How CMOs can build a command center
Marketing spend needs to be about precision, efficiency, and clear results. Yet, many companies still struggle to get the balance right. Even with businesses allocating an average 13.6% of their total budgets to marketing, 37% of CMOs say their campaigns are underperforming. That’s a lot of money going into marketing with too little coming back in measurable impact.
The issue is knowing where to spend. There are more channels than ever, but not all of them drive the right engagement or revenue. Traditional media, digital ads, social platforms, influencer campaigns, every dollar needs to justify its existence. CMOs who can’t track, measure, and optimize in real time risk missing out on key opportunities.
One of the biggest challenges? The speed of change. Markets shift, consumer behavior evolves, platforms introduce new algorithms, all faster than most companies can adjust. If your marketing team is still locked into rigid, annual budget cycles, you’re already operating at a disadvantage. The best companies use iterative, data-driven allocation strategies. They treat budgets as dynamic assets, adjusting based on performance, rather than sticking to pre-approved allocations that might already be outdated.
Executives need to prioritize real-time insights to determine how, and where, to deploy marketing spend. AI-driven analytics, customer intent data, and performance tracking must be at the core of every decision. If a campaign isn’t working, cut losses early and redirect resources where you’re actually seeing traction. The market isn’t going to wait. Neither should you.
Resource constraints hinder marketing teams
Marketing teams are stretched thin. Budgets are tightening, headcounts are shrinking, and expectations for growth are higher than ever. 86% of CMOs report that a lack of resources and capabilities has caused them to miss revenue, growth, or customer acquisition opportunities. That’s a serious problem. You can’t scale effectively if your team doesn’t have the necessary tools, talent, or bandwidth to execute.
But there’s another side to this. Companies that invest in closing the digital skills gap and implementing AI are already seeing improvements. AI is becoming unavoidable for marketers. Generative AI can improve content creation, automate repetitive tasks, and provide real-time insights into performance. This means smaller teams can achieve more.
However, leadership needs to make that shift happen. Buying AI-powered tools isn’t enough if employees don’t know how to use them effectively. Training is key. Companies that prioritize digital literacy and AI adoption will be in a much stronger position than those that rely on outdated methods.
“Change is already happening, and the gap between those who adapt and those who lag behind will only grow wider.”
The smartest companies are turning constraints into competitive advantages. They automate where they can, upskill their teams to focus on high-value work, and use AI to drive efficiency. CMOs who take an active role in making this transition will set their teams, and their businesses, up for long-term success. Those who don’t will continue operating at a disadvantage.
AI and automation are becoming unavoidable martech investments
AI is already driving results. The vast majority of marketers are either testing or actively using AI to improve efficiency, and the numbers show why. 57% of CMOs see generative AI as the most valuable martech investment for delivering ROI. 91% of global marketers are reporting success with marketing automation, and by 2026, 80% of creative professionals will be using generative AI daily.
The value here is clear. AI helps teams to analyze customer data faster, refine targeting, and automate repetitive tasks, freeing up time for higher-value work. Marketing strategies that used to take weeks to build can now be optimized in real time. AI-driven content generation, dynamic ad adjustments, and predictive analytics improve both speed and accuracy, allowing companies to maximize their marketing investments.
Having more data is useless if you can’t extract insights that lead to better outcomes. The companies leading in AI adoption are turning data into real-time, actionable strategies. Customer expectations are shifting quickly, and AI provides the adaptability needed to respond effectively.
That said, AI adoption needs to be strategic. CMOs shouldn’t treat AI as a standalone tool, it needs to be integrated across systems and teams. Success comes from combining AI’s analytical power with human creativity and strategic thinking. Companies that get this balance right will drive stronger ROI, while those that delay AI adoption risk falling behind.
Chat technology is driving revenue growth
Customer engagement is changing, and companies that adapt are seeing real performance gains. Businesses using chat-based interactions are experiencing 75% year-over-year revenue growth, and chat commerce is proving more effective than traditional channels. Data from Forrester shows that conversion rates for chat are 61% higher than email and 87% higher than other mobile apps. These numbers make it clear, customers prefer real-time, personalized interactions over delayed or static communication.
This means delivering fast, relevant, and smooth interactions that actually improve the customer experience. Customers expect immediate responses, and chat systems, whether AI-driven or human-assisted, help companies meet that demand. The ability to provide instant support and guided purchasing decisions directly impacts conversion rates and long-term customer retention.
However, chat technology is only as effective as its implementation. Poorly designed chat experiences can frustrate users rather than help them. Companies need to ensure that automation is paired with human oversight when necessary, especially for more complex interactions. AI-powered chat tools must be continuously refined to improve accuracy, tone, and relevance.
The companies leading in chat-driven engagement aren’t just adding another tool; they’re integrating chat technology into a broader strategy that prioritizes customer convenience. Businesses that effectively implement these solutions will see higher engagement and revenue. Those that ignore this shift will find it increasingly difficult to compete in a market where speed, personalization, and accessibility are becoming the expected standard.
