Marketing Budgets Stay Flat, Says Gartner

Marketing leaders are under pressure to deliver growth through AI while managing budgets that have barely changed from the prior year. According to Gartner's 2026 CMO Spend Survey, companies are allocating an average of 7.8% of revenue to marketing, up just 0.1% from 2025.

The survey collected responses from more than 400 marketing leaders across North America, the UK and Europe between January and March 2026. Most respondents work at companies generating annual revenue above US$1bn.

Gartner experts shared the survey findings at the Gartner Marketing Symposium/Xpo in London on 11 May.

Constrained budgets and rising expectations

Ewan McIntyre, VP Analyst and Chief of Research at Gartner, previously wrote in a 2023 Harvard Business Review article that single figure percentage budgets were "the new normal" for advertisers following the end of the pandemic spending boom.

"CMOs recognise AI's potential as a force multiplier for growth, efficiency and transformation, but most marketing organisations are not yet built to capture that value," Ewan says, discussing the 2026 survey.

"The risk is that CMOs invest in AI tools faster than they build the data foundations, processes, governance and talent required to scale them."

Within allocated budgets, marketers are directing an average of 15.3% toward AI initiatives, according to the survey. Brands now use gen AI for chatbots, virtual focus groups, automated creative production, media measurement and buying tools.

Readiness lags behind ambition

The survey found 70% of CMOs believe becoming a leader in AI technology is a critical goal for 2026. However, 70% also acknowledge that their internal marketing processes are not ready to effectively implement and scale AI.

This gap between ambition and capability is emerging as budgets remain flat. The static fiscal environment is increasing pressure on CMOs to push for more AI transformation through sharper prioritisation and resource reallocation.

CMOs whose organisations report mature or fully developed AI readiness capabilities are establishing an early advantage. The more AI-ready marketing companies allocate an average of 21.3% of their marketing budgets to AI initiatives, compared to the survey average of 15.3%.

These companies also report average marketing budgets of 8.9% of company revenue, above the 2026 average of 7.8%. According to the survey, AI maturity could separate marketing leaders from those falling behind.

"The most advanced CMOs are not simply spending more on AI," Ewan adds. "They are creating the budget agility, innovation capacity and operating discipline needed to turn AI investment into measurable business impact."

Brands integrate AI into operations

Several large brands are implementing AI into their marketing operations and positioning it as integral to strategy.

Nic Brandenberger, Chief Marketing Officer at Mammut, told Digiday: "We've been working early on with specialised partners to generate learnings as the [AI] tech evolves, not waiting until it covers all the needs we have."

Nic said Mammut had built its latest campaign around AI, using a Gemini-powered chatbot to respond to negative feedback on YouTube and X for its "take a hike" positivity campaign.

Mammut isn’t the only advertiser to implement measures such as these into its marketing.

TripAdvisor now handles 40% of its customer support inquiries through AI chatbots. Matt Goldberg, President and CEO of the company, said on a May earnings call: "AI is now a critical part of our infrastructure, increasing the speed at which teams can build, test, and deploy."

Leadership under scrutiny

Gartner's research says 80% of CEOs expect AI to provide a "significant degree of change". However, not all marketers believe they can meet that expectation.

While 70% said that "AI leadership" was a critical goal for 2026, more than half of CMOs surveyed say their team lacked the budget required to meet annual objectives. The survey adds that 56% said their budgets would be cut if they missed their goals.

"CMOs are being asked to deliver growth, efficiency and transformation without meaningful budget expansion," Ewan adds. "Those who succeed will make deliberate, data-driven trade-offs and treat AI as a force multiplier."