The Macro Squeeze

Budgets are shrinking. In 2024, marketing spend dropped to 7.7% of revenue, down from 11% pre-pandemic. Inflation, supply chain drama, and geopolitical chaos mean CMOs are being asked to do more with less. The kicker? Nearly two-thirds of them admit they don’t even have enough budget to execute the plans they already promised.

The New Mandate

CEOs are blunt: marketing has to move from cost center to growth engine. That means attribution, reporting, and financial literacy aren’t “nice to haves” anymore. They’re the ticket to stay in the game. And yet, 93% of marketing leaders say proving marketing’s value inside the company is one of their hardest challenges.

The Short-Term Trap

Under pressure, brands cut brand spend and pump everything into performance. Right now, most companies are running a lopsided 70/30 split in favor of short-term tactics. It feels safe because you can measure it immediately. But that short-termism creates a vicious cycle:

• Starving brand equity shrinks the top of funnel.

• That makes performance media more expensive.

• CAC climbs, ROAS falls, and suddenly marketing looks inefficient.

• Cue more budget cuts.

It’s a hamster wheel of justification, not growth.

The Playbook to Escape the Gauntlet

The brands that win in this environment are the ones that:

1. Use cohort analysis as their compass — not just reporting vanity metrics, but proving which customers are profitable and how quickly.

2. Balance long- and short-term investments — protecting brand while squeezing performance.

3. Build a revenue narrative in boardroom language — LTV:CAC, payback period, margin impact. Not “reach and impressions.”

Bottom Line

Marketing leaders aren’t just fighting for market share anymore; they’re fighting for credibility inside their own companies. The only way out of the justification gauntlet is to play the finance game better than anyone else — and use the numbers to prove growth before someone else cuts your budget.