2027 will see bigger budgets for marketers

Marketing leaders are heading into 2027 with renewed confidence and bigger budgets, but simply spending more will not be enough to keep pace with an AI-driven market, according to Forrester.

In its latest "2027 budget planning guides", the research firm found that 89% of B2B marketing decision-makers and 91% of B2C marketers expect marketing investments to increase over the next 12 months. However, it argues that the next budgeting cycle should be treated as an opportunity to rethink how marketing operates, as artificial intelligence reshapes customer discovery, campaign execution and the way marketing creates business value.

Rather than increasing spend across existing priorities, marketers are urged to redirect investment towards AI readiness, answer engine optimisation (AEO), market intelligence, commerce media, AI-enabled planning and execution, and marketing-specific AI capabilities.

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For B2B organisations, technology is expected to receive the biggest investment boost, with 80% of marketers planning to increase spending. Personnel and programmes follow closely at 76% each. Programmes currently account for the largest share of marketing budgets at 37%, followed by personnel and technology at 32% apiece, said Forrester. 

Meanwhile, B2C marketers also expect technology to see the strongest spending growth, ahead of services and paid media, with fewer than one in 10 anticipating budgets will remain flat or decrease.

However, the report argues that marketers should resist using larger budgets as an excuse to buy more technology. Instead, investment should be directed towards platforms that clearly support business objectives, while duplicate tools, integration complexity and unnecessary technical debt are reduced.

The same principle applies to programme spending. Rather than maintaining historical budget allocations, marketers should continuously adjust investments based on buyer behaviour, customer needs and market conditions. Brands looking to build awareness may need to invest more in reputation before accelerating demand generation, while those facing slowing purchase intent should channel more resources into retention and renewal marketing.

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Spend smarter, not bigger

One of the report's strongest recommendations is for marketers to increase investment in answer engine optimisation as AI-powered search fundamentally changes how buyers and consumers discover brands.

According to Forrester, 94% of business buyers now use generative AI during the purchasing journey, making visibility within AI-generated responses increasingly important.

Rather than focusing solely on traditional search rankings, brands should ensure their content is easily understood by AI systems while strengthening their authority through trusted third-party sources such as customers, partners and industry experts.

The B2C report echoes this shift, noting that platforms such as ChatGPT, Perplexity and Google's AI Mode are changing search behaviour. As AI-generated answers increasingly rely on third-party sources, marketers should think beyond traditional SEO by investing more heavily in PR, influencer marketing, customer reviews and other forms of earned credibility that help shape how brands appear in AI-powered search experiences.

The shift extends beyond how brands are discovered. Marketers are also encouraged to embed AI throughout the marketing workflow, using it to support campaign planning, execution, optimisation and measurement rather than limiting it to content generation.

To support this transition, organisations should invest in marketing-specific AI capabilities, including AI architects, governance specialists and continuous workforce training, while experimenting with AI agents that can assist with campaign execution, audience generation, content production and customer engagement. The report also encourages brands to explore synthetic data to accelerate customer research and concept testing, provided appropriate governance is in place.

At the same time, AI should not be viewed solely as a cost-cutting exercise. Rather than reducing headcount in anticipation of productivity gains, organisations are encouraged to redesign workflows first, using AI to automate individual tasks while allowing employees to focus on higher-value strategic work.

The same principle applies to marketing investments. Rather than pouring resources into disconnected AI pilots, fragmented technology stacks, manual campaign production or outdated measurement models, marketers should prioritise the operational foundations that enable AI to deliver sustainable business value.

"Business leaders are no longer planning for a return to stability — they're planning for a future where volatility is a constant," said Sharyn Leaver, chief research officer at Forrester.

The organisations that outperform in 2027 won't be those that spend the most on AI. They'll be the ones that invest in the foundations that make AI effective: trusted data, strong governance, organisational readiness and the ability to continuously adapt as technology and customer behaviour evolve.

The latest report also highlights how quickly the conversation around AI has evolved. In its "2026 budget planning guides", Forrester encouraged organisations to prepare for economic uncertainty through scenario planning, stronger data literacy and AI readiness. The focus has since shifted. Rather than debating whether to invest in AI, marketers are now being encouraged to rethink where those investments should go.

Across both the B2B and B2C guides, the priority is no longer AI adoption alone but building the operational foundations that allow AI to deliver measurable business value through areas such as answer engine optimisation, market intelligence, governance, workflow redesign and marketing-specific AI skills.

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