Study: 82% of marketers say marketing budgets face increased scrutiny as risk rises

Marketing is facing heightened internal scrutiny as global brands tighten controls over budgets and messaging amid growing geopolitical and economic risks. A new study by the World Federation of Advertisers found that 82% of senior marketers say budgets are under greater scrutiny than a year ago.

Conducted by WFA in partnership with transformation consultancy The Intangibles, the results are based on 29 responses from CMOs and senior policy leads, mostly in global roles, at some of the world’s leading brand owners. Collectively they represent US$65 billion of annual marketing expenditure.

Half of the respondents reported increased pressure from boards while 52% said that CEOs are more involved in campaign oversight. This shift reflects how marketing is being managed more cautiously at the highest levels. This is especially since 81% of respondents describe today’s operating environment as riskier than twelve months ago, said the study. 

In response, brands are stepping up due diligence in their marketing communications and fostering closer cross-functional collaboration to mitigate risks. Many have also established clearer accountability frameworks and are taking additional precautions with influencer partnerships.

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The study also reveals that 81% of marketers are investing more time in defining their brand purpose and external messaging, while half admit short-term objectives and risk management are now taking precedence over long-term brand building.

The unpredictable environment has also prompted brands to rethink their investment priorities. Nearly seven in 10 say they are shifting the markets they prioritise for marketing spend, while more than eight in 10 sense a broader retreat from globalisation.

Risk management is rising on the marketing agenda too, with 74% applying greater scrutiny to communications and 61% developing clearer responsibility frameworks. Meanwhile, 53% report taking extra steps to reduce risks linked to influencer collaborations.

“There’s no doubt the waters are choppier than they have been before. There is risk in most aspects of strategy and planning for businesses and brands. What we have noticed is that clients who have invested in longer term thinking, platforms, frameworks and scenario planning, clients who are consistently monitoring against their specific risk profile, are making better decisions. Having a compass in a storm is not a nice to have its a mandatory,” said Jon Wilkins, founding partner of The Intangibles.

Marketing budgets have long been a battleground for brand owners, balancing growth ambitions with risk management. In fact, this tightening comes alongside rapid changes in technology and regulatory environments. With AI and social media platforms evolving fast, marketers face new challenges in compliance and creative innovation, all while under the microscope of internal stakeholders.

According to a separate study by Deloitte, over 60% of marketing leaders in APAC have integrated AI into their marketing strategies, with a significant focus on customer segmentation, personalised marketing, and predictive analytic.

On average, 20% of the marketing budget in APAC organisations is now allocated to AI technologies. 

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