CMOs Take Optimistic View of the Economy

Top marketing executives at U.S. firms are more optimistic about the economy and their own companies, with company performance indicators such as revenue, profits and new jobs climbing across the board, says an annual study by Duke University’s Fuqua School of Business and the American Marketing Association. Findings include:

• CMOs rated the U.S. economy at 63 on a scale of 0-100, up from a rating of 56 in August 2010. Nearly 69% of marketing executives reported they were more optimistic about the U.S. economy, compared to 26% the previous quarter.

• CMOs expect higher customer purchase volume, higher prices, more new customers entering the market and better customer retention.

• Spending on social marketing continues its upward trend. CMOs say their organizations currently spend 6% of their marketing budgets on social media campaigns and promotions, but that figure will triple to 18% over the next five years.

• Advertising will see gains in the next year, with spending on traditional ads expected to rise more than 2%—the first foray into positive territory since before February 2009.

Source: Fuqua School of Business/American Marketing Association