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Marketing in 2025: Smarter spend, core focus and the slow burn of AI

Across Australia and New Zealand, we’re seeing a sharp recalibration in how CEOs and business leaders approach marketing. Recent findings from the CMO Survey — a respected benchmark out of Duke University, Deloitte and the AMA — highlight global trends that mirror what many small and midsize businesses are navigating here at home: rising digital spend, cautious investment, and a growing (if hesitant) interest in AI.
Vistage speaker and strategist Marc Emmer unpacks these insights and offers an 8-point action plan to help business leaders maximise their marketing impact in 2025.
The new marketing moment
We’re living in a truly unique time. Technology now allows marketing teams to deliver the right message to the right prospect at exactly the right time — with precision previously unimaginable. Done well, marketing today can directly influence enterprise value.
But in the shadow of ongoing economic uncertainty, many businesses are still taking a cautious approach. There’s been a notable pullback in marketing budgets and broader business development, especially across sectors impacted by cost-of-living pressures and talent shortages.
For mid-market firms in ANZ, this means old assumptions need to shift. Marketing is no longer about clever creative alone — it’s about intelligent, data-driven activations that drive measurable outcomes.
A move away from ‘spray and pray’
Globally, the CMO Survey found 44% of businesses decreased marketing spend in the past year. But rather than cutting indiscriminately, smarter firms are reallocating budgets: shifting from traditional advertising to digital channels that offer better ROI.
Digital marketing spend is set to grow by 7.3%, while overall marketing budgets will lift just 3.3%. New product launches are down, while emphasis is rising on maximising traction in core markets — particularly existing high-performing customer segments.
Playing to your base
The research found companies expect 13% growth in their largest market segment in the next year. For ANZ firms, this reinforces the importance of doubling down on core markets — refining ideal customer profiles (ICPs), simplifying product-market fit, and supporting high-margin segments with precision campaigns.
If 80% of your profits are coming from 20% of your customers, it’s time to focus.
The data challenge
The number one challenge facing marketing leaders? Not collecting data — using it. While many companies have plenty of data, few are leveraging key metrics like customer lifetime value (CLV), customer acquisition cost (CAC) or return on marketing investment (ROMI).
Worse, only around a third of firms are meaningfully applying automation or AI to improve performance. Many teams are still stuck wrestling spreadsheets or running one-size-fits-all campaigns, rather than driving targeted, insight-led actions.
AI hype vs. reality
Despite the hype, only 10% of companies are fully deploying tools like ChatGPT or other large language models in their marketing. Over half are still in testing or pilot phases.
That said, companies effectively applying AI are growing 3.4% faster than their peers. In tight-margin sectors, that edge counts.
For ANZ SMEs, AI adoption might look like:
- Seamless.AI to automate prospecting
- Synthesia to generate high-quality video content
- Jasper to speed up marketing copy and A/B testing
- SurferSEO to fine-tune organic search strategy
Channel partners make a comeback
There’s also a shift back to channel-based strategies — co-marketing partnerships, affiliate arrangements, and white-label models. With the cost of direct sales increasing, smart businesses are looking for leaner paths to market.
This is especially true in Australia and New Zealand, where geography, distribution costs and market size demand creative go-to-market approaches.
Post-COVID eCommerce stabilising
E-commerce sales have dropped from COVID-era highs but remain well above pre-pandemic levels. Customers now expect self-service, real-time pricing, and product transparency as standard. In short, your website should be your top-performing sales rep — or it’s time for a performance review.
The biggest marketing implementation challenges?
- Connecting marketing to financial outcomes
- Effectively applying data and analytics
- Scaling personalised experiences
- Integrating AI without overwhelming your team
The consistent theme? Execution gaps — not idea gaps.
Your 8-Point 2025 Marketing Action Plan
- Audit where 80% of your profits come from
Realign your marketing efforts toward high-margin, high-potential segments.
- Overcommunicate with customers and prospects
Especially during economic uncertainty — visibility matters.
- Streamline your marketing tech stack
Remove unused tools. Focus on platforms that integrate and deliver — like HubSpot or Looker Studio.
- Run pilot programs with AI
Low-risk pilots using Jasper or Synthesia can unlock immediate value.
- Back your base
Allocate more budget to segments and channels where you’re already winning.
- Reskill your team
Today’s marketers need AI fluency and analytical muscle. Upskill internally or bring in support.
- Build a benchmarking culture
Don’t guess at what good looks like. Use metrics and peer data to guide investment.
- Make marketing a growth engine, not a cost centre
Every dollar should be tied to business impact — lead generation, conversion or lifetime value.
Final thought:
In 2025, it’s not about spending more on marketing — it’s about spending smarter. The businesses leading the way in ANZ are embracing AI, doubling down on core markets and shifting from marketing theatre to strategic execution.
Ask yourself: Is your marketing function a tactical expense — or a strategic asset driving growth?