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How CMO’s Can Overcome 2025’s Key Marketing Challenges

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Incubeta
Date
20 January 2025
Market
Global
Read time
5 Minutes 19 Seconds

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In 2025, marketing leaders are facing mounting pressure to do more with less. Technological advancements, increased emphasis on performance, and the expanding role of the CMO has increased the need for efficiency. Sustainable growth is the number one priority - but there are a number of challenges inhibiting this desired growth trajectory.

The questions marketers need to be asking is – how do they confront these obstacles head-on, and how can their marketing outperform?

Data complexity

Businesses are overwhelmed with data. The size of the marketing ecosystem means data is scattered across multiple systems and platforms – making it challenging to consolidate and analyze performance effectively.

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“Data fragmentation is a significant barrier to innovation. Without an organized and unified data strategy, even the most advanced algorithms will fall short of delivering their full potential” 

Jessica Jacobs, Incubeta MD, Northern Europe

Why it matters: Data is the backbone of modern marketing. Success requires aligned sources, standardized metrics, and a robust measurement framework. With 89% of businesses seeing increased sales after unifying their data, the CMOs that truly differentiate towards consumers, and outperform will be the ones putting data front and center. 

What’s the first step? Identify all areas of data production, and move towards a unified customer view and media activation with a centralized data platform (CDP) integration. This will enable you to turn raw data sources into marketing insights and personalization – allowing your data driven solutions to work even harder.  

Explore the benefits of CDPs and the difference between traditional and composable (‘self-created’) solutions in our latest whitepaper, Investments for Marketing Profitability.

Breaking down silos

Silos have long-held businesses back – breeding inefficiencies and missed opportunities. CMOs need to dissolve fragmented marketing – building cross channel integrations that align strategic vision with tactical execution – ensuring every action serves the larger business goals.

Why it matters: Fragmentation limits collaboration and prevents businesses from delivering seamless customer experiences. Unified marketing achieves better results, removes expensive inefficiencies, and ensures every effort works towards the same goal.

What’s the first step? Start with a cross-functional audit of your marketing ecosystem. Identify bottlenecks and areas of misalignment. Consolidate your partner ecosystem and ensure all teams are working towards a unified vision. Success is about smart investments, seamless collaboration and strong partners by your side.

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“Bringing together your network of partners to collaborate, and aligning teams under a unified vision is crucial, particularly for large organizations with complex partner ecosystems. This approach allows businesses to foster joint efforts, reduce inefficiencies, and ensure all contributors work together towards common objectives to deliver cohesive and impactful results at scale.”

Katie Kostolaniova, Incubeta Account Director

The perception of marketing

Many boards still view marketing as a cost center rather than a driver of business growth. CMOs often face skepticism when justifying marketing spend, making it harder to secure resources or gain buy-in for long-term strategies.

Why it matters: Marketing is one of the most powerful levers for driving growth. When marketing aligns with financial outcomes, it builds credibility and demonstrates the value of investment. Businesses that view marketing as a profit driver outperform those that don’t.

What’s the first step? Bridge the gap between marketing and finance. Aligning on, and establishing shared metrics that both departments respect, such as ROI, customer acquisition cost and lifetime value. 

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“CMOs need to speak the CFO’s language. Moving away from qualitative brand metrics, towards quantifiable data that connects marketing activities to financial value. The businesses that outperform will be the ones building a united approach to marketing and finance”

Greg Dos Santos, Incubeta CFO, Americas

 

Budget and resource allocation

Investment into marketing is on a downward trajectory. Budgets are shrinking, yet expectations are growing. Understanding what truly drives business performance is critical for strategic decision making, and CMOs need to identify the incremental impact of all marketing activity.

Why it matters: Every dollar counts. Misallocated resources result in wasted efforts, lost opportunities, and reduced impact. CMOs who master efficient spending can drive measurable outcomes, proving marketing’s value and securing future investment.

What’s the first step? Execute a comprehensive review of the current measurement and data infrastructure within your organization. This will allow you to identify low-performing channels and reallocate funds to initiatives that deliver tangible results. Don’t be afraid to embrace AI-powered solutions to ensure every dollar drives incremental impact.

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“Measurement is key to budget optimization, but for it to provide real business value, it needs to be both accurate and actionable. It can often feel like it’s a choice for marketers; the more accurate (i.e. MMM or incrementality testing) the less actionable, and the more actionable (i.e. attribution models) the less accurate. A best of both worlds scenario is what marketers should be looking for, and AI is an avenue that will make   this possible”

 Damien Bennett, Incubeta Chief Strategy Officer, UK.

Keeping pace with change

The pace of change across technology, consumer behavior, and regulations is relentless, making agility and adaptability essential to the modern CMO.

Why it matters: Performance is heavily influenced by reactivity. Businesses that fail to adapt risk missing opportunities and eroding their competitive edge. Those who embrace change, however, can create innovative strategies that resonate with evolving consumer needs.

What’s the first step? Foster a culture of agility and continuous learning within your organization, and find partners that embrace that mindset. Welcome new ways of thinking, because changes in our ad landscape require creativity and collaboration especially with the rise of AI-powered campaigns.

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“Ad technologies are rapidly evolving whether that is due to local regulation, a growing expectation of user privacy, or innovative ways of connecting to your target audience. It can feel tough to keep up but ensure you are building your tech stack with partners who are well equipped to handle change. Partners can not expect to succeed if they resist change, lack responsiveness, or commitment to face the next industry challenge, and you shouldn’t settle either. ” 

John Thompson, Incubeta Director of GMP Solutions

Unlock sustainable growth

Tackling these challenges is the first step toward unlocking sustainable growth. The CMOs who rise above will be the ones embracing innovation, fostering collaboration, and leading with agility.

Discover where your business excels and where there’s room for growth with our Marketing Profitability Assessment. Evaluate your brand’s marketing capabilities, identify strengths, and gain actionable insights to elevate your strategies and drive measurable, sustainable growth.

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