Mid-Market CMOs: Gartner Data Confirms Your Paid Media Pain
Gartner Spend Survey - Insights for mid-market CMOs
New Gartner CMO Ad Spend Survey data reveals CMOs are battling rising paid media costs (30.6% of budgets!), but the real story for mid-market brands is even tougher.
While CMOs in the survey are trying to save on other fronts by adopting AI, paid media remains stubbornly high. As of this February, it devours nearly a third (30.6%) of their budget. This isn't necessarily because it's generating phenomenal returns; instead, Paid Media Inflation is a very real force eating away at investment effectiveness. You're spending more, but getting less for every dollar. Add to this the inherent waste and fraud in programmatic, and it’s a constant uphill battle for true ROI.
Mind you, the CMOs in the Gartner survey worked for brands averaging $1 Billion in revenue. They have significant wiggle room. (A contrast I see daily when advising growth brands.) The real challenge arises when you're a CMO of a Mid-Market Brand. You're squeezed by budgets, fierce competition for awareness, and now face the unenviable position where only 30-50% of your media spend actually performs, while your CFO is counting every bean like a Portland barista would.
It's abundantly clear to me that the average mid-market CMO has a much more challenging job. You must work doubly smart to navigate this macro inflationary environment, ensuring your marketing, stack, and spends truly deliver. Here are a few essential tips I recommend:
Get Your Programmatic Game Right: Waste in programmatic is a silent killer. Use free tools like Google Ads' Performance Planner to tighten targeting and cut underperforming campaigns. Every click needs to count.
Double Down on Measurement: You can't fix what you don't measure. Leverage free analytics (GA4) or invest wisely to track true ROI, not just impressions. Identify what's working and redirect your budget there.
Use AI Where It Matters Most: While large brands integrate AI for big cost savings (agency, creative, strategy), you as a mid-market CMO are uniquely positioned to drive this with agility. AI tools in platforms like Google's Smart Bidding or affordable DSPs can optimize programmatic in real-time, boosting ROI by up to 15% (Forrester, 2023). That's where your budget will thank you.
Streamline Agency Spends Smartly: Agencies are increasingly open to outcomes-based pricing for performance metrics. While I don't recommend squeezing them out, have clear discussions around measurement, results, and commensurate engagement models.
Mid-market CMOs are an agile bunch, and that agility must translate into advantages in both ad spend efficiency and effectiveness. Programmatic isn't going away, and it will only get more expensive, diverse and complex in the near term. Running a tight, smart, efficient ship will go a long way in earning your stars.
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