🥈 The CMO Is Quietly Becoming the Second Most Important Person in the Company

The CMO was once responsible for telling the world what a company wanted people to believe, but that definition is becoming hopelessly inadequate. Today, the role is increasingly responsible for understanding what the world wants from the company in the first place, turning marketing leadership into something much closer to business leadership itself.

There was a time when the corporate hierarchy was relatively easy to understand. The CEO ran the business, the CFO controlled the money, the COO managed operations, and the CMO figured out how to make people want whatever the company happened to sell.

That model looks increasingly obsolete because the boundaries between marketing and the rest of the business are disappearing. Product, experience, commerce, culture, technology, customer service and brand now collide continuously, leaving the CMO sitting at one of the most complicated intersections in the modern organization.

The result is a potentially profound shift in corporate influence. The CMO is no longer simply becoming a more important marketer, but is increasingly becoming one of the most important interpreters of what the company should become next.

Marketing Has Escaped the Marketing Department

Marketing used to be something companies largely did to customers after creating something for them. Products were developed, services were designed, distribution was established and the marketing department was eventually invited into the room to create demand.

That sequence is increasingly backwards. Customer expectations now shape products before they launch, cultural movements influence corporate decisions, creators affect brand perception, commerce platforms influence discovery, and customer experience can undermine years of carefully constructed advertising remarkably quickly.

Marketing therefore cannot realistically begin with communications anymore. It begins wherever the relationship between an organization and the outside world begins, which means the modern CMO is inevitably being pulled into areas that previous generations of marketing leaders might barely have recognized as marketing.

This does not mean the CMO needs to own everything, nor should every corporate function suddenly report to marketing. It means almost everything a modern organization does can now have marketing consequences.

The CMO Is Becoming the Company’s Chief Interpreter

Modern companies possess extraordinary amounts of information about customers while simultaneously struggling to understand them. Dashboards can reveal behavior, attribution systems can track activity, social platforms can measure engagement and predictive models can identify patterns, but none of those systems can independently explain what a business should do next.

That distinction is becoming increasingly important because information is abundant while interpretation remains scarce. Companies do not necessarily need another dashboard telling them what happened yesterday; they need people capable of determining what those signals might mean for tomorrow.

The CMO is unusually positioned to fill that gap because marketing sits between what the organization wants to accomplish and what people outside the organization actually care about. A sophisticated marketing leader must understand customers, competitors, culture, technology, media, commerce and behavior while translating those forces into decisions the rest of the organization can understand.

This makes the CMO something closer to the company’s chief interpreter of the outside world. In an environment where consumer behavior can shift faster than organizational structures, that ability becomes considerably more valuable than simply managing a marketing budget.

The Most Important Marketing Decisions May No Longer Look Like Marketing

The traditional CMO was expected to answer questions about positioning, advertising, media and brand. The emerging CMO increasingly needs a voice in conversations about product, pricing, experience, distribution, partnerships and corporate strategy.

This is not marketing attempting to colonize the rest of the organization. It is recognition that customers do not experience companies according to organizational charts, departmental responsibilities or internal reporting structures.

A frustrating app shapes perceptions of a company just as surely as an advertising campaign does, while a brilliant customer service interaction can create more affinity than a carefully optimized piece of content. Pricing, packaging, checkout, delivery, product design and employee behavior all contribute to what customers eventually understand the brand to mean.

Every customer-facing decision therefore contains a marketing consequence, whether the marketing department was involved or not. The CMO becomes considerably more valuable when marketing thinking enters the organization before those decisions have already been made.

AI Is Making the CMO More Human

Artificial intelligence might initially appear to push the CMO role in the opposite direction. Marketing organizations can automate content production, audience modeling, optimization, personalization, research and countless other activities that once required significant amounts of human labor.

Yet automation creates an interesting paradox because the easier marketing becomes to produce, the more important it becomes to decide what is actually worth producing. When almost everyone has access to extraordinary production capabilities, production itself becomes a weaker source of competitive advantage.

If every company can generate thousands of pieces of content, the ability to generate content stops being particularly interesting. If every organization can optimize campaigns using increasingly similar systems, optimization itself becomes less distinctive and the ability to decide what a brand should say, where it should participate and what it should refuse to become grows considerably more important.

The scarce resource therefore becomes judgment rather than production. That moves the CMO away from simply managing the machinery of marketing and toward making the choices that determine whether the machinery produces anything meaningful.

The Future CMO Will Need the Confidence to Do Less

Modern marketing suffers from an abundance problem because there are more platforms, channels, technologies, creators, formats and opportunities than any organization could reasonably exploit. Brands are nevertheless encouraged to participate everywhere, react immediately and produce continuously because technological capability is frequently mistaken for strategic necessity.

The predictable response has been more content, more personalization, more campaigns, more experimentation and more participation. Activity becomes evidence of progress, even when nobody can convincingly explain what all that activity is supposed to accomplish.

