As we look ahead to 2025, one thing is clear—marketing budgets are shifting, and brands need to rethink their allocation strategies. HubSpot’s latest insights highlight a major rebalancing of priorities, with digital marketing continuing to grow, but offline activations still holding strong in certain industries. So, where should brands be investing next year? Let’s break it down.

According to HubSpot’s report on marketing budget allocation, the way brands spend varies significantly by industry:

• Retail & Consumer Goods: In-store activations and promotions still command a large chunk of the budget because they work. Physical retail experiences drive strong ROI, especially for impulse-driven purchases.

• Gaming, Betting & Insurance: These industries are heavily focused on digital-first strategies, with bigger investments in data-driven marketing, automation, and customer retention.

• B2B & SaaS Brands: Content marketing, thought leadership, and brand-building efforts are taking priority, with companies focusing more on trust and long-term engagement than purely transactional campaigns.

• AI & Automation Are Growing: Over 70% of marketers plan to increase spending on AI-driven marketing solutions in 2025 to scale personalization and improve efficiency.

One of the biggest takeaways? Brands that focus on retention will win.

Customer acquisition is expensive, and yet too many brands still pour the majority of their budget into attracting new customers rather than keeping the ones they already have. The smart move for 2025 is investing in retention strategies—because re-engaging a past customer costs far less than winning over a new one.

A simple but effective shift? Link your offline activities to online data collection. Whether it’s:

• A QR code at an event that leads to a personalized offer

• A post-purchase follow-up email with exclusive content

• A loyalty program that rewards engagement

Every offline touchpoint should feed into your digital ecosystem, allowing you to retarget, personalize, and retain customers more effectively.

Based on HubSpot’s insights and industry trends, an ideal budget breakdown for 2025 might look like this:

40% Performance Marketing (Paid Social, Search, Retargeting)

30% Brand Awareness & Content (SEO, Influencer Marketing, PR)

20% Retention & CRM (Email, Loyalty Programs, Personalization)

10% Experimentation (AI, Emerging Tech, New Channels)

Marketing in 2025 isn’t just about spending more—it’s about spending smarter. The most successful brands will be the ones that know how to balance performance marketing with brand-building, acquisition with retention, and traditional strategies with AI-driven innovations.

So, how is your budget shifting next year? Are you doubling down on digital, increasing retention efforts, or experimenting with new channels?