B2B Tech Spend Indicators Show Weakness
Recent market data suggests that B2B marketing and IT spending are under increased scrutiny. The stock price for industry analyst firm Gartner is down 71% from its peak, while competitor Forrester is valued at just $105 million. These figures indicate that corporate buyers are becoming more selective, demanding a clear and demonstrable return on investment for new technology purchases.
- Economic uncertainty is a primary driver of increased pressure on IT budgets, with over 60% of B2B software buyers scrutinizing tech spending more closely than a year ago. This has led to 43% of IT professionals anticipating budget constraints as their biggest challenge. - While overall IT budgets are under pressure, more than 80% of executives plan to increase investments in AI in 2025. This spending is often drawn from new and existing budgets, even as many companies are still formulating their broader AI strategies. - B2B marketing budgets have also seen a downturn, with the average allocation dropping to 7.7% of revenue in 2024 from 9.1% in 2023. However, a majority of B2B marketers (48%) still expect their budgets to increase in 2024, with only 27% anticipating a decrease. - Forrester's financial results reflect these pressures, with a reported 11% decrease in revenue for 2023 and a 4% decline in contract value. The company's market capitalization stood at approximately $110 million as of February 2026. - In contrast, Gartner reported a 3.67% increase in revenue for the twelve months ending in December 2025, reaching $6.5 billion. - The sales cycle for B2B technology is lengthening, with deals in the $50k-$100k range now taking an average of nine months to close. This is partly due to an increase in the number of decision-makers involved in a purchase, which now averages between six and ten individuals. - As a result of longer sales cycles and increased buyer scrutiny, there is a greater emphasis on demonstrating value quickly. 57% of software buyers now expect to see a positive return on investment within three months of purchase. - B2B buyers are conducting more independent research before engaging with sales representatives. Consequently, when they do connect with potential suppliers, they spend only about 17% of their total consideration time in those meetings.
