The 2025 Gartner CMO Spend Survey reveals that marketing budgets for 2025 remain unchanged at 7.7% of overall company revenue, consistent with last year’s figures. Conducted among 402 CMOs and marketing leaders across North America, the United Kingdom, and Europe, this survey provides valuable insights into how marketing leaders are adapting to stagnant budgets and evolving market conditions. The survey findings were revealed during the Gartner Marketing Symposium/Xpo in London.

“While marketing budgets have stabilized, the spending levels are insufficient for many CMOs,” said Ewan McIntyre, VP Analyst and Chief of Research in Gartner Marketing Practice. “With macroeconomic uncertainties looming, CMOs are facing the real prospect of in-year budget cuts.”

Findings from the 2025 CMO Spend Survey:

• Marketing Budgets Remain Flat:
  Despite challenges, CMOs report that marketing budgets for 2025 are holding steady at 7.7% of total company revenue, mirroring 2024’s figure. While this stability offers some certainty, it does not provide the necessary growth for many marketing teams to fully execute their strategies.

• Budget Shortages Persist for Many CMOs:
  Fifty-nine percent of CMOs claim their budgets are insufficient to execute their strategies in 2025, although this is an improvement from the previous year, where 64% of CMOs reported similar challenges. While budgets haven’t grown, marketers are finding innovative ways to use their funds more efficiently.

CMOs Turn to AI and Data for Enhanced Productivity:

With budgets constrained, CMOs are increasingly relying on AI and data analytics to drive productivity gains. These tools are helping marketers optimize performance and automate critical tasks, enabling them to get more out of their existing budgets. Notably, GenAI investments have shown a solid return on investment (ROI), particularly in the areas of:

• Time efficiency (49%)

• Cost efficiency (40%)

• Content production and business capacity (27%)

A mere 1% of CMOs reported that GenAI is not a priority, demonstrating its growing importance in the marketing landscape.

“Given the stagnant budgets, marketing leaders are focusing on maximizing productivity,” McIntyre explained. “By leveraging data and AI, CMOs are able to do more with less.”

Prioritizing Paid Media Amidst Budget Constraints:

Paid media remains the top marketing expenditure, accounting for 30.6% of marketing budgets, or 2.4% of company revenue. However, media price inflation means that CMOs are getting less value for their investments in paid channels.

To balance the need for efficiency, CMOs are shifting focus to reduce expenditures in other areas:

• Agency Cuts:
  39% of CMOs plan to reduce spending on external agencies. They aim to optimize agency relationships by eliminating unproductive partnerships and renegotiating contracts. Additionally, 22% of CMOs say GenAI has reduced their reliance on external agencies for creativity and strategy development.

• Labor Reductions:
  Similarly, 39% of CMOs plan to cut labor costs. Top strategies include simplifying roles and reducing headcount to streamline operations.

The 2025 Gartner CMO Spend Survey highlights a significant trend among CMOs: despite flat budgets, marketing leaders are adapting by prioritizing AI and data-driven strategies to maintain or even boost productivity. With paid media continuing to be the focal point of marketing budgets, CMOs are also turning to more efficient methods in agency and labor spending to make every dollar count. As the year progresses, CMOs must navigate the challenges of macroeconomic uncertainties while maximizing the potential of their existing resources.