Summary of the Citi CMO Survey - Global Advertising Industry Overview - The survey focuses on the global advertising industry, specifically the perspectives of Chief Marketing Officers (CMOs) from various countries including Brazil, India, China, the UK, and the US [27][28]. Key Findings 1. Marketing Budget Growth Expectations - CMOs expect marketing budgets to grow by approximately 3.5% over the next 12 months and 6.1% over the next 2-3 years, indicating a compound annual growth rate (CAGR) of 2.0%-3.0% [49][50]. - This growth outlook has deteriorated compared to previous surveys, where expectations were 4.2% for the next 12 months and 8.3% for the next 2-3 years [49][50]. - The outlook for specific markets shows a cautious stance, with China expected to grow by 4.0% (down from 10.8%) and the US by 3.2% (down from 4.9%) [50][51]. 2. Shift from Traditional to Digital Media - Digital media is projected to increase its share of the media mix from 47% today to 54% in 12 months and 60% in 2-3 years [3][70]. - Key areas of growth within digital include short-form video, Connected TV, Retail Media, and Influencer Marketing [3][61]. - Traditional media, particularly linear TV, is expected to see a significant decline in budget allocation [3][62]. 3. Return on Advertising Spend (ROAS) - CMOs view Search as delivering the best overall ROAS, followed by Social Media and Connected TV [71][72]. - There is a noted improvement in ROAS perceptions for Retail Media, while traditional media like TV has seen a deterioration in perceived effectiveness [75][76]. 4. Incremental Spending and Budget Sources - A significant portion of the increased spending in new channels is expected to be incremental, with 18%-25% of the budget coming from new allocations rather than reallocations from existing budgets [78]. - 76% of respondents plan to increase spending on Connected TV, 70% on Retail Media, and 68% on Short-Form Video [77]. 5. Performance of Social Media Platforms - Instagram Reels is identified as the best-performing platform for sales conversion with a net score of +65, followed by YouTube Shorts at +58 [85]. - Platforms like Pinterest and Snapchat Spotlight are underperforming with negative scores of -26 and -30, respectively [86]. Additional Insights - The survey indicates a defensive positioning among CMOs, with a shift in priorities towards shorter-duration marketing investments rather than long-term projects [3]. - The importance of agencies remains high, with 61%-86% of respondents indicating that using agencies is 'very important' for their marketing strategies [3]. Conclusion - The Citi CMO Survey highlights a cautious but evolving landscape in global advertising, with a clear shift towards digital media and a focus on maximizing ROAS. The findings suggest that while growth expectations have moderated, there are still significant opportunities in emerging digital channels.
Global Advertising_ Citi CMO Survey_ Storm Clouds Gathering; Seek Refuge in Digital