The latest Gartner CMO Spend Survey dropped some sobering news: marketing budgets remain stuck at 7.7% of company revenue for the second year running.
And it’s not just you. Marketing is getting … harder:
- 87% of CMOs experienced campaign performance issues in the last 12 months, with 45% reporting they sometimes, often, or always had to terminate campaigns early due to poor performance
- 47% of organizations report a large benefit from adopting GenAI for evaluation and reporting in their campaigns
The Great Marketing Budget Squeeze: How CMOs Are Doing More with Less in 2025
Marketing budgets have flatlined. Again. Here’s how the smartest CMOs are fighting back.
For 400+ CMOs surveyed by Gartner, this represents a harsh new reality—the days of growing marketing budgets are over, at least for now.
But here’s what’s fascinating: while budgets have stagnated, the most successful marketing leaders aren’t just throwing up their hands. They’re getting ruthlessly efficient. And the data reveals exactly how they’re doing it.
The Productivity Revolution is Here
The chart tells the story better than any executive summary could. When asked what actions they’ve taken to boost marketing productivity, CMOs are laser-focused on three key areas:
Data and AI are the new growth engines. Forty-one percent of top-performing CMOs are leveraging data, analytics, and measurement to optimize performance—making this the #1 productivity driver. Close behind, 40% are using technology like AI to automate key tasks.
This isn’t just about having better dashboards. These CMOs are fundamentally rewiring how marketing operates. They’re using predictive analytics to identify the highest-converting prospects before they even enter the funnel. They’re automating creative production at scale. They’re personalizing customer journeys in real-time based on behavioral triggers.
The technology integration game has changed. Thirty-seven percent of leading CMOs are integrating advanced technologies, including AI, to enhance efficiency. This goes beyond point solutions—they’re building integrated tech stacks that actually talk to each other.
Where the Money Actually Goes (And Where It’s Going Next)
Let’s talk about the elephant in the room: paid media still dominates marketing spend at 30.6% of budgets. That’s 2.4% of total company revenue going straight to media buys.
But here’s the kicker—media price inflation means CMOs are getting less bang for every buck. So how are they responding?
They’re cutting the fat, not the muscle. The data shows 39% of CMOs are reducing agency budgets and another 39% are cutting labor costs. But this isn’t indiscriminate slashing. They’re:
- Eliminating unproductive agency relationships
- Streamlining agency rosters
- Renegotiating contracts and scopes of work
- Simplifying overlapping roles
- Reducing total headcount strategically
Twenty-two percent say GenAI has already enabled them to reduce reliance on external agencies for creativity and strategy. That’s not a future prediction—that’s happening right now.
The Resource Reallocation Revolution
What’s really interesting is how CMOs are shifting resources from low-ROI to high-ROI activities. Thirty-three percent are moving budget from low-ROI to high-ROI activities—but what does that actually mean?
Looking at the productivity actions, it’s clear they’re:
- Investing heavily in measurement and analytics (41% of top performers)
- Doubling down on marketing automation (40% using AI for key tasks)
- Streamlining operations (31% improving processes)
- Building internal capabilities rather than relying on external partners
These all open up opportunities for budget for next-gen AI B2B marketing apps.
The GenAI Reality Check
Here’s where it gets really interesting. GenAI investments are already delivering measurable ROI:
- 49% report improved time efficiency
- 40% see improved cost efficiency
- 27% can produce more content and handle more business
Just 1% of CMOs said GenAI isn’t currently a priority. Let that sink in—99% of marketing leaders are actively investing in generative AI.
The Collaboration Imperative
Thirty-two percent of productive CMOs are improving processes and collaboration with agencies and partners. This isn’t just about project management—it’s about fundamentally restructuring how marketing teams work together.
The most successful CMOs are breaking down silos between internal teams, agencies, and technology partners. They’re creating shared dashboards, unified reporting, and integrated workflows that eliminate duplication and improve speed to market.
What This Means for Marketing Strategy
The implications here are massive. We’re witnessing the biggest shift in marketing operations since the rise of digital advertising. CMOs who adapt will thrive. Those who don’t will get left behind.
The winners are doing three things really well:
- They’re data-obsessed. Not just collecting data, but using it to drive every marketing decision from budget allocation to creative strategy.
- They’re automation-first. They’re asking “what can we automate?” before “who should we hire?” for every new initiative.
- They’re brutally efficient. They’re cutting anything that doesn’t directly contribute to growth and doubling down on what works.
The Bottom Line
Marketing budgets may have flatlined, but marketing impact doesn’t have to. The CMOs who are winning in this new environment aren’t waiting for bigger budgets—they’re building better operations.
The productivity revolution in marketing is here. The question isn’t whether your budget will grow next year (it probably won’t). The question is whether you’ll join the 41% of top-performing CMOs who are using data and AI to squeeze exponentially more value from every dollar spent.
Because while budgets have stagnated, customer expectations haven’t. The bar keeps rising, and the most productive marketing teams will be the ones still standing when the music stops.
