Data from a new GfK CMO Outlook Report titled “Data, Decisions, and Optimism: How CMOs are driving change in an evolving world” reveals that marketing leaders are adept with new technology like AI and real-time insights. The findings also show a big gap between marketers’ and consumers’ expectations in terms of sustainability, globally.
According to the report, 42 pc respondents stated that sustainability and environmental protection are important parts of their brand. The number is higher in Africa/Middle East (56 pc ) and Asia Pacific (46 pc).
However, only 30 pc of the respondents felt that their customers expect them to address sustainability. On the other hand, a global long-term GfK Consumer Life study found that most consumers (73 pc) expected companies to take environmentally responsible actions, explained a note from the company.
“This is a huge perception gap. One factor might be that companies tend to see sustainability as a corporate initiative rather than a marketing one. At least 24 pc of global marketers agree, especially among North American companies,” the GfK note added.
Overall, marketers need to keep in mind that any engagement for the environment and the climate must be authentic and long-term to be credible for the consumers.
The India slice on sustainability
The report features over 50 CMOs or marketing leaders from India, revealing that more than half of surveyed respondents believe sustainability is a vital component of what their brand represents. Furthermore, 34 pc noted that sustainability is integral to their business operations, although it may not be as central to their marketing efforts. Surprisingly, only 9 pc of them perceive sustainability as a subject reserved for politicians or governments. Instead, they firmly believe that sustainability is a narrative owned by brands, reflecting a profound paradigm shift in perception.
At the same time, 45 pc stated that they are ahead of their competitors in addressing sustainability, while 40 pc acknowledged that their customers expect sustainability initiatives from brands. Nearly 40 pc recognized sustainability as an area where their brand can differentiate itself from competitors, further underlining the evolving landscape of conscious consumer choices and corporate responsibility.
Belief in brand building
The report finds that despite ongoing crises, over two-thirds of marketing decision-makers worldwide (70 pc) are investing more than half of their budgets in long-term initiatives (campaigns focused on strengthening the brand). Among CMOs, this proportion rises to 78 pc.
Industry-wise, marketing leaders in consumer tech (76 pc), automotive (76 pc), and retail (74 pc) are zeroing in on long-term brand-building strategies. B2B brands are more willing to make long-term investments. Longer conversion cycles and smaller customer bases probably play a role.
Optimistic about the future
Overall, 61 pc of marketing decision-makers worldwide believe that their industry has been hit harder than others by the ongoing turbulences of recent years. However, there are regional differences: 66 pc of marketing decision-makers in Europe and 65 pc in North America feel particularly affected by the economic situation. In Africa and the Middle East, only 52 pc agree with this statement, and 55 pc in the Asia-Pacific region, according to the report.
Despite this, CMOs remain confident: Almost three-quarters state that their company has grown in the last three years and 78 pc say that they are optimistic about the future. These optimistic marketing leaders are more focused on long-term brand building (77 pc), suggesting a link between optimism and long-term investment. Most marketing leaders also show impressive confidence in their budgets. Nearly two-thirds overall say they find it easy to justify their financial needs, particularly in North America and Europe. Especially optimistic marketing decision-makers say they have no problems funding marketing expenditures.
Frontrunners in real-time insights
61 pc of global marketing leaders stated that they receive actionable insights either immediately after data gathering or short of real-time, but still fast. Only 3 pc claim that generating insights takes too long to be useful at all. Larger companies seem to have an advantage: the bigger the company, the higher the proportion of insights generated in real-time.
In Europe, 33 pc of marketers said they receive insights in real-time, versus the global average of 26 pc. The score is lowest in Africa/Middle East, where only 19 pc claim to have access to real-time insights. Data integration is the main obstacle for achieving real-time insights, as stated by one-third of global marketers. Overall, 44 pc of the survey’s respondents want to improve their capabilities in generating actionable insights, while 42 pc aim at improving data integration in their companies.
Gonzalo Garcia Villanueva, CMO at NielsenIQ/GfK, said, “In recent years, market disruptions have shown us just how quickly buyer behaviour can pivot, highlighting the need for real-time predictive data. The businesses that thrive in this environment will be those that can anticipate what’s coming next. It is notable that marketing leaders across regions who say that their company has grown in the last three years and are optimistic get their insights faster than others. This indicates that successful companies are more digitalised and prioritise real-time insights for marketing.”
Almost half of marketing leaders worldwide (45 pc) surveyed say they are already using AI, while 40 pc are familiar with, or using, Machine Learning models. The uptake of ChatGPT has been rapid, with 36 pc of respondents already using it by March 2023 – despite it being in the market for less than a year. Marketers working in the biggest enterprises are those most familiar with such technology and much more likely to be early adopters than those in smaller firms.
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