The role of Chief Marketing Officers (CMOs) within major brands is undergoing a significant transformation, shifting from a predominant focus on performance marketing to a more balanced approach that includes brand marketing. This shift reflects an evolving perception among marketing organizations, increasingly aware of the potential harm that an overemphasis on performance marketing can inflict on their brands. The transition towards integrated strategies signifies an understanding that long-term brand health is as crucial as short-term performance metrics.
Reorganization of Marketing Departments
One clear indication of this trend is the reorganization of marketing departments in major companies. Kimberly-Clark exemplifies this through the appointment of Luis Sanches as the company’s first global chief creative and design officer, operating under chief growth officer Patricia Corsi. This move is a departure from the traditional CMO role, emphasizing creativity and branding at every stage of the marketing process. Corsi underlined the importance of positioning creativity at the heart of marketing initiatives to drive the brand’s growth and reputation.
This development is seen by marketers, agency executives, and consultants as a strong signal that the focus is swinging back towards brand marketing. Dory Ellis Garfinkle, chief marketing officer at brand consultancy Siegel+Gale, highlighted the burgeoning demand for senior leaders who concentrate on outcomes such as loyalty, relevance, and authenticity. According to Garfinkle, separating performance and design roles may lead to a ‘rebranding’ of traditional marketing departments, potentially reforming the stigma of being viewed merely as cost centers. This redefined approach demonstrates an acknowledgment that mature businesses now recognize performance marketing as just one component of a broader strategy that includes creative content, brand governance, and enduring customer trust and loyalty.
Expanding Remit of the CMO Role
The expanding remit of the CMO role has prompted some organizations to rethink their marketing models to manage both brand and performance marketing effectively. Kimberly-Clark’s strategy of having both a chief growth officer and a chief creative and design officer is just one way to divide these duties. Similarly, other brands are exploring unique paths to achieve a balanced approach to marketing, signaling varied interpretations of growth drivers and marketing perspectives essential for their success.
Greg Paull, president of growth at search consultancy R3, mentioned that as marketing continues to evolve, embracing specialized areas such as AI and retail media networks, it becomes increasingly challenging to centralize all responsibilities into a single CMO role. How a brand structures its CMO model reflects its perceived key growth drivers and defines its marketing outlook. This evolution anticipates more diverse leadership roles and titles within marketing departments, further indicating a strategic pivot towards a more integrated approach that coalesces brand and performance marketing.
Chris Plating, chief strategy officer at ad agency EP+Co, emphasized that finding equilibrium between brand and performance marketing is essential for the future of marketing organizations. He noted that both the humanity of marketing and the measurability of its impact are crucial, advocating for a collaborative approach that effectively serves both objectives. As brands strive to harmonize these aspects, they position themselves to emerge stronger in a competitive landscape.
Market Volatility and Performance Marketing
The recent emphasis on performance marketing stemmed from market volatility that had companies concentrating on profit and efficiency, often driven by the need to justify marketing expenses to chief financial officers and other C-Suite executives who typically view marketing as a cost center. Kate Watts, CEO of brand consultancy 50,000feet, pointed out that this focus led CMOs to prioritize product and performance marketing, resulting in short-term gains that could potentially damage brands over time. As market conditions stabilize, there’s a renewed appreciation for the power of good creative, design, and brand experiences.
This renewed emphasis is echoed by marketing and venture consultant Michael Miraflor, who has observed a growing need for full-funnel marketers and storytellers in the industry. Dave Snyder, partner and head of design at innovation consultancy Siberia, added that marketers had lost sight of what sets them apart from other C-Suite executives, creating redundancy on the financial side and a gap where customer-centric creativity should be. He stressed that creativity is paramount in building brands that resonate deeply with consumers, advocating for a restoration of the creative element in marketing.
Building Stronger, Enduring Brands
The role of Chief Marketing Officers (CMOs) within major brands is experiencing a notable transformation, moving from a heavy focus on performance marketing to a more balanced method that equally prioritizes brand marketing. This shift mirrors an evolving understanding among marketing organizations. They are becoming increasingly aware that an overemphasis on performance marketing may harm their brands in the long run. The transition towards integrated strategies demonstrates a growing recognition that maintaining long-term brand health is just as important as achieving short-term performance metrics. Historically, CMOs focused heavily on immediate returns and metrics-driven campaigns, often neglecting the brand’s overarching narrative and connection with the audience. However, today’s marketing landscape requires a holistic approach where brand value and customer loyalty are seen as key drivers of sustainable growth. Companies are now investing in robust brand-building efforts, understanding that a well-rounded strategy can lead to enduring success and a resilient market position.
