A recent Gartner survey has revealed that just over half of senior marketing leaders feel they have successfully demonstrated the value of their department within their organizations. Only 52% of respondents said they had been able to prove marketing’s contribution to business outcomes, highlighting persistent challenges in shifting executive perceptions.
The survey, conducted in April and May of 2024 with 378 senior marketing leaders, found that Chief Financial Officers (CFOs) and Chief Executive Officers (CEOs) were the most skeptical about marketing’s value. Among respondents, 40% identified CFOs as the primary detractors, closely followed by CEOs at 39%. This skepticism, according to the report, stems from entrenched views of marketing as a cost center rather than a strategic driver of business growth.
The findings underscore a larger issue: nearly half of CMOs surveyed in a related Gartner study reported that their teams are still viewed as an expense. “One of the significant challenges in proving marketing’s value is dealing with entrenched beliefs and lack of understanding,” explained Joseph Enever, Senior Director Analyst at Gartner. Enever highlighted that breaking through these outdated perceptions requires consistent communication and education efforts to emphasize marketing’s impact on revenue and business objectives.
A Broader, More Strategic Approach to Proving Value
The survey highlighted an important trend among marketing leaders who are more successful in proving the function’s worth. Leaders who adopted a long-term, holistic view of marketing’s contributions—encompassing its impact on sales, customer experience, and operational efficiency—were more likely to receive credit for their efforts. Of the 41% of respondents who took this broader approach, more than two-thirds were able to secure recognition for their role in achieving key business outcomes.
Gartner’s analysts also recommended that marketers incorporate a wider variety of metrics to strengthen their case. Relationship-based metrics, like Customer Lifetime Value (LTV) and Customer Acquisition Cost (CAC), alongside operational metrics, such as stakeholder satisfaction and resource productivity, were noted as effective tools in demonstrating marketing’s impact. According to Gartner, using two or more of these more sophisticated metrics increased the likelihood of proving marketing’s value by 1.8 times.
Analytics and Collaboration as Critical Success Factors
The survey also pointed to the importance of marketing leaders taking an active role in data and analytics. CMOs who directly engaged in developing marketing dashboards or shaping measurement strategies were 1.4 times more likely to prove value than their peers who were less involved. Furthermore, senior leaders who regularly met with their marketing analytics teams were significantly more successful in demonstrating their contributions, with 62% of frequent collaborators saying they could prove marketing’s value, compared to just 30% of those who met infrequently.
Talent Gaps Hinder Progress
However, one of the key obstacles to proving marketing’s value lies within the function itself. Gartner’s research pointed to three major talent gaps: a lack of analytical talent, insufficient soft skills, and a shortfall in technical expertise to manage and interpret data. Closing these gaps, according to Enever, is critical for CMOs to transform marketing into a key strategic player within their organizations.
Gartner’s findings reflect broader industry concerns around the growing need for marketing to substantiate its strategic role within companies. As pressures mount for marketing departments to justify their budgets, many leaders are shifting toward data-driven approaches that align with broader business objectives. Yet, as the survey results indicate, overcoming skepticism from key financial and executive stakeholders remains an uphill battle.
For more details on these trends, Gartner’s full report, “2024 Marketing Analytics Survey: How CMOs Prove Value and Receive Credit,” offers deeper insights into the strategies and metrics marketing leaders can adopt to strengthen their standing within their companies.