Younger buyers are changing marketing strategies
The demographics driving major purchasing decisions have shifted. Millennials and Gen Z are now key decision-makers, even for high-value transactions exceeding $1 million. Traditional marketing approaches are less effective with these buyers, forcing companies to rethink how they build trust and engagement. Instead of relying solely on conventional advertising, brands are investing in channels that resonate with younger audiences. Influencer marketing is a primary example of this shift.
Companies are increasing budgets for influencer-led campaigns at a significant rate. Data from Edelman shows that 40% of marketers now allocate at least a quarter of their budgets to influencer marketing. This investment is rising because it works. Younger buyers engage more with content from creators they trust than with direct brand messaging. The perception of authenticity and direct community engagement makes influencer partnerships an effective strategy for reaching and converting modern consumers.
Influencer marketing means spending smarter. Not every influencer delivers measurable impact, and poor alignment between brand values and creator content can damage credibility. Companies must be strategic, selecting influencers who align with their positioning while making sure partnerships are transparent and ethical. Regulations around sponsored content continue to evolve, making clear disclosures and long-term relationship management invaluable.
Younger audiences are shaping the future of marketing, and brands that recognize this shift are adjusting accordingly. The companies that execute influencer marketing effectively will drive stronger brand loyalty and higher engagement. Those that fail to adapt risk losing relevance in markets increasingly driven by digital communities and peer-driven influence.
CMOs must integrate real-time data and AI
Marketing demands precision. CMOs are expected to manage multiple priorities at once, from customer acquisition to retention, while navigating shifting market conditions. Decision-making has to be fast, data-driven, and adaptive. That’s why leading marketing teams are moving toward a command center approach, where real-time data from various sources, prospect behavior, intent signals, transactional records, and operational metrics, drive immediate, informed actions.
The ability to process and act on dynamic data is becoming a core advantage. CMOs who rely on slow, disconnected insights will always be reacting instead of leading. AI enables the kind of rapid, high-precision analytics needed to extract meaningful insights from massive datasets. Instead of overwhelming marketing teams with information, AI automates analysis, allowing leaders to focus on strategy and execution. Wise Marketer Group reports that acquiring a new customer can cost 15–22 times more than retaining an existing one. With AI-powered insights, CMOs can efficiently manage both acquisition and retention strategies, without being forced to prioritize one at the expense of the other.
Simply having data isn’t enough. It has to be applied effectively. Companies need more than dashboards; they need integrated decision-making systems that turn insights into action. AI is amplifying what great marketers can do. Those who embed AI-driven intelligence into their marketing operations will see compounding advantages. Those who don’t will struggle to keep pace.
CMOs must strengthen cross-functional collaboration
Marketing doesn’t operate in isolation. The increasing importance of AI, automation, and data-driven decision-making is forcing CMOs to work more closely with other C-suite leaders. Technology investments impact IT and security, supply chain shifts require coordination with operations, and evolving customer expectations demand alignment with sales. Companies that integrate marketing across departments will move faster and execute more effectively.
This level of collaboration isn’t always natural. Different priorities, KPIs, and operational structures can create friction between departments. But in highly competitive markets, internal alignment is as important as external execution. If marketing doesn’t work closely with CTOs, AI and data implementations will stall. If it isn’t aligned with COOs, inefficiencies in logistics and supply chain operations will disrupt customer experiences.
Leadership at this level requires more than just execution; it requires influence. CMOs need to strengthen relationships with their peers, ensuring marketing’s role in driving business outcomes is clear. The organizations that make this shift will see more unified strategies, better decision-making, and faster responses to market developments. Those that don’t will find themselves misaligned, inefficient, and at a competitive disadvantage.
Key executive takeaways
- Marketing budgets need smarter allocation: A large portion of budgets is spent on marketing, yet many campaigns underperform. CMOs must use real-time data and agile spending models to maximize ROI and justify expenditures.
- Resource constraints demand AI and digital upskilling: Budget cuts and limited staff are slowing marketing growth, but AI and digital tools are bridging the gap. Leaders should invest in upskilling teams and automating routine tasks to enhance efficiency.
- AI and automation are now unavoidable for ROI: Generative AI and automation are proving to be high-value marketing investments, improving speed, accuracy, and performance tracking. CMOs who integrate AI across marketing functions will gain a competitive advantage.
- Chat technology is driving higher sales and conversions: Companies using AI-powered chat systems are experiencing strong revenue growth and superior conversion rates. Executives should integrate chat solutions to enhance customer engagement and streamline sales.
- Younger buyers require new engagement strategies: Millennials and Gen Z are driving major purchasing decisions, making traditional marketing less effective. CMOs must prioritize influencer marketing and community-driven engagement to earn consumer trust.
- A real-time data command center is key: CMOs must centralize real-time customer and operational data to improve decision-making and optimize both acquisition and retention strategies. AI-driven insights will separate market leaders from those left behind.
- Cross-functional collaboration is now a necessity: Marketing leaders must align closely with CTOs and COOs to implement AI, automation, and supply chain efficiencies. Companies that break down silos and integrate marketing across functions will drive smarter, faster decisions.
