Recent research by the World Federation of Advertisers (WFA) highlights a significant increase in scrutiny on marketing budgets and campaigns, driven by geopolitical, economic, and regulatory factors. The survey, which included 29 Chief Marketing Officers (CMOs) and senior policy leads representing $65 billion in annual marketing expenditure, indicates a more unpredictable environment for marketers compared to 12 months ago.

According to the findings, 83% of marketers report a more unpredictable environment, while 81% agree that the current operating environment is riskier than a year ago. The geopolitical environment, rated at 8.4 out of 10, and the economic outlook, at 8.1, are identified as major risk factors. These are followed by tightening regulations (6.9), fast-moving technology (6.3), and social media platform policies (6.1).

The survey reveals that 50% of marketers feel increased pressure from boards, and 52% report closer CEO attention to marketing campaigns. Additionally, 82% of marketers say that budgets are under heavier scrutiny than a year ago, and 81% are spending more time reviewing brand positions and values.

Half of the marketers surveyed are focusing more on short-term objectives and risk management, which impacts long-term strategic planning. A significant 93% agree that the operating environment is less predictable, and 78% say it no longer feels like 'business as usual'. Furthermore, 82% feel the current environment represents a retreat from globalisation, with 68% changing their market investment priorities.

The survey also highlights that 60% of marketers disagree with the statement that there are 'more opportunities than challenges'. In response to these challenges, 74% of marketers are applying greater due diligence in marketing communications, and the same percentage report increased cross-functional collaboration to mitigate risk. Additionally, 61% are developing responsibility frameworks to mitigate marketing risks, and 53% are taking steps to reduce risks associated with influencers.

CEO of the WFA, Stephan Loerke, commented, "Brand executives clearly sense a more unpredictable and volatile market. They are being asked to manage risk while also delivering on growth objectives. Greater due diligence, enhanced cross-functional collaboration and risk mitigation frameworks are all demonstrating their value in an operating environment where stakeholder scrutiny is at a record high."

Founding Partner of The Intangibles, Jon Wilkins, added, "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."

The full research results are set to be shared at the Cannes Lions on June 18.