Tech companies’ marketing budgets are up in 2022
This is what we know about technology companies’ marketing budgets. Gartner reports good news for Chief Marketing Officers (CMOs). In 2022, marketing budgets are higher than they were in 2021. As the Covid pandemic recedes, tech companies stand out because they are spending more on marketing than other businesses. According to Gartner, technology companies are increasing their spend on marketing from 5% of revenue in 2021 to 10.1% of revenue in 2022.
This is in spite of the known headwinds in the business environment. CMOs are not deterred by the challenges in the economy and remain optimistic. Optimism is, of course, is a necessary trait for a good marketing person.
Where do technology marketing budgets go?
As you would expect, companies are spending their marketing pounds differently in the post-pandemic business environment.
They are investing 56% of their budgets in digital, however their spend in off-line channels is rebounding. Marketing is no longer “digital first” in 2022. In the B2B area in particular, companies are once more allocating funds to conferences, sponsorship and events. I see this in my own work, as people are glad that they can finally get back to trade shows and face-to-face meetings.
Paid social media is now at the top of the shopping list for companies’ digital budgets. Again, my own experience supports this. Linkedin is clearly a key channel to market. After this, paid search advertising, digital display ads and SEO are the next highest priorities.
Gartner’s report highlights a new focus on campaign management. This is a significant change from 2021. Technology companies’ marketing budgets are used for two main aims. Approximately half of the budget goes towards branding and awareness. The other half is used for short term customer conversions, or performance marketing.
Businesses typically divide their marketing expenditure into four roughly equal parts. Approximately one quarter of the budgets goes into each of the four areas: people, agencies and services, paid media, and marketing technology.
Marketing salaries are rising too
There is one huge concern. According to Gartner, 58% of CMOs say they lack the in-house skills to deliver on their CEO’s marketing objectives. No doubt, this reflects the general shortage of people with sought-after marketing skills. This challenge is not likely to go away soon, because we expect thousands more creative and marketing roles to be created in the next 2-3 years.
How can companies and their CMOs combat this? First they should pay their marketing teams more. Recruiters report that the salaries for marketing specialists are as much as 10% higher this year than last year. As applicants become more discerning employers are also offering more benefits and flexible packages to try to attract the most capable candidates.
I would suggest that employers should consider supporting their people through training to fill the skills gap that will otherwise hold their marketing back.
The other option is to use more resources from outside agencies and services. Marketing managers usually keep a stable of reliable suppliers for design, copywriting, PR, digital and events. An experienced marketing manager will bring with them their own contact list of trusted agencies and individuals who can provide all of these services.
If you would like to add another copywriter to your supplier list, please contact me here: firstname.lastname@example.org.
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