to grow, with some industries dedicating as little as 5% of their marketing budgets to DEI​.

Looking Forward: Embracing Agile, Customer-Centric Marketing

As marketing leaders look to the future, agility and customer-centricity are paramount. The survey underscores the importance of marketing as a core driver of growth and adaptability, with 66% of marketing leaders expecting to increase digital marketing spending in the coming year​. Many are moving away from traditional advertising toward digital channels and personalized strategies that offer measurable outcomes.

“It’s an exciting time for marketing, with both challenges and incredible opportunities. At Well Connected Brands, we’re passionate about helping our clients embrace change while staying true to their brand values. By focusing on trust, customer relationships, and smart technology investments, brands can not only weather economic challenges but emerge stronger and more connected to their audiences,” comments Rochelle Reiter. 

Final Thoughts

The 2024 CMO Survey presents a compelling snapshot of a marketing landscape in transition. Companies are balancing budget constraints, adopting new technologies, and focusing on customer retention in the face of economic uncertainty. For forward-thinking brands, the path to success lies in leveraging technology thoughtfully, prioritizing customer trust, and staying agile. Well Connected Brands is well-positioned to guide brands through these changes, helping them build strategies that resonate with today’s consumers and prepare them for tomorrow’s challenges.

As the marketing environment evolves, the insights from this survey can help companies align their strategies with emerging trends, ensuring they remain resilient, relevant, and responsive to their customers’ needs.