CMO Survey 2020

Into the
Unknown
CMO survey
2020
Contents The speed read 3
1. Stepping into the unknown 7
2. Navigating the new frontiers of growth 14
3. Marketing’s moment 21
About the survey 30
Acknowledgements 31
References 32
2. dentsu CMO survey 2020

The
Today’s CMOs find themselves at a crucial
juncture for the journey of their brands. The
short-term, direct impacts of COVID-19 are now
speed
well understood and documented. Budgets have
been slashed—nearly two-thirds (62%) of CMOs
forecast their budgets to decline or stay static
read
over the next 12 months (up from 41% in 2019).
Less than a quarter of CMOs report only minimal
disruption to their business, while nearly 1 in 10
report COVID-19 as an existential threat. Digital
transformation has accelerated within brands
and a rapid shift to ecommerce, virtual working
and home-learning have all been witnessed in
the first half of 2020.
Less well understood, though, are the longer-

term impacts of the pandemic on society. How
we work, shop, interact, learn, play and stay
healthy will all change in potentially subtle yet
profound ways. The built environment around
us as well will evolve as the office environment,
town centres and our homes themselves are
reconceived in the post-COVID era. All these
aspects of our lives are set to change, but as yet
it is not clear how deep and lasting that change
will be.
Stepping into the unknown
That’s why, based on our survey of 1,361 CMOs

across 12 markets, the #1 challenge CMOs
face moving forward is understanding which
consumer behaviours will change permanently
and which will soon fall away. That’s also
why it’s concerning that half (49%) of CMOs
concede that they are basing their response to
the coronavirus crisis on strategies that were
pursued during previous recessions. Just one in
ten report that they are looking to entirely new
strategies to manage this recession. At a time
when new thinking and fresh ideas are sorely
needed, there is a risk that many CMOs are
under-estimating the challenge ahead.

Five strategies deployed
by Frontier CMOs
However, within this complex and

uncertain outlook, a group of Frontier
CMOs is emerging. This cohort believes
it is well prepared to manage the
recession and is wrestling control
of their brands’ destinies, bringing 3. HYPER-COLLABORATION:
clarity through action and focusing The ability to ensure the whole
on the fundamentals of marketing. business moves as one around this
They are building their brands around constant process of realignment,
what customers need, using superior which requires higher levels of
consumer intelligence to shape product integration with the C-suite and other
development and innovation. In departments e.g. sales, R&D, product
particular, these leaders demonstrate development as well as external
five key strategies that we believe are partners/suppliers within their
critical for brands to develop at this ecosystem.
time:
4. HYPER-CONSOLIDATION:
1. HYPER-EMPATHY: The ability to quickly rationalise
The ability to understand existing portfolios and prioritise larger, more
and new consumers more deeply and resilient brands that are better
update that knowledge in real-time able to survive periods of economic
(e.g. through first-party customer fragility, while pursuing opportunities
data, ecommerce & direct-to- to fill capability gaps through
consumer strategies and increased strategic M&A.
investment in CRM). This requires
a fundamental shift from selling 5. HYPER-TRANSPARENCY:
products & services to creating The ability to ensure that all
helpful experiences and ubiquitous elements of how brands operate
utility, rooted in superior consumer stand up to extreme external scrutiny,
intelligence and design thinking. from supply chains to employee well-
being and consumer engagement.
2. HYPER-AGILITY:
The ability to act like a start-up These strategies separate Frontier
and turn consumer insight into the CMOs from the rest. Our analysis
rapid development of new, relevant demonstrates a significant gap in
messaging, products and services, the deployment of these approaches
placing a premium on content, between Frontier CMOs and Follower
innovation, product development as CMOs, who believe they are less well
well as pricing. prepared for the future.

Reclaiming the strategic Agencies’ role on the
agenda journey
Pursuing these strategies also signals Agencies have a key role to play in
a further evolution in the role of helping CMOs navigate this uncertain
marketing. While CMOs remain focused future. That helps explain why driving
on driving business growth as the #1 innovation is the #1 competency
role of marketing and are incentivised that CMOs require from their agency
to deliver customer acquisition, for partners. At a time of crisis, new
the first time since our survey began thinking and the ability to execute
product development is now seen as a creative ideas across all aspects of
critical part of their remit. marketing are key. Technology is also
seen as a key competence, reflecting
CMOs are reclaiming the strategic how increased digital investments
marketing agenda and through their during the crisis will continue as
role and strategies are focusing on the consumers become accustomed to
5 Ps of marketing: price, product, place, frictionless commerce and interaction
promotion and now purpose. After many with brands. The good news is that
years of marketing’s role being denuded CMOs feel that agencies are currently
in many brands, CMOs are now in pole delivering well on those needs.
position to lead their brands to a period
of recovery and growth by focusing on Scope for improvement resides in three
the total customer experience. main areas: helping CMOs manage
their limited budgets through greater
efficiencies and cost reduction, driving
long-term growth, and proactively
Marketing’s moment bringing new insights to the table. In the
context of the recovery, all are critical
It’s a cliché to say that out of every to help brands in terms of extracting
crisis comes opportunity. But it’s true maximum value from their marketing
that half of Frontier CMOs believe investments and step into the unknown
the current crisis will increase the with resilience and hope.
importance of the marketing function
within their organisations, compared to
three out of ten Follower CMOs. CMOs
have the potential to steer their brands
through the recovery to a renewed
period of growth, but it requires a bold
commitment to take action in the face
of uncertainty.

