Marketing budgets rise in 2024, AI drives strategic growth
A recent survey conducted by 10Fold has revealed that 65% of marketing leaders in the U.S., Canada, and Europe experienced increased budgets in 2024, with fewer than half facing more ambitious key performance indicators (KPIs).
The report, entitled "The Marketing Spend Strategy," compiled data from 450 marketing decision-makers across sectors in North America and Europe. Susan Thomas, CEO of 10Fold, emphasised the prevalent use of technology in addressing economic challenges. "Our findings highlight a pragmatic approach to budget management and a shift towards data-driven growth strategies. Marketing leaders are leveraging AI and other automation tools to boost productivity and gain efficiencies, showing that tech marketers are more prepared than ever to adapt and succeed," she said.
The survey found a trend towards increased budgets despite economic uncertainties, with a contrasting decrease in the pressure to meet higher KPIs compared to the previous year. AI and automation investments were significant factors in the budget increases for over half of the marketers, with 71% of those embracing AI reporting noticeable budget growth.
AI's strategic impact was particularly noted across industries including AI itself, Fintech, Networking, and IoT. French marketers benefited the most from budget increases, while their UK counterparts saw the highest overall budget rises.
Additionally, there appears to be a paradox concerning employment trends within the marketing sector. "Talent Investment Defies Downsizing Trends," remarked the report, with 54% of executives adding to their workforce and only 15% downsizing. Smaller companies showed more restrained growth in staff size, but agency and contractor budgets notably expanded, even among the smallest firms, with 61% reporting budget increases.
Regarding strategic spending, the report noted that marketing leaders maintained a focus on proven tactics, prioritising investments in marketing tools, websites, and digital ads, with social media platforms such as X and LinkedIn leading the way. Media-related strategies were markedly preferred by mid-sized companies, with revenues ranging from USD $10 million to USD $100 million.
Budget sources varied significantly by region and company size. While 90% of respondents secured funding, private equity and strategic corporate investments were predominant. German companies reported a different experience, facing stringent budgets and demanding KPIs compared to their counterparts in other countries, while U.S. companies accessed diverse funding sources more successfully.
The outlook for 2025 remains optimistic with expectations for continuity in successful approaches from 2024. Enhanced utilisation of digital trade publication advertising and AI-focused campaigns are anticipated, with 77% of respondents forecasting growth into the next year, driven by increased budgets and solid strategies.
