Our Terms & Conditions | Our Privacy Policy
Marketing budgets are under increased scrutiny as global brand owners try to avoid risk in an increasingly unpredictable world.
Research by the World Federation of Advertisers (WFA), in partnership with transformation consultancy The Intangibles, found that 82% of global marketers and senior policy leads agree (strongly agree, agree or somewhat agree) that budgets and campaigns are under heavier scrutiny than a year ago.
“Brand executives clearly sense a more unpredictable and volatile market,” said WFA CEO Stephan Loerke.
“They are being asked to manage risk while also delivering on growth objectives.
“Greater due diligence, enhanced cross-functional collaboration and risk mitigation frameworks are all demonstrating their value in an operating environment where stakeholder scrutiny is at a record high.”
The research is based on 29 responses from CMOs and senior policy leads, mostly in global roles, at some of the world’s leading brand owners. Collectively they represent $US65 billion of annual marketing spend. The survey was conducted in April and May 2025.
Gartner’s 2025 CMO Spend Survey showed flat growth in marketing budget, at 7.7% of company revenue for the second year in a row.
While marketing budgets have stabilised, marketing spending has stalled at a level that falls short for many CMOs who may also face mid-year cuts.
The WFA research shows half those surveyed feel under greater pressure from the board and 52% say the CEO is paying closer attention to marketing campaigns than they were a year ago.
Eight in ten (81%) are taking more time to review what they stand for and how they articulate positions and values externally.
Half are now spending more time focusing on short-term objectives and risk management at the expense of long-term strategic planning.
Most (93%) agree the operating environment is less or much less predictable than 12 months ago, that it no longer feels like ‘business as usual’ (78%) and 81% agree that today’s environment is riskier for brands compared with 12 months ago.
Many are also reviewing where they invest, with more than eight in 10 (82%) saying the current environment feels like a retreat from globalisation and 68% are actively changing the markets they prioritise for marketing investment.
They are also becoming more pessimistic with 60% disagreeing with the statement that it feels there are “more opportunities than challenges”.
Full results of the research will be released at Cannes Lions on June 18.
When evaluating the sources of risk, respondents cited the geopolitical environment (8.4 out of 10 where 10 is greatest risk), economic trends and outlook (8.1) and tightening regulations (6.9).
There were also concerns about the policies and practices of the big social media platforms (6.1) and fast-moving technologies such as AI (6.3).
The result of greater scrutiny and uncertainty has, according to WFA’s research, led to changes in marketing practices compared to last year, including:
- 74% are applying greater due diligence in relation to their marketing communications;
- 74% agreed there is greater cross-functional collaboration than 12 months ago with a view to mitigating risk;
- 61% are developing a clear responsibility framework to mitigate against risk in marketing; and
- 53% are taking additional steps to reduce any potential risk presented by working with influencers.
“There’s no doubt the waters are choppier than they have been before,” said Jon Wilkins, founding partner of The Intangibles.
“There is risk in most aspects of strategy and planning for businesses and brands. What we have noticed is that clients who have invested in longer term thinking, platforms, frameworks and scenario planning, clients who are consistently monitoring against their specific risk profile, are making better decisions. Having a compass in a storm is not a nice to have, it’s a mandatory.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
Aggregated From –
Comments are closed.