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Monday, 1 September 2014

CMO confidence is high

Warc, 19 August 2014
SAN JOSE, CA: A majority of senior global marketers are confident they can drive growth and improve market share, according to a new study which also shows widespread optimism regarding staff levels and budgets.

The CMO Council surveyed 525 global marketers for its State of Marketing report and found that a "surprising" 81% believed their targets for top-line revenue growth and market share in 2014 were realistic and attainable.

Having said that, however, only one quarter (26%) were halfway to achieving those goals.

Twice as many top marketers expected to increase budgets and headcounts as expected them to remain the same or reduce. Some 55% planned to increase recruitment, for example, while just 22% were contemplating reductions.

And a similar proportion (54%) anticipated budget increases, compared to 27% who thought they would remain unchanged. But whatever the outcome, many felt it still wasn't enough – 41% reported feeling challenged by insufficient budgets.

Marketing Week highlighted a significant change in the allocation of spending, as just over half (52%) planned either no change or a decrease to their mobile marketing budgets.

Liz Miller, senior vice president at the CMO Council, suggested that an "excited spending spree" was giving way to a more sober period of reassessment.

"Everyone raced out to try and develop their own app before realising that mobile's power is in the mobile web, banners and search," she said. "Now they are trying to figure out their strategy again."

"This is a positive thing," she added. "Marketers are redefining what they mean by mobile."

Another area where senior marketers are reassessing their options is their agencies. Despite the fact that 63% rated the contributions of their agency partners as extremely valuable or pretty good, 66% were planning to make one or more changes to their agency roster in 2014.

Lack of business results, value-added thinking and uninspired creative topped the list of reasons for these changes.


Data sourced from CMO Council, Marketing Week; additional content by Warc staff

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