The chief executive officer (CEO) and chief marketing officer (CMO) relationship has never been without its challenges, and friction between the pair is increasing, per a report from consulting firm McKinsey & Company.
The firm found that CEO-CMO misalignment increased 20% between 2023 and 2025 due to factors including a lack of clarity regarding the CMO’s remit and marketing’s disconnect from company growth metrics.
In partnership with the Association of National Advertisers (ANA), McKinsey asked more than 100 C-suite executives —including 75 CEOs and CMOs — from Fortune 1000 companies about growth and relationship dynamics. Responses were gathered across Asia, Europe, Latin America, and the U.S.
The research builds upon a similar 2023 report. For the first time, the research includes responses from chief financial officers (CFOs).
“It’s really about recognizing that the role of the CMO can be so much more than chasing the latest trends and using data science and analytics,” said Shelley Stewart III, senior partner with McKinsey’s growth, marketing, and sales practice. “That is important, but how does the CMO’s role fit more into the core of business day-to-day?”
A Lack of Understanding
At some companies, the lack of understanding from C-suite peers regarding their remit has resulted in CMOs being excluded from the top table. According to research firm Forrester, only 63% of Fortune 500 companies have a marketing leader who sits on the leadership team and reports to the CEO.
McKinsey’s report echoed frustrations around a lack of understanding of the CMO role. The data showed the number of CEOs who believe that marketing’s role is clearly defined and understood by the C-suite has decreased by 20% (from 90% to 70%). It also found only half of the CMOs surveyed think that marketing executives are involved in the strategic planning process.
“The CMO can’t be relegated to a very tactical role, it’s gotta be much more strategic at the core,” said Stewart III, adding that the top marketer should work alongside the strategy and finance chiefs to integrate marketing into its growth drivers.
This lack of clarity means marketing departments are underfunded, with 80% of CEO respondents and 77% of CMOs stating their budgets aren’t big enough. The trend is also reflected in global ad spend, which Gartner said dropped from 9.1% of revenue to 7.7% in 2024.
