MarTech Podcast ™ // Marketing + Technology = Business Growth Why CEO’s still don’t get modern marketing
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Dec 15, 2025 Catherine Rathje, a partner at McKinsey specializing in marketing strategy, discusses the alarming trends in the Fortune 500, including the decline of CMO roles and shrinking marketing budgets. She emphasizes the widening gap between CEO and CMO understanding, advocating for metrics that align with business priorities. Catherine highlights the need for CMOs to partner with CFOs to redefine ROI and unify fragmented marketing leadership. She warns against 'shiny object syndrome' and argues for a judicious approach to AI, ensuring that personalization adds genuine value without crossing ethical lines.
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Marketing's Leadership Decline
- Marketing leadership is shrinking: only 66% of Fortune 500s had CMOs and budgets fell to 7.7% of revenue.
- CEOs often believe they understand marketing, creating tension with CMOs who disagree.
Fragmentation Dilutes Customer Ownership
- Marketing faces fragmentation from new CXO roles and faster tech, data, and privacy change.
- When everyone 'owns' the customer, nobody truly owns customer stewardship.
Align Metrics With CEO And CFO
- Align marketing metrics with CEO priorities like revenue or margin and document a clear ROI definition.
- Make the CEO-CMO-CFO trio agree on measurement to treat marketing as an investment, not just a cost.