Marketing in 2025: AI, uncertainty and the hidden cost of standing still

We are at a unique time in history. Enabled by technology, marketers can deliver the right message to the right prospect at the right time based on their unique characteristics. Marketing can influence enterprise value, unlike ever before.

Yet, marketing efforts are tempered by a backdrop of economic uncertainty. Whispers of a slowdown led many companies to freeze or rethink their marketing strategies. This deep freeze didn’t only impact marketing. Many small and midsize businesses report a significant stall in their broader business development efforts, which frames fundamental changes that companies need to make to their approach.

Marketing used to be centered on big, bold creative concepts but has evolved into a domain ruled by data, activations and analytics. Also, the impact of generative AI can’t be minimized, up 116% vs. last year. We’re seeing a strategic recalibration, with dollars flowing toward areas of higher ROI and long-term value creation.

For our annual benchmark on marketing spending and practices, we once again lean on the findings from the CMO Survey, a joint effort from Duke University, Deloitte and the American Marketing Association.

As we reported last year, our strategic advisory clients with revenue between $20 and $400 million spend only 2% of their revenue on marketing. That’s far below what CMO Survey companies spend, yet it’s these year-to-year benchmarks that make this data useful to the rest of us.

Uncertainty hits, but digital powers on

The headline numbers from the CMO Survey show a contradictory tension — 44% of respondents said they decreased their marketing spending in the past 12 months, largely due to inflationary pressures and economic caution. Only 14% reported an increase. Yet, there has been a retreat from tariff-war hysteria, reflecting a potential shift in the tide. There are large variances in spending by sector:

Total marketing budgets are expected to grow 3.3% in 2025, with digital marketing increasing 7.3%. That disparity provides an important learning: marketing leaders aren’t cutting indiscriminately. They’re reallocating — away from brand spend and traditional channels, toward digital platforms with measurable ROI. This approach can be taxing on smaller marketing departments that do not have specialized staff or the powerful analytics that larger companies deploy. But where investment is being deployed is shifting. For example, new product introductions are down 27%:

Doubling down on core markets

Another nugget from this year’s survey — companies expect 13% growth in their largest market segment over the next year. That’s a powerful signal.

In uncertain times, businesses are betting on their base. For midsize B2B firms, that often means refining ideal customer profiles (ICPs), optimizing their sales funnel, and leaning into performance marketing over brand-heavy campaigns.

Data overload

The single fastest-growing challenge for marketing leaders today? “Finding and utilizing useful data.” Not gathering data — using it. Most private companies are not measuring customer lifetime value (CLV), customer acquisition cost (CAC) and return on marketing investment (ROMI). What’s worse: only a third of companies claim to be using AI and automation to improve performance.

What do your customers actually care about? Customer service is table stakes. Most customers will trade superior product quality over price.

Slow AI adoption

Despite the AI hype, only 10% of companies are fully using large language models (LLMs) like ChatGPT in marketing, and 51% are still in testing or pilot phases. Yet, companies using AI are outgrowing their markets by 3.4% — a sizable edge in tight-margin sectors.

The tools are ready. For SBMs, practical AI adoption might look like:

• Seamless.AI to auto-build prospect lists
• Synthesia for video content without hiring a production crew
• Jasper for landing pages, email campaigns and split-tested copy
• SurferSEO to boost organic search rankings with AI-informed content strategy

Channel partnerships are back in vogue

Another subtle yet meaningful shift: Companies are relying more on channel partners to reach customers. This is especially common in sectors where the cost of direct sales is rising or where margins require a lean go-to-market strategy. We’re seeing a resurgence in affiliate strategies, white-label distribution and co-marketing partnerships.

E-commerce down from COVID highs, still above baseline

Companies selling products online report a predictable pattern: post-COVID ecommerce sales are down, but still significantly above pre-pandemic levels. Self-service, transparency and instant access to pricing and specs are the new norm. If your website isn’t your top-performing sales rep yet, it’s time for a performance review.

Driving impact

Even with more money flowing into marketing, senior leaders are struggling to consistently implement key activities that drive business impact. The table below highlights which challenges are gaining urgency — and which have slipped — between 2023 and 2025. Notably, data and analytics is the fastest-growing pain point, while proving marketing’s financial impact remains the top ongoing concern.

Action Plan: Moves to maximize your 2025 marketing

1. Audit where 80% of your profits come from. If you’re spreading your marketing thin, now’s the time to realign resources around your high-margin core.
2. Overcommunicate: During times of economic uncertainty, sales and marketing teams need to ramp up communication and keep potential customers on the hook.
3. Streamline your stack: Eliminate unused platforms. Focus on tools that integrate seamlessly (HubSpot, Airtable, Looker Studio).
4. Experiment with AI: Run pilot projects with Seamless.AI and Synthesia. Use Jasper to test copy variations.
5. Double down on your core: Allocate more budget to markets where you’re already winning. Use 80/20 logic.
6. Reskill your team: Your generalist marketer now needs data chops and AI fluency. Invest in training or outsource.
7. Build a benchmark culture: Don’t guess. Use data to validate your investment levels.

The companies growing in 2025 aren’t spending more — they’re spending smarter. They’ve embraced AI not as a gimmick, but as a growth engine. They’ve refocused on the markets that love them most. And they’ve replaced marketing theater with performance-driven execution.

So ask yourself: Is your marketing department a cost center or your growth engine? The time is now to leverage marketing to enable sales.

Related Resources

Small business confidence rises; costs, tariffs bite margins [WSJ/Vistage May 2025]

How business owners will adapt to AI

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