Top CMO concerns for the second half of 2024

When marketers take vacations this summer, those breaks might be overshadowed by several industry concerns looming over the back half of the year. Though most chief marketing officers have adjusted to the ever-present risk of economic headwinds—and inflation has eased recently—other issues are top-of-mind as executives prepare for the coming months, including shifting consumer preferences. Growing interest in Ozempic and other weight-loss drugs, for instance, is forcing some brands to come up with new products and marketing strategies. Other complications, such as depleted media inventory due to the upcoming election, require a different type of planning to meet companies’ goals. Here are five of the biggest concerns weighing on marketers as they enter the second half of 2024. The looming presidential election Back in January, the election seemed far away; marketers were more concerned about the fickle economy and threats of a recession. That’s no longer the case. Democrats and Republicans ended the first half of 2024 with hundreds of millions of dollars ready to spend to promote their candidates, and as the election eats up media time that leaves little inventory for brands to get out their marketing messages. Those messages are also under pressure by the political divide as CMOs struggle to try to connect with customers, regardless of political affiliation. “There’s been so much raised by both sides and that money is going to start getting spent; when it does, there’s limited places where audiences are en masse,” said Erick Dickens, who works as a fractional CMO and also operates his own company Approach Marketing. “Availabilities will go down and prices will go up.” He noted that any marketers involved in performance marketing are challenged right now trying to figure out their plan for August through November. Marketers are also grappling with how to navigate culture clashes. Ilona Aman, chief marketing officer of Athleta, said that the brand is focused on uniting its female shoppers despite their differences. “The world is going to continue to go through topics that the world is going to go through, but our guiding compass is how to bring people together forming communities in places where things feel divided but we can still find room where we have things in common,” she said. To that end, Athleta will focus on educating consumers, particularly women, around the importance of voting this fall. “It’s less about swaying the vote in one direction,” said Aman. “It’s more about unlocking communities and places and spaces where women feel empowered and inspired to cast a vote.” 40 under 40 entries are open The final deadline for nominations is Aug. 2 Enter here Skyrocketing use of AI The soaring growth of AI in marketing is causing a host of issues for marketers—including the potential restructuring of the C-suite. A recent Deloitte survey published in the Wall Street Journal found that, thanks to the rise of AI, the bulk of chief information officers are now reporting directly to CEOs. This could spell trouble for CMOs as they try to catch the ear of their CEOs. Last year, only 52% of U.S.-based technology leaders reported to the CEO; that figure increased to 63% this year, Deloitte found. Some worry that such boardroom changes could signal the loss of clout for marketing leaders. Really hope that all the CMOs at Cannes next week take this seriously. AI should present an opportunity for CMOs to earn a seat at the Board-level, but CIOs are capturing that value right now. WSJ: "AI Puts CIOs in the Spotlight, Right Next to the CEO"— Michael J. Miraflor (@michaelmiraflor) June 13, 2024 Indeed, a recent Forrester report found that 45% of CMOs said AI will lead to smaller marketing departments. In recent months, several brands, including Lego, Under Armour and Toys R Us, have already turned to AI for marketing. While Toys R Us’ 60-second brand video, which was created using OpenAI’s new text-to-video tool, Sora, was lambasted for its quality by the creative community, experts worry at how quickly the technology is evolving. “In the beginning of the year, my original assessment was that this is something to keep an eye on … I didn’t know it would get here and be a legitimate threat in July,” said Dickens. “I still don’t think it works everywhere but it absolutely can be used in certain places.” Growth of Ozempic and GLP-1 drugs Another focus for CMOs looking ahead involves the rampant growth of Ozempic, Wegovy and other GLP-1 drugs. Many marketers are already thinking about shifts in strategy, including for product sizes and messaging tailored to consumers using the drugs for weight loss. Some agencies are readying efforts to help them—Havas Health Network last month debuted a dedicated consultancy to advise brands on strategies for the GLP-1 shift. Some of the shifts potentially include changes to the health insurance market and a rejiggering of brand favorites by consumers. For example, market research firm Numerator, which has its own GLP-1 research hub, found that top brands among consumers using the drugs include T.J. Farms, Aqua Star and Dulcolax. Also: Hims & Hers gets into the weight loss space Jeremy Lowenstein, CMO at Milani Cosmetics, said his beauty brand is not currently engaging in any GLP-1-specific marketing, but he is paying attention to make sure Milani is in tune with new trends and consumer demands. “Whether it’s accessibility of Botox and fillers or Ozempic, women and men are now starting to say they have a new version of themselves and are potentially going to invest in new makeup looks,” he said. “We want to make sure we have the right product message for what they’re looking for.” DE&I shifts CMOs are also closely watching industry shifts on DE&I initiatives. In late June, rural retailer Tractor Supply Company did an about-face on diversity initiatives following pressure from conservatives. The chain announced it was eliminating its DEI roles and retiring its DEI goals. Marketing leaders say DEI spend is on the decline; 41% of marketers predict diversity and inclusion will be a marketing priority in the next five years, a decline from 2021’s 59%, according to The CMO Survey. The deprioritization of such efforts is putting pressure on CMOs, according to Lauren Tucker, CEO and founder of inclusion management consultancy Do What Matters. “CMOs are caught in a squeeze between the rest of their C-suite and the talent they have to manage,” she said, noting that some CEOs are more focused on Wall Street than on “knowing that for sustained growth, they need to focus on making connections with consumers,” many of whom are increasingly multicultural. Tucker said that DE&I programs should be led with inclusion, rather than diversity, and that CMOs should have marketing teams and agencies in place that reflect the consumers to whom they are marketing. Tractor Supply’s reversal has attracted the ire of both industry groups, such as The National Black Farmers Association, and brand employees. Check out the latest Ad Age events and award programs The measurement conundrum Another continuing worry for marketers revolves around measurement, particularly amid the end of the cookie (although Google has a habit of delaying its demise). A recent report from marketing analytics firm WARC suggested that advertisers are not ready for this. “Marketers are leaving value on the table by failing to measure the full impact of their marketing investments,” WARC found. More: Inside Google’s post-cookie ad tech troubles Dickens noted issues in the programmatic space. “There are good things you can do with programmatic but on a whole, it’s a money maker for agencies and media buyers more so than it is effective for brands,” he said. He added that connected TV is also a struggle. “I’m sure there’s top-of-funnel areas of effectiveness people have found, but most of the companies I have worked with are looking to create revenue and CTV still has some work to do before its ready for primetime.” Evaluating media impact and effectiveness is a constant concern for Cheryl Gresham, CMO of Verizon Value, which includes the recently rebranded Total Wireless. “It feels like it’s two steps forward, three steps back,” she said. “As we move investments into digital and programmatic, how much of that is actually reaching the consumer?” She noted issues around brand safety and oversaturation. Gresham said there is a lot of work the industry needs to do with connected TV in particular “to ensure that the level of investment that’s increasing in that space is really cared for appropriately that it is held just as accountable as some of the other media channels that are less digitally-driven.” See America's Hottest Brands 20 brands that are trending in 2024 Click here

Top CMO concerns for the second half of 2024

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