CEO-CMO Friction in 2025: A Persistent Problem

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CEO-CMO Discord Intensifies: New Report Reveals Growing Misalignment in C-Suites

A New Study Highlights Critical Gaps in Understanding and Strategic Alignment Between Ceos and Chief Marketing Officers, Potentially Stifling Company Growth.

June 16, 2025

Tensions are escalating between Chief executive Officers (Ceos) and Chief Marketing Officers (Cmos), impacting strategic alignment and marketing effectiveness. A recent report indicates a significant rise in ceo-cmo misalignment,signaling potential repercussions for business growth.

Key Findings: The Growing Divide

According to a study, misalignment between Ceos and Cmos has surged by 20% between 2023 and 2025. This increase stems from a lack of clarity in the Cmo’s responsibilities and a disconnect between marketing initiatives and overall company growth metrics.

The research, conducted in partnership with the Association Of National Advertisers (Ana), surveyed over 100 C-suite executives from Fortune 1000 companies across Asia, Europe, Latin America, and the U.S. The study builds upon previous research and, for the first time, includes insights from Chief Financial Officers (Cfos).

Shelley Stewart Iii, a Senior Partner with a prominent growth, marketing, and sales practice, emphasized the need to view the Chief marketing officer (Cmo) position beyond just following trends. He suggests integrating the cmo role into the core business operations.

The Core of The Problem: Lack Of Understanding of The Cmo Role

A Lack Of Comprehension of the Cmo’s duties can lead to their exclusion from vital decision-making processes. research indicates that only 63% of Fortune 500 companies have a marketing leader who reports directly to the Ceo.

The study also revealed that the percentage of Ceos who believe the marketing role is well-defined within the C-suite has dropped from 90% to 70%. Furthermore,just half of the Cmos surveyed feel they are involved in strategic planning.

Stewart Iii argues that the Cmo role should not be merely tactical but should be integrated with strategy and finance to drive growth. This ensures that marketing efforts are aligned with overall business objectives.

Did You No? According to Gartner, global ad spend decreased from 9.1% of revenue to 7.7% in 2024, reflecting potential underfunding of marketing departments.

Budgetary Constraints and Metric Misalignment

The Lack Of Clarity in the cmo role translates into underfunded marketing departments, with most Ceos and Cmos agreeing that their budgets are insufficient. This is reflected in broader advertising expenditure trends.

Norm De Greve,a senior vice president (Svp) and Cmo at General Motors,stresses the importance of aligning marketing with financial objectives. Proactive communication and shared metrics are crucial for demonstrating return on investment (Roi) and building trust.

However, there is a significant misalignment on performance metrics. While 70% of Ceos measure marketing impact based on year-over-year revenue growth and margin, only 35% of Cmos prioritize thes metrics.

This difference creates friction, especially with Cfos, who expect cmos to link marketing activities directly to overarching business goals.

Metric	Ceos	Cmos
Year-Over-Year Revenue Growth	70%	35%
Alignment with growth Kpis	N/A	79% (Down 9% From Last Year)
Clearly Defined View on Marketing Roi	N/A	30%

Customer Centricity: The Path Forward

Stewart Iii emphasizes that Cmos should be central to driving growth. They should champion customer centricity, understanding the customer journey to foster accomplished business outcomes.

Pro Tip: Enhance CEO-CMO alignment by establishing shared KPIs and holding regular joint strategy sessions.

The survey highlights how crucial it is that the Ceo and cmo roles work together to improve business. What steps can companies take to ensure the Ceo and Cmo see eye-to-eye? Do you think the Cmo’s duties are well-defined in today’s marketplace?

Evergreen Insights: The Enduring Value Of Marketing Leadership

While the study spotlights current friction, the core need for strong marketing leadership remains constant.A Cmo’s capacity to connect with customers, drive brand loyalty, and convert marketing activities into tangible financial gains is perpetually valuable.

Companies that invest in clarifying the Cmo’s strategic role and fostering open communication across the C-suite are better positioned for sustained growth. This collaborative approach ensures marketing remains a central driver of success, aligning with long-term business objectives.

Frequently Asked Questions

How can CEOs and CMOs effectively bridge the interaction gap and foster a shared understanding of marketing’s role in driving revenue growth in 2025?

the relationship between the CEO and the Chief marketing Officer (CMO) remains a complex and often strained dynamic in 2025. Despite advancements in technology and a deeper understanding of marketing’s vital role, friction persists. This article delves into the root causes of this CEO-CMO disconnect, explores the impact, and provides actionable strategies to foster a more collaborative and effective partnership. Keywords like marketing alignment, CMO leadership, CEO expectations, and marketing strategy are critical to understanding the nuances.

Understanding the Core Issues

Several key factors contribute to the ongoing friction between CEOs and CMOs. Often, they stem from differing priorities, communication styles, and definitions of success. Examining these common pain points offers valuable insight to improve the alignment of the marketing strategy with the overall company objectives.

Divergent Objectives and Priorities

CEOs often prioritize short-term financial results, revenue growth, and overall profitability. CMOs, on the other hand, may focus on brand building, long-term customer relationships, and innovative marketing campaigns. These contrasting goals can lead to conflict when the CMO’s marketing initiatives do not promptly translate to the CEO’s desired outcomes.

