The Gift of a Smarter Budget: 8 Ways to Plan with Conviction in 2026

Don’t let last year’s allocation become this year’s autopilot. Andrew Cox, CMO of Forrester, offered a smarter approach: “It’s not saying the brand team gets this and the demand team gets that… It’s really looking across the organization saying: What are we being held accountable for achieving, and how do we put our money towards that?” 

Your budget should reflect what the business needs next year, not what marketing funded last year.

In a season of giving, it’s tempting to give every team a slice. But generosity in budgeting doesn’t mean equal distribution. As Cox put it, “You’re always going to have more things you want to do than you’re able to afford… Make the decisions to put money where it matters most.” 

Prioritization is not about being stingy. It’s about being strategic.

Lisa Cole, CMO and AI Officer at 2X, put it simply: “Your budget is your actual strategy just represented in numbers.” 

If your top priority is international expansion, that should be obvious in your numbers. If pipeline velocity is the goal, it should show up in your allocations. When strategy and budget align, execution becomes a whole lot easier.

When finance questions your investment in brand, it helps to speak their language. Cole frames marketing as an ATM: “If you do marketing well… you should be able to pull more money out of that ATM than what you put in. ATM stands for Audience, Trust and Engagement, and Monetization.” 

This approach helps tie marketing programs to business value without getting lost in tactical detail.

Planning beyond Q1 may feel unrealistic, but Alan Gonsenhauser, a five-time CMO and advisor to PE-backed companies, reminds us that long-term vision still matters. “Marketing budget needs to be aligned not only to annual priorities, but the three-year strategic plan.” 

Even in high-growth environments, brand-building and customer experience require investment over time. A budget focused only on this quarter is a missed opportunity.

This year’s must-have tool isn’t found under the tree. It’s AI. But while the hype promises instant productivity gains, Lisa Cole offers a more grounded take: “Don’t make a 20% blanket statement. Instead, frame it in one of five ways: Budget flexibility, tech utilization, pipeline impact, scalability, and speed to market.” 

If you’re promising efficiency, link it to something tangible like campaign velocity or resource reallocation. Specificity builds trust. Vague promises don’t.

The only certainty about next year is uncertainty. Whether it’s a surprise acquisition, a viral moment, or a sudden market shift, agility matters. “Even six months away, we don’t know what the world’s going to look like… You need the room to experiment,” said Cox. 

The best CMOs are setting aside 20 to 35 percent of their budgets for adaptability and innovation. It’s less about having a perfect plan, and more about having room to respond when the plan changes.

To shift the conversation from spend to impact, focus on outcomes. Alan Gonsenhauser recommends a campaign-based model: “Put 80% to 85% of your budget into revenue-generating campaigns that drive brand, demand, customer success.” 

Organizing your budget around business-aligned campaigns not only clarifies where the money is going. It also proves why the investment matters. This is how you move from cost center to growth engine.