Across nearly every industry, the last half decade has seen marketing budgets swing wildly from one side of the pendulum to the next. Pre-pandemic budgets were rolling high. Mid-pandemic, marketing budgets started a downward trend. In fact, Gartner reports that marketing budgets have dropped from “an average of 9.1% of company revenue in 2023 to 7.7% in 2024”—a fall of 15% year over year. No wonder the same report indicates that only 24% of CMOs say they had enough budget to execute their 2024 strategy.
Coping with an era of less
What will the coming year bring? As we head into 2025, CMOs are ever more entrenched in what is being defined as an “era of less.” Even so, there is room for CMOs to feel optimistic. In fact, according to the 2024 CEO and Senior Business Executive Survey, most CEOs and CMOs are seeing growth as a top strategic priority for the year ahead.
Within that air of optimism, there are ways CMOs can charge ahead to maximize ROI.
Crunch the data
Using the data you’ve already collected and paid for is another essential component of doing more with less. A 2022 study by Wakefield Research found that a whopping 80% of all marketing data is never used. For CMOs looking for ROI in a world of shrinking budgets, it’s important to remember that data isn’t just spreadsheets and columns filled with figures; data tells the story of your brand and how it relates to the target audiences you need to resonate with.
Mining the data you already have comes with little cost and can help you understand which aspects of your strategy, campaigns, media spend, channels, etc., perform the best (You might even feed that data into an AI protocol to help forecast how you might perform in the future.)
Outsource (or even in-source) where it makes sense
Another way to optimize marketing budgets is to scrutinize operations and either outsource or in-source marketing functions if and where they make sense. In-sourcing or outsourcing, depending on what the case may be, may also improve morale by giving employees the ability to flex their chops and skills or freeing up their time to accomplish other tasks. Again, there is no one-size-fits-all approach, so it pays to review the model that works for you and adjust accordingly.
How do your company’s marketing and brand operations measure up
Now more than ever, marketers are expected to do more with less. Efficient brand and marketing operations are essential to achieving this mandate. Download a cheat sheet of the five characteristics of an effective brand and marketing operations function.
The real kicker: Identify high-ROI initiatives that drive growth
This almost goes without saying, but marketing departments looking to make waves when their budgets give them only ripples need to ensure every move is a money-maker. How?
Conduct a thorough marketing audit
Take stock of your current marketing function to identify what’s working and what isn’t. This can include an analysis of:
- Brand asset utilization through a comprehensive audit of existing assets
- Current ROI measurement practices and brand equity tracking
- Department structure and workflow efficiency
- KPI performance across all marketing initiatives
Once that’s been accomplished, it’s time to turn your attention to prioritizing and executing against your highest impact channels—the ones that will yield the best ROI. Areas to focus on include:
- Strategic asset rationalization: Keep what works, sunset what doesn’t
- Implementation of efficient workflows that reduce waste and maximize output
- Development of clear migration strategies for transitioning to optimized processes
- Investment in brand stewardship programs that maintain quality while reducing costs
Overall, when it comes to maximizing marketing ROI when budgets decrease, the best advice is often to focus on the low-hanging fruit to secure quick wins. By applying these structured approaches to governance, process optimization, and measurement, marketers can get the results they need to see them through 2025 and even further into the future.