Introduction Few could have predicted how 2020 would turn
out. The COVID-19 pandemic has shaken the
business landscape and presented marketers
with a challenge for which there is arguably no
existing playbook.
This year’s dentsu CMO survey was undertaken

in May-June 2020. This was a pivotal inflection
point where brands were gauging the success
of their emergency measures whilst starting
to think about how to move forward in the new
normal. In this research we identify the best
practices that will be implemented by leading
marketers as they look to steer their brands
towards recovery and future growth.
As the dust settles, numerous questions

confront today’s CMO: If marketing budgets are
under threat, how can we balance protecting
the business and safeguarding the brand?
How can we align our brand with changing

consumer sentiment? To what extent will shifts
in consumer behaviour be permanent? What
type of strategies should my organisation be
pursuing to position for growth?
It sounds clichéd, but we believe that out of a

challenge comes opportunity. Why? Because
CMOs are on the front line of managing the
crisis within their organisations. They represent
the conduit between the consumer and the
boardroom. They set the tone of messaging
both internally and amongst consumers. They
can situate themselves at the centre of new
product and service development, or the
creation of pioneering channels to market.
In this report we suggest that while today’s

recovery phase is a step into the unknown for all
CMOs, it also represents a moment for CMOs
to reassert their role in the boardroom, take
control of the agenda and position their brand
for growth.

Stepping into
the unknown
The immediate impact of COVID-19 in the

first half of 2020 has certainly presented
marketers with many challenges. Many
of these are familiar to those marketers
who have experienced previous economic
recessions—a slowdown in consumer spending,
declining consumer confidence and rising
unemployment, for example. But equally, many
of the impacts of the pandemic are without
precedent—mass lockdowns and restrictions
on movement, acceleration in home working
and learning, as well as the overall anxiety
created by living through a serious health
crisis. CMOs therefore find themselves today
at a pivotal moment for their brands and for
the world economy more broadly. What will be
the lasting impacts of the pandemic and what
does that mean in terms of how brands must
change? In this section of the report, we’ll take
a look at how the immediate impact of the
crisis is making it very hard for CMOs to look
to the future with any degree of certainty.

CMO recovery strategies are
starting from different places
As CMOs look ahead cautiously to the disruption to their business while one in
recovery, it’s clear that they are starting ten CMOs (generally larger businesses)
from very different places. Six out of ten report that the crisis has in fact helped
CMOs we surveyed this year say that their business. This rises to nearly one
their businesses have been significantly quarter (24%) among CMOs in India.
or somewhat affected by the pandemic Clearly, the global pandemic has not
(see Figure 1). A further 7%—nearly all been universal in its business impact,
CMOs of smaller businesses—suggest with many benefitting and others
that the crisis represents an existential remaining largely unchanged.
threat. However, at the same time,
one quarter of CMOs report minimal
Figure 1:
CMOs believe the pandemic has had mixed impact, both positive and negative
How has your business been impacted by the coronavirus (COVID-19) pandemic?
7% 9%
Minimal disruption
Somewhat affected
25% 24% Significantly affected
Existential threat
Helped our business
35%
Source: dentsu CMO survey 2020

Budget forecasts are largely
negative, especially among
smaller brands
Furthermore, many CMOs will struggle However, in 2020, it is evident again that
to spend their way back to growth, given smaller businesses are suffering more.
the significant impact of the crisis on More than half of larger businesses
marketing budgets. Despite the general (those with over 1,000 employees) are
advice that brands should not ‘go dark’ planning to increase their marketing
during times of recession, nearly two- spend, compared to just 19% of SMEs
thirds (62%) of CMOs recount that their (see Figure 2). At a time of crisis, larger
marketing budgets are forecast to decline companies are better able to weather
or remain constant over the coming 12 the storm and absorb the inevitable
months. As a reference point, in our 2019 reductions in sales and revenue.
survey 41% of CMOs forecast this level of
decline in their budgets.
Figure 2:
Smaller firms are forecasting bigger declines in their marketing budget
How do you expect your marketing budget to change over the next 12 months?
Decline by more than 5% Increase by up to 5%
Decline by up to 5% Increase by more than 5%
Stay flat
Large 20% 12% 14% 16% 38%
Medium 27% 17% 11% 15% 31%
Small 41% 6% 34% 6% 13%

