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Posted by Chad Mitchell on April 26, 2010
The economy is getting better, right? The answer is still not crystal clear. Yes, the DJIA topped 11,200 last week, but unemployment is still hovering near 10% in the US. The economy has reset expectations for all of us in our personal and professional lives. The idea of doing more with less is now a long-term business strategy versus a short-term mandate. Or is it?
Our data shows that marketing budgets are growing for many marketing leaders, but budgets may take years to return to “normal” (e.g. pre-Great Recession). We read every day in business journals about “the increased need for accountability in marketing.” CMOs have more measurable data and analytic tools today, but are we really making better strategic marketing investments?
In our February 2010 marketing leadership panel survey, we asked: Which of the following best describes your 2010 marketing budget compared to your 2009 marketing budget?
Most marketing leaders see steady or increasing marketing budgets. Thirty-seven percent state their budgets will increase in 2010 versus 2009. Another 35% of marketing leaders see budgets remaining the same as last year. The smallest percent -- 27% -- are working with reduced budgets.
Regardless of your budget situation, marketing leaders must continue the shift towards managing marketing as an investment versus an expense. CMOs will likely influence or own more technology budget as marketing shifts to digital and emerging media. Marketers are working more every day with IT and corporate finance on capital budgeting processes for new technology investments like listening platforms.
Two keys to success in this era of increased accountability are for CMOs to:
Please help me answer the two key questions raised here:
I am working on two documents in May on these subjects. Please comment below or email me at email@example.com if you are willing to share your thoughts and opinions. Please answer the polling question too.