In 2024, global CMOs had their hands full managing costs, optimising performance, and finding ways to ensure AI investments delivered returns.
The challenges faced by marketing leaders in 2024 have not disappeared, but a new priority has risen to the forefront – sustainability. And it won’t be long before the complexity surrounding this topic will be leaving South African market leaders scratching their heads too.
In 2024, CMOs were laser-focused on two key areas: cost control and performance targets. The economic headwinds and layoffs in major markets like Europe and the US put immense pressure on brands to do more with less.
Agencies also had to put a lot more effort into helping brands calculate their consumption costs which were used to meticulously plan and budget for the rapidly rising data costs of their digital initiatives.
Simultaneously, brands were grappling with the need to accelerate their digital transformation, particularly when it came to adopting AI and machine learning. The promise of these technologies to drive marketing performance was enticing, but the execution proved challenging. Traditional organisations found themselves falling behind their more agile, digital-native competitors, heightening the pressure to perform.
Now, as we look to 2025, sustainability has joined the ranks of the top priorities for CMOs. Global brands have recognised that they can no longer afford to treat sustainability as an afterthought or a simple CSR initiative.
What’s more, with just five years to achieve the 2030 Paris Agreement goals, global organisations are being held accountable for their environmental impact, especially by younger generations, and marketing departments are squarely in the crosshairs.
Sustainability issues intensify in 2025
Looking ahead, the global CMO priorities for 2025 can be distilled into five key focus areas:
1. Cost control: Brands must continue to find innovative ways to optimise costs, particularly when it comes to their data-driven and AI-powered initiatives. The energy-intensive nature of these technologies has become a growing concern, and CMOs will need to implement more sustainable data processing and consumption strategies.
2. Performance targets: Meeting aggressive performance goals remains a critical priority. However, CMOs will need to balance this with their sustainability commitments, ensuring that their marketing efforts are not only effective but also environmentally responsible.
3. AI adoption: The race to scale AI and machine learning capabilities shows no signs of slowing down. CMOs will need to find ways to leverage these technologies in a cost-effective and sustainable manner, integrating them seamlessly into their marketing operations.
4. Sustainability: This is the new kid on the block, but it’s quickly becoming the most pressing issue on the global CMO’s agenda. Brands will need to rethink their entire marketing ecosystem, from production to advertising, to ensure they are meeting their sustainability targets.
5. Accelerating digital transformation: The need to stay ahead of the competition and maintain a digital-first mindset remains a constant. CMOs must continue to drive their organisations’ digital evolution, but with a keen eye on the cost and sustainability implications.
CMOs cannot ignore these complex challenges, but with some smart collaboration, it need not be as daunting as it seems.
A new partnership model will emerge
Gone are the days of siloed, transactional relationships with agencies. In 2025, CMOs will need to foster more collaborative, trust-based partnerships that bring together diverse perspectives and capabilities.
This means being open to working with a mix of partners – from traditional advertising agencies to digital natives and even consultancies. Crucially, CMOs will need to involve these partners earlier in the creative process, treating them as strategic advisors rather than just service providers.
This level of trust and transparency will be essential in developing holistic, sustainable marketing strategies that can be scaled globally.
Set aside some ‘making magic’ money
Another key shift will be in budget allocation. While traditional media, creative, and data budgets will remain, CMOs will need to carve out a dedicated innovation budget. This separate pool of funds will allow for experimentation, testing, and investment in the digital transformation and sustainability initiatives that will be critical for success in 2025.
Convincing the board to support this shift may not be as difficult as one might think. Boards are increasingly aware of the necessity of digital transformation and the growing importance of sustainability. By clearly articulating the business case and demonstrating the tangible results of these investments, CMOs can secure the backing they need.
Understanding regional strengths could unlock surprising value
One of the insights we have as an agency across 20 countries is the unique differences and opportunities of each region. For instance, the US, UK, Germany, France and China are known for their critical thinking, often showing us where we should be applying our strategic energies.
However, these markets are also slower in execution. In contrast, markets like Spain, Mexico, Brazil and India are the activators and doers. They absorb the strategic thinking and execute significantly faster.
Smart global CMOs can leverage the different regions to their advantage. They can use the faster-executing markets as testing grounds to pilot new strategies and approaches. These markets can provide valuable learnings that can then be rolled out to emerging markets such as other Latin American and African countries, before being scaled up to the larger markets.
We believe 2025 will be a more complex year for global CMOs. Partnering with agencies that have insights from across the globe can help organisations tap into unique regional strengths and new, innovative ways of thinking that can be quickly and profitably leveraged.
Jessica Jacobs is chief commercial officer at Incubeta.