Digital capabilities The key challenge: Consumer
have accelerated behaviour post-crisis is
uncertain
One impact of the crisis that would However, while many of the immediate
appear to be positive for CMOs as impacts of the crisis are relatively well
they consider their recovery strategies understood and documented, the big
is the recent acceleration of digital challenge that brands now face is the
capabilities. As buyers have been lack of clarity about which consumer
unable to visit physical stores and are behaviours will alter permanently as a
spending more time online, brands result of the crisis, versus those that will
have by necessity embraced digital alter temporarily (see Figure 3). We’ve
transformation at an unprecedented seen new rituals and behaviours emerge
pace to find new ways to engage during the crisis, from virtual cocktails
consumers, build their brand and to online fitness classes. How many
drive sales. In the United States, for of these will endure once lockdowns
example, 10 years’ worth of ecommerce are lifted and physical bars and gyms
penetration growth was witnessed reopen? Managing this uncertainty is
within just 3 months.i This focus on the central challenge facing CMOs over
digital excellence by default is likely to the next 6-12 months.
endure over the foreseeable future as
events and trade shows are cancelled Furthermore, CMOs recognise that
until next year, and social distancing even if they are able to understand
measures remain a barrier to normal consumers more intimately, aligning
shopping behaviours. Furthermore, their brands around that changing
consumer expectations of digital-first, sentiment is a huge challenge (cited
frictionless commerce are unlikely to by 39% of CMOs). And both of these
disappear as we move forward. challenges need to be overcome in the
context of reduced customer spending,
also identified by CMOs as one of the
top obstacles to overcome. Indeed,
with many consumers’ movements still
curtailed, spending is unlikely to return
to pre-pandemic levels for some time.
Consumer spending in the United States
is forecast to drop 5.5% in 2020, with
similar contractions expected across
much of the world.ii

Figure 3:
Understanding consumer behaviour is the most significant challenge facing CMOs
Which of the following challenges do you expect to face over the next 6-12 months?
Understanding what is a temporary shift in consumer 40%

behaviour vs. a permanent change
Aligning with new & changing customer sentiment 39%
Declining consumer spending 39%
Managing changes to the workforce 34%
Obtaining the right data to make timely & appropriate 32%

decisions
Decreasing marketing budgets 26%
Disruptions to the supply chain & ability to fulfil demand 25%
Demonstrating ROI of marketing spend 23%
Inability to react quickly enough to market changes 22%

New thinking is needed, but brands risk
using ‘traditional’ recovery strategies
2020 has already delivered huge levels of disruption,

with businesses and governments alike having
to manage a novel kind of crisis. While the 2008
financial crisis and subsequent global recession
provides a reference point for many CMOs, it’s clear
that the underlying fundamentals of today’s outlook
are very different. The combination of a sudden brake
in spending, the social experiment of working and
learning from home, mass restrictions on travel and
ongoing spikes in the virus mean all CMOs are faced at
best with an uncertain outlook.
That’s why it might seem concerning that nearly half

(49%) of CMOs overall concede that they are basing
their response to the coronavirus crisis on strategies
which were pursued during previous recessions (see
Figure 4). Just one in ten report that they are looking
to entirely new strategies to manage this recession.
This is even though we have never experienced a

recession and a pandemic simultaneously, nor a
situation where freedom of movement has been so
curtailed. It has also happened more rapidly and cut
deeper than anything most CMOs will have been
forced to contend with previously.
Based on what CMOs have told us, the greatest

innovation is happening in those sectors most
heavily affected by the pandemic and associated
lockdowns. The leisure sector in particular witnessed
an unparalleled shutdown, and therefore needed
to develop response tactics which adapted to the
unprecedented times. Four Seasons Hotels & Resorts,
for example, accelerated a range of digital projects
with the aim of reducing guests’ physical contact with
staff and paper documents and thus reassuring them
about hygiene. A new app was launched which enabled
text conversations with staff and also digitised
information that is normally printed, such as hotel
services, local city guides, and menus.iii

Figure 4:
Nearly half of CMOs are relying on existing recovery strategies
To what extent are you basing your coronavirus response on strategies that have
been pursued during previous recessions?
Not at all - entirely new strategies Slightly + moderately Considerably + Completely

SIMILAR STRATEGIES
Telecommunications 11% 31% 58%
Food & Beverage 14% 29% 57%
Technology 8% 37% 55%
Finance & Insurance 6% 39% 55%
Education 11% 36% 54%
Pharmaceuticals & Healthcare 12% 36% 53%
Transportation & Travel 15% 33% 52%
Energy 2% 46% 51%
Manufacturing/Industrial 7% 44% 48%
Retail 15% 39% 46%
Media & Entertainment 20% 35% 46%
Automotive 5% 51% 43%
Professional Services & Business Services 19% 39% 42%
Leisure 32% 37% 32%
Having weathered the immediate storm Faced with such high levels of
of the pandemic, CMOs now face what uncertainty, inaction may seem like an
may seem a calmer period for their attractive strategy. However, as the
brands. However, there is little comfort next section shows, leading CMOs are
to be derived from today’s outlook. taking the initiative and stepping into
The certainties that governed brands’ the unknown confidently to help bring
understanding of consumers before clarity and direction to their brands,
the crisis can no longer be relied upon. charting a clearer path to renewed
As our survey shows, we simply do growth.
not know how the experience of living
through a global pandemic will alter
consumer behaviour in the longer term.

