A new report shows that GenAI, sophisticated marketing measurement tools, and tighter collaboration between IT, data science and marketing will drive growth and change in 2025.
This is according to the latest CMO Outlook report from NIQ, which explores how marketers are navigating both ‘headwinds and tailwinds’ within their strategic planning for 2025, as well as the ‘new era’ for artificial intelligence (AI) in marketing.
The report is based on a survey of nearly 600 senior marketing leaders from companies with either annual revenue of over $50 million (€47.2 million) or more than 250 employees.
It covers 18 countries, representing Asia-Pacific, Europe, Latin America, the Middle East/Africa, and North America.
“The future of marketing is going to be AI led. While other aspects of CMO strategy remained stable in 2024, generative AI – GenAI – is driving significant growth and change and is becoming a core element of the marketing mix for accelerating growth,” said Marta Cyhan-Bowles, NIQ’s chief communications officer and global head of marketing COE.
“AI can enhance the efficacy of everything we touch – from customer interaction to ideation, data collection, analysis, synthesising insights across projects, and unlocking new opportunities.”
The report shows that 78% of marketing leaders are expecting to be in a stronger position three years from now. Within the current environment, more than half (56%) still view marketing as key to achieving immediate sales targets – down from 64% in 2023 – which NIQ noted reflects a shift toward long-term brand-building.
While 60% of marketing leaders find it easy to justify marketing investments – down from 65% in 2023 – there is growing confidence among CEOs and CFOs in the long-term value of brand investments (44% in 2024 vs 41% in 2023).
The report shows that marketers have also turned to AI as a ‘critical enabler’ in addressing key challenges, which suggests that it is set to redefine how they approach the year ahead.
Leveraging AI
Senior marketers are increasingly making GenAI central to their strategy, with 72% using it for content and creative purposes, 67% for brand health measurement, 65% for media planning and optimisation, and 30% for product development.
NIQ believes that GenAI is going to make deep inroads in all marketing functions, with marketers also using it to enhance customer experiences.
Closing The Gap
The data indicates that AI is closing the gap between customers and businesses by enhancing understanding of consumer preferences.
The report notes that AI is also driving efficiencies in long-term consumer-focused product development. It suggested that, by leveraging AI, marketers can prioritise creative insights, test multiple ad iterations, and meet deadlines without sacrificing quality.
Cross-Departmental Collaboration
NIQ suggests that marketers are using the language of CFOs to secure investments and engage with CTOs, to maximise AI’s potential.
According to the report, the new year will see tighter collaboration between marketing, data analysts, and business leaders for breaking down data silos and integrating diverse data sources to deliver more actionable insights.
Outlook
The CMO Outlook report predicts that consumers continue to face rising costs in food and utilities, coupled with the looming threat of an economic downturn, which have shaped the cautious spending patterns seen within CPG and retail.
In turn, AI is likely to have a major impact on long-term marketing strategies, such as promotional and brand activity, as consumers continue to search for value and savings.
Yet, even with these economic challenges, NIQ noted that there are still opportunities for marketing growth.
