The CMO Survey Highlights and Insights February 2017

About The CMO Survey
2
Mission
- To collect and disseminate the opinions of top marketers in order to predict the future of markets,
track marketing excellence, and improve the value of marketing in firms and society.
- The survey is an objective source of information about marketing and a non-commercial service
dedicated to the field of marketing.
Survey Operation
- Founded in August 2008, The CMO Survey is administered twice a year via an Internet survey. Many
questions repeat to observe trends over time.
- The February 2017 survey is the 18th administration of The CMO Survey.
Sponsoring Organizations
- Individual survey data and participant lists are held in confidence and not provided to survey
sponsors.

Survey methodology
3
Survey Sample
- 2813 top U.S. marketers at for-profit companies
- 388 responded for a 13.8% response rate
Survey Administration
- Email contact with four follow-up reminders
- Survey in field from January 16, 2017 - February 3, 2017
- 94.9% of respondents VP-level or above
Results Interpretation
- M = sample mean; SD = sample standard deviation
- B2B = Business-to-Business firms; B2C = Business-to-Consumer firms
Reports
- The Topline Report: All results reported at the aggregate level
- Results by Firm and Industry Characteristics: All results reported within sectors, size, and
Internet sales

Survey topics
4
Topic 1: Marketplace Dynamics………………………………........ 5-11
Topic 2: Firm Growth Strategies……………………………........... 12-21
Topic 3: Marketing Spending…………………………………......... 22-34
Topic 4: Financial and Marketing Performance…………………... 35-40
Topic 5: Social Media Marketing…………………………............... 41-50
Topic 6: Mobile Marketing…………………………………………... 51-54
Topic 7: Marketing Jobs…………………………………………….. 55-57
Topic 8: Marketing Organization…………………………............... 58-61
Topic 9: Marketing Leadership……………………………………... 62-67
Topic 10: Marketing Analytics………………………………………... 68-76
Topic 11: The CMO Survey Award for Marketing Excellence……. 77-79

Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketer economic optimism increases
6
More
Optimistic
42.5%
Less
Optimistic
26.6%
No Change
30.9%
Figure 1.1. Are you more or less optimistic about the overall U.S. economy compared to last quarter?*
30.6%
34.9%
42.5%
0%
20%
40%
60%
80%
100%
Feb-16 Aug-16 Feb-17
More Optimistic

Marketer economic outlook varies by
industry
7
Top 3 Industry Sectors
Transportation
Education
Pharmaceuticals
Consumer Services
Consumer Packaged Goods
Service/Consulting
Healthcare
Banking/Finance/Insurance
Mining/Construction
More
Optimistic
42.5%
Less
Optimistic
26.6%
No Change
30.9%
Figure 1.2. Are you more or less optimistic about the overall U.S. economy compared to last quarter?*

All customer indictors positive: Customer
acquisition and sales volume lead forecasts
8
67%
63%
60%
44% 42%
31%
73%
67%
61%
53%
49%
35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Increased
acquisition of
new customers
Increased
customer
purchase volume
Increased purchase
of related products
& services
Increased
customer
retention
Increased entry of
new customers
into the market
Increased
customer price
per unit
August 2016 February 2017
Figure 1.3. Forecasted customer outcomes in next 12 months (% of respondents)

9
Quality, service, and trusting relationships remain
top customer priorities; trust largest yearly gain
29%
27%
17%
14%
13%
27%
22% 23%
17%
11%
25%
24% 24%
16%
12%
0%
5%
10%
15%
20%
25%
30%
35%
Superior
Product Quality
Excellent
Service
Trusting
Relationship
Low
Price
Superior
Innovation
February 2016 August 2016 February 2017
Figure 1.4. Customers’ top priority in next 12 months (% of respondents)

Fewer companies using channel partners to
go to market
10
70.7%
29.3%
55.5%
44.5%
0%
20%
40%
60%
80%
100%
Use channel partners Do not use channel partners
February 2013 February 2017
Figure 1.5. Percent of Companies Using Channel Partners to Reach Market (% of respondents)*
* Question asked irregularly. Full time series available shown.

All channel partner indicators forecasted
to improve
11
64%
44%
23% 22%
67%
50%
26%
31%
0%
20%
40%
60%
80%
Increased partner
purchase volume
Increased partner purchase
of related products
and services
Increased partner power
in relationship
Increased partner
price per unit
Figure 1.6. Forecasted channel partner outcomes in next 12 months (% of respondents)*
* Question asked irregularly. Full time series available shown.

