CMOs Face Increased Responsibility Amidst Power Imbalance, Study Finds
Chief Marketing Officers (CMOs) are taking on greater responsibilities for revenue and growth, yet a new study by brand consultancy Lippincott indicates they often lack the corresponding power and autonomy. The report, based on a survey of 541 global CMOs, reveals that nearly 80% of marketers believe bureaucracy obstructs their decision-making processes. This tension is further compounded by difficulties in aligning senior stakeholders and a perceived lack of trust in marketing's financial impact within the C-suite.
Modern Chief Marketing Officers (CMOs) are increasingly assigned roles like Chief Growth Officer (CGO), reflecting their expanded responsibilities in revenue and growth. However, a study by brand consultancy Lippincott indicates that this promotion often comes without an equivalent increase in power.
The study, which surveyed 541 global CMOs or their equivalents, found a significant disconnect. Nearly 80% of marketers reported that bureaucracy frequently impeded their decision-making. Furthermore, 84% described it as at least "somewhat difficult" to align their management team, senior peers, and other stakeholders around a marketing vision. Less than half, 44%, stated that their marketing operations possessed high autonomy.
Michael D'Esopo, CEO of Lippincott, noted that while there is more responsibility, there is less autonomy in achieving organizational alignment. An unnamed CMO quoted in the report highlighted how strong ideas can be diluted by senior figures, such as CFOs or CCOs, whose input may not align with the evidence and is often unchallenged.
A contributing factor to this issue is a lack of confidence among many CEOs regarding marketing's ability to demonstrate financial impact. Former Mastercard CMO Raja Rajamannar identified a "huge trust problem for marketing in the C-suite." This sentiment is supported by a report released in April from communications firm Boathouse, which found only 13% of CEOs confident in marketing's financial impact demonstration.
Technological advancements, particularly AI-powered dashboards and analytics tools, have made marketing performance more transparent across organizations. While this can help CMOs showcase short-term successes to finance leaders, it can also inadvertently shift focus to immediate results, potentially at the expense of long-term brand building. Lippincott's data shows that 35% of marketing chiefs now come from performance or growth marketing backgrounds, and approximately 20% of senior marketing decision-makers do not have "marketing" in their job titles, reflecting the rise of chief growth, revenue, and commercial officers. This can lead to an emphasis on short-term gains, such as chasing clicks or conversions, over building fundamental consumer demand. CMOs surveyed indicated their companies are spending more on AI while reducing investment in websites and content, the very assets AI systems use to understand and surface brands.
To address these challenges, Lippincott suggests that CMOs must effectively communicate business growth using the language of their stakeholders, including CEOs, CFOs, and board members, without neglecting the principles of long-term brand building. The consultancy also advises treating organizational alignment as a distinct growth strategy. PepsiCo's Jane Wakely, Executive Vice President, Chief Consumer and Marketing Officer, and Chief Growth Officer for International Foods, emphasized the importance for CMOs to remain focused on unchanging marketing principles.
According to Business Insider, these insights point to a critical juncture for marketing leadership in the evolving corporate landscape.
