In 2025, with less to spend and multiple stakeholders, balancing short-term sales growth with long-term brand building will be essential for CMOs looking to maintain a strong growth trajectory.
Incubeta Africa’s MD Jaco Lintvelt says CMOs must get back to the idea of marketing as a key driver of value (Image supplied)
According to Gartner's 2024 CMO survey, average marketing budgets have fallen to 7.7% of overall company revenue, down from 9.1% in 2023.
This represents a 15% drop from an already tight 2023, with the analyst firm referring to the coming years as “an era of less.”
One of the biggest problems brands face is a fundamental disconnect between marketing theory and marketing in practice.
There is no doubt that budgets are constrained and that CMOs need to look hard at how they spend what budget they do have.
But we must get back to the idea of marketing as a key driver of value.
The conversation must revert to how we invest in our people and equip them to use all the available tools.
You can have the best tech on offer, but if it’s built on a half-baked strategy, companies will never realise the full value of their investments.
Balance creative brilliance with solid technology basics
Even in a digital age, there is room for both art and science in a modern marketing strategy.
However, CMOs must pay close attention to the creative experience as it can have a significant multiplier effect.
The biggest driver of marketing profitability remains the creative experience which offers a multiplier of up to 12X when it comes to the overall investment.
That said, you also need a solid technology offering to allow you to be more dynamic, more responsive, and more in tune with your customers.
It’s the technology foundation that allows you to holistically manage and integrate your marketing efforts.
Brands must balance getting the basics right with moments of creative brilliance.
CMOs can’t afford an either/or approach
Today’s CMOs are often torn between the expectations of their C-suite colleagues. While the CEO may value a sustainable growth strategy, the CFO will be looking for the marketing team to deliver on short-term profitability goals.
CMOs are facing pressure from all sides. Increasingly we are seeing a much more direct link to the CFO as marketing leaders are expected to quantify their investments.
As much as the CMO may need to invest in a generative AI project, they will face pressure from the finance team to focus purely on boosting short-term sales, missing out on the longer-term benefits and falling behind their competitors.
The only way for a CMO to thrive is to take a dual approach and deliver some immediate sales, while also fulfilling their generative growth aspirations.
Six steps to achieving a profitable 2025
Delivering a growth strategy, focused on both profitability and long-term brand building, will be a balancing act.
- Align stakeholder objectives
Engage with the CEO, CFO, CIO, and other C-suite members to align on shared goals and KPIs.
- Leverage data and reporting
Provide transparent, data-driven reporting that demonstrates the impact of marketing efforts on both immediate sales metrics and long-term brand health indicators. This helps justify investments and maintain a seat at the table.
- Prioritise the creative experience
Recognise that the creative experience can have a significant multiplier effect on marketing profitability. Ensure a balance between foundational marketing tactics and innovative, attention-grabbing campaigns.
- Build a solid technology foundation
Avoid the trap of adding new tools on top of an unstable marketing technology structure. Instead, invest in building a well-designed, future-proof foundation that enables both rapid results and long-term adaptability.
- Cultivate an ecosystem of trusted partners
Develop an ecosystem of marketing partners that can help execute on the various initiatives and demonstrate tangible results to the C-suite. This can enhance the CMO's ability to deliver on the dual mandate.
A great contemporary marketing partner helps CMOs confidently report on true return on their investments, can translate the hype of AI, data and automation into reality, and enable the business to adapt and thrive.
By embracing this holistic approach, CMOs can navigate the complexities of 2025 and beyond.
The key lies in finding partners who can confidently help a business deliver rapid results, adaptive automation, and generative growth.
