Two-thirds of marketers are concerned that there is a risk that Chief Marketing Officers will become ‘corporate figureheads’.

According to MediaLink’s The Marketers Forecast 2024 report, 68% of marketers believe that CMOs could become someone with a leadership role but no power to create change.

This nervousness comes as marketers face pressure to balance long-term innovation, with a desire for short-term wins in the face of a volatile economic climate. The research reveals that the long and the short of this tension is still too much compromise. 45% of respondents stated that their company compromised core values to enable short-term wins. 

However, 70% believe that over the next 2 years, their business will place its biggest focus and investment on long-term growth.

The global study of over 400 marketing leaders by strategic advisory firm MediaLink shines a light on the uncertainty which continues to grip parts of the market. It underlines that 74% of CMOs are pessimistic about the growth prospects of their business in the year ahead. 

Michael Kassan, CEO at MediaLink, underlines the whirlwinds of change facing modern marketers in the introduction to the report. As he explained: “AI knocked on our door yesterday, took out the Metaverse overnight, and infiltrated everything. Inflation skyrocketed to its highest rates since the 80s and is barely cooling. Creators gave rise to a new economy. The climate crisis accelerated from a 20-year warning to an imminent concern. Culture and commerce became capital.”

He added: “The headwinds at play are among the strongest we’ve seen, but the data reveals marketing leaders are a rare breed of innovators, problem solvers, and creators.”

Marketing as a growth driver

The importance of marketing as both a growth and innovation driver was a central theme of the wide-ranging report. Margaret Jobling, Group Chief Marketing Officer at NatWest Group, explained: “The dynamics and opportunities we are experiencing put marketing more front and centre. How do you understand customers, do more personalising, leverage technology to do content creation, insight mining, and proposition development? All of that says there's a role for marketing.” 

This need to ensure that marketing is seen as a growth driver was echoed by Drew Panayiotou, Global Chief Marketing Officer at Pfizer. He explained: “When you look at CMOs and what they actually do, the ones that are really successful have found a way to drive innovation and growth.” 

Crucially, impactful marketing leaders are also acting as the voice of the customer within their businesses. An anchor and a voice of reason which is crucial in an era of constant disruption. “To make an impact, CMOs have to be truth tellers of the marketplace and where the customer is going,” Panayioto explains.

The business of building belief

Yet the research also points to the green shoots of positive sentiment. Notably, 91% of marketing leaders agree that CMOs have a meaningful impact on the pipeline of future revenue. Almost 80% of respondents trust the leaders of their company to get it to its future destination, a vote of confidence which is up from 65% in 2022 and 71% in 2021. 

Kellyn Smith Kenny, Chief Marketing & Growth Officer at AT&T, explains: "As CMOs, we must debunk the notion that profits and customer experience are opposing functions. That starts with defining your company’s purpose and the role you serve in your customers’ lives. You need to build belief with your employees and leaders at all levels that investment in the customer is investment in growth.”

Ensuring that purpose aligns not just with the bottom line of a business, but with broader societal goals is increasingly vital. As Tariq H. Hassan, SVP, Chief Marketing and CXO at McDonald’s USA, said: “We [as CMOs] need to continue prioritising responsible marketing and be able to demonstrate that what we are doing is both linked to doing good in the world and driving good business outcomes.” 

While there has been a fundamental shift in the business world where ESG is increasingly viewed as both a necessity and an investment in future growth, the report underlines an action gap in marketing. However, only 18% of respondents cited diversity equality and inclusion and environmental sustainability as a top priority.

The Promise of Partnership

The research also shows that agency partnerships need to become more flexible, with 36% of marketing leaders foreseeing more flexible arrangements with partners.

The report suggests the desire for ‘T-Shaped’ agencies which span every given discipline may also be under threat. Rather than wanting to consolidate with a single shop, 30% of respondents want to add specialist agencies into their ecosystem. According to the research, refining their organisational models will be essential for the CMOs looking to right-size for growth.

Marketing driving the innovation agenda 

While the research reveals the drive for T-shaped agencies may be waning, when it comes to marketing leadership combining deep sector expertise with a broad understanding of business is an increasingly vital tool. According to the research, 80% of marketers believe it will be the leaders who offer varied experiences, perspectives, and merits who are most likely to succeed. 

The research points to the growing pool of CMOs who have accelerated the transformation of their teams, rethinking everything from their marketing mix to bring more innovation, commerce, and technology to their marketing organisations and working more collaboratively across the C-suite. As a result of this shift 70% of marketers believe their marketing team is upstream and integrated. 

This innovation agenda is also leading to an increased focus on AI. Two-thirds of marketers say their business is already experimenting with AI and other emerging technologies. AI is forcing them to look at their technology and data strategy through a new lens.

As Kellyn Smith Kenny, Chief Marketing & Growth Officer at AT&T, explained: “If you’re using the same marketing tools today that you’ve been using for the last five years, you’re not taking advantage of all the ways you can connect with your customers. It isn’t really a decision to embrace change or not—it’s a decision to stay relevant or be left behind.” 

Yet the data reveals that only 44% of marketing leaders surveyed believe their business is ready to embrace this new radical future, down from 70% in 2022 and 71% in 2021. 

To download the full report click here.