Navigating the
new frontiers of
growth
It’s uncertain how consumer behaviour
will change in the longer-term post-
crisis. As we transition from short-term
firefighting to longer-term business
planning, the dilemma facing CMOs
is knowing how to thrive in a future
environment that remains uncharted.
Many CMOs are using the playbook
of previous recessions to plan for this
recovery, despite the fact that the
intertwining of an economic and a
health crisis is not a scenario most will
have experienced before. Furthermore,
with the risk of the virus returning
aggressively in the months ahead, it is
difficult to predict with any degree of
certainty what the world will look like
and how consumers will respond.
dentsu CMO survey 2020

Frontier CMOs demonstrate
• HYPER-EMPATHY:
five key strategies
The ability to understand existing
However, out of this uncertain and and new consumers more deeply and
complex outlook, a group of Frontier update that knowledge in real-time
CMOs is emerging. This cohort believes (e.g. through first-party customer data,
it is well prepared to manage the ecommerce & direct-to-consumer
recession and is wrestling control of strategies and increased investment
their brand’s destiny, bringing clarity in CRM). This requires a fundamental
through action and focusing on the shift from selling products & services
fundamentals of marketing. They to creating helpful experiences and
are building their brands around ubiquitous utility, rooted in superior
what customers need, using superior consumer intelligence and design
consumer intelligence to shape product thinking.
development and innovation. In
particular, these leaders demonstrate • HYPER-AGILITY:
5 key strategies that we believe are The ability to act like a start-up
critical for brands to develop at this and turn consumer insight into the
time: rapid development of new, relevant
messaging, products and services,
placing a premium on content,
innovation, product development as
well as pricing.
• HYPER-COLLABORATION:
The ability to ensure the whole
business moves as one around this
constant process of realignment, which
requires higher levels of integration
with the C-suite and other departments
e.g. sales, R&D, product development
as well as external partners/suppliers
within their ecosystem.
• HYPER-CONSOLIDATION:
The ability to quickly rationalise
portfolios and prioritise larger, more
resilient brands that are better able to
survive periods of economic fragility,
while pursuing opportunities to fill
capability gaps through strategic M&A.
• HYPER-TRANSPARENCY:
The ability to ensure that all elements
of how brands operate stand up to
extreme external scrutiny, from supply
chains to employee well-being and
consumer engagement.

Our analysis of these Frontier CMOs Figure 5 shows a mapping of those
(defined as those who believe their strategies employed by Frontier CMOs
organisations are well prepared to during the crisis and those they will
manage the next 6 months of the crisis) persist with into the recovery.
shows that they are all focused on
building these traits as the best route to
recovery.
Figure 5:
Strategies used by Frontier CMOs to manage the crisis, and those they will
continue with in future
Which of the following strategies has your business pursued as a response to the
coronavirus crisis? And which of those strategies do you expect to continue once the
coronavirus crisis has passed and business is back to ‘normal’?
45%
DEPENDANT ON STRATEGIES TO DRIVE LEADING STRATEGIES TO
BUSINESS NEED FUTURE GROWTH DRIVE FUTURE GROWTH
40%
Understanding changing
Increased consumer behaviour/
Price optimisation collaboration with market research
other departments
35% (e.g. sales, IT, legal,
New product
customer service)
development
Strategies used
Adapting marketing messaging to the current situation Developing greater

e-commerce capabilities
Understanding the needs of our employees
30%
Adjusting marketing channel mix
Focusing on marketing that gives the biggest ROI
Developing direct-
Scenario planning to-consumer (d2c) Working more closely with other
25% based on external sales models members of the C-suite (e.g. CEO, CTO, COO)
factors
Brand consolidation (prioritising
larger, less vulnerable brands)
Re-evaluating our brand’s

20% purpose
WHEN THE TIME IS RIGHT
40% 45% 50% 55% 60% 65% 70% 75%
Strategies that will be continued

1. HYPER-EMPATHY
Understanding changing consumer Tellingly, these capabilities are also

behaviour and undertaking market those that show the biggest gap in
research is the most popular future adoption between Frontier and Follower
strategy for Frontier CMOs, reflecting CMOs (see Figure 6). With an eye to
the challenge of figuring out which future customers, our survey also shows
consumer behaviours will endure that the number one top strategy that
post-crisis and which will fall away. A CMOs are considering is increased
number of the strategies that Frontier investment in CRM capabilities, which
CMOs report they are embracing will can help increase insight, drive loyalty
help increase access to high-quality and maximise value over the longer
consumer insight. For example, greater term.
ecommerce capabilities (and potentially
D2C sales models) will help increase
access to valuable first-party data for
many brands.
Figure 6:
Difference in strategy adoption rate between Frontier and Follower CMOs
Which of those strategies do you expect to continue once the coronavirus crisis
has passed and business is back to ‘normal’?
FRONTIER FOLLOWER DIFFERENCE
Increased collaboration with other departments

21% 12% -9%
(e.g. sales, IT, legal, customer service)
New product development 24% 15% -8%*
Developing direct-to-consumer (d2c) sales models 15% 8% -7%
Brand consolidation
14% 8% -6%
(prioritising larger, less vulnerable brands)
Understanding the needs of our employees 19% 13% -6%

