Despite economic uncertainties, the majority of advertisers are planning to keep their marketing budgets the same or even increase them in 2025, shows the survey. 

At the same time, according to the survey, there is a growing appreciation of the importance of branding. 

The survey further shows that artificial intelligence (AI) is increasing creativity and cost efficiency, but a lack of skills in this area is posing a problem.

 

Report Highlights

According to DMEXCO, the report highlights include: 

  • Despite recession: 77% of marketing decision-makers are planning to keep their marketing spend the same or increase it.
  • Brand first: 31% feel they need to catch up in terms of branding measures.
  • Purpose is no longer a challenge: Sustainability and brand safety are only a major challenge for 8% and 10% respectively.
  • Social is dominating: 95% of the brands surveyed use social media, while 74% want to invest even more in this channel.
  • AI is reducing costs: 60% benefit from AI boosting creativity, while 54% want to reduce the money spent on agencies and other service providers. However, a lack of AI knowledge is a major challenge.

The results of DMEXCO's recent special survey exploring the agenda of CMOs for 2025 paint a clear picture: Even in these turbulent times, marketing departments are still investing in growth and innovation. While the budgets for social media and influencer marketing are continuing to rise, long-term brand building is gaining relevance again.

At the same time, the survey reveals that AI is becoming increasingly important for marketing decision-makers, but many companies still have knowledge gaps to close.

 

Report Findings 

According to DMEXCO, the report findings include:

Marketing Budgets Will Increase Slightly

The survey shows that marketing budgets are expected to stay the same or increase slightly over the next 12 months:

  • 34% of respondents anticipate a slight increase in their spending
  • 32% expect it to remain at the current level, and 
  • only a small proportion (3%) anticipate a significant reduction in their marketing budgets. 

That sends a clear signal: Marketing has become much more relevant for companies, making it one of their key tasks — even in such uncertain times.

 

A Return to Branding

Branding is becoming more of a priority again:

  • 31% of those surveyed said they have invested too much in performance and too little in their brand in recent years
  • only 8% have invested too much in strengthening their brand

  • 32% said they would be investing more in branding in the future, and
  • only 36% said they measure their marketing success over longer periods of time. 

"The return to a brand-focussed strategy is a strong indication that companies have realised how important it is to instill their brand in the minds of consumers. Performance marketing is vital, but it becomes less effective without a strong brand," says Verena Gründel, DMEXCO's Brand and Communications Director.

"We're seeing that companies are wanting to correct their mistakes from the past by investing more in branding. Striking a balance between short-term success and long-term brand building is the key to sustainable success. However, that also needs to be measured over the long term," adds Gründel. 

 

Data Quality and ROI Are the Top Issues, While Sustainability Is Still Secondary

The biggest challenges that the marketing departments surveyed aim to tackle in the next 12 months are with 51% data quality for personalisation and targeting and with 47% measuring the ROI of marketing activities.

That's no surprise. In an increasingly data-driven world, the quality of data can determine the success or failure of campaigns.

In contrast, attitude-related topics seem to be regarded as less of a challenge; only 8% feel that the integration of sustainability into their marketing strategy is one of the biggest challenges — and a mere 10% said the same about brand safety and responsible media.

"In recent years, the digital industry has already made a successful start on developing new targeting solutions and methods. We've thus turned a challenge into an opportunity. That makes us the best partner for working with advertisers in order to tackle the challenges they face," says Dirk Freytag, President of the German Association for the Digital Economy (BVDW), the ideational and professional partner of DMEXCO. 

"A similar development is emerging in terms of sustainability and responsible media. It's clear to us that we can only bring about positive change together with all stakeholders. We invite all CMOs to join us along that journey," adds Freytag.

 

Social Media and Influencer Marketing Are Growing Significantly

Social media is still the powerhouse in marketing and, at 95%, is the most-used marketing channel, followed by:

  • display ads with 78%
  • DOOH with 45%, and
  • influencer marketing with 41%.

Also going forward, the majority of respondents plan to invest mainly in social media (74%) and influencer marketing (47%), which highlights the importance of these channels in modern marketing.

However, budgets are also expected to increase for:

  • retail media (28% aim to invest more here)
  • DOOH (26%)
  • digital TV (21%), and
  • digital audio (21%).

 

AI: A Lack of Knowledge Is the Biggest Challenge

AI is continuing to influence marketing:

  • 84% of the survey participants already use AI for generating text
  • 61% for translations, and
  • 56% for creation and asset generation.

The biggest benefits of using AI are:

  • relief for the team (74%)
  • an increase in creativity and innovation (60%)
  • less spending on agencies (54%), and
  • to reduce operational costs (47%). 

DMEXCO concludes that the fact that AI has made its way into marketing departments is a positive development, but the results also show that many companies aren't yet optimally prepared for this change.

For 63%, a lack of AI knowledge is the biggest challenge, followed by legal concerns of the company with 61% and a lack of clarity of the AI market with 56%.

 

For more information, visit www.dmexco.com. You can also follow DMEXCO on Facebook, LinkedIn, X, or on Instagram. 

*Image courtesy of contributor