Investments in existing markets and
offerings dominate growth spending
13
Existing
Products/
Services
New
Products/
Services
Existing
Markets
Market
Penetration
Strategy
Product/Service
Development
Strategy
New
Markets
Market
Development
Strategy
Diversification
Strategy
* % of spending for each growth strategy
Growth
Strategy
Aug-16 Feb-2017
Market
Penetration
Strategy
52.1% 51.1%
Product/Service
Development
Strategy
23.6% 24.2%
Market
Development
Strategy
15.4% 15.0%
Diversification
Strategy
8.9% 9.7%
Table 2.1. Spending on Growth Strategies in
Past 12 Months*
Types of growth strategies

Internal activities drive overall
firm growth investments
14
Internal Partnerships Acquisitions Licensing
Overall 73.0% 11.4% 10.8% 4.9%
B2B Product 72.0% 11.4% 9.6% 7.0%
B2B Services 71.3% 15.3% 10.4% 3.0%
B2C Product 78.7% 7.7% 7.8% 5.8%
B2C Services 72.1% 6.7% 18.5% 2.7%
76.1%
10.1% 8.6%
5.2%
73.0%
11.4% 10.8%
4.9%
0%
20%
40%
60%
80%
100%
Growth from within your
firm
Growth from partnerships Growth from acquisitions Growth from licensing
Figure 2.2. How firms will grow in the next 12 months*
* Percentage of growth spending in each category. Question asked irregularly. Full time series available shown.

Company sales through Internet remain
modest at 11.8%
15
Figure 2.1. Percent of company sales through the Internet
Overall 11.8%
B2B Product 8.7%
B2B Services 13.7%
B2C Product 14.2%
B2C Services 12.5%
9.2% 8.9% 9.9% 11.3% 12.4% 10.3% 11.3% 10.3% 11.8%
0%
20%
40%
60%
80%
100%
Feb-12 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17
Percent of sales through the Internet

Internet sales are a quarter or less of total
sales across all industries
16
Figure 2.1. Percent of company sales from Internet
6.7%
25.1%
6.5%
21.0%
9.3%
13.3%
9.4% 8.8%
0.3% 0.0%
6.9%
15.2%
13.2%
19.9%
0%
5%
10%
15%
20%
25%
30%

Company sales from domestic markets
continue to dominate
17
Figure 2.2. Percent of company sales from domestic markets
Overall 84.4%
B2B Product 80.9%
B2B Services 86.2%
B2C Product 81.1%
B2C Services 93.0%
77.6% 79.4%
77.5%
79.4%
85.4%
81.0%
83.0%
81.2%
84.4%
50%
60%
70%
80%
90%
100%
Feb-12 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17
Percent of sales - domestic

Marketing budget spent on international
markets drops further
18
Overall 10.2%
B2B Product 8.7%
B2B Services 13.7%
B2C Product 14.2%
B2C Services 12.5%
Figure 2.3. Percent of marketing budget spent on international markets
21.9%
17.4%
10.2%
0%
5%
10%
15%
20%
25%
30%
February 2016 August 2016 February 2017

Western Europe leads sales for current
international markets
19
Figure 2.4. Which international market is currently your largest (in terms of sales)?
Western
Europe:
32.9%Canada:
14.5%
China:
13.2%
Japan:
5.3%
Mexico:
6.6%
Northern
Europe:
6.6%
Middle East:
5.3%
Brazil:
5.3%
Australia & New
Zealand: 3.9%
Central
America:
1.3%
Indonesia
& SE Asia:
1.3%
Eastern
Europe:
1.3% Korea:
1.3%

Location of international sales across
different economic sectors
20
Table 2.1. Which international market is currently your largest (in terms of sales)?
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Western Europe 33.3% 42.3% 8.3% 40.0%
Canada 15.2% 11.5% 16.7% 20.0%
China 3.0% 23.1% 16.7% 20.0%
Japan 6.1% 3.8% 8.3% -
Mexico 6.1% - 25.0% -
Northern Europe 3.0% 7.7% 8.3% 20.0%
Middle East 6.1% - 16.7% -
Brazil 9.1% 3.8% - -
Australia/New Zealand 6.1% 3.8% - -
Central America 3.0% - - -
Indonesia and SE Asia 3.0% - - -

