• by Sarah Mahoney , May 13, 2025

Source: Deloitte Digital

If you’re a CMO running marathons on a sprinter’s budget, you’ve got company.

Two new reports — one from Deloitte Digital and another from Gartner — show that while marketing budgets may be rising on paper, gains are being devoured by inflation, martech costs, and growing pressure to prove ROI.

Deloitte Digital’s new "Marketing Benchmarks Report" describes CMOs caught in a “perfect storm” of tech disruption, shifting customer expectations, and increasing scrutiny from finance teams. About 60% say they have limited control over their budgets,even when they can prove marketing’s return.

The report, based on responses from 1,395 U.S. marketing leaders across B2C and B2B sectors, found that while budgets rose slightly in 2024 to 9.1% of revenues (up from 7.5% in 2023), those increases weren’t enough to outpace inflation. On average, marketers allocate 26% of their budgets to talent, 26% to working media, and 25% to martech.

Just 33% of respondents said they are held to KPIs for marketing ROI, while 43% report sales lift targets and 47% are responsible for customer lifetime value.

Deloitte also notes sharp contrasts between high- and low-growth companies. Those growing revenue at 15% or more are allocating 14% more to martech, while spending 13% less on working media. They're also investing more in retention (9%) and pulling back on top-of-funnel tactics (10%).

Gartner’s findings tell a parallel story: In large companies, marketing budgets have flattened at 7.7% of revenue, well below the 11% peak seen in 2020. The 2025 CMO Spend Survey included 402 marketing leaders in the U.S., U.K. and Europe, most from organizations with over $1 billion in annual sales.

“While marketing budgets have stabilized, marketing spending has stalled at a level that falls short for many CMOs,” said Ewan McIntyre, vice president analyst and chief of research at Gartner. “Given the looming macroeconomic uncertainties, CMOs are now confronting the prospect of in-year budget cuts.”

Most (59%) say they don’t have enough money to execute their strategy, though that’s a five-point improvement from last year. Many are leaning harder on data and analytics to optimize performance and using AI to automate key tasks.

That has real implications for staffing. Some 39% of CMOs are planning labor reductions, either by consolidating roles or cutting headcount entirely. And agency rosters are also under pressure, with 39% saying they plan to reduce agency budgets by renegotiating contracts or scopes of work. Generative AI is playing a growing role, with 22% reporting it has enabled them to reduce reliance on agencies for creativity and strategy.

Paid media remains the top spending priority, taking up 31% of marketing budgets. But thanks to ongoing media price inflation, those dollars are delivering less.

Together, the reports paint a picture of marketing teams stretched thin — trying to prove value, spend smarter, and adapt faster, all while playing catch-up with costs they can’t always control.