Gartner's 2026 CMO Spend Survey puts marketing budgets at 7.8% of company revenue, up only slightly from 7.7% in 2025. In the same survey, 56% of CMOs said their marketing organization lacks the budget required to deliver its 2026 strategy. As year-end execution and 2027 planning overlap this quarter, that gap is where next year's results will be won or lost.
Flat budgets, bigger expectations
"CMOs are being asked to deliver growth, efficiency and transformation without meaningful budget expansion," said Ewan McIntyre, VP Analyst and Chief of Research in Gartner's Marketing practice. "Those who succeed will make deliberate, data-driven trade-offs and treat AI as a force multiplier."
AI shows the pressure clearly. CMOs are putting an average of 15.3% of marketing budgets toward AI initiatives, yet only 30% report mature or fully developed AI readiness capabilities, according to the same survey. New priorities are being funded from budgets that aren't growing, which means something else has to give.
Why spreading the budget thin backfires
When money is tight, it's tempting to keep every program alive at a lower level. The result is often a plan where nothing gets enough support to work, and no one can say which investments are driving growth.
A sharper plan does the opposite. It ranks priorities against business goals, gives every dollar a clear job and sets aside a defined amount for what's next. It also agrees up front how results will be judged, so budget moves are based on evidence rather than the first few weeks of data.
Four things to consider
1. Set priorities first
Start with the business goals that matter most next year. Then decide what marketing needs to deliver now and what it needs to build for mid- and long-term growth. Rank those priorities, so trade-offs are made on purpose instead of by default.
2. Give every dollar a clear job
Every partner, tool and tactic should have a defined role in the plan and a connection to growth and revenue. Spend that can't be tied to a clear role is the first place to look when the budget won't stretch.
3. Agree on evidence before you reallocate
Set the KPIs and realistic timelines for each investment before it starts. Brand building, new channels and AI pilots rarely prove themselves in a few weeks, and a clear measurement framework keeps budget shifts from following short-term noise.
4. Fund what's next on purpose
Set aside a defined amount to test new channels, tools and AI, with success measures agreed in advance. Fund it through deliberate trade-offs, not by trimming everything else a little.
A flat budget isn't a ceiling
A flat budget isn't a ceiling on growth. An unfocused plan is. The fourth quarter is the right time to make the hard choices, while there is still room to set 2027 up well rather than rework it in the first quarter. We would start with the trade-offs.
Questions to ask your team
Which three goals matter most to the business in 2027?
What spend can't we tie to a clear role in the plan?
How will we judge each investment, and over what timeline?
What are we willing to stop doing to fund what's next?
From Insight to Impact
Want a 2027 plan built on clear priorities?
Our Marketing Diagnostic and Strategic Priorities & Recommendations give you a ranked view of where to focus, what to fund and how to measure progress, so your 2027 trade-offs are made on purpose. See what's included, and the sample pages behind them.
Sources
Gartner: 2026 CMO Spend Survey finds CMOs allocate 15.3% of marketing budgets to AI, but only 30% are ready to scale AI capabilities (May 11, 2026)Gartner's survey was fielded January through March 2026 among 401 CMOs and marketing leaders in North America, the U.K. and Europe; most respondents report annual revenue of more than $1 billion.
