Technology marketing budgets will rebound in 2014, despite a wave of turmoil and transformation kickstarted by the replacement of company CMOs across 77 per cent of tech organisations.
The 12th Annual Tech Marketing Benchmark Study by IDC reports that marketing budgets among the 101 technology companies surveyed will increase by an average of 3.5 per cent in 2014.
As a result, and for the first time in eight years, those same companies expect a revenue increase of 3.7 per cent for the same period - suggesting marketing budgets are increasing at roughly the same rate as revenues.
"This is positive news for tech marketers," says Sam Melnick, Senior Research Analyst, IDC CMO Advisory Service, who believes the findings show a clear indication that the C-suite is ready to put additional marketing investment up against more promising business prospects.
"However, both the CMO and CEO must understand that momentum is being driven by success in 3rd Platform solution areas. To continue this growth, executives must continue to invest to be competitive in these high-upside segments."
Despite this momentum, IDC believes the CMO role remains "very fluid" as marketing organisations attempt to reinvent their capabilities and effectiveness in a new era of marketing.
In a related study, IDC finds that 51 per cent of tech CMO's have been in their position for fewer than two years.
"We examined 152 tech companies with a current CMO in place and found that 77, just over half, have replaced their CMO in the last 24 months -- an astonishing rate of change," adds Kathleen Schaub, vice president, IDC CMO Advisory Service.
"CMOs must own the digital disruption of buyer experience for their companies. Those CMOs able to rise to the challenge will be provided more resources and given more power. The unprepared will be replaced.
"However, tech CEOs must also wake up to the impact marketing now wields over revenue and reputation. It's their job to pick the right person for today's challenges. To get CMO selection right means the CEO needs to understand and get closer to marketing."
Two-thirds of the companies surveyed by IDC will increase their marketing budgets in 2014 while only 20 per cent of the companies will decrease their marketing budgets with the remainder indicating no change in budget levels.
Notably, companies with a high percentage of 3rd Platform products (cloud, social, mobile and Big Data and analytics) will receive marketing budget increases upwards of five times that of the average tech company, increasing their budgets 10-20 per cent year over year.
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