China and Western Europe are largest
future growth opportunities
21
Figure 2.5. Which international market that you are currently not in is your biggest opportunity for the future?
Western
Europe:
14.4%Canada:
8.7%
China: 16.3%
Japan: 1.9%
Mexico:
4.8%
Northern
Europe:
3.8%
Middle East:
5.8%
Brazil:
10.6%
Australia & New
Zealand: 5.8%
Central
America:
2.9%
Indonesia &
SE Asia: 5.8%
Eastern
Europe:
2.9%
South American
Countries*: 6.7%
South
Africa: 3.8%
India:
3.8%
Russia: 1%
Taiwan: 1%
*South American Countries excludes Brazil

Marketing budgets expected to increase
23
Prior 12 months Next 12 months
Overall 7.3% 10.9%
B2B Product 6.6% 8.9%
B2B Services 9.1% 14.4%
B2C Product 5.2% 8.8%
B2C Services 7.0% 8.5%
Figure 3.1. Percent change in marketing budgets
6.0%
7.2%7.3%
10.9%
0%
2%
4%
6%
8%
10%
12%
Actual change in marketing budget
in prior 12 months
Expected change in marketing budget
in next 12 months

Forecasted marketing budgets expected to
increase 51.4%
24
Figure 3.2. Expected percent change in marketing budgets in next 12 months
0.5%
1.1%
5.9%
9.2%
6.7%
9.1%
8.1%
6.4% 6.1%
4.3%
6.7%
5.1%
8.7%
5.5%
6.9%
7.2%
10.9%
0%
2%
4%
6%
8%
10%
12%
Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17
Change in Marketing Spending

Nearly all industries expect growth in
marketing budgets
25
Figure 3.3. Expected percent change in marketing budgets in next 12 months
10.9% 10.4%
12.0%
8.7%
15.5%
20.4%
-14.0%
10.1%
6.6%
17.0%
5.0%
12.6% 12.2%
15.2%
7.5%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%

Digital spend dominates; positive growth expected for
traditional advertising spend for first time in 5 years
2626
*Refers to media advertising not using the Internet. Showing only data from February surveys.
Figure 3.4. Percent change in traditional advertising* vs. digital marketing spend in next 12 months
-0.8%
-2.7%
-0.1%
-1.1%
-3.2% 0.6%
12.8%
10.2%
8.2%
14.7%
13.2%
14.6%
-5%
0%
5%
10%
15%
20%
Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17
Traditional Advertising Spend Digital Marketing Spend

Digital marketing dominates overall
marketing spend across economic sectors
27
*Refers to media advertising not using the Internet.
Figure 3.5. Percent change in traditional advertising* vs. digital marketing spend in next 12 months
13.0%
16.0%
12.1%
17.4%
-1.0% 0.4%
3.1% 2.7%
-5%
0%
5%
10%
15%
20%
B2B Product B2B Services B2C Product B2C Services
Digital marketing spending Traditional advertising spending

Brand building expected to continue strong
spending gains
28
Figure 3.6. Percent change in CRM and brand spending expected in next 12 months
7.9%
7.5%
8.0%
7.1% 7.4%
7.9%
4.3%
5.6% 5.4%
5.0% 6.3%
9.7%
0%
2%
4%
6%
8%
10%
12%
Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17
Customer Relationship Management Brand Building

Marketing budgets represent 11.1% of
firm budgets
29
Figure 3.7. Marketing budget as percent of firm budget*
Overall 11.1%
B2B Product 10.9%
B2B Services 10.1%
B2C Product 16.9%
B2C Services 8.2%
8.1%
10.0% 10.4%
11.4%
10.6%
9.4%
10.9% 10.9%
10.1%
11.4%
12.1%
11.3% 11.1%
0%
4%
8%
12%
16%
20%
Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17
% Marketing Budget
*Question asked in Feb-11 for the first time.

