- Large majority of Global CMOs see media as a very important, if not critical, driver for business growth
- Priority areas for increased investment focused on how to stand out in busy consumer feeds
- Biggest challenges for media transformation include tightening of regulations, balancing performance and sustainability goals, and integrating emerging technologies
- Key objectives for AI are to better understand the use cases, opportunities, and risks
Dentsu has unveiled its 2024 CMO Navigator, Media Edition, the latest installment in its Navigator series, following the Creative and CX editions. Drawing insights from over 1,900 CMOs across 13 countries, the study explores the evolution of media from a tool for performance marketing to a strategic driver of business growth in the algorithmic era.
Conducted in August 2024, the study reveals that 88% of CMOs view media as critically or very important to driving growth. With algorithms increasingly connecting culture and commerce, CMOs are prioritizing investments in areas that help brands stand out in crowded digital spaces.
Media Transformation Insights
CMOs are embracing a nuanced approach to media, focusing on:
- Short-form content: 45% of CMOs plan increased investment.
- Social commerce: 43% are bolstering budgets here.
- Original content production: 43% prioritize sponsorship and creation.
- Influencer marketing: 42% see it as vital.
- Retail media networks: 41% agree these are key growth areas.
AI’s Expanding Role in Media
Artificial intelligence is reshaping the marketing landscape, with 34% of CMOs identifying its broad applicability in strategy, planning, and partnerships for 2025. However, 39% emphasize the need to fully understand AI’s use cases, risks, and opportunities before leveraging its full potential.
Challenges on the Horizon
Despite optimism, the study outlines key hurdles CMOs face:
- Data privacy regulations: 29% cite tightening rules as a top concern.
- Balancing performance and sustainability: 29% acknowledge this as a critical challenge.
- Transparency issues with closed tech platforms: 28% worry about limited visibility from platforms like Amazon and WeChat.
- Integration of emerging technologies: 28% are concerned about adoption barriers.
Positive Economic Outlook
A significant 88% of CMOs express confidence in their regional economic conditions, bolstered by a forward-looking mindset and increasing media investments.
“This view of CMO priorities going into 2025 shows a clear determination to dig deep into the craft of media at a time when the industry is hurtling into a new era – one in which algorithms and AI will more closely govern the brand-to-consumer experience and in which the brute force of spend and scale is not enough,” commented Will Swayne, Global Practice President – Media, dentsu. “The opportunities of the modern nuanced media mix must be tempered by the various challenges that new technology brings, but by balancing brand and performance, progressive CMOs will wield a new level of influence in determining the success of organizational transformation.”
Anita Kotwani, CEO – Media, South Asia, dentsu added, “Media has cemented its position as a critical driver of strategic growth, particularly as we navigate the complexities of the algorithmic era. As CMOs recalibrate their strategies to align with evolving consumer behaviors, regulatory landscapes, and the rapid infusion of AI, the focus must remain on crafting media solutions that are both innovative and sustainable. At dentsu, our commitment lies in empowering brands with nuanced strategies that harmonize performance with purpose, ensuring they lead with confidence in this transformative era.”
Dentsu’s report underscores the transformative role of media in connecting businesses with consumers and driving innovation. As media evolves, CMOs are adapting by prioritizing technology, sustainability, and creative engagement strategies to thrive in the algorithmic era.
