Is there any love lost between marketers and finance chiefs? The answer within marketing circles has traditionally been “not much”.
Now a new study by the Institute of Advertising Practitioners in Ireland (IAPI) concludes that the tensions are overstated and the relationship between chief marketing officers (CMOs) and chief financial officers (CFOs) is more “cordial” than often assumed.
“CMOs and CFOs have a good working relationship with one another, based on a reasonable understanding of each other’s priorities and objectives, and good alignment on overall business goals,” research firm Amárach found.
[ Complaints to advertising standards body rose 18% in 2023Opens in new window ]
A survey of 205 CMOs and 2019 CFOs, commissioned by IAPI, finds the two sets of executives “appear to have very similar growth priorities” for their businesses. These include customer acquisition and retention, improving the customer experience, cost-cutting, efficiency and employing the right staff.
However, harmony is not universal. Although a majority of marketers and finance executives say they understood each other’s priorities and objectives, some 31 per cent of CMOs and 34 per cent of CFOs say they rarely or only sometimes agree on the basis for justifying marketing expenditure, suggesting “occasional disagreements” remain.
Meanwhile, only 28 per cent of CFOs believe their organisation’s marketing strategy is “completely aligned” with its financial goals, while 37 per cent of CMOs think it is.
“It is clear that neither CMOs nor CFOs have a complete understanding of what the other does, and this in turn creates conflict about key performance indicators, budget priorities and alignment with financial goals,” Amárach found.
[ Digital advertising in Ireland grows by 11% in 2023Opens in new window ]
Persuading CFOs to invest in brand awareness remains a tough sell, with 42 per cent of CMOs saying brand advertising is a high priority, but only 28 per cent of CFOs agreeing.
The gap may reinforce the perception among marketers that even the word “brand” is a turn-off to some finance chiefs.
IAPI said the findings are, on the whole, “myth-busting” and represent an “opportunity” for marketers to make “commercially robust” cases for brand advertising.
[ Digital marketing firm Ebow sells majority stake to finance expansion plansOpens in new window ]
“It’s incredibly positive to see the level of understanding and respect for each other’s functions, which is a testament to the work the marketing and advertising industry has done to incorporate metrics and commercial accountability into everything we do,” said IAPI president and Folk VML chief executive Abi Moran.
Amárach chair Gerard O’Neill said the research shows most CMOs and CFOs are “growth partners” who work together to expand their businesses.
“But like all partnerships, there are sources of tension, especially when it comes to choices and trade-offs.”