Marketing spend is 8.1% of company
revenues
30
Figure 3.8. Marketing spending as percent of company revenues*
Overall 8.1%
B2B Product 7.88%
B2B Services 6.92%
B2C Product 12.4%
B2C Services 7.75%
8.5%
11.0%
7.9% 7.8%
9.3%
8.3% 8.3%
6.6%
8.4%
7.5% 8.1%
0%
3%
6%
9%
12%
15%
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17
% Marketing Spend

Marketing spend varies across industries
31
Figure 3.9. Marketing spending as percent of company revenues*
4.3%
11.0%
10.0%
13.9%
4.6%
0.5%
10.2%
2.7%
0.6%
6.2%
11.6%
12.2%
11.2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
*Pharmaceuticals are not displayed due to too few respondents.

Figure 3.10. Percent change in marketing knowledge investments expected in next 12 months
Firms emphasize knowledge investments;
capability investments to increase 113%
32
*Developing knowledge about how to do marketing refers to the development of new marketing capabilities; marketing training involves transferring
existing marketing knowledge to employees.
1.7% 1.8%
2.7%
6.2%
4.9%
5.3%
4.6%
3.1%
6.6%
3.7% 2.4%
2.6%
0%
2%
4%
6%
8%
10%
February 2013 February 2014 February 2017
Marketing consulting
services
Marketing research and
intelligence
Developing knowledge
about how to do marketing
Marketing training

Firms to increase their investments on
knowledge building
33
Overall Mean
(SD)
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Marketing consulting
services
2.7% 2.5% 4.4% -1.2% 2.5%
Marketing research and
intelligence
5.3% 5.0% 6.0% 3.9% 5.6%
Developing knowledge about
how to do marketing
6.6% 4.9% 8.5% 7.0% 5.5%
Marketing training 2.6% 2.4% 2.5% 3.2% 2.9%
*Developing knowledge about how to do marketing refers to the development of new marketing capabilities; marketing training involves
transferring existing marketing knowledge to employees.
Table 3.1. Percent change in marketing knowledge investments expected in next 12 months

Percentage of marketing budget devoted to training and development
(Overall mean = 3.8%, SD = 4.9, 95% Percent Confidence Interval Around the Mean: 3.2%-4.4%)
Overall budget spend averages 3.8% for
training and development
34
Table 3.2a. Industry sector differences
Sector* Mean
Banking/Finance/Insurance 3.4
Communications/Media 4.9
Consumer Packaged Goods 3.1
Consumer Services 1.8
Education 6.1
Energy 5.0
Healthcare 4.1
Manufacturing 4.4
Mining/Construction 0.7
Retail/Wholesale 2.5
Service/Consulting 3.2
Tech/Software/Biotech 4.4
Transportation 4.6
Sector Mean
B2B Product 4.3
B2B Services 3.8
B2C Product 3.6
B2C Services 2.7
Table 3.2b. Firm sector differences
Table 3.2c. Firm Internet sales differences
Firm sales Mean
0% of sales 3.0
1-10% of sales 4.1
>10% of sales 4.4
*Pharmaceuticals are not displayed due to too few respondents.

Performance metrics increased across all
economic sectors in past year
36
Overall Mean
(SD)
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Sales 3.8% (5.8%) 3.9% (6.5%) 3.9% (5.4%) 4.7% (4.6%) 1.7% (6.3%)
Profits 3.1% (5.3%) 3.1% (5.3%) 2.7% (4.7%) 4.1% (5.4%) 2.8% (7.0%)
Marketing ROI 3.1% (4.5%) 3.2% (4.1%) 3.1% (4.6%) 3.2% (4.2%) 3.0% (5.7%)
Customer acquisition 3.1% (4.6%) 4.1% (4.0%) 3.0% (4.8%) 2.5% (4.4%) 1.6% (5.6%)
Customer retention 1.5% (4.8%) 1.1% (4.7%) 2.0% (5.0%) 2.0% (4.2%) 0.3% (5.2%)
Brand value 3.8% (4.2%) 4.1% (4.4%) 4.2% (4.4%) 3.9% (3.9%) 1.9% (3.7%)
Table 4.1. Percent change in financial and marketing performance in prior 12 months: Mean (S.D.) reported

Revenues, profits, and market ROI all
increased over prior 12 months
37
Figure 4.1. Percent change in performance on financial metrics in prior 12 months
3.8% 3.7%
3.3%
3.8%
3.1%
2.9%
2.4%
3.1%
2.8% 2.8%
2.4%
3.1%
0%
1%
2%
3%
4%
5%
Aug-15 Feb-16 Aug-16 Feb-17
Sales revenues Profits Marketing ROI

