"Marketing budgets are all but flat, but chief marketing officers are being tasked with juggling investments marked for media, creative and AI on the same departmental balance sheet, according to Gartner."
"Advertisers currently spend 7.8% of company revenue on marketing on average, a paltry increase of 0.1% compared with last year, according to the company's annual CMO Spend Survey of more than 400 marketing leaders in North America, the United Kingdom and Europe."
"Within that share of revenue, marketers are on average allocating 15.3% to AI initiatives, the survey found. Brands across the globe now use generative AI for initiatives spanning chatbots, virtual focus groups, automated creative production, media measurement as well as agentic media planning and buying tools."
"“AI is now a critical part of our infrastructure, increasing the speed at which teams can build, test, and deploy,” said Matt Goldberg, president and CEO of TripAdvisor, speaking during its recent earnings call."
Marketing budgets are largely flat, with chief marketing officers managing investments across media, creative, and AI within the same departmental budget. Advertisers spend an average of 7.8% of company revenue on marketing, rising only 0.1% year over year. Marketers allocate 15.3% of their marketing budget to AI initiatives. Generative AI is used for chatbots, virtual focus groups, automated creative production, media measurement, and agentic media planning and buying tools. Mammut uses a Gemini-powered chatbot to respond to negative comments and encourage users to visit the outdoors, and it scales AI where impact is near the point of purchase, including AI-generated product imagery. TripAdvisor routes 40% of customer support inquiries through AI chatbots, describing AI as critical infrastructure that speeds building, testing, and deployment.
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