It’s High Time for a CMO Rebrand

Key Takeaways

The CMO Credibility Crisis is Real: Recent news of CMO roles being eliminated (UPS, Etsy, Starbucks) highlights a problem exacerbated by C-Suite perception; a recent study found 55 percent of business leaders believe marketing has an inflated view of its importance.

MarTech Utilization Failure: Despite massive enterprise investment (potentially north of nine figures for large brands), marketers reported using only 33 percent of their martech capability in 2023. This low utilization is a major source of vulnerability and contributes to "tech debt".

The CMO Rebrand Imperative: Marketing needs a rebrand—if not a name change, then certainly a change in perception. Success depends on Chief whatever officers speaking the language of the business and connecting marketing activity and metrics directly to the overarching business goals to earn C-Suite confidence.

Four Pillars of Savvy MarTech Strategy: An effective martech strategy that eliminates friction and drives results must be driven by empathy, empowered by clean data, activated by operations (focusing on usability so teams actually use the tools), and accelerated by creativity.

This article was originally published in ANA Industry Insights report.

For years now, there have been reports that CMOs are dropping like flies. That news was tempered by the fact that while CMO tenure has continued to fall, many of those CMOs are moving on to better jobs.

But something feels different this time. As CMOs are leaving their jobs, they aren't being replaced.

A recent Gartner survey revealed that 55 percent of business leaders "feel marketing has an inflated view of its importance." That's sobering.

Martech is a big reason for this loss of credibility. Today, brands must provide meaningful personalized experiences to customers. That requires tech. The average enterprise spends 30 percent of their budget on martech, according to this study. For the average enterprise, that's $15 million annually. For large brands, it could easily be north of nine figures.

Yet, when asked what percentage of their martech capability they're actually using, marketers said 33 percent in 2023 — down from 58 percent in 2020, according to Gartner.

"When asked what percentage of their martech capability they're actually using, marketers said 33%t in 2023 — down from 58% in 2020."

This is a major source of vulnerability for CMOs who don't understand tech. AI is going to make this situation even more tenuous. CMOs who do get it also suffer a reputation hit from guilt by association.

Not surprisingly, in 2023, there was a 27 percent decrease in the ownership of new martech by CMOs, Gartner found. That's a poor solution: shifting ownership of martech to IT isn't going to make your marketing better.

Nor will it make CFOs happier.

I recently spoke with author, CMO and board member, Shiv Singh, at an industry dinner in San Francisco. He described a "weird tension" between CMOs and CTOs/CIOs who operate on three-year timelines for implementing tech.

"CMOs feel urgency to fix things and show impact quickly," Singh explained, "while the CTOs/CIOs want to take a slower, more methodical technology implementation approach. This difference in timelines and urgency creates tension between the CMO and CTO/CIO roles."

Marketing needs a rebrand. And sometimes a rebrand includes a name change. There's no clear successor when CMO roles disappear. Chief operating officers, chief growth officers and chief business officers have all been given the reins. Regardless of what job title the human leading marketing has, someone will lead it.

Chief whatever officers will need to speak the language of the business to succeed. If you connect the dots between what marketing you do, how you measure it, and the goals of the business, you'll earn the confidence of your colleagues in the C-Suite.

A savvy martech strategy should:

In reality, you probably already have a martech stack. Audit it to ensure you have what you need to bring your strategy to life — and eliminate the albatross of tech debt dragging your credibility down.

Marketing is more important than ever. As more and more commerce is driven by digital, marketing doesn't just drive squishy metrics like awareness or purchase intent. It drives revenue directly. Good marketers know that those squishy metrics are a critical step in the journey to that revenue.

Maybe the CMO role does need a name change, maybe it doesn't. But it certainly needs a rebrand to reshape the attitudes and perceptions of what "marketing" means.

Frequently Asked Questions (FAQs) about the CMO crisis, MarTech effectiveness, and C-Suite credibility

Q1: Why is the CMO role currently facing elimination, and what C-Suite perceptions contribute to this trend?
A1: Recent news confirms that companies like UPS, Etsy, and Starbucks have either eliminated the Chief Marketing Officer (CMO) role or chosen not to replace the incumbent, causing concern across the industry. This vulnerability is compounded by executive perception: a Gartner survey revealed that 55 percent of business leaders believe marketing has an inflated view of its own importance, leading to a loss of credibility for marketing leaders.

Q2: How severe is the MarTech utilization crisis, and what impact does it have on CMO credibility?
A2: The MarTech utilization crisis is severe and represents a major vulnerability for CMOs. While the average enterprise spends a large portion of its budget on martech—potentially north of nine figures for large brands—marketers reported using only 33 percent of their martech capability in 2023. This low utilization contributes directly to "tech debt" and hurts credibility.

Q3: What is the necessary "rebrand" marketing leaders must undertake to earn C-Suite confidence?
A3: Marketing needs a rebrand—if not a name change, then certainly a restructuring of attitudes and perceptions. To earn the confidence of C-Suite colleagues, Chief whatever officers must speak the language of the business. This means connecting marketing activities and metrics directly to the overarching business goals, thereby eliminating the "albatross of tech debt" that drags down credibility.

Q4: What are the four core pillars of a savvy MarTech strategy that drives results?
A4: A savvy and effective martech strategy should be structured around four critical pillars:
• Driven by empathy: Insight must be the foundation, mapping the customer journey to eliminate friction.
• Empowered by clean data: Data must be well-structured to execute strategy and harness the power of AI.
• Activated by operations: Usability must be prioritized, ensuring the software isn't too difficult for teams to use.
• Accelerated by creativity: Strong creative acts as a force multiplier to drive measurable business results.