20% of CMOs to invest less in paid search, SEO this year
74% of CMOs plan to increase or maintain their PPC investment. That number is 80% on the SEO side, a new Gartner survey finds.
Despite ongoing news of layoffs and tightening marketing budgets, there is some good news in this uncertain economy: the majority of SEO and search advertising budgets seem safe in 2023. That’s according to Gartner’s latest CMO Spend and Strategy survey.
While the report highlighted the fact that paid search advertising and SEO are among the channels most likely to have reduced investment in 2023, let’s look at the numbers.
Search advertising. Overall 74% of CMOs said they plan to either increase (40%) or maintain (34%) investment in this channel. That leaves 26% of CMOs who plan to reduce their investment in paid search.
- ICYMI: Paid search spend is forecast to hit $110 billion in the U.S. this year.
SEO. Meanwhile, 80% of CMOs said they plan to either increase (46%) or maintain (34%) their SEO budget in 2023. The remaining 20% of the CMOs plan to reduce their SEO investment this year.
Social advertising and beyond. Surprisingly, 53% of CMOs planned to invest more in social advertising, compared to 14% who are decreasing investment. Two other categories that can expect more budget in 2023: digital video advertising and influencer marketing.
Here’s the full chart from Gartner:
Why we care. Organic and paid search are two proven marketing channels that can drive visibility, brand awareness, leads, revenue, profit and more for brands. If you aren’t investing in search, you’re potentially taking money off your table.
Budget woes. Marketing budgets are flat – and 71% of CMOs believe they lack the budget successfully to execute this year’s strategies. So it will be important for CMOs to make smart decisions about where they spend their budget.
About the survey. 410 CMOs and marketing leaders were surveyed in March and April 2023. Respondents were based in North America and Europe, representing various industries and company sizes, with most reporting annual revenue exceeding $1 billion.
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