Strategic dysfunction preventing CMOs from long-term planning
The majority of CMOs (84%) report high levels of strategic dysfunction present within their business.
The survey of 403 CMOs conducted by Gartner describes strategic dysfunction as when confusion and/or conflict arise from unclear, too numerous or conflicting enterprise objectives that marketing needs to support. Organisations reporting strategic dysfunction are 36% less likely to report strong business and marketing performance.
CMOs who report strategic dysfunction are more likely to have their gaze turned inward rather than outward towards the customer. Just 40% of CMOs take a primarily proactive, market-oriented approach to planning, and 61% of CMOs say their plans are primarily driven by operational needs such as prioritising work.
A worrying 94% admit that translating enterprise strategic directives into actionable marketing plans is a challenge.
This level of dysfunction ties into the short-term view many marketers feel they have to take. The report shows just 15% of CMOs plan beyond the next three years when it comes to their marketing strategy. However, those CMOs who do report planning beyond 18 months or longer are 1.5 times more likely to report high marketing and business performance than those who do not.
Source: Gartner
Consumer concerns around cost not being met by brand messaging
New data from EY’s Future Consumer Index has revealed that consumers are paying less attention to brand messaging when it comes to making a purchasing decision.
The study of more than 20,000 consumers finds 88% of people believe that brand messaging does not resonate with their needs and values, and that a little more than a third (34%) don’t consider brands at all when making purchasing decisions.
Perhaps unsurprisingly, it is the global economic situation that is having the greatest impact on consumer spending habits, with more than half of respondents (55%) very concerned about the rise of living costs. Price sensitivity tops the list of purchase considerations for 81% of respondents. This is most acutely felt in the US (61%), France (60%) and the UK (58%).
This has led to 77% of respondents changing their purchase behaviour due to price increases and the cost of living. When faced with price increases across different product categories, 41% opt for less expensive home and household care products, and 17% stop purchasing alcohol altogether. About two-fifths (41%) of consumers surveyed are buying fewer snacks and confectionery.
All of this has been a welcome boon to private label products, with 67% agreeing that private label satisfies their needs just as well as branded products do. Even when brands turn to innovation and “brand improvements”, such as changing ingredients or formulas to create more value, 42% of respondents believe these are simply cost-cutting exercises and not genuine innovation.
There are reasons for brands to be optimistic, however, as 65% of respondents globally state they still value them. Notably, 48% of respondents are willing to return to a premium branded product if it offers superior taste, quality or performance, and 36% would switch back to a brand for better value.
Source: EY
AI increasingly used by marketers in video production
AI use in video production has more than doubled in the past year from 18% to 41%, as the technology starts to become embedded in working practices.
Video marketing platform Wistia analysed 14 million videos and 100,000 businesses for its annual State of Video and found the most common use of AI in video is for AI captions (60%), followed by voice dubbing (38%) and translation (31%). AI captions, in particular, have surged in recent years, growing by 572% since 2021.
One third of marketers (34%) believe engagement rate is the number one marker of success when judging effectiveness, with a further 29% believing it is conversion rate. Short videos (those under one minute) see the highest engagement rate (50%), while those using a call to action should do so in the first quarter of a short video as this boosts conversions by nearly 40%.
Unsurprisingly, considering the importance of video on social platforms, more than half of brands (57%) are increasing their investment in video, with just 5% cutting back budgets. Companies indicate the biggest barriers to success in video include company size/resources (58%), cost (38%) and technical skills (25%).
Source: Wistia
Retail sales hold strong despite poor weather
Retail sales volumes held steady in February, continuing a strong start to the year for those in retail, according to estimates from the Office for National Statistics (ONS).
The latest ONS Retail Sales Index figures show sales by value increased by 3% year-on-year in February 2025, and sales by volume were up by 2.2% year-on-year. Positive figures considering the gloomy weather and the difficult economic situation many find themselves in.
It continues a positive start to the year, after January saw sales volumes rebound by 3.4% following a challenging Christmas period.
Kris Hamer, director of insight at the British Retail Consortium, believes the results are a “solid boost” to retailers in the face of challenging conditions.
“Computing and household electricals performed well as people continued to upgrade their tech. Meanwhile, footwear and clothing struggled this month due to the gloomy weather putting a dampener on demand,” he says.
“Nonetheless, retailers are hopeful the March sunshine will boost footfall and drive more consumer spending.”
Source: ONS
Younger consumers have a more premium perception of value
Value encompasses more than just price and it seems that younger consumers are more receptive to quality factors as key to value for money, rather than just the price tag.
New data from GlobalData finds UK consumers, in particular, are less likely to consider price to be a key factor when it comes to buying in the homeware retail category. Just 32% of under-35s cited low prices as being the key consideration, compared with 46% of over-55s. Instead, younger consumers disproportionately cite factors concerning craftsmanship, such as comfort and design, as being more important to them.
The data gives hope to retailers the younger generation will be more receptive to marketing messages regarding quality as opposed to just price. The data also reveals that nearly a quarter (23%) of 18– to 34-year-olds consider ‘designs or styles that will not go out of fashion’ to be a key value for money attribute, and 19% said the same for on-trend designs, compared to 16% and 13% of the population at large, respectively.
The preference for classic styles over trends among younger consumers contrasts with the 35 to 54 age group, who are more likely to consider on-trend designs to be a key attribute of value for money (15%) compared to classic styles (13%).
Source: GlobalData
