#MTBS | Marketing needs to deliver value for money

Marketing budgets will face Treasury's value-for-money test in 2027 says Alkemi Collective CEO, Bradly Howland (Image source: @Towfiqu barbhuiya, Unsplash Unsplash

Consumer confidence drops

In the MTBPS Treasury reports that programme reviews have identified R38.1bn in savings over the medium term.

Each programme is assessed on whether it delivers measurable outputs and outcomes, whether it persistently underperforms, and whether the same objective could be achieved at lower cost.

Treasury cut its 2026 growth forecast to 1.2%, from 1.6% in February.

Private-sector investment fell by 1.1% in the first half of 2026, and consumer confidence dropped from -7 to -19 between the first and second quarters.

Treasury expects household spending growth to slow from 2.3% this year to 1.7% in 2027.

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Katja Hamilton  17 hours

Governance

Boards face the same question from a governance angle. The King V Code on Corporate Governance, which applies to financial years beginning on or after 1 January 2026, includes a dedicated principle on stakeholder-inclusive governance, deepening boards' obligations to identify and engage with their stakeholders.

King V puts stakeholder relationships on the board's agenda, and marketing and communication carry much of that work.

That makes them hard to cut in a tough year, but only if the business can show they are working.

When every channel is planned and measured against one business objective, boards and finance directors can see which relationships are strengthening and where budget should go.

Good reporting is what protects the spend.

What it means for marketing

When budgets are tight, finance directors ask what each rand delivers, and marketing is one of the first lines they review.

Reports built on impressions, follower counts and advertising value equivalents won't survive that conversation.

Marketing needs to show its effect on the business: brand loyalty, customers retained, leads generated, sales grown and reputations strengthened with the people who matter.