Gardner in its most recent spend survey suggests that total marketing spend is expected to increase more than 20%. Marketers have only allocated 9% to digital ads in video and display, or approximately half of overall marketing budgets.
Major agencies have seen lower margins and commoditized services have given way to higher-margin, longer-term strategic engagements, such as digital transformation, strategy or technology projects. Budget challenges could be deeper and broader, and highly impacted by macroeconomic outlook. CEOs are still expected to increase more than 50% this year.
For different verticals, B2B manufacturing companies expect to increase budgets in 2020. Optimism remains higher for other B2B and B2C respondents. High-tech, also reported the third-highest average marketing budget in 2019, at 10.8% -- and is the least confident about prospects in 2020, with only 31% expecting a budgetary increase next year. CMOs in travel and hospitality and consumer products are the most confident -- with 76% and 74%, respectively, expecting an increase in 2020.
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