Dive Brief:
- Nearly two-thirds, or 62.6%, of media spend in 2026 is being directed toward conversion and awareness, a 10% increase from 2024, according to newly released data from Gartner’s CMO Spend Survey.
- CMOs also are investing in human talent, despite AI adoption being a goal for many organizations in an effort to reduce labor costs. The survey found labor accounted for 24.5% of marketing budgets in 2026, up from 21.9% in 2025.
- The findings signal the importance of new customer acquisition and growth for marketers. Loyalty and retention now accounts for less than 15% of overall media spend, a 29% decrease over the same period.
Dive Insight:
Digital channels continue to rapidly overtake offline ones in terms of overall media spending, largely due to CMOs feeling increased pressure to adopt AI solutions that offer optimization and personalization, per recent Gartner data.
However, the focus on digital channels and short-term optimization may be hurting AI-readiness, according to the report. Organizations that direct a larger share of their budget to loyalty and customer retention tend to be more AI-mature, per Gartner. This implies that less AI-ready organizations may be putting too much emphasis on channels that are easier to measure and automate.
“AI can help marketers optimize faster, but optimization is not the same as strategy,” said Ewan McIntyre, vice president, analyst and chief of research in the Gartner Marketing practice in press materials. “CMOs must guard against letting AI steer too much budget toward the channels and stages of the journey that are easiest to tune, while underinvesting in the touchpoints that build long-term customer value.”
The “CMO Spend Survey” includes responses from 401 CMOs across North America, Europe and the U.K.. Respondents were from a variety of industries, company sizes and revenue, with most working for companies with an annual revenue of $1 billion or more. The survey is conducted annually, with the most recent survey fielded January through March 2026.
While AI is a priority for marketers, few CMOs feel they are able to leverage the technology properly. Previously released data from the survey found 70% of CMOs are unable to implement and scale initiatives surrounding the technology properly, largely due to inadequate internal procedures. Just 30% of CMOs feel their organizations have the necessary infrastructure to meet AI goals. A lack of internal AI expertise is also hindering uptake, with 38% of survey respondents citing it as a key barrier to achieving efficiency with the technology.
Finding those with the AI skills necessary to reach key benchmarks may prove to be a challenge. Only 32% of marketers feel they need to personally update their skills surrounding the technology, per Gartner data released in February.
