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CMOs look to fuel growth amid cuts and constant change
The reality for CMOs right now is challenging: Regulatory changes are likely because of the election, economic pressures loom and budgets are tight. Almost four in five (78%) CMOs say that the outcome of the election could significantly change how they do business, according to our October 2024 Pulse Survey.
By reallocating resources strategically to demonstrate the financial impact of marketing to the C-suite and investing in future-ready technologies and talent, CMOs can build a more resilient marketing strategy that positions their companies for success.
Turning tight budgets into big wins
In the current environment, many companies are tightening their belts as they continue to deal with uncertainty. The election adds a layer of complexity, as CMOs and other executives keep a watchful eye on possible policy shifts and market reactions. When evaluating budgets, marketing is unfortunately among the first to be scrutinized. Three-quarters of CMOs agree, and the pressure to prove their value is mounting.
75% of CMOs agree their marketing budget will likely be cut before other departments
The vast majority of marketing leaders (93%) say positioning marketing as a growth driver is either somewhat of a challenge or a significant challenge. When navigating this, CMOs should strike a balance between cost cutting and maintaining investments in areas that can boost revenue and drive the business forward. When CMOs can strike this balance, they not only help differentiate the company, they can also highlight the value of the marketing function to company leaders.
Our October 2024 Pulse Survey shows where marketing leaders are putting their dollars. Fifty-seven percent of CMOs say they’re increasing investments in marketing talent, recruitment and upskilling, and 51% say the same about customer experience. Half are increasing investment in artificial intelligence (AI) use cases. These investments can help marketers be innovative, data-driven and able to deliver measurable business value. CMOs who align their marketing strategy with the broader business strategy can be better positioned to keep existing or potentially increase marketing budget.
What you can do
- Work closely with the CIO and CFO. Make the case for technology investments, particularly those that can drive efficiency and automate key processes (e.g., AI-supported operations to improve efficiency).
- Show the right data. Metrics like customer lifetime value (CLV) and customer acquisition costs (CAC) show how marketing spending helps not only drive revenue but grow profits. Combined with customer behavior and propensity metrics (e.g., churn, cross-sell, upsell), marketers can use these to tell a story that connects with other executives and highlights your successes.
CMOs struggle with effective personalization despite prioritizing it
Staying ahead of consumer behavior and priorities is crucial. In fact, 83% of CMOs anticipate revisiting their brand messaging post-election to align with shifting societal values. Customers want to feel heard and understood, yet only 24% of CMOs strongly agree that they meet consumer demands for personalized marketing. Even more striking, 87% agree they lack what’s needed to do so effectively.
87% of CMOs say not having what they need to effectively personalize their marketing is a challenge to achieving their priorities
Scaling personalized marketing manually can be difficult, but with the help of AI, it becomes more feasible. Generative AI can quickly analyze vast amounts of information, helping marketers craft highly tailored customer experiences more efficiently. While this technology is becoming integral to business, it’s not without its risks. Today’s consumers are more attuned to issues like appropriate data use, inherent biases and impersonal interactions. But by combining personalization with a Responsible AI strategy, companies can build long-term brand loyalty and trust.
What you can do
- Rethink data collaboration. You can bring together your siloed data and leverage data collaborations to gain a deeper understanding of your customers and reimagine their experience.
- Proactively address compliance. As privacy and other regulations evolve, companies that are already advancing their efforts to use AI responsibly will likely be better prepared to comply with changing expectations and requirements.
- Then talk about it. Being transparent about your compliance efforts can also help build trust. Clearly communicating your commitment to using AI responsibly can go a long way.
Adapting the marketing workforce for the future
After adapting to the move from traditional to digital and omnichannel marketing, companies now face the AI revolution, bringing new challenges. Today’s marketing teams need to be skilled in digital tools and data, and competition for top talent is tough.
49% of CMOs say adapting their marketing workforce to meet changing customer behaviors is a significant challenge
In fact, talent attraction and retention within marketing has become a significant issue for CMOs. Nine out of 10 (91%) say it’s a challenge to achieving their priorities — higher than many of their C-suite peers. CMOs are addressing the issue by increasing investment in marketing talent, recruitment and upskilling, which 57% say they're doing in the next 12 months to gain market share. This is a notable difference from the 46% of CMOs who said they were doing the same in August 2023. This spending, along with investments in AI use cases, underscores the complicated marketing talent landscape and AI’s potential role in addressing these challenges.
Even with limited budgets, investing in talent and upskilling is essential to remain competitive, relevant and consumer-focused.
What you can do
- Invest in continuous learning. Provide ample training and upskilling opportunities to make sure marketing teams can leverage the latest tools and technologies.
- Collaborate with HR on workforce strategy. Marketing talent shortages can be exacerbated by budget cuts. Collaborating with CHROs can help CMOs prioritize critical roles, build agile teams and align recruitment efforts with long-term business needs.
- Use AI as a selling point. Job seekers are looking to upskill in areas of innovation like AI. Companies that invest in those areas can use it as an advantage for attracting and retaining top talent.
Get access to the complete survey responses and data
View the main Pulse survey
Executive takes on Election 2024
About the survey
Our latest PwC Pulse Survey, fielded September 12 to September 19, 2024, surveyed 709 executives and board members from Fortune 1000 and private companies about the current business environment, the risks executives are facing and their company’s strategic plans and priorities. Of the respondent pool, 76 were chief marketing officers.
Past surveys
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