Page 69 - Adnews Magazine November-December 2021

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in-housing efforts on high-value, stra- tegic capabilities such as brand strat- egy, innovation and technology.
“Despite facing in-year budget cuts in 2020 due to the pandemic, most CMOs expected budgets to bounce back in 2021. This budget- ary optimism was misplaced, as marketing budgets have fallen to their lowest level in the history of Gartner’s CMO Spend Survey,” said Ewan McIntyre, co-chief of research and vice president analyst in the Gartner for Marketers prac- tice. “However, these cuts have been a slow burn over the course of the last year, where many market- ing budgets have not recovered what was originally lost.”
Isobar CX Survey 2021
The annual study of more than 800 global CMOs finds a transformed approach to marketing post-COVID. With accelerated digitisation, CMOs say creativity is critical to differentiation, with the bounda- ries of Content, Commerce and Culture blurring.
83% of marketers agree that there can no longer be any discon- nect between what a brand prom- ises and what it delivers for its customers, communities, and employees.
86% say every touchpoint can and should tell the brand story, from comms to commerce.
Innovation, integration of the brand promise and delightful interactions enhanced by technol- ogy were named as the top three key ingredients needed in the cre- ation of brand experiences.
82% marketers are investing or have already invested in creativity and digital technologies to create brand differentiation.
Alternative sensorial brand experiences are on the rise with 86% of marketers saying creating brand design systems for a mul- ti-sensory world is increasingly important, and 36% asking specif- ically for new craft skills designed for a multi-sensory world from their agency partner.
Isobar: “Touch-free technologies, gestural technologies, voice inter- faces and virtual brand properties including avatars, idols, products experiences and configurators are all being increasingly adopted.”
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The crisis has caused business to zero in on the customer, with 42% of CMOs agreeing they have refocused business transformation efforts to be more centred around the consumer and 30% implementing direct- to-consumer approaches.
But with this comes disruption through the “Redeployment of resources from traditional advertising spend to other parts of the mar- keting ecosystem” (36%) and “Investment in innovation and products & services to diversify and differentiate their offering” (38%).
Overall, CMOs are more optimistic than they were in 2020, but there are still challenges ahead. Declining consumer spending is less of a con- cern in 2021 than it was in 2020 with 34% of CMOs this year citing it as a worry versus 51% last year.
In line with this, decreasing marketing budgets are also less of a con- cern, with 23% of CMOs citing this in 2021 vs 36% in 2020. One challenge of increasing concern is data. Obtaining the right data to make timely and appropriate decisions has almost doubled YOY from 15% to 28%.
‘Aligning with new/changing customer sentiment’ is the most common perceived challenge by our CMOS in 2021 (36%).
But overall, the majority (78%) of CMOs feel their business is prepared for the next six months.
Of the strategies previously employed, the six most CMOs expect to continue once business is back to ‘normal’ are:
1. Understanding changing consumer behaviour/market research — 79% 2. Developing direct-to-consumer (d2c) sales models — 77%
3. Focusing on marketing that gives the biggest ROI — 74%
4. Developing greater ecommerce capabilities — 72%
5. Understanding the needs of our employees — 70% 6. New product development — 70%
Gartner 2021 CMO Spend Survey
Marketing budgets have fallen to their lowest recorded level, dropping to 6.4% of company revenue in 2021 from 11% in 2020. Pure-play digital channels account for 72.2% of the total marketing budget, with CMOs indicating that they’re shifting offline budgets into digital spend.
29% of work that was previously carried out by external agencies has been moved to in-house teams over the last 12 months. CMOs have focused
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