• Short-Term vs. Long-Term: the CEO often focuses on quarterly results, while the CMO might prioritize initiatives with a longer ROI timeline.
• Financial Metrics vs. Brand Equity: CEOs are highly focused on sales and profitability; CMOs are trying to balance that with brand awareness and customer lifetime value metrics.
• Risk Aversion: The CEO might focus on less risky investments. CMOs can be trying to push forward on new strategies with an increased risk of failure.

Communication Gaps and Styles

Effective communication is critical, yet often lacking. A lack of marketing strategy alignment can be compounded by conflicting communication styles. CEOs sometimes lack insights into the technological advancements that marketing professionals are immersed in, and CMOs often struggle explaining their strategies in terms of clear, measurable financial returns. Bridging these gaps requires a commitment to regular, obvious dialog.

• Jargon and Technical Language: CMOs sometimes use marketing jargon that the CEO doesn’t understand.
• reporting and Data: Frequent reporting is needed, not only on marketing performance but what the financial implications will be.
• Alignment on KPIs: Without clear defined kpis that the CEO understands, the CMO will always be fighting an uphill battle.

Differing Views on Marketing’s Value

The CEO’s viewpoint on the value of marketing significantly impacts the relationship.Some CEOs still view marketing as a cost center rather than a revenue driver. This perception can lead to budget cuts, lack of support for innovative programs, and overall distrust of the CMO. Conversely, progressive CEOs understand the critical role of marketing in driving growth and value creation, facilitating the work, and investing to enhance the company’s competitive advantage.

Impact of CEO-CMO Friction

The consequences of a strained CEO-CMO relationship can be detrimental to the entire organization. From lower morale to missed opportunities, here is a breakdown:

• Reduced Marketing Effectiveness: Inconsistent messaging, misaligned campaigns, and ineffective use of resources impair the ability to reach new customers.
• Decreased Employee Morale: Lack of trust and conflicting goals can make teams unsure of objectives or what is vital to the company.
• Hindered Innovation: the lack of support from the CEO can prevent a CMO from pursuing new digital marketing, and other innovative programs.
• Missed Growth Opportunities: Missed marketing initiatives mean missed revenue, and a lack of organic growth within the company.

Strategies for Improved Collaboration

Turning this relationship into one that can yield great results means proactively implementing changes within marketing and also within the company. Here are a few changes CEO and cmos can bring about.

Foster Clear Communication and Shared Goals

establishing clear, measurable goals early is crucial. The CEO and CMO should collaborate on defining key performance indicators (KPIs) and success metrics that correlate with the business objectives. Regular feedback,performance reports,and a willingness to have open,honest conversations are vital.

• Regular Meetings: Implement weekly meetings to review performance, track progress, and discuss any issues.
• Clear KPIs: Clearly define and agree upon KPIs related to revenue, customer acquisition, and brand awareness that correspond to business objectives.
• Transparent Reporting: Share regular reports on marketing campaign performance, with a focus on the ROI.

Align Marketing Strategy with Business Objectives

The CMO’s strategies should always align with the overall goals and strategies of the company. This includes making sure messaging, targeting, and channel selection are geared toward reaching business objectives. This includes developing a extensive marketing strategy that integrates with the wider business strategy. For example, if the goal is to launch a new product line, the marketing plan must be designed to support that launch with detailed outreach and education. This strategic alignment becomes even more relevant when creating integrated marketing campaigns designed to generate a positive ROI based on clear performance metrics.

Embrace Data-Driven Decision-Making

Using data should be standard for every team. Both the CEO and CMO should value using data-driven insights to inform decisions and measure the impact of marketing investments. This involves:

• Utilizing Marketing Analytics: CMOs should leverage data analytics tools and customer data platforms to track marketing campaign performance, understand customer behavior, and demonstrate ROI.
• Creating Dashboards: Data dashboards and reports should display key metrics,helping the CEO understand the impact of marketing campaigns on the company’s bottom line. This real-time information is vital for proactive adjustments.
• Investing in Data Infrastructure: The company needs to invest in the tools needed to track, monitor, and report relevant data on a regular basis.

Challenge	Solution	Impact
Divergent Priorities	align marketing goals with business objectives; Establish shared KPIs; Communicate clear ROI	Increased understanding between teams and business growth
Communication Gaps	Employ clear, jargon-free communication; Frequent reporting; Align on KPIs	Improved trust and collaboration
Perception of Marketing Value	Use data to demonstrate ROI; Communicate value clearly	Investment in marketing efforts, leading to business growth

Develop a Culture of mutual Respect and Trust

Creating a strong, mutually respectful partnership is vital. Both the CEO and CMO must value and understand the expertise each brings to the table. This also involves a commitment to clarity, honesty, and taking criticism, wich will build the kind of relationship where shared goals are easily accomplished.

Case Study: A well-known tech company experienced notable growth after its CEO and CMO collaborated on digital transformation. The CEO provided overall business strategy and the CMO developed innovative marketing campaigns that attracted new customers. This resulted in a surge in revenue growth and enhanced brand reputation.