LinkedIn research finds CMOs pressured to deliver short-term ROI under less budget
Almost four in five (77%) chief marketing officers (CMO) globally feel under pressure to prove greater short-term return on investment (ROI) with marketing campaigns, as businesses are strapped under economic uncertainties, LinkedIn research found.
Marketing and advertising have become target areas for businesses to reduce cost, alongside technology and talent.
Of the CMOs interviewed globally, over two in five (45%) are financially preparing for tough times ahead. Additionally, they are concerned about having to operate more reactively (32%) and curb creative campaigns (30%).
Many are concerned with employee well-being overall, as over a third (38%) report that burnout and exhaustion among employees is the greatest challenge they face during periods of economic uncertainty.
However, cutting back on marketing can have devastating effects for brands, as LinkedIn’s B2B Institute found sales for brands of all sizes dropped by nearly 50% if advertising is paused for a year or more.
Prue Cox, director enterprise SEA, KR & ANZ Marketing Solutions said: “While we know the economy is in a state of flux, it’s important that marketers continue to invest in marketing as by pulling back investment, they risk long term damage to their brand.
“As marketing budgets are often the first to be scrutinised and tightened in times of uncertainty, it’s important that senior leaders can show ROI to their stakeholders.
“Speaking the language of the CFO, to demonstrate an alignment of marketing metrics to business metrics, and pulling the right strategic levers, will help maintain existing budgets and strengthen future ones.”
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