I was catching up with the head of recruiting at one of the most notable venture capital firms in Silicon Valley the other day, and she asked me if we have been recruiting as many CMOs in 2024 as we did in 2023. It made me think because, holistically, our revenue has been excellent this year. However, upon reflection, I realized our clients have pulled away from hiring CMOs. When I turned the question around, she stated that not one single company in the firm’s portfolio hired a CMO in 2024. I was blown away by this statement, especially given the breadth of the investments this firm makes, the global footprint they have, and the wide variety of industries they fund.
What happened to the CMO position in 2024? Why aren’t more companies investing in this role, and is this position becoming extinct? The Deloitte Spring 2024 Survey sheds some light on the challenges CMOs are facing, but I don’t think it reflects the full picture of what is happening inside companies today and how CEOs are reshaping their organizations to optimize results and address economic uncertainty.
Here’s how we see the CMO position evolving:
- Fractional CMOs Are More in Demand: As companies grow, marketing demands evolve. Early-stage companies need more focus on brand development and finding product-market fit, while later-stage companies need to focus on marketing transformation and technical innovation to find new customers and reduce churn. Fractional CMOs give companies the ability to flex as their business stage evolves.
- Chief Marketing Officer to Chief Commercial Officer: CEOs are expecting their marketing leaders to be more accountable for driving revenue, not just ROI. As technology advances, the line between marketing and sales is becoming more blurred, and the need for a commercial leader to oversee both divisions is becoming more apparent. This means the traditional CMO must expand their understanding of the sales function and think more broadly about the revenue remit as they look to expand their careers and stay relevant in a changing landscape.
- Technical Knowledge Matters More Than Ever: Technical investment has skyrocketed and has become a bigger line item on the marketing P&L. Having a keen understanding of software investments, and which tools and technologies are most impactful, is essential for a CMO to gain the confidence of the CFO and CEO.
- The Battle Between Brand and Performance: This is an age-old struggle that many CEOs will never fully understand. What they do understand is the bottom line, so the CMO needs to balance the spend in both to maintain their seat at the table and influence budget increases. This is a difficult challenge as most CMOs have greater expertise or affinity in one area over the other. Of course, all great CMOs know how to hire on both sides, but with economic conditions as they are, and headcounts and budgets being cut, CEOs are looking for a unicorn who is an expert in both.
With fast-moving technological advances and an uncertain economy, the CMO’s job is getting harder and harder. CEOs are questioning whether they need this high-profile role in its traditional sense or if it would be smarter to break up the position into multiple leadership roles or hire one commercial leader responsible for the end-to-end customer journey and revenue.