Customer acquisition and brand value
performance improve
38
Figure 4.2. Percent change in performance on customer and brand metrics in prior 12 months
2.9%
3.5%
2.4%
3.1%
1.7%
1.5%
1.8%
1.5%
2.8%
3.3%
3.2%
3.8%
0%
1%
2%
3%
4%
5%
Aug-15 Feb-16 Aug-16 Feb-17
Customer acquisition Customer retention Brand value

Marketing excellence ratings remain flat
39
* Question asked in Aug-13 for the first time.
Figure 4.3. How would you rate your company’s marketing excellence?*
(7-point scale where 1=Very weak, 7=Leader)
4.5 4.5
4.7
4.5 4.6 4.5 4.5 4.4 4.5
1
2
3
4
5
6
7
Aug-13 Feb-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17
Excellence rating

B2C Product companies more likely to be
marketing leaders
40
Figure 4.4. How would you rate your company’s marketing excellence?
(7-point scale where 1=Very weak and 7=Leader)
8.1% 10.1%
5.6% 9.4% 7.7%
41.0%
47.8%
40.9% 34.4%
30.7%
27.8%
17.4%
35.2%
28.1% 34.6%
23.3% 24.6%
18.3%
28.1% 26.9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Overall B2B Product B2B Services B2C Product B2C Services
A Leader/ Excellent=6-7
Strong=5
Fair/Good=3-4
Very Weak/Weak=1-2

Marketers to expand social media spend by
90% in next 5 years
42
Figure 5.1. Social media spending as percent of marketing budgets
10.5%
12.9%
18.5%
0%
5%
10%
15%
20%
25%
Current Levels Over Next 12 Months In Next 5 Years
% of Marketing Budget

B2C Product leads social media spend; all
sectors to grow by ~20% in next year
43
Overall
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Current social media spending 10.5% 9.4% 10.7% 14.6% 7.9%
Social media spending in the
next 12 months
12.9% 11.4% 13.2% 17.1% 11.0%
Social media spending in the
next 5 years
18.6% 17.0% 17.9% 25.5% 16.3%
Table 5.1. Changes in social media spending across sectors

Social media spend fails to grow at prior
rate and fails to meet 5-year projections
44
Figure 5.2. Actual versus predicted social media spending as percent of marketing budget
*Predicted level is based on responses to 5-year predicted social media spend five years earlier (e.g., Aug-14 based on response from Aug-09).
13.7%
17.7% 17.7% 18.1%
17.5%
19.5%
3.5%
5.6% 5.9% 5.6%
7.1% 7.4% 7.6% 8.4%
6.6%
7.4%
9.4% 9.9%
10.6% 10.6%
11.7%
10.5%
0%
5%
10%
15%
20%
Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-2016 Feb-17
Predicted Level* Current Level

Integration of social media and marketing
strategy shows minimal progress
45
Figure 5.3. How effectively is social media linked to your firm’s marketing strategy?
(1=Not integrated, 7=Very integrated)
3.8 3.8 3.8 3.9 3.8 3.9 3.9
4.2 4.2
3.9
4.1
1
2
3
4
5
6
7
Mean Integration Level

Integration of customer information across
channels shows no improvement
46
Figure 5.4. How effectively does your company integrate customer information across purchasing,
communication, and social media channels? (1=Not at all effectively, 7=Very effectively)
3.8 3.8 3.8 3.8 3.9 3.8 3.9
3.7 3.6
3.4
3.2
3.4
1
2
3
4
5
6
7
Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17
Mean Integration Level

Use of outside social media agencies
experiences a significant drop
47
Figure 5.5. Percent of company’s social media activities performed by outside agencies
17.4%
18.9%
21.7%
20.0%
20.7%
16.6%
0%
5%
10%
15%
20%
25%
Feb-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17
Percentage Outside Agencies