* % difference calculated using decimal values

2. HYPER-AGILITY
Frontier CMOs recognise that consumer insight

(e.g. first-party data, primary research on consumer
trends) must be converted quickly into new messaging,
products and pricing strategies. In the context of a
fragile recovery, speed is of the essence to maximise
sales and revenue growth. That’s why Frontier CMOs
place such a premium on adapting messaging to the
current situation and price optimisation, both of which
can be adjusted in real-time through dynamic content
development and pricing strategies. Such approaches
are critical both offensively (winning new customers)
and defensively (nurturing existing customers). In any
crisis, the established order is disrupted, providing
opportunities for growth as well as the risk of being
outmanoeuvred. That’s why hyper-agility is critical to
both growth and survival.
The recent experience of the pandemic has shown

how quickly new insights can be converted into new
products, such as Brew Dog’s Barnard Castle beers,
which poked fun at a UK government adviser accused
of transgressing lockdown rules.iv Although the core
metric that CMOs are accountable for is growth of
the customer base—something that has not changed
since our last survey in 2019—our research shows
that leading CMOs are significantly more likely to be
tasked with product and service innovation (61% of
Frontier CMOs, compared to 52% of Follower CMOs).
3. HYPER-COLLABORATION
Our research suggests that one of the reasons Frontier
CMOs are pulling ahead of the pack is because of
their ability to increase collaboration with other
departments. One third (33%) of Frontier CMOs has
focused on this strategy, versus one fifth (21%) of
Follower CMOs. Frontier CMOs are forging closer
alliances with other departments to help keep pace
with changing consumer needs through greater
integration with and alignment across the business.

In our 2019 survey we argued that it
was essential for CMOs to integrate
a movement for change across the
C-suite so that they can become the
centre of innovation and growth. Shift
to 2020 and the coronavirus crisis
has heightened the importance and
relevance of the CMO even further.
The key challenge faced by businesses
is keeping pace with consumers and
to overcome that challenge requires
greater integration and alignment of the
whole company. Marketing can play that
role.
In order to be nimble and adapt, there is

a need to have marketing joined up with
the rest of the organisation. Building
these connections will need marketers
to communicate the value they deliver
to each department. For example:
• FINANCE: Helping command price

premiums by growing brand value
and using consumer insights to refine
pricing strategy.
• OPERATIONS: Refining the channel

to market, especially supporting the
development of digital experiences.
• PRODUCT: Enhancing value

propositions to maximise product
sales, and channelling consumer
insight to drive new product
development.
Furthermore, with many brands needing

to find new ways of accessing first-
party data and developing effective
ecommerce strategies, their ability
to partner and form alliances with
platform-based companies in particular
will be critical.

4. HYPER-CONSOLIDATION
As we come out of the crisis and into

a tentative recovery phase, it seems
that bigger will be better. A number of
brands have taken steps to consolidate
their portfolios and prioritise larger,
more resilient parts of their business.
Smaller brands have born the brunt of
the economic pain in the last 6 months,
with cuts to marketing budgets in
particular impacting smaller brands
more than large. While the crisis is also 5. HYPER-TRANSPARENCY
an opportunity to usurp the established
order and attack positions of market Frontier CMOs understand that winning
dominance, established, larger brands consumer trust starts with what you
often enjoy an advantage in terms do closer to home. How brands treated
awareness, recognition and trust. their employees during the crisis was
That’s why coming out of the crisis we a key flashpoint for many. A hotel in
can expect to see CMOs looking for the UK soon became the subject of a
opportunities to develop resilience social media storm following its abrupt
through consolidation—a strategy dismissal of staff. As CMOs look ahead,
where, as Figure 6 shows (page 16), Figure 6 shows that understanding the
there is a clear gap between Frontier needs of their employees at this time
and Follower CMOs. Furthermore, is a clear point of difference between
many brands will want to future-proof Frontier and Follower CMOs. Consumers
themselves by acquiring companies have observed closely how brands
that can help fill a much-needed gap in have responded to this crisis and as we
their capability set, such as a direct-to- move ahead to the next phase, these
consumer offering. expectations of ethical behaviour and
engagement with societal issues will
be even more deeply entrenched. In the
United States, for example, almost 60%
of consumers state brands should use
their influence to stand up for social
issues and an equal percentage feel
more favourably towards a brand for
doing so.v
These five strategies are helping

Frontier CMOs move forward and
lead their brands through a period
of uncertainty towards recovery and
growth. As we will see in the next
section, these strategies also have the
potential to reinstall marketing as a
strategic force within the boardroom.

Marketing’s
moment
While the future remains uncertain,

a handful of clear strategies have
emerged that Frontier CMOs are
pursuing to move forward. It’s early days
of course, but as well as helping brands
feel better prepared for this period of
recovery, there is also the potential for
these strategies to help strengthen the
role of marketing within their respective
organisations. As our survey has shown
since 2018, the role of marketing in the
eyes of the CMO has largely remained
constant. But today, there is evidence
that this is shifting positively.

The primary role of marketing
remains driving business
growth
When we look at the role of marketing CMOs, although interestingly a key

over the years we’ve been surveying difference among this group is that
global CMOs, it’s clear that the while understanding consumer/market
fundamental responsibility of marketing trends ranks second in 2020, in the
is unchanged: to deliver business next 6-12 months this will be replaced
growth. This holds in 2020 and looking by developing the overall customer
to the next 6-12 months too, when experience. This shift perhaps points
CMOs will be under even greater to the way that Frontier CMOs are
pressure to battle for a smaller pool of responding more quickly than the rest
consumer spending (see Figure 7). This to convert consumer intelligence into
pattern is also reflected by Frontier tangible action.
Figure 7:
CMOs’ view on the primary role of the marketing function remains constant
What do you believe is the primary role of marketing?
2018 2019 2020 IN 6-12 MONTHS
#1 Delivering business growth Delivering business growth Delivering business growth Delivering business growth
Ensuring effective brand Understanding consumer/ Understanding consumer/ Understanding consumer/

