Key Findings

  • According to the latest Gartner CMO Spend Survey, nearly two-thirds (62.6%) of media spending in 2026 is allocated to conversion and awareness campaigns, a 10% increase from 2024.
  • Although many organizations aim to use AI applications to reduce labor costs, CMOs are still investing in talent. The survey shows that labor costs will account for 24.5% of marketing budgets in 2026, up from 21.9% in 2025.
  • These findings highlight the importance of new customer acquisition and growth for marketers. Spending on loyalty and retention currently accounts for less than 15% of total media spending, a 29% decline over the same period.

Deep Insights

According to the latest Gartner data, digital channels continue to rapidly outpace offline channels in total media spending, primarily because CMOs face increasing pressure to adopt AI solutions that offer optimization and personalization capabilities.

However, the report notes that a focus on digital channels and short-term optimization may harm AI readiness. Gartner found that organizations allocating a larger proportion of their budget to loyalty and customer retention tend to have higher AI maturity. This suggests that organizations with lower AI readiness may be overemphasizing channels that are easier to measure and automate.

"AI can help marketers optimize faster, but optimization is not strategy," said Ewan McIntyre, Vice President, Analyst, and Research Lead in the Gartner Marketing practice, in a press release. "CMOs must be wary of letting AI steer too much budget toward the most easily adjustable channels and journey stages, while neglecting touchpoints that build long-term customer value."

The CMO Spend Survey covered 401 CMOs in North America, Europe, and the UK. Respondents came from various industries, company sizes, and revenue levels, with the majority at companies generating over $1 billion in annual revenue. The survey is conducted annually, with the most recent one conducted from January to March 2026.

Although AI is a priority for marketers, few CMOs believe they are using the technology correctly. Previously released data from the survey found that,70% of CMOsare unable to properly implement and scale relevant technology initiatives, primarily due to insufficient internal processes. Only 30% of CMOs believe their organizations have the necessary infrastructure to meet AI goals. A lack of internal AI expertise also hinders adoption, with 38% of respondents citing it as a major barrier to achieving technological efficiency.

Finding talent with the AI skills needed to meet key benchmarks can be a challenge. According to data released by Gartner in February, only32% of marketersbelieve they need to personally update relevant technical skills.