The impact of social media remains
difficult to prove
48
Figure 5.6.. Which best describes how you show the impact of
social media on your business?
Haven’t
shown impact
Qualitative
sense
Proven
quantitatively
Overall 43.3% 38.2% 18.4%
B2B Product 47.3% 36.5% 16.2%
B2B Services 44.4% 43.2% 12.3%
B2C Product 39.4% 33.3% 27.3%
B2C Services 34.5% 34.5% 31.0%
45.0% 41.5% 41.5% 47.9% 44.1% 43.3%
40.4% 43.5% 43.5%
40.6%
35.7% 38.2%
14.6% 15.0% 15.0% 11.5%
20.3% 18.4%
0%
20%
40%
60%
80%
100%
Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17
Have proven the impact quantitatively
Have a good qualitative sense of the imact, but not a quantitative impact
Haven't been able to show the impact yet

Social media perceived to contribute little
to company performance
49
Figure 5.7. To what degree does the use of social media contribute to
your company's performance? (1=Not at all, 7=Very highly)
Overall 3.2 3.1 3.2
B2B Product 2.5 2.7 2.9
B2B Services 3.4 3.1 3.1
B2C Product 3.2 3.8 3.9
B2C Services 4.0 3.4 3.2
3.2 3.1 3.2
1
2
3
4
5
6
7
Contribution to company performance
* Question asked in Feb-16 for the first time.

Top reason firms use social media:
Brand building and brand awareness
50
% Using
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Brand awareness and brand building 46.1% 45.3% 48.9% 45.6% 43.9%
Acquiring new customers 31.4% 27.0% 30.4% 36.8% 40.4%
Introducing new products and services 28.9% 29.9% 27.4% 35.1% 24.6%
Retaining current customer 28.4% 26.3% 24.4% 33.3% 38.6%
Brand promotions (e.g., contests, coupons) 28.4% 27.7% 27.4% 38.6% 22.8%
Improving employee engagement 20.1% 17.5% 23.0% 15.8% 24.6%
Marketing research 14.7% 12.4% 14.8% 17.5% 17.5%
Identifying new customer groups you currently don't target 13.7% 14.6% 14.1% 15.8% 8.8%
Identifying new product and service opportunities 11.1% 8.8% 14.8% 7.0% 12.3%
Improving current products or services 7.2% 6.6% 8.9% 5.3% 7.0%
Table 5.2. How does your firm use social media? (Check all that apply)

Marketing spend on mobile expected to
increase 127% in three years
52
Figure 6.1. Percent of marketing budget spend on mobile Now 3 years
Overall 5.1% 11.6%
B2B Product 3.6% 9.1%
B2B Services 4.9% 10.1%
B2C Product 7.1% 17.2%
B2C Services 7.7% 15.6%
5.1%
11.6%
0%
5%
10%
15%
20%
Current Levels In Next 3 Years

Figure 6.2. Rate the performance of your company’s mobile marketing activities
(7-point scale where 1=Poor, 7=Excellent)
53
3.1
3.8
3.2
3.6
3.3
3.03.0
3.5
3.1
3.4
3.0
2.8
1
2
3
4
5
6
7
Customer
acquisition
Customer
engagement
Customer
retention
Delivering your
brand message
Sales Profits
Mobile marketing performance decreases
on key metrics

Mobile shows slight gain in contribution to
company performance; still too low
54
Figure 6.3. To what degree does the use of mobile marketing contribute
to your company's performance? (1=Not at all, 7=Very highly)
B2B Product 2.0 2.3 2.2
B2B Services 2.4 2.3 2.6
B2C Product 3.0 3.1 3.4
B2C Services 2.8 3.2 3.1
2.4 2.5
2.7
1
2
3
4
5
6
7
Overall Company Performance

Positive but declining forecast in marketing
hires planned in next year
56
Figure 7.1. Percentage change in marketing hires planned in next 12 months
Overall 3.7%
B2B Product 4.2%
B2B Services 4.3%
B2C Product 3.7%
B2C Services 0.8%
5.2%
6.5%
5.4% 5.5%
4.7%
3.8% 3.5%
6.6%
5.1% 5.4%
3.7%
0%
3%
6%
9%
12%
15%
Percentage Change in Marketing Hires in Next 12 Months

