The economy might be tanking, with some financial analysts claiming the UK is already in recession, but more than three-quarters of marketing chiefs aim to increase their spend over the next 12 months, with customer marketing platforms, digital strategy and data integration at the top of the shopping list.
That is according to a CMO survey by digital marketing consultants ConsultMyApp which reveals that marketing budgets are expected to increase on average 20% over the next year, despite almost half (44%) expecting the economic slump to have a negative impact on their business.
Despite fears that marketing budgets are the first to be slashed during a downturn, CMOs maintain that investment will continue in 2023 despite recessionary fears.
The outlook is positive for agencies too, with more than half (52%) of CMOs looking to outsource their marketing requirements in 2023. Just over a third (36%) said they will be hiring internally instead.
The services CMOs will most likely be investing in include marketing platform implementation and migration (32%); digital strategy and consulting services (32%); SEO (31%); and data integration, analytics and insight (27%).
ConsultMyApp founder and CEO Mike Rhodes said, “Any sign of a recession usually sends jitters through the marketing industry – particularly for those working agency-side. So, it’s encouraging to see an upbeat outlook from CMOs, with ongoing investment in key services like martech platform implementation and digital and data consulting services.
“Having said that, ahead of any economic downturn, it’s always vital for CMOs to review their entire marketing stack, to see what’s working and delivering, and what isn’t. Making sure marketing budgets are being utilised effectively and delivering consistently strong ROI is critical in these uncertain times.”
The stduy seems to chime the IPA’s Q2 Bellwether Report, which showed that amid the mounting economic headwinds, there were a number of businesses that signalled their intent to market aggressively to support their brand and gain market share from less-prepared competitors.
At the time IPA director general Paul Bainsfair said: “This is usually a wise and canny move. All the IPA’s analysis on who does best in a downturn, shows that the companies that recover fastest are the ones that either maintain or increase their marketing spend during difficult economic times.
“Equally, cutting ad budgets – relative to competitors’ spend – in a recession undermines companies’ ability to grow future market share and profits.”
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