#2
management market trends market trends market trends
Developing the overall Developing the overall Developing new products Developing new products
#3
customer experience customer experience /services /services
Understanding consumer/ Ensuring effective brand Developing the overall Developing the overall
#4
market trends management customer experience customer experience
Delivering business Delivering business Ensuring effective brand Ensuring effective brand
#5
transformation transformation management management

Product development is rising CMO metrics remain focused
in importance on growing the customer base
Notably, where we do see a significant Delivering business growth is driven

change is the recognition among CMOs by extracting more value from existing
that in 2020 and beyond, developing customers as well as acquiring new
new products and services is a core role ones. It therefore follows that growth
of marketing. This is the first time since of the customer base is the top
our survey began that this element of performance metric for CMOs in 2020
marketing’s role has broken into the (see Figure 8). This is unchanged from
top three and reflects a significant last year—in the context of near-term
shift born out of the crisis. Many brands disruption and uncertainty, marketers
have moved quickly to develop new understandably remain accountable
products to meet consumer needs in for short-term tactical measures more
recent months and it appears that this than longer-term strategic KPIs such
is helping to evolve CMO perceptions of as improving brand awareness and
their role within the organisation. positioning. Frontier CMOs report
higher levels of accountability across
all of these metrics, with the exception
of cost reduction. Furthermore, they
are significantly more likely to be
accountable for digital transformation
than other CMOs.
Figure 8:
Acquisition of customers remains the top performance metric for CMOs
In terms of your role, what metrics are you primarily accountable for?
2020 2019 2020 FRONTIER CMOs
65%
Growth of customer base 67%
61%
56%
Product/service innovation 61%
51%
56%
Short-term sales/revenue growth 57%
47%
53%
Reducing costs 52%
(i.e. customer acquisition)
45%
52%
Medium-/long-term brand health 57%
44%
48%
Delivery of digital 58%
transformation programmes
39%

This overall picture broadly holds across
countries, although we do see CMOs
in the BRIC economies focussing more
on innovation than those the mature
markets such as the United Kingdom
and the United States (see Figure 9).
Figure 9:
CMOs across most countries are accountable for short-term performance
metrics in 2020
In terms of your role, what metrics are you primarily accountable for?
AUSTRALIA BRAZIL CHINA FRANCE GERMANY INDIA
Medium/ Delivery of digital

Growth of Short-term sales/ Product/service Growth of
#1 long-term brand transformation
customer base revenue growth innovation customer base
health programmes
Growth of
Growth of Growth of Short-term sales/ Growth of
#2 Reducing costs customer
customer base customer base revenue growth customer base
base
Medium/ Delivery of digital Medium/

Product/service Product/service Product/service
#3 long-term brand transformation long-term brand
innovation innovation innovation
health programmes health
ITALY JAPAN RUSSIA SPAIN UK US
Short-term sales/ Growth of Growth of Product/service Growth of Growth of

#1
revenue growth customer base customer base innovation customer base customer base
Delivery of digital
Growth of Short-term sales/ Product/service Short-term sales/ Short-term sales/
#2 transformation
customer base revenue growth innovation revenue growth revenue growth
programmes
Medium/
Product/service Short-term sales/
#3 Reducing costs long-term brand Reducing costs Reducing costs
innovation revenue growth
health

Back to the future
Much has been written—in this series of
reports and others—about the extent
to which marketing and marketers
need to reclaim influence within their
organisations that over time has
been ceded to other departments.
For decades marketers used the 4 Ps
of marketing (price, product, place
and promotion) as the foundations of
their role and contribution to business The fifth P?
growth. More recently, that focus
appears to have been lost with many One word that has dominated brand
marketers taking responsibility for discussions in recent months is
promotion but little else. Fast forward purpose. But in our survey, this year
to the recovery that brands are now it has featured less prominently as a
trying to navigate, however, and there discrete theme. While 20% of CMOs
may be cause for optimism. We’ve re-evaluated their brand purpose
already seen in section 1 that CMOs in response to the crisis, just 11%
now believe development of new found this to be an effective strategy.
products and services is a core part of However, this doesn’t mean that
the role of marketing, the first time this purpose is no longer relevant. In fact,
has appeared in the top five since we the opposite is true. What we have
started tracking this metric in 2018. And seen during the crisis and into the
if we examine the strategies that have recovery is that leading brands have
been undertaken by leading CMOs to demonstrated their purpose through
manage the crisis and those that they delivering tangible actions and helpful
will persist with into the new recovery, experiences for consumers. Whether
it’s clear that a return to the basics is that has been through new products,
informing many marketing strategies. more flexible pricing strategies or
Specifically: new product development; ensuring the health and safety of their
developing greater ecommerce employees, leading brands have shown
capabilities (place); pricing optimisation; how actions speak louder than words—
and adapting marketing messaging while those that have relied purely on
(promotion). surface-level statements of intent have
quickly been found out. As we move
In finding their way through a period into the recovery phase, it’s clear that
of significant uncertainty towards a consumers will remember how brands
new recovery, successful CMOs are acted during the crisis—and will carry
looking to marketing fundamentals and higher expectations of ethical behaviour
establishing themselves firmly at the forward. The ultimate triumph of the
centre of the new customer enterprise. purpose agenda could be when brands
stop talking about it as a separate
concept, but ensure it is integrated
into all aspects of how they serve their
customers.

