Marketing operations are not fit for purpose, say CMOs

Marketing leaders might be doing their best to keep up with a fast-evolving landscape, but inefficiencies and misaligned business structures are holding back performance, with only half (51%) of CMOs feeling their marketing operations are fit for purpose.

So says a new report from AAR in partnership with ISBA, based on insights from over 100 CMOs, marketing directors, and CEOs across multiple sectors, alongside interviews with leading marketers from PwC, Tesco, Ford, Specsavers, EY, KFC, BBC, VMO2 and NatWest.

But rather than just flagging up the issue, The Evolution of the Marketing Operating Model report offers a roadmap for improving agility, efficiency, and measurable business impact.

It reveals that while more than a third (36%) of organisations have introduced marketing operations teams in the past year, many still lack clarity in processes and data-driven decision-making.

Meanwhile, CMOs are rethinking in-house and agency structures: 44% are building in-house media capabilities, yet 41% plan to eliminate in-house agencies and re-outsource work.

When it comes to the much lauded GenAI, just 52% of CMOs are trialing the technology, although this presents both opportunities and operational challenges across pillars, while over half (52%) of CMOs see integrating media and creative as a significant challenge for the year ahead.

A marketing operating model (MOM) is the framework that ensures marketing strategies can be executed effectively. While marketers often focus on the ‘what’ – strategy, creative, and media – the ‘how’ of marketing, which includes aligning people, partners, process, and platforms, is equally critical. Without a high-performing MOM, marketing strategies are at risk of under-delivering.

The findings also highlight the growing complexity of marketing operations. Traditional campaign-driven workflows are being replaced by an always-on, personalised, and multi-platform approach that demands greater agility and collaboration. Yet many organisations lack the skills, resources, and clarity to adapt.

The report highlights several key areas where marketers are focusing their efforts, including transforming operating models to align with new marketing demands; addressing inefficiencies in collaboration between creative and media teams; leveraging GenAI while mitigating associated risks; and designing MOMs that balance efficiency with the ability to unleash strategic and creative potential.

It not only exposes the challenges marketers face but provides actionable advice from AAR experts and marketing leaders who have embarked on their own MOM transformation journeys.

AAR chief executive Victoria Fox said: “I’ve been in this industry for 30 years, and I can honestly say I can’t recall a time with so much complexity and change. Every conversation I’ve had with a marketing leader over the last 12 months has uncovered the same tension; there is so much pressure for marketers to deliver on many different levels, as they simply cannot afford situations where their strategy is hampered or undeliverable due to operational issues.

“We designed this report to help marketing leaders address these challenges head-on and align their operating models with the demands of modern marketing. By focusing on people, partners, process, and platforms, CMOs can drive both efficiency and business impact.”

ISBA director of agency services Nick Louisson added: “Marketers are increasingly stretched as the number of tasks, topics and innovations in our industry continues to grow. We see this tension both in this report and ISBA’s day to day interactions with members. It’s important to step back and look at how we organise ourselves.

“Reflecting on this study I can see as an industry we often over-index on topics relating to platforms and partners, while under-investing in the role people and processes play in unlocking value from platforms and partners.

“I trust this report will help our members reflect on their own operating models. It outlines where they can have the most impact in improving the way they create positive experiences for their consumers.”