According to Gartner’s recently released CMO Spend Survey, average marketing spend is now just 7.7% of business revenue in 2024, down from 11% in 2020. This shift shows a growing focus on lower-funnel activity and brands searching for quick wins.
But being reactionary is boring. Think of any successful company right now, and it can be assured that their lens is firmly fixed on what they will do to be ahead tomorrow, and the day after that, and the year after… you get the point.
The writing’s on the wall, marketing departments are prioritizing immediate returns. “Demand Generation” is projected to be the biggest investment in 2024, claiming 10% of marketing budgets, followed closely by sales enablement at 9.3%. The story’s similar when it comes to digital spend, with lower-funnel activity like Search Advertising receiving higher investment than awareness-led activities like email marketing, social and display advertising. For example, investment in Search commands 14% of the average budget compared with just 7% for email marketing.
This push for quick wins is understandable though, it’s simply reflective of the kind of world we live in now. Particularly when your C-Suite colleagues are continually reviewing sales and marketing data – as guidance for measuring success.
But some things never change and when it comes to your brand, well… Your brand is what people say about you when you’re not in the room. So, back to the earlier point about tomorrow. Why is thinking about it so important for a CMO?
And how can you build a compelling case to unlock the investment budget? Data driven insight, let’s dive in…
Play the long gain
The biggest rewards are reaped when we invest in brand. Think of it like compound interest, businesses that consistently invest in their brand will see a steady rise in their baseline, amplifying the impact of all short-term activities. This approach is particularly important across B2B marketing, where only 5% of buyers are currently in the market. Staying front-of-mind with the remaining 95% ensures your brand is ready when they are. Additionally, shareholders are more interested in seeing growth trend over time. A bad investment can look good in the short term, but you must measure over time to get the full picture. When we think for the long-term, it allows us to activate successfully and with purpose to achieve both short and long-term goals effectively.
Bridge the gap
When sales teams are working with a strong brand narrative and messaging aligned with issues important to their audiences’, they build greater relevance with customers. Consistent messaging across all interactions reinforces trust and familiarity, which is crucial for the rule of seven—where customers need seven interactions with a brand before making a purchase. Additionally, building a strong brand fosters customer advocacy, providing ‘free’ advertising through word-of-mouth, which is much harder to achieve with purely functional, sales-led activities.
A spark of genius
In 2019, Marks & Spencer lost its spot on the FTSE 100 due to a focus on promotions and a lack of relevance with target audiences. But by 2023, after a brand revamp, digital investment and successful marketing campaign, it regained its position in the minds of customers.
And they weren’t the only ones… Despite an already strong brand presence, Lego launched a refreshed brand platform in 2024. In a competitive digital marketplace, thinking about the customer of today and tomorrow meant the brand needed to keep its “Learning through play” mantra relevant. A reimagined brand image offered up new categories like gaming, movies, and education for the brand, creating new revenue streams beneficial for the company’s bottom line.
Brands are even starting to admit where they have over-invested in short-term gains. In a recent article, Adidas shared how it focused too heavily on performance marketing and is now refocusing its strategy around brand investment once more.
Even the big players are backing this up
McKinsey’s research supports the importance of strong branding. The world’s 40 strongest brands yielded almost twice the total return to shareholders compared to a standard MSCI World index certificate over 20 years. Highly creative brands outperform their peers, with 67% achieving above-average organic revenue growth.
Purpose-driven brands achieve more than twice the brand-value growth of brands that focus purely on profit generation, and purpose clarity is directly correlated with financial performance.
Greater budget. Greater security.
Right now, security is everything. You have the knowledge and figures to win over extra budget to invest in marketing. But when moving forward, just remember this—measuring brand success requires a long-term view. It will bring you more leverage to achieve ‘quick wins’ when you need them most. So, where are your sights focused?