Marketing outsourcing expected to increase
4.1% in next year
60
Percentage change in outsourcing of marketing in next 12 months (Overall mean = 4.1%, SD = 11.5)
Sector Mean
Banking/Finance/Insurance 7.4%
Communications/Media 5.3%
Consumer Packaged Goods 0.5%
Consumer Services 4.0%
Education 10.0%
Healthcare 5.5%
Manufacturing 0.9%
Mining/Construction 12.5%
Retail/Wholesale 7.1%
Service/Consulting 0.1%
Tech Software Biotech 2.6%
Transportation 5.0%
Sector Mean
B2B Product 3.6%
B2B Services 6.0%
B2C Product 2.3%
B2C Services 2.6%
Firm sales Mean
0% of sales 3.4%
1-10% of sales 5.8%
>10% of sales 2.7%
Energy and Pharmaceuticals are not displayed due to too few respondents

Marketing outsourcing expected to
increase 4.1% in next year
Percentage change in outsourcing of marketing in next 12 months (Overall mean = 4.1%, SD = 11.5)
Sector Mean
Banking/Finance/Insurance 7.4%
Communications/Media 5.3%
Consumer Packaged Goods 0.5%
Consumer Services 4.0%
Education 10.0%
Healthcare 5.5%
Manufacturing 0.9%
Mining/Construction 12.5%
Retail/Wholesale 7.1%
Service/Consulting 0.1%
Tech Software Biotech 2.6%
Transportation 5.0%
Sector Mean
B2B Product 3.6%
B2B Services 6.0%
B2C Product 2.3%
B2C Services 2.6%
Firm sales Mean
0% of sales 3.4%
1-10% of sales 5.8%
>10% of sales 2.7%
60
Energy and Pharmaceuticals are not displayed due to too few respondents

Marketing and sales are equal partners in
most companies
59
Figure 8.1. The marketing-sales relationship (% of respondents)
72.2%
10.2%
7.8% 8.3%
1.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Sales and marketing work
together on an equal level
We don't have a sales
function
Sales is in charge of
marketing
Sales is within the marketing
function
We have a sales function,
but not a marketing function

Product / service structure remains
dominant
60
Figure 8.2. Organizational structure in companies
% customer
groups
Overall 29.9%
B2B Product 25.4%
B2B Services 34.2%
B2C Product 26.5%
B2C Services 34.6%
*Question not asked in Aug-14.
26.5% 28.6% 26.7%
30.2% 29.4% 31.9% 30.7% 29.9%
73.5% 71.4% 73.3%
69.8% 70.6% 68.1% 69.3% 70.1%
0%
20%
40%
60%
80%
100%
Feb-13 Aug-13 Feb-14* Feb-15 Aug-15 Feb-16 Aug-16 Feb-17
Customer Groups Product/Service Groups

External information sharing increases
in companies
61
Figure 8.3. Company market focus approach to strategy (1 = “Not at all” and 7 = “All the time”)
Information about customers and competitors is …
4.9
4.3 4.4 4.6 4.7 4.7
5.1
4.7 4.6 4.6 4.7 4.7
1
2
3
4
5
6
7
Collected on
a regular basis
Shared vertically across
different levels of the
firm and
business units
Shared horizontally
across different
functions and
business units
Shapes the design
of firm strategies
Influences the
implementation of
firm strategies
Impacts the
evaluation of
firm strategies
* Question asked irregularly. Showing most recent data.

Marketing leadership losses outweigh gains
63
Table 9.1. Percentage of
companies in
which marketing
leads activity
Activity Aug-15 Feb-16 Aug-16 Feb-17**
Brand 82.1% 87.5% 89.4% 86.5%
Social media 79.5% 83.9% 75.7% 76.8%
Advertising 82.7% 82.1% 79.2% 76.3%
Public relations 64.1% 64.9% 65.5% 70.0%
Promotion 76.3% 76.2% 73.3% 69.1%
Positioning 80.1% 75.6% 67.8% 67.6%
Marketing research 70.5% 70.2% 67.1% 59.9%
Lead generation 55.8% 62.5% 60.8% 58.5%
Marketing analytics 75.0% 79.2% 69.0% 57.5%
Competitive intelligence 55.1% 56.5% 54.5% 42.0%
CRM 39.1% 37.5% 42.0% 41.1%
Market entry strategies 55.8% 46.4% 43.5% 35.3%
Revenue growth* - - 38.4% 34.3%
New products 37.8% 36.3% 40.0% 32.4%
Pricing 30.8% 32.1% 33.7% 26.6%
Innovation 23.1% 28.6% 29.8% 26.6%
e-commerce* - - 35.7% 23.7%
Market selection 30.1% 29.8% 32.9% 23.7%
Sales 32.1% 25.0% 24.7% 21.3%
Customer service 19.9% 17.3% 18.0% 12.6%
Distribution 12.2% 9.5% 10.2% 5.8%
Stock market performance 3.8% 1.8% 2.7% 0.5%
*Revenue growth and e-commerce were added in Aug-16.
**Red reflects a decrease and Green reflects an increase
of more than 2 percent between Aug-16 and Feb 17.

