Opposing Forces in Marketing: Adversity or Opportunity for Marketing Operations?

Marketing leaders feel pulled in many directions and, more importantly, opposite directions.? It results from a challenging 2023/2024 combined with rapid transformation and opportunities in today's market.? In this post, I'll explore the opposing forces setting up a tough year for marketing and provide some thoughts on how to survive and thrive. (PS, the idea of opposing forces came from the MarTech in 2024 report).

?Force #1:? Leads and Revenue

As we move into 2024, marketing's ability to deliver leads that turn into revenue (what I call Revenue Marketing) takes center stage.? In essence, the marketing team that can provide leads and revenue will keep their jobs, and the team that can't do this, can't show ROI, will lose their jobs.?

I've been tracking the revenue pressure on CMOs since 2004, and the C-suite expectation is at the highest level ever.? Why?? It's a simple business law - when business is good, you don't see the C-suite; when business is not good, they become micro-managers.?? I am seeing more CFO/CMO interactions than ever before (which is not bad) and more CEO/CMO interactions (which is not good).?

?Recommendations:

1.????? Lean into a relationship with the CFO

2.????? Run marketing like a business unit with a P&L

3.????? Marketing Ops should develop the skills to support and enhance revenue

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Force #2:? Cut MarTech

So, one force is to drive more leads and more revenue, while the opposing force is to accomplish this miraculous feat on a lower budget than in 2022 and 2023. One highly scrutinized budget cut area that continues into 2024 revolves around the ROI of the martech stack.? In late 2023, Gartner reported that marketers use only about 33% of the available martech capability.? Given the significant budget dedicated to martech, you can picture the CFO grabbing their red pen to begin slashing the marketing budget.? They see a big-budget item with no demonstrable return while they are pressured to find budget cuts everywhere in the company.

This stunning Gartner metric has generated a lot of debate and scrutiny into how marketing is managing martech (this is a good debate) and if marketing should continue to own the martech stack (this is NOT a good debate).? One early trend is IT departments assuming responsibility for the martech stack.? This is absolutely the wrong direction, given the pressure on marketing to be more agile in responding to business needs while driving leads and revenue.

?Recommendations:

1.????? Reframe cutting or consolidating your martech stack to a conversation about rationalizing your martech stack.? This action item is discussed in detail in the MarTech for 2024 report from Scott Brinker and Frans Riemersma (ChiefMarTech).? It's aligning business needs to the martech stack while creating justification for use and ownership.?

2.????? Marketing Ops needs to step up their role as business leaders not tech geeks

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Force #3:? Invest In and Innovate with AI

At the same time CMOs are being asked to cut martech spend and reduce the number of apps in the stack, there is a rising expectation to lead and innovate with AI.?

To explain to my non-technical friends (and my Mom) the impact of AI, I tell them - "It's bigger than the internet and is affecting us 1000 times faster" (feel free to borrow this for your parents).? Leaders at every level of every organization are trying to figure out how to run a better business, be more competitive, and gain market advantage with AI.?

I love that marketing is leading the way in experimenting with generative AI.? It reminds me of the early days of digital transformation, where marketers pioneered using digital technologies such as marketing automation platforms.?

We have learned from these early transformation experiences that if you want change to happen, it requires a budget to cover martech infrastructure, new apps in the stack, reshaping program spending, and the need for people to lead the innovation.? There are new AI-inspired processes to develop, new skills to build, and a new way of looking at the "business of marketing".

?We also know that AI is moving so fast that we can't afford a slow roll like we did in the early days of marketing automation.? I bought my first marketing automation platform in 2004 and did not see the rise of marketing operations as a dedicated function until around 2014.?

Recommendations:

1.????? Lean into the experimentation stage of generative AI.

2.????? Set up your AI Council to include critical stakeholders to help you build the business case for budget, resources, etc. No slow roll.

3.????? Marketing Ops must step up their game and own AI in every way.

These are only a few of the opposing forces that I see.? What opposing forces are you experiencing, and how are you reconciling them?? I would LOVE to hear from you!