Here's What CMOs Think About The Challenges Of Marketing Right Now

If you’re a CMO, then you don’t need us to enumerate the plethora of challenges you’re facing. But let’s be honest, it’s always good to know you’re not alone. 

Which is presumably one reason why the AAR and ISBA have joined forces to research what CMOs think about the operational demands of modern marketing. So settle down and let’s consider the Evolution Of The Marketing Operating Model.

According to the report – which combines a quantitative survey amongst 100+ CMOs, marketing directors and CEOs with in-depth interviews and “extensive desk research” - although most CMOs are investing in transformation, only 51 per cent feel that their marketing operations are fit for purpose. They point to inefficiencies and misaligned structures continuing to hold back performance. While marketers often focus on the ‘what’—strategy, creative, and media, the ‘how’ of marketing, which includes aligning people, partners, process and platforms, is equally critical. 

Time, then, to add another acronym to our playbook: MOP. Bear with us, this is not one for your ‘bullshit bingo’ box; instead, the Marketing Operating Model (MOM) is now as important as the strategy itself, the report says. A clear, efficient, and adaptable MOM isn’t just a nice-to-have; it’s the foundation for success in a market where the rules are constantly changing, according to AAR’s CEO Victoria Fox. 

At its core, a well-designed MOM bridges strategy and execution to deliver marketing efficiently and effectively, while staying aligned with business priorities, evolving customer needs, and market dynamics. And who doesn’t want a bit more of that?

To discuss how the traditional marketing model - once rooted in brand storytelling and creative campaigns - has evolved, the AAR put a panel of marketers together to explore how CMOs today are tasked with not only driving business growth but also proving that their efforts are delivering measurable, long-term value. Tesco customer director Becky Brock, Ford in Europe’s director of marketing Peter Zillig and PWC’s global CMO Antonia Wade, got stuck in to the implications of this changing model and here’s what you need to know from the discussion:

1. Strategy Meets Execution
Strategy can’t be disconnected from execution anymore. Marketing has historically been seen as the creative arm of the business. However, as companies face mounting pressure to prove their worth to the boardroom, CMOs must shift their focus to delivering measurable outcomes. Because without it, marketing risks becoming disconnected from the broader business goals. At its simplest level the marketing strategy flows from the business strategy but is enabled by a marketing operating model.

So how do you even begin? “It’s actually often worth starting with the conversation about, what is it that you actually want to achieve from marketing? That leads to quite an interesting range of things and still end up with a pile of basically more marketing to do everything. But it then allows you to start to have the conversation about, well, you know, how much does brand matter in the buying cycle, and how much are we putting behind thinking about that?” PWC’s Wade reckons.

2. Tech Stacks And AI: Opportunity vs. Hesitation
When it comes to technology, CMOs are stuck in a bit of a paradox. While marketing technology has opened up exciting possibilities, the reality is many are failing to extract real value from their existing tech stacks. According to the report, 68 per cent of CMOs say they’re not getting the expected ROI from their tech investments. And yet, only half of them are actually experimenting with AI.

There’s an obvious disconnect here. AI holds massive potential for marketing, from automating mundane tasks to delivering hyper-targeted content at scale. But the hesitancy to fully embrace AI speaks to a bigger issue: many marketers still aren’t clear on how their existing technology fits into their broader operating model.

Tesco’s Brock thinks the problem is that for many years the marketing tech ecosystem has been devolved to technology ‘because it has tech in the word and marketing don't do tech. I think when you get into it, you've got to reimagine it with your CTO. You've got to say, ‘Where are you going? What's the opportunity? What's the type of personalisation? What's the data flows we want through that?' And you've got to upskill on the architecture, the platforms and technologies. As marketers, it requires us to be curious all the time.” She offered a piece of advice that should resonate with every marketer: “Start small, experiment with manageable areas, and only scale when you’ve nailed the fundamentals.” The temptation to jump straight into AI can be overwhelming, but it’s crucial to first get the basics right and building the internal capabilities needed to support more complex solutions.

Ford Europe’s Zillig reminded everyone that there's fear in the boardroom around AI. Talking about his experience of using the tech, he said he was seeing quite a lot of reassurance around cost and speed but that it’s still lacking substantiation around quality of various AI models. 

AI is undeniably a game-changer. Yet, despite its promise, it’s clear that most CMOs are still grappling with how to use it effectively. The hesitation lies in the practicalities — AI is only as good as the data it processes, and data, as we know, is a messy business. This doesn’t mean marketers should shy away from AI. The marketers dissecting the study said that it’s a wake-up call for CMOs to get more comfortable with it. As Wade puts it: “You can’t underestimate the cultural and organisational challenges of transformation.” AI isn’t a magic bullet. It needs to be woven into the very fabric of the marketing operating model, and it requires the right skills, tech infrastructure, and an openness to experimentation. It’s not about replacing human creativity but about enhancing it.

3. In-housing And Building Better Partnerships
Marketing is no longer a siloed function within an organisation. Whether it’s product development, customer service, or operations, marketing must be fully integrated into the business’s broader strategy. But collaboration doesn’t stop inside the organisation. The relationships marketers cultivate with external partners—agencies, technology providers, consultants—are just as crucial. The marketing ecosystem isn’t just about picking the right partners; it’s about building outcome-driven relationships that help brands scale and adapt. 

Zillig highlighted the importance of this dynamic: "The right partners help marketers scale and innovate, but the wrong partners can slow things down." It’s about aligning with those who understand your business and goals, and who can move as quickly and efficiently as your team does. 

In the survey, 33 per cent of marketers said that they had reviewed their agency roster and/or their in-house agency in the last 12 months and another 24 per cent are planning to do so in the next year. Whilst 41 per cent of CMOs say that they are planning to eliminate their in-house agency and to re-outsource the work in the next year, another 46 per cent and 44 per cent say that they are looking to develop in-house creative and media resource respectively.

The panel discussed in-housing as a strategy with both benefits and challenges. Zillig highlighted the advantages of in-housing certain capabilities, particularly the proximity to talent and faster execution. However, they also emphasised the importance of choosing the right partners and clearly defining roles to avoid confusion. In the report, Margaret Jobling, CMO NatWest Group, talks about using a tiered approach to her agencies summed up as following:

Tier One: set piece, large scale brand or creative campaigns. This is still largely handled by external partner agencies.

Tier Two: smaller scale campaigns that still require a creative platform. A hybrid approach utilising both in-house and external agency resource may be taken here. For example, mainstay brand and campaign concepts and assets may be created by an external agency which are then scaled at the volume end of content in-house for social media, web and CRM.

Tier Three: high volume, quick-turnaround or high churn content that often feeds content hungry channels. This area is the most likely to be covered by an in-house production agency or content resource, and the area which is also seeing most early trials of Gen AI application.

4. The New Discipline of Marketing
So where does all this leave us? The future of the CMO is one of constant reinvention. The marketing operating model is no longer just a process; it’s a discipline. Marketers must continuously evolve, iterating their strategies, teams, and new technologies to stay ahead.

It’s no longer enough to stick to outdated models or twist for short-term wins. The future demands a clear, forward-thinking approach that blends strategy with operational excellence. CMOs need to invest in talent that can navigate this new marketing landscape, equipped with the skills to drive both creative and analytical work. Ultimately, the transformation of marketing isn’t just about embracing new technologies or reorganising teams. It’s about adopting a mindset of agility, experimentation, and alignment.

And yes, some of you might call this shift bravery. We call it a future of marketing where the best marketers have a clear plan and an approved business case with board-level buy-in. At Creative Salon, we’ve made it our mission to celebrate the most Creative Marketers and this is the very definition of one.