Reasserting the role
of marketing
Could these strategies help to reassert In other words, the most successful
the role of marketing? Frontier CMOs marketers understand how consumer
certainly think so. Nearly half believe behaviour is changing, they are
the current crisis will increase the developing new products to meet those
importance of the marketing function needs, and they are distributing them
within their organisations compared to to consumers via the optimal channels
three out of ten Follower CMOs (see to market. They are looking at the total
Figure 10). customer experience, ensuring that all
elements of their business are aligned
It’s a cliché to say that every crisis tightly around serving customer needs.
presents an opportunity, but it certainly They have only been able to achieve
looks as though the approaches taken this by successfully leading and working
by leading CMOs to manage the crisis in partnership with other parts of the
and steer their brands to recovery business, matching superior consumer
provide a blueprint of how marketing intelligence with deep integration.
can re-take its place at the top table of
growth strategies.
Figure 10:
Frontier CMOs expect marketing to become more important
What impact do you think the coronavirus crisis will have on the importance of the
marketing function within your organisation?
FRONTIER FOLLOWER
15%
Decrease
importance
29%
38%
Stay the same
34%
Increase 44%
importance
29%

Implications for
marketing agencies
Within this context, innovation and Figure 11:
digital transformation are top priorities Top 5 requirements of agencies
for CMOs (see Figure 11), and they Thinking about working with marketing
expect the marketing agencies they agencies, how important are each of
work with to support them in this the below factors?
endeavour. Driving innovation and
delivering competency in technology #1 Driving innovation for clients
were the two most important
competencies that CMOs require from
Delivering competency in technology and
their agency partners, reflecting the #2
data
extent to which increased investment in
digital capabilities during the crisis will Explicit focus on efficiency and cost
#3
need to continue as consumers become reduction
more accustomed to frictionless

commerce and interaction with brands. #4
Providing expertise on the latest global
and market trends/ proactively bring new
The good news is that CMOs feel that insight
agencies are currently delivering well on

those needs. #5
Business partnering to drive execution and
growth over the long-term
Areas for improvement

Where there is scope for improvement,
however, resides in three main areas:
helping CMOs manage their limited
budgets through greater efficiencies
and cost reduction, driving long-term
growth, and proactively bringing new
insights to the table. These three things
are relatively important to CMOs
but their agencies are failing to live
up to expectations (see Figure 12). In
the context of the recovery, all three
are critical to help brands in terms
of extracting maximum value from
marketing investment and turning
consumer insight into new opportunities
for better messaging, product
development & innovation, and pricing.

FIGURE 12:
Efficiency, long-term growth and new insights are key areas for marketing
agency improvement
50%
% of marketers considering very important Priority area for Maintain strong
improvement performance
A
B
C
40%
D
E F
H G
Focus if resources I Monitor for change

permit in priority
30%
7.5 7.6 7.7 7.8 7.9 8.0
Performance (Average score)
A Delivering competency in technology and data
B Driving innovation for clients
C Explicit focus on efficiency and cost reduction
D Business partnering to drive execution and growth over the long-term
E Providing expertise on the latest global and market trends/proactively bring new insight
F Able to provide fully integrated solutions across all elements of the marketing mix
G Offering consultative services as well as executional services
H Offering flexibility in staffing models
I Offering contracts linked to specific business outcomes
Note: Each attribute is plotted according to the average reported satisfaction score (horizontal axis)
and the % of CMOs deeming it ‘very important’ (vertical axis).
Overall, the opportunity is there gap between what a brand does

for agencies to work with CMOs to or says internally and how it
get them closer to their customers meets stakeholder expectations
and partner across all elements externally. Similarly for agencies,
of the total customer experience. this demands seamless integration
The strategies being deployed by across marketing solutions that
Frontier CMOs require superior meet client needs, rather than
consumer intelligence matched a preoccupation with a specific
by high levels of integration product or service. Only then can
across all elements of the agencies help brands win, keep and
customer journey and brand grow their best customers over the
experience, ensuring there is no long term.

Final
2020 has already proven itself to be an
exceptional year. And who knows how the rest
of it will play out into 2021. For the majority of
word
CMOs, the focus is on surviving the next 6-12
months. Planning beyond that seems a luxury
that few can afford.
But afford it they must. A crisis such as this acts

as a crucible in which new norms are formed
and behaviours established. It’s a time of flux
when the existing order of industries can be
fundamentally overturned, creating long-term
waves of change. What happens now will have
lasting implications.
In looking to the future, CMOs have refocused on

the fundamentals of marketing, albeit applied
in new ways. This promises to reassert the role
of marketing within boardrooms and businesses.
But it is not a given. Leading strategies have
emerged, but now the focus must be on delivery.
The survival of brands themselves and the
marketing function as custodians of growth
depends on it.

