A new guide from WARC, titled Making the Case to the C-Suite, has spotlighted a persistent disconnect between marketing departments and corporate leadership, urging chief marketing officers (CMOs) to reframe their strategies around business growth, profit, and cash flow to win over skeptical executives.
Investment in Marketing Fuels Growth
The report reveals that companies investing in marketing are three times more likely to achieve revenue growth exceeding 5%. However, a significant trust gap persists, with only 17% of senior executives collaborating with their CMOs in the past year and just 50% of CFOs believing marketing drives meaningful growth.
Reframing Marketing for the Boardroom
WARC advises marketers to shift away from traditional campaign metrics like impressions and engagement, instead focusing on financial outcomes. For example, a $1 million budget increase could be pitched as generating $4 million in incremental net sales, directly linking marketing spend to revenue and margins.
Debunking Myths, Highlighting Proof Points
The guide identifies six proof points tying brand building to business value, including higher profit margins, stronger customer loyalty, and increased market share. It also debunks myths that undermine marketing budgets, such as an overreliance on return on ad spend (ROAS), which can foster a short-term mindset detrimental to long-term brand health. Historical data underscores that brands maintaining advertising during economic downturns protect market share and recover faster, avoiding costly catch-up efforts.
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Creativity as a Strategic Asset
WARC reframes creative elements like sonic logos and visual cues as durable investments that enhance ROI by keeping brands top of mind, particularly in digital spaces. These assets, far from being luxuries, are strategic tools for long-term profitability.
Collaboration Key to Building Trust
To close the trust gap, WARC emphasizes stronger collaboration between marketing and finance teams. Shared key performance indicators (KPIs) tied to sales, profit margins, and market share can position marketing as a core growth driver rather than a discretionary cost. Real-world examples, such as Yorkshire Tea and Rosewood Hotel Group, illustrate how consistent brand investment yields measurable business gains.
Agile Budgeting and Long-Term Vision
The report advocates for agile budgeting models that allow brands to adapt spending based on performance data while maintaining focus on long-term goals. WARC stresses that brands are not just marketing tools but critical business assets that secure future demand. Companies that sustained advertising during past recessions saw faster recovery and stronger market share growth, avoiding years of costly rebuilding.
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