Friday 15 Podcast

What Is Happening with B2B eCommerce Budgets in 2025?

Brian Beck and Andy Hoar examine budget trends for 2025, finding that while 50% of practitioners report increasing budgets, sentiment has softened from the prior year as ROI pressure intensifies.

Friday 15 Podcast

Key takeaways

  • A LinkedIn poll found 50% of B2B practitioners report increasing digital budgets for 2025, 28% staying the same, and 22% decreasing, down from more bullish sentiment in 2024.
  • Master B2B roundtable research found analytics and reporting, followed by ROI of digital investments, ranked as the top two priorities for 2025.
  • Early 2024 research found 90% of practitioners said they were getting sufficient financial resources, but ROI pressure had increased significantly compared to three years prior.
  • Gartner indicates enterprise ecommerce platforms generally achieve ROI within 18 to 24 months, creating tension with CFOs who expect faster payback.
  • Goldman Sachs projects 2.5% US GDP growth for 2025 with recession fears diminishing, though economic forecasts have proven unreliable.

TikTok faces potential shutdown

The Supreme Court upheld a ruling that TikTok could be banned in the United States, though enforcement remains uncertain. The hosts noted this represents the first direct government intervention in social media, drawing parallels to the Microsoft antitrust case in the 1990s. With 170 million US users, the outcome will be significant. The Biden administration indicated they would not enforce the ban, and the Trump administration has waffled, creating uncertainty about what happens next.

Budget history in B2B

Looking back five years, lack of money was consistently the number one challenge for B2B ecommerce leaders. Research from 2019 showed budget constraints topped the list for both manufacturers and distributors. Fast forward to early 2024, and nearly 90% of practitioners said they were getting sufficient financial resources. But ROI pressure intensified: almost 70% said the time frame to show return on investment had sped up compared to three years prior.

You cannot just decide as a CFO that when we bought a new platform we need to get an ROI within six months. That is not how platforms work. These are five to ten year time horizons.

Andy Hoar, Master B2B

2025 budget sentiment softens

A LinkedIn poll asked B2B manufacturers, brands, and distributors what is happening to their budget for digital investments in 2025. Results showed 50% increasing, 28% staying the same, and 22% decreasing. While still majority positive, this represents softer sentiment than 2024 surveys. The hosts attributed this to economic uncertainty and pandemic hangover, where CFOs wrote large checks during COVID and now want to see returns.

The analytics and ROI connection

Roundtable research found analytics and reporting ranked as the top priority for 2025, followed by ROI demonstration. These are connected: companies that cannot measure what they are doing will not get investment dollars. The measurement comes from having access to data, which is another challenge. The hosts described two groups not communicating: digital leaders with cross-channel analytics showing impact, and CFOs looking at traditional metrics like inventory turns.

Common mistakes limit future budgets

The hosts identified patterns that undermine budget requests. Companies invest in tools like PIM systems that do not get implemented. They hire people who are not qualified for digital roles. They lack clear digital strategy. These failures create skepticism among CFOs. One practitioner the hosts know struggled despite telling the right story because the CFO was not hearing what they were saying. Eventually that person left for a company where leadership understood digital.

Priorities should drive budget, but all too often the budget drives the priorities. That is where the tail wags the dog and things get out of whack.

Andy Hoar, Master B2B

Economic outlook remains uncertain

Goldman Sachs projects 2.5% US GDP growth for 2025 with recession fears diminishing and inflation trending toward 2%. However, the hosts noted Goldman changed their forecast significantly within months. Digital has changed everything, and the metrics that indicated economic direction may now be lagging indicators. Regional economies also vary, with some areas booming while others struggle. This makes forecasting difficult at both macro and company levels.

Making the existential case

The hosts recommended digital leaders frame investment as existential. Instead of arguing specific ROI percentages, show what happens if the company fails to invest: lost customers to Amazon and competitors, declining market share, and eventual obsolescence. Understand the CFO’s perspective and speak in terms they understand. The most successful digital leaders are as much salespeople and collaborators as executors. At some point, leaders in unsupportive environments should find companies where the C-suite understands digital reality.

Frequently asked questions

What percentage of B2B companies are increasing digital budgets in 2025?

A Master B2B LinkedIn poll found 50% of practitioners report increasing digital budgets for 2025, 28% said budgets are staying the same, and 22% reported decreasing budgets. This represents softer sentiment compared to 2024, when similar polls showed more bullish outlooks. The hosts attributed the shift to economic uncertainty and pandemic hangover effects.

Why is there tension between digital leaders and CFOs over budgets?

Digital investments often take 18 to 24 months to achieve ROI according to Gartner, but CFOs expect faster payback. The pandemic led many companies to invest heavily in digital without demonstrating returns. CFOs now want to see ROI on those investments before approving new spending. The hosts described this as two groups not communicating well, with digital leaders telling the right story but CFOs not hearing what they are saying.

What are the top investment priorities for B2B digital leaders?

Master B2B roundtable research found analytics and reporting ranked as the number one priority, followed by ROI of digital investments. The hosts noted these are interrelated: better analytics enables better ROI demonstration. Companies that cannot measure what they are doing will not get investment dollars. The challenge is that many companies gather data but do not analyze it properly or communicate findings in terms CFOs understand.

How does the economy affect B2B digital budgets?

Goldman Sachs projects 2.5% US GDP growth for 2025 with recession fears diminishing and inflation trending toward 2%. However, the hosts noted economic forecasts have proven unreliable. Goldman Sachs changed their forecast significantly within a few months. B2B companies tend to be conservative and think over longer time horizons because they carry inventory. Economic uncertainty affects their willingness to invest.

What mistakes do digital leaders make when seeking budget?

The hosts identified several common mistakes: investing in tools like PIM systems that do not get implemented, hiring people who are not qualified for digital roles, and lacking a clear digital strategy. These failures create skepticism among CFOs who see money spent without results. The hosts argued digital leaders must separate successful investments from unsuccessful ones rather than letting past failures pollute the conversation about new requests.

How can digital leaders make better cases for budget?

The hosts recommended framing digital investment as existential rather than incremental. Show what happens if the company fails to invest: lost customers, declining market share, and obsolescence. Understand the CFO's perspective and speak in terms they understand, such as inventory turns and cost to serve. The most successful digital leaders are as much salespeople and collaborators as they are executors.

Sources & methodology

  1. Friday 15 Podcast, Master B2B
  2. Master B2B LinkedIn poll, January 2025
  3. Master B2B roundtable research, Fall 2024
  4. Gartner, enterprise ecommerce platform ROI study
  5. Goldman Sachs, US economic outlook 2025
Andy Hoar Andy Hoar
Co-Founder, Master B2B

Andy is a Co-Founder of Master B2B, founder of Paradigm B2B and author of the book Bot2Bot: The New Future of B2B Commerce. Andy is one of the leading global authorities on B2B commerce strategy.

Brian Beck Brian Beck
Co-Founder, Master B2B

Brian is a co-founder of Master B2B, Managing Partner of Amazon agency Enceiba, and author of the book "Billion Dollar B2B Ecommerce." Brian has also been C-level digital commerce executive with two decades of experience.

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