How marketing leaders can transform marketing from a support function to a growth driver

The decline of marketing as an influential business function is well documented. Among C-suite roles, chief marketing officers (CMOs) are the least likely to advance to the CEO spot and the most likely to be dismissed. 

This unsettling trend is supported by the Fall 2023 CMO Survey, where most CMOs reported limited involvement in executive-level decisions. They are not regular attendees at board meetings, and even fewer participate in earnings calls. While many external factors contribute to this decline in influence, much of it may be self-inflicted.

The changing mandate for marketing leaders

At the B2B Marcom Summit in Washington, D.C., earlier this year, I attended a keynote address by Rick Rudman, CEO of Curbio. His tone was friendly, but his message was unmistakably candid. Rudman urged marketing leaders to go beyond traditional metrics and demand generation. He emphasized the importance of stepping into a role that aligns with the organization’s growth and profitability objectives. 

In his words, marketing leaders must evolve into strategic contributors whose insights drive core business results. He shared that such marketing leaders are rare and invaluable, as those who prove their worth by taking on a broader vision for the business are retained and even groomed for CEO roles.

A similar sentiment was echoed at another industry gathering — the 2024 MASB (Marketing Accountability Standards Board) Summer Summit. Fran Cassidy, founder of Cassidy Media, discussed the findings of a recent study conducted by the Institute of Practitioners in Advertising (IPA). 

The 2023 quantitative study surveyed investment analysts across the U.K. and the U.S. to understand their perspectives on the importance of brand and marketing investments in assessing organizational performance. The findings were illuminating: brand and marketing investments ranked as the top consideration for these analysts. They overwhelmingly believed that well-executed marketing initiatives represent capital investments (rather than mere operating expenses). This underscores a critical insight: from an investor’s standpoint, marketing has the potential to create long-term value akin to infrastructure or technology investments.

Despite this external recognition of marketing’s potential impact, marketing leaders often express a sense of “crisis” within their function. They face unprecedented demands — juggling complex, multi-channel campaigns, advanced analytics and rapidly evolving technology. 

While the modern marketing landscape is undeniably more complicated than a decade ago, the fundamental responsibilities of brand growth and demand generation remain central to their role. As a result, many marketers struggle to elevate their focus from these operational concerns to the larger strategic priorities of their organization.

Dig deeper: How to clarify marketing metrics to impress the C-suite

Marketing’s struggle for strategic alignment

This disconnect between what the organization needs from marketing and what’s being delivered often boils down to a fundamental misalignment. Ironically, while marketers are responsible for identifying unmet market needs and positioning their organization to fulfill those needs profitably, they often fail to recognize and address the unmet expectations their organization has of them. 

Too often, marketing leaders focus narrowly on operational KPIs — such as website traffic, social media engagement and lead conversion — without tying these metrics to the larger business objectives. While these KPIs provide insight into campaign performance, they fail to demonstrate marketing’s impact on business growth, revenue or profitability.

In essence, marketing needs to reframe its purpose within the organization. Marketing should not be a support function measured solely by campaign metrics. Instead, it should be positioned as a strategic driver of growth and long-term value. The more CMOs align their objectives with financial goals, the more they amplify their impact and build credibility at the executive table, where critical decisions are made. For marketing leaders, this means demonstrating how their strategies contribute to broader business outcomes — whether through increasing customer lifetime value, enhancing market share or accelerating revenue growth.

What CMOs can learn from CEOs and investors

Both CEOs and the investor community increasingly recognize the value of strategic marketing. As Rudman pointed out, CEOs actively search for marketing leaders who can transcend traditional boundaries, translating brand awareness, demand generation and growth strategies into tangible financial results. 

Investors, too, recognize that brands are enduring assets and companies that make wise marketing investments are likely to yield better returns in the long run. Legendary investor Warren Buffet has often described strong brands as “moats” that protect businesses from competitors. 

The findings from the IPA study reinforce this sentiment. Analysts view brand and marketing as crucial, long-term investments that, when executed well, contribute to sustainable profitability. Given this external validation, the reluctance of many marketers to prioritize financial objectives over operational metrics is baffling.

The CEO and investor perspectives suggest a vital opportunity for marketing to reposition itself as a high-value organizational function. By advocating for marketing as a capital investment, marketers can shift how their budgets are perceived and protected. However, doing so requires a fundamental shift in mindset — from viewing marketing as a cost management function (CPL, CPA, etc.) to seeing it as a core component of business growth.

Dig deeper: Measuring marketing’s impact: From metrics to growth

The path forward: Realigning marketing with business goals

The current crisis within the marketing function calls for collective introspection. CMOs need to adopt a leadership mindset that aligns with the financial and strategic goals of the company. Here are several steps to guide this transformation.

Align marketing goals with financial metrics

To earn a strategic role, marketing teams must measure their success in terms that resonate with the executive suite. This means focusing on metrics such as revenue growth, customer lifetime value and return on marketing investment (ROMI). By prioritizing financial outcomes over engagement metrics, marketing can demonstrate its direct impact on the bottom line.

Communicate marketing’s value to stakeholders

Marketing leaders should proactively engage with CEOs, CFOs and boards to explain how marketing investments support business goals. Building this narrative not only validates marketing’s role but also educates stakeholders on the long-term benefits of marketing initiatives.

Invest in ‘last mile’ analytics

The ability to track and attribute marketing efforts to financial results is essential. Advanced analytics tools and attribution models allow marketers to demonstrate how various campaigns contribute to sales and customer acquisition. However, they often stop short of the “last mile,” where marketing efforts are fully connected to profitability, cashflow and long-term growth.

Elevate brand as a strategic asset

Brand equity should be viewed as a key asset that fuels growth, not as an intangible/ abstract concept. Brand-building can have measurable impacts and can be valued as an essential investment in the company’s future, comparable to R&D or technology infrastructure.

Foster cross-functional collaboration

Marketing leaders should work closely with finance, sales and product teams to create holistic strategies that align with business goals. Collaborative efforts ensure that marketing campaigns are designed with company-wide objectives in mind, ultimately creating a more cohesive and profitable organization.

Dig deeper: The CMO’s guide to aligning martech and business strategy

A new vision for marketing: Aligning with financial goals to boost influence

Marketing is at a crossroads, facing both internal and external pressures to redefine its role. Complex channels, technology and performance metrics are important aspects of the function. However, they are not the essence of marketing’s contribution to business growth. 

By shifting their focus from operational KPIs to strategic, financially oriented goals, CMOs can reclaim their influence and make a more substantial impact on their organizations.