About the survey
The research was managed by B2B At least 100 responses were collected
International, a specialist business-to- per country. Respondents were from a
business market research consultancy range of company sizes, and 40% were
within dentsu. from large companies (defined here
as those with over 1,000 employees).
B2B International surveyed 1,361 CMOs Industry sectors represented are
(or equivalent) in Australia, Brazil, summarised in Figure 13. Fieldwork was
China, France, Germany, India, Italy, conducted online in May-June 2020.
Japan, Russia, Spain, UK and the US.
Figure 13:
Industry breakdown of survey respondents
3%
Telecommunications
2%
3% Automotive Other
3% 1%
Energy Leisure 15%
Media &
Entertainment Retail
3%
4% Travel
4%
Pharmaceuticals 15%
& Healthcare
Professional
5% Services &
Business Services
Food & Beverage
6%
Education
14%
Manufacturing/
Industrial
8%
Finance & Insurance 13%
Technology

Acknowledgements
The authors would like to thank
colleagues from across the network for
being so generous with their time and
expertise to help develop this report.
In particular, special thanks to:
• BRAD ALPERIN
(dentsu)
• DAN CALLADINE
(Carat)
• TIA CASTAGNO
(Vizeum)
• SIMON GILL
(Isobar)
• SEAN HEALY
(Carat)
• DIRK HERBERT
(dentsu)
• LUKE KENNY
(dentsumcgarrybowen)
• RICHARD LEES
(Merkle)
• ANNA LUNGLEY
(dentsu)
• SANJAY NAZERALI
(dentsu X)
We would also like to thank our colleagues
at B2B International—Tom Percival,
• RHYS TAYLOR
(Gyro) Matthew Powell and Isobel Wadsworth—
for the outstanding collaboration and
• PAUL WILSON expertise in developing this report.
(Vizeum)
To discuss how B2B International can
• JENNIFER ZIMMERMAN help your business, please contact
(dentsumcgarrybowen) tom.percival@b2binternational.com

References
•
i
McKinsey, The Quickening, 2020
• S&P Global, COVID-19 Impact: Key

ii
Takeaways From Our Articles, 3 August

2020.
• Bloomberg, Robot Butlers, Digital Menus

iii
Are Hotels’ Latest Weapon Against

Covid-19, 17 June 2020
•
iv
Brewdog, 2020
• Dentsu Aegis Network, US Recovery

v
Navigator, June 2020

About dentsu
international
Part of dentsu, dentsu international
is made up of nine leadership brands
- Carat, dentsu X, iProspect, Isobar,
dentsumcgarrybowen, Merkle, MKTG,
Vizeum, Posterscope and supported by its
specialist brands.
Dentsu International helps clients to win,

keep and grow their best customers and
achieve meaningful progress for their
businesses.
With best-in-class services and solutions

in media, CXM, and creative, dentsu
international operates in over 145 markets
worldwide with more than 48,000
dedicated specialists.
www.dentsu.com
For further information about

this report please contact:
Tim Cooper
Global Head of Strategic Communications
tim.cooper@dentsu.com

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Into the

1. Stepping into the unknown 7

2. Navigating the new frontiers of growth 14

About the survey 30

2. dentsu CMO survey 2020

Less well understood, though, are the longer-

Stepping into the unknown

That’s why, based on our survey of 1,361 CMOs

3. dentsu CMO survey 2020

However, within this complex and

4. dentsu CMO survey 2020

5. dentsu CMO survey 2020

This year’s dentsu CMO survey was undertaken

As the dust settles, numerous questions

How can we align our brand with changing

It sounds clichéd, but we believe that out of a

In this report we suggest that while today’s

6. dentsu CMO survey 2020

The immediate impact of COVID-19 in the

7. dentsu CMO survey 2020

Helped our business

Source: dentsu CMO survey 2020

8. dentsu CMO survey 2020

Decline by more than 5% Increase by up to 5%

Decline by up to 5% Increase by more than 5%

Large 20% 12% 14% 16% 38%

Medium 27% 17% 11% 15% 31%

Small 41% 6% 34% 6% 13%

Source: dentsu CMO survey 2020

9. dentsu CMO survey 2020

10. dentsu CMO survey 2020

Understanding what is a temporary shift in consumer 40%

Aligning with new & changing customer sentiment 39%

Declining consumer spending 39%

Managing changes to the workforce 34%

Obtaining the right data to make timely & appropriate 32%

Decreasing marketing budgets 26%

Disruptions to the supply chain & ability to fulfil demand 25%

Demonstrating ROI of marketing spend 23%

Inability to react quickly enough to market changes 22%

Source: dentsu CMO survey 2020

11. dentsu CMO survey 2020

2020 has already delivered huge levels of disruption,

That’s why it might seem concerning that nearly half

This is even though we have never experienced a

Based on what CMOs have told us, the greatest

12. dentsu CMO survey 2020

Not at all - entirely new strategies Slightly + moderately Considerably + Completely

Telecommunications 11% 31% 58%

Food & Beverage 14% 29% 57%

Technology 8% 37% 55%

Finance & Insurance 6% 39% 55%

Education 11% 36% 54%

Pharmaceuticals & Healthcare 12% 36% 53%

Transportation & Travel 15% 33% 52%

Energy 2% 46% 51%

Manufacturing/Industrial 7% 44% 48%

Retail 15% 39% 46%