It has been reported by Gartner, the famed analyst firm that the amount of money spent by the CMOs on the technology front is all set to exceed the figure that is to be expended by the CIOs for technology. This deduction has been made after a survey was conducted by the firm on 377 companies. The companies are all based in the United Kingdom and North America. All the firms that have been considered have an annual revenue exceeding $250 million. It has been revealed that the marketing budgets are set to increase in the coming year. It had already increased this year in most of the companies in comparison to 2015. Most of this increase is on the marketing related technology section.
More budgets on technology set aside for marketing
This is a clear indication that the larger companies are paying more attention to bolstering their marketing activities. This is required to boost up the sales processes. Even larger organizations that have revenue earning of $5 billion per year or more have found to set aside an even greater amount for technology related investment related to marketing needs. The bigger firms are spending 13% of the annual earnings for the product marketing while those are lesser in profit margins have allocated 10% of their earnings for marketing requirements. The larger players which have decentralized operations are not as efficient in the marketing as compared to those have centralized control.
CMO expenses are now nearing CIO spend
More technology is being deployed for meeting the needs of the customers. Different IT applications and computerized systems are in use which is helping to generate better revenue. The levels of spending by the CMOs are slowly tending to touch that of the CIOs.
IT spending is majorly on infrastructure
Business in the present generation is highly dependent on IT Technology. You cannot do away with or diminish this aspect in any form of business. The requirement of IT infrastructure is also quite high to meet the varied needs of the industry. It has been seen that the IT budget is majorly for the IT related infrastructure procurement. Even though it is rising slowly, but the budget for technology for the marketing operations are increasing faster and it can be expected that it will soon overtake the allocation for IT technology. The trend is evident and the exceeding of the marketing figures may occur in the coming year itself.