Although marketing budgets have dropped below 11% of total company revenue for the first time since 2014, CMOs remain optimistic about the outlook for 2020, according to Gartner’s CMO Spend Survey 2019-2020 report.

According to Digital News Daily, “Marketing budgets declined from 11.2% of overall company revenue in 2018 to 10.5% this year, the survey of more than 340 marketing executives in North America and the U.K. found.

“But nearly two-thirds (61%) of CMOs expect their budgets to rebound next year.

“”In the face of perplexing external and internal environmental signals, CMOs remain confident about economic and budgetary outlooks,” commented Ewan McIntyre, vice president analyst in Gartner’s Marketing practice.

“”However, that same percentage of marketing executives believed their budgets would increase in 2019, indicating their optimism is misplaced. While we’re not yet witnessing a precipitous drop in budgets, this year’s downtick presents a counterintuitive scenario. You could call this confidence in the face of adversity. Or you could call it hubris.””

The survey also found that, despite a well-documented shift of some marketing functions from agencies to in-house teams, marketing agencies still account for nearly a quarter (22%) of total marketing budgets.

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