The stronger CMO may increasingly be the person willing to resist that instinct. Deciding which audiences do not need another message, which platforms do not deserve investment and which cultural conversations would be improved by the brand staying out of them could become an important form of competitive discipline.

Strategy has always involved choosing what not to do, and that principle becomes even more important when technology makes almost everything possible. The ability to deliberately create less may become one of the defining characteristics of sophisticated marketing leadership.

Brand and Performance Can No Longer Live in Separate Universes

One of the stranger artifacts of modern marketing has been the separation of brand and performance into competing philosophies. Brand marketing supposedly creates long-term meaning while performance marketing generates measurable commercial outcomes, leaving organizations endlessly debating which side deserves greater investment.

Customers have never recognized this distinction because they simply encounter a company repeatedly and gradually decide whether it is relevant, useful, trustworthy, interesting or forgettable. The advertising, product, website, retail experience and customer service interaction all accumulate into a single perception.

The modern CMO therefore needs to collapse the artificial distance between brand building and commercial performance. Growth without meaning eventually becomes expensive, while meaning without commercial consequence becomes difficult for organizations to justify indefinitely.

The opportunity is to understand how the two reinforce one another rather than forcing them to compete for legitimacy. That requires marketing leaders who are equally comfortable discussing cultural relevance with creative teams and commercial performance with the CFO.

The CMO Is Becoming an Organizational Connector

The most difficult part of this transformation may have little to do with marketing expertise. Customer experience now crosses departments that companies continue to organize separately, which means the CMO increasingly needs to influence systems and decisions they do not directly control.

Product teams shape the brand through what they build, customer service teams shape it through how they respond, and sales teams shape it through the promises they make. Technology teams, retail partners, agencies, creators and employees throughout the organization also contribute to the brand every time they interact with customers or the wider market.

Marketing cannot realistically police all of those experiences from headquarters, and attempting to control them would probably make the organization slower rather than better. The more effective model is connection, with the CMO helping different functions work from a shared understanding of the customer and a coherent idea of what the company represents.

That requires political skill inside organizations as much as creative skill outside them. The next generation of great CMOs may therefore look less like brilliant advertisers and more like unusually effective general managers who happen to understand brands exceptionally well.

Agencies and Platforms Should Be Paying Attention

This transformation does not stop at the walls of the brand organization because agencies, publishers, technology companies, consultancies, platforms and creators are increasingly selling into marketing leaders whose problems extend far beyond communications. Understanding how the CMO’s mandate is changing should therefore matter to almost everyone whose business ultimately depends on marketing budgets.

A vendor arriving with another channel, another dashboard or another promise of incremental efficiency may struggle to capture the attention of an executive thinking about customer behavior, corporate growth, product strategy and long-term differentiation. The conversation changes when the person buying marketing services increasingly sees their responsibility as helping shape the business rather than simply promoting it.

The strongest partners will understand the business problem before proposing the marketing solution. They will connect their capabilities to broader commercial and customer outcomes while recognizing that the CMO increasingly needs fewer disconnected tools and more coherent answers.

This may also reshape the agency relationship in important ways. The agencies with the greatest strategic value could increasingly be those capable of helping CMOs understand what is changing around the business rather than merely executing what the marketing department has already decided to do.

The CMO May Be Outgrowing the Title

There is an irony at the center of this transformation because just as marketing becomes more measurable, automated and technologically sophisticated, the senior marketing role is becoming broader, more interpretive and more fundamentally human. Technology may increasingly handle the executional complexity of marketing while simultaneously making the judgment of the person leading it more consequential.

The CMO increasingly needs to understand numbers without becoming captive to them, understand technology without worshipping it and understand culture without chasing every movement within it. They must protect the long term while delivering the short term, represent the customer inside the company while representing the company to the customer, and maintain coherence across an ecosystem seemingly designed to produce fragmentation.

That is no longer simply the job of the person responsible for marketing because it touches almost every significant question about how a company creates and maintains demand. It increasingly resembles the job of someone helping determine what kind of company the organization intends to become.

Calling the CMO the second most important person in every company would obviously be too simplistic because organizations, industries and leadership structures differ enormously. The more interesting point is the direction of travel, as the executive with the clearest understanding of customers, culture, technology, competition and the external forces reshaping the market inevitably has something increasingly valuable to contribute to almost every significant business decision.

The old CMO was often handed the strategy and asked to tell the story, while the reimagined CMO increasingly helps determine what the strategy should be in the first place. That transformation should matter far beyond the marketing department because the CMO may ultimately be evolving from the executive responsible for creating demand into the executive responsible for helping the entire organization understand where future demand will come from.

Avery Collins

Editor in Chief

Avery Collins is a former advertising executive born in Edinburgh, now residing in Portland, Oregon. She is co-founder and editor-in-chief of SGNLWRKS.