What is Keeping CMOs Up at Night?

As marketers head off for their summer vacations, they may find their breaks overshadowed by several looming industry challenges expected in the latter half of the year. Although most Chief Marketing Officers have adapted to the constant threat of economic instability and the recent easing of inflation, other pressing issues are coming to the forefront as they prepare for the months ahead, including evolving consumer preferences.

Here are some major concerns that keep CMOs up at night as they approach the second half of 2024:

Navigating Election Season

With hundreds of millions of dollars being poured into political advertising by both Democrats and Republicans, media inventory is rapidly depleting. This situation poses a significant challenge for brands attempting to get their messages across amid the political frenzy. The reduced availability of media space and increased costs make it difficult for marketers to plan their campaigns from August through November. Additionally, the political divide complicates efforts to connect with consumers across different affiliations.

The Rise of AI

The rapid growth of AI in marketing is another major issue. A recent Deloitte survey found that more Chief Information Officers (CIOs) are now reporting directly to CEOs, potentially reducing the influence of CMOs. The rise of AI has led to fears of downsizing in marketing departments, with many brands already utilizing AI for their marketing efforts. While AI may not be universally applicable yet, its potential in certain areas is undeniable.

Changes in DE&I Priorities

Diversity, equity, and inclusion (DE&I) initiatives are also under scrutiny. Tractor Supply Company's decision to eliminate DE&I roles and goals, under pressure from conservatives, marks a significant shift. Only 41% of marketers now see DE&I as a priority, down from 59% in 2021. This deprioritization puts CMOs in a tough spot, balancing the expectations of the C-suite with the needs of a diverse consumer base.

CMOs must ensure their marketing teams and agencies reflect the diversity of their target audience. The backlash against Tractor Supply’s reversal from industry groups and employees underscores the risks of neglecting DE&I.

The Challenge of Measuring Marketing

Measurement remains a constant challenge for marketers, particularly with the phasing out of cookies. A report from WARC reveals that many advertisers are not fully prepared for this shift, leaving value on the table by not adequately measuring their marketing investments.

Programmatic advertising, while beneficial in some respects, often favors agencies and media buyers over brands. Connected TV (CTV) also presents difficulties in proving its effectiveness.

As marketers navigate the complexities of the latter half of 2024, they must address a variety of challenges. From the intense competition for media space during the election season to the rapid adoption of AI, the shifting focus on DE&I, and the enduring measurement issues, CMOs have their work cut out for them. By staying adaptable and focusing on unity and inclusivity, marketers can steer their brands through these turbulent times.

Cate Bender, the author, is Project Coordinator of Marketing Keys