SHORT ANSWER
Marketing budgets fell from 11% of revenue in 2020 to 7.7% in 2025, according to Gartner. That’s a 30% cut, while sales targets stayed the same. This is why marketing embraced AI before anyone else: not for fun, not for hype, but for survival. Pressure creates efficiency, and efficiency creates adoption.
Now it’s 7.7%. That’s a 30% cut.

Sales targets?
Still the same.
This is why marketing embraced AI before anyone else.
Not for fun. Not for hype.
For survival.
Pressure creates efficiency.
Efficiency creates adoption.

If you’re in marketing today, you don’t have a choice.
You need to do more with less.
And AI is the way.
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Questions
How much of revenue do companies spend on marketing?
According to Gartner, the average marketing budget fell from 11.0% of total revenue in 2020 to 7.7% in 2025. That’s a 30% cut, and sales targets are still the same.
Why did marketing adopt AI before other functions?
For survival. Budgets were cut by 30% while sales targets stayed the same, so marketers need to do more with less. Pressure creates efficiency, and efficiency creates adoption. McKinsey’s chart shows marketing and sales as the functions where organizations most regularly use gen AI.