How much should companies really be investing in marketing in 2026? It’s the question every CMO is negotiating with their CEO and CFO right now – and the answer is rarely straightforward.

According to Gartner, nearly 60% of CMOs believe their current budgets are insufficient to meet 2025 goals, even though spend has held steady at around 7.7% of company revenue. That gap is forcing leaders to rethink not just the size of their budgets, but how they’re structured, defended, and aligned to company priorities.

In our recent Coffee Chat, we gathered three powerhouse perspectives to discuss the frameworks, benchmarks, and strategies that will shape 2026 marketing budgets:

• Christine Royston (CMO at Wrike) – sharing her hands-on budgeting process and how she negotiates for more investment.
• Malina Johnson (Global Marketing Exec & AI Leader at Microsoft) – explaining the frameworks and psychological tactics she uses to align spend with growth priorities.
• Matan Hazanov (Managing Partner, Enigma Venture Partners) – offering the investor’s view on optimal spend, benchmarks, and what pitfalls to avoid.

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Here’s what we covered 👇

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Table of Contents

1. The Economic Outlook for 2026
2. Frameworks for Smarter Budget Planning
3. Key Considerations for CMOs
4. Where AI is Driving Efficiency (and Reinvestment)
5. Negotiating With the C-Suite
6. Key Takeaways + Resources

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1. The Economic Outlook for 2026

Budget planning doesn’t happen in a vacuum – it happens in the context of broader economic forces.

According to Matan, the 2026 outlook is more positive than what many CMOs faced in 2025. A few tailwinds are worth noting:

• 📉 Falling interest rates are unlocking more flexibility for investment.
• 🤖 AI adoption is opening both efficiency gains and new growth opportunities.
• 💸 Investor sentiment is shifting – capital is flowing more freely, and businesses are more willing to invest.

Curious for more details? Watch Matan share his perspective on the Economic Outlook for 2026 below.

For CMOs, this means that while budgets may not skyrocket overnight, the macro environment is friendlier than it has been in recent years. Companies are cautiously optimistic, and marketing leaders who can clearly tie spend to growth will find more open doors at the executive table.

📌 The message: this is a year to push for strategic investment, not just survival.

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2. Frameworks for Smarter Budget Planning

One of the strongest themes from the conversation was the need to stop anchoring budgets in the past. Both Christine and Malina stressed that too often budget planning starts with “last year plus a little more (or less).”

✅ Instead, they’ve built their processes around future growth goals and alignment with company priorities.

Malina described how, at Microsoft, her teams are asked to model three scenarios – best case, base case, and conservative – each tied to ROI and mapped back to the company’s strategic objectives. Those models are then validated across business leaders, ensuring everyone speaks the same language before numbers are finalized.

Importantly, she also carves out 20% of the budget for innovation. That guarantees space for experimentation even in lean times and helps the organization avoid getting stuck in yesterday’s playbook.

Christine takes a similar approach but adds another dimension: time. In her view, experimentation shouldn’t just be funded, it should be part of how teams operate.

👉 Her approach:

• Encourage teams to spend 10-15% of their time experimenting with new channels or tactics.
• Balance spend between programs and headcount, especially as AI reshapes team structures.
• Recognize that the demand vs. brand split should vary based on company stage – there’s no one-size-fits-all formula.

Together, their perspectives highlight a simple but powerful shift:

Budgeting is no longer about dividing a fixed pie – it’s about telling a story that connects spend to growth, efficiency, and innovation.

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3. Key Considerations for CMOs

Knowing how to allocate a budget effectively starts with understanding the right benchmarks, but these aren’t one-size-fits-all numbers. The speakers shared insights drawn from hundreds of companies and first-hand experience:

1️⃣ Marketing spend as a percentage of revenue sits around 7-8% on average, but the optimal figure depends on growth stage, business model, and market conditions. Startups may require higher spend to fuel growth, while mature organizations focus on efficiency.

2️⃣ Christine highlighted that the split between demand and brand investment should flex with company stage. Scaling companies often lean toward demand generation, while established brands may prioritize awareness and reputation-building initiatives.

3️⃣ Headcount versus program investment is shifting as AI reshapes teams. Microsoft, for example, replaced 20 designers with 8 designers and 2 AI experts, maintaining output while lowering costs. This demonstrates how efficiency gains can free budget for high-value activities.

