A new McKinsey & Company report reveals a widening gap between chief executive officers (CEOs) and chief marketing officers (CMOs), with both sides increasingly misaligned on marketing’s role in driving business growth.
As reported by Adweek, CEO-CMO alignment has dropped 20% over the last two years. Much of the tension stems from a lack of clarity around the CMO’s responsibilities and the metrics marketing should be held accountable for. In some cases, CMOs are being sidelined from leadership discussions altogether.
Misalignment on Role and Value
McKinsey, in partnership with the Association of National Advertisers (ANA), surveyed more than 100 executives across the U.S., Europe, Asia, and Latin America—including 75 CEOs and CMOs from Fortune 1000 companies.
The data shows a sharp decline in how many CEOs believe marketing’s role is clearly understood by the rest of the C-suite, falling from 90% to 70% between 2023 and 2025. Only half of the CMOs surveyed said they’re involved in strategic planning.
“It’s really about recognizing that the CMO’s role is far more than trendspotting and analytics,” said Shelley Stewart III, a senior partner at McKinsey. “It needs to sit at the center of business planning and growth.”
As reported by Ad Age, only 63% of Fortune 500 companies have a marketing leader on their executive leadership team. This lack of representation, paired with strategic misalignment, is pushing CMOs further away from the decision-making table.
Marketing Budgets Under Pressure
The disconnect is showing up in budget conversations too. McKinsey found that 80% of CEOs and 77% of CMOs say their marketing budgets aren’t large enough to deliver business impact. Gartner’s latest data reflects this, showing that global ad spend as a share of revenue dropped from 9.1% to 7.7% in 2024.
Norm De Greve, SVP and CMO at General Motors, noted in the report: “It’s critical to align marketing with financial objectives to build trust and credibility. I’m proactive about sharing what we’re doing and how we’re driving ROI.”
Clashing Views on Metrics
Another key issue is how success is measured. According to McKinsey’s findings, 70% of CEOs track marketing’s impact based on year-over-year revenue growth and margin. But only 35% of CMOs said they prioritize those same metrics.
CMOs are more likely to focus on brand health, engagement, or reach – metrics that aren’t always linked directly to the company’s bottom line. This gap extends to CFOs as well, who, according to Adweek, are leaning more closely toward the CEO’s perspective.
“Once we as a C-suite agree on the business metrics, I expect marketing to map directly to that,” one CFO from a global gaming company told McKinsey. “I don’t want to hear about brand awareness if it’s not part of our company goals.”
Declining Confidence in Marketing ROI
The report also shows a drop in confidence when it comes to marketing’s return on investment. Only 30% of respondents believe there’s a clearly defined view on what constitutes marketing ROI. And the number of leaders who said marketing KPIs align with business growth KPIs has dropped from 88% to 79% since last year.
The Risk of Marginalizing Marketing
“If you want to create value for your investors, you need growth, and CMOs should be central to that strategy,” said Stewart III. “No matter what industry you’re in, customer centricity is at the core of growth. And CMOs are the ones who understand the customer journey.”
As reported by Ad Age, the report was released during this year’s Cannes Lions Festival, where many CMOs have been vocal about needing greater alignment with executive peers.
The takeaway? If CMOs aren’t at the center of growth strategy, the entire C-suite feels the consequences. The companies that close the gap now may be the ones best positioned to grow in the years ahead.
