CMOs today face growing pressure to balance creativity with measurable returns, especially in an environment of rapid technological changes, economic uncertainties, and evolving consumer expectations. Once primarily focused on the traditional “four Ps” of marketing—product, price, place, and promotion—CMOs now find themselves equally responsible for integrating tech, data, and analytics into their strategies.
The Shift in CMO Responsibilities
According to Raja Rajamannar, CMO of Mastercard, the role of marketing executives has evolved dramatically. “Traditional marketing is a thing of the past,” Rajamannar explains, highlighting that modern CMOs must now juggle technology, creativity, data analytics, and company culture to stay competitive.
This shift has heightened the demand for CMOs to demonstrate tangible ROI. A recent Q1 2024 survey by the CMO Council revealed that 40% of marketing executives identified improving ROI and demonstrating attribution across marketing efforts as their top priorities. However, the challenge is not only external, driven by economic slowdowns and changing consumer behaviours, but also internal, with many organisations struggling to scale effectively or work within constrained budgets.
Balancing Short-Term Gains with Long-Term Strategy
Tifenn Dano Kwan, CMO of Amplitude, speaks to the internal challenges CMOs face. “We are dealing with the growing pains of moving from a startup to a midsize enterprise,” she notes, stressing the importance of creating scalable marketing engines with the right leadership and processes. This sentiment resonates across the industry as CMOs aim to balance short-term revenue goals with long-term brand building.
John Solomon, CMO of Therabody, offers similar insights, emphasising that while immediate profitability is critical, maintaining marketing investment during downturns is essential for long-term brand growth. “A strategy might work now, but it may not in a few months. The key is taking calculated risks while always linking decisions to measurable business impact,” Solomon says.
Communicating ROI to Senior Leadership
One of the greatest challenges CMOs face is effectively communicating the value of their marketing efforts to the wider C-suite, especially when marketing is often viewed as a cost centre. Solomon stresses that CMOs must “bring people along the journey” by translating marketing metrics into business outcomes that resonate with senior leadership. This requires tying campaign performance back to core business objectives and ensuring the entire executive team understands the marketing department’s contributions to the bottom line.
Key Strategies for Maximising ROI
eMarketer’s “Leading With Confidence” CMO report series has highlighted several strategies for addressing the ROI challenge:
- Invest in Marketing During Downturns: Continuing marketing investment in times of economic uncertainty can help sustain long-term brand growth and differentiation.
- Assign a Dedicated AI Lead: Having a dedicated AI expert ensures that businesses can harness AI’s potential to improve efficiency, personalise customer interactions, and boost campaign performance.
- Collaborate with Finance: Close collaboration with the CFO allows CMOs to align marketing efforts with financial objectives, optimising budget allocations and clearly demonstrating marketing’s impact on business outcomes.
By adopting these approaches, CMOs can not only prove their value but also drive long-term growth, even amid challenging circumstances.
For further insights, read the full report, How CMOs Are Maximizing ROI, available from eMarketer.
Reference: https://www.emarketer.com/content/leading-cmos-share-insights-on-maximizing-roi