Watch this short snippet of Malina explaining how Microsoft restructured its design team around AI expertise.

Key benchmarks to keep in mind:

• 💰 Marketing spend ~7-8% of revenue (adjust based on growth stage)
• ⚖️ Demand vs. brand allocation varies by company stage
• 👥 Headcount vs. program investment – AI can reduce the need for large teams
• 📈 ROI-based modeling ensures spend aligns with measurable outcomes
• 🔄 Scenario planning (best, base, conservative) helps teams prepare for uncertainty

These benchmarks provide CMOs with reference points to structure budgets strategically, negotiate with executives, and measure marketing impact with confidence.

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4. Where AI is Driving Efficiency (and Reinvestment)

AI is reshaping how marketing teams operate and how budgets are allocated. Malina and Christine shared several examples of AI driving both efficiency and reinvestment opportunities. 🚀

Creative workflows are being streamlined by bringing work in-house and using AI tools. Microsoft, for instance, now leverages Gen Z creators plus AI tools like Sora to produce content faster and more efficiently than traditional agency setups. This approach reduces cost and speeds execution while maintaining high-quality output.

AI also allows teams to optimize headcount. Smaller, highly skilled teams can now achieve more with fewer people, freeing the budget for experimentation and strategic initiatives.

Other ways AI informs smarter spend include:

• 📊 Reallocating budget dynamically based on predictive ROI analysis
• 🧪 Supporting experimentation with new channels, campaigns, and data pipelines
• ⚖️ Enhancing governance, with oversight and ethical guidance to ensure responsible use

Efficiency gains from AI create a positive feedback loop: teams save money and can reinvest those resources in growth opportunities. At the same time, thoughtful integration of AI ensures that human creativity and judgment remain central to marketing strategy.

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5. Negotiating With the C-Suite

Securing the right budget is more than numbers – it’s about alignment and communication. The speakers emphasized the importance of building strong relationships with executives, especially CFOs. 🤝

Christine noted that B2B marketers often need to educate finance teams on pipeline velocity, lead conversion, revenue attribution, and realistic timelines (18-36 months) to set baselines.

Malina shared that anxiety around AI adoption can influence budget discussions. Teams may fear being replaced, so addressing those concerns through one-on-ones and open conversations is key. She also recommends aligning cross-functional leaders on shared terminology before presenting budgets to ensure everyone is “speaking the same language.”

📌 Practical tips for negotiating with executives:

• Involve finance leaders in marketing meetings periodically to build trust and transparency
• Present multiple scenarios (best case, base, conservative) linked to ROI and strategic priorities
• Highlight efficiency gains from AI and internal resourcing to justify investments
• Address human factors – acknowledge fears, clarify roles, and emphasize collaboration
• Start with the economic landscape, then define a shared lexicon to ensure alignment

Ultimately, successful negotiation is ongoing. CMOs who partner closely with CFOs and other executives throughout the year are better positioned to defend budgets and advocate for strategic investments. 📈

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6. Key Takeaways + Resources

2026 marketing budgets will challenge CMOs to think strategically, innovate with AI, and collaborate closely with the C-suite. From our Coffee Chat, a few takeaways stand out:

• Stop anchoring budgets in the past – focus on future goals and company priorities
• Leverage AI to drive efficiency, reduce headcount costs, and free budget for growth
• Use benchmarks and scenario planning to make informed decisions and defend spend
• Partner with finance and cross-functional leaders to align on metrics and expectations
• Allocate time and resources for experimentation – innovation is part of the budget, not an afterthought

To continue learning from our Coffee Chat, the speakers recommended two essential reads for marketing leaders:

1. 📚 Marketing ROI by Lenskold
2. 📚 Marketing Strategy: Based on First Principles and Data Analytics by Shrihari Sridhar.

These resources, combined with insights from our speakers, can help CMOs make smarter budget decisions, leverage AI effectively, and strengthen their influence at the executive table.

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Want to Learn Smarter Budget Strategies from Top CMOs?

At Mavuus, we’re on a mission to help CMOs elevate their influence at the executive table. By joining our community of 1,700+ marketing leaders, you’ll gain access to career growth opportunities, meaningful connections, and conversations that drive impact.

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