Marketing leader retention (6.0 years) while
total tenure at all-time high (11.4 years)
64
Figure 9.1. Marketing leader retention
8.0
9.0 8.8 9.2
10.0 10.0
8.0
9.8
11.4
4.3 4.6 4.3 4.1
5.1 5.3
4.5
6.6
6.0
0
3
6
9
12
15
Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Feb-17
Years top marketer in any role in the firm Years top marketer in current role in the firm

Direct reports decreases while indirect
reports show significant growth
65
Figure 9.2. Number of people reporting to top marketers*
*Aug-15 are revised from Highlights and Insights Feb-16 where the median levels were reported instead of mean levels.
8.6
6.9
5.5
6.8 6.5
5.0
24.6
16.1 16.2
18.6
15.7
24.6
0
5
10
15
20
25
30
Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Feb-17
Number of direct reports Number of indirect reports

Marketers experience less pressure to
prove the value of marketing over time
66
*Question asked irregularly. A complete time series of available data is shown.
Figure 9.3. Percent of CMOs reporting pressure from CEO or Board to prove the value of marketing*
66.4%
62.0% 61.0%
56.9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Aug-13 Aug-14 Feb-15 Feb-17

Leading practices from marketing leaders
See full interviews at https://cmosurvey.org/cmo-insights/
67
Senior Vice President and Chief Marketing Officer Beth Comstock discusses how GE approaches
marketing: “You have to create a platform that invites innovative ideas.” This platform involves four
capabilities that have produced an array of new products, services, customers, and business models.
Chief Marketing Officer Kim Feil discusses how she built a marketing function. From insights to
accountability, she describes the organization, processes, metrics, and talent management strategies
important to this effort.
Executive Vice President and Chief Marketing Officer Geert van Kuyck shares ideas on building an
essential skill set for CMOs and the importance of defining the CMO’s mission. He discusses the use
of the Net Promoter Score and other metrics to evaluate business results at Philips, touching on
Philips’ engagement with LinkedIn and social media metrics.
Executive Vice President and Chief Marketing Officer Stephen Quinn describes how Walmart rebuilt
its customer focus. Key steps involved harnessing internal support, generating market insight, using
customer-focused metrics, living the brand internally, and building marketing talent.
Global Marketing Officer Marc Pritchard shares views on how marketing contributes to P&G’s
performance. He talks about how P&G learns about customers and how it is relentless in its attention
to building loyal customers and strong brands in the store, on the web, and around the world.

Spending on marketing analytics forecasted
to increase 376% in three years
69
Figure 10.1. Percent of marketing budget spent on marketing analytics
4.6%
21.9%
0%
5%
10%
15%
20%
25%
Current Levels In Next 3 Years
+376% Growth

Spending on marketing analytics by firm
and industry characteristics
70
Current
In Next
3 years
<$25M 4.7 17.8
$26-99M 4.1 15.0
$100-499M 4.8 23.3
$500-999M 3.6 18.1
$1-9.9B 5.2 32.4
$10+B 4.1 29.4
Table 10.1c. Firm size differences
Table 10.1b. Firm Internet sales differences
Current
In Next
3 years
0% 4.3 25.7
1-10% 3.9 20.9
>10% 5.9 15.9
Table 10.1a. Firm sector differences
Current
In Next
3 years
B2B Product 4.7 20.9
B2B Services 4.9 21.2
B2C Product 3.5 26.9
B2C Services 4.3 20.6

No improvement in use of marketing
analytics: B2C companies biggest users
71
Figure 10.2. Use of marketing analytics in decision making*
*This question was asked in Feb-12 for the first time.
Overall 31.6%
B2B Product 31.0%
B2B Services 29.0%
B2C Product 33.2%
B2C Services 38.5%
37.0% 35.0%
30.4% 29.0%
32.5% 32.3%
29.0% 31.0%
35.3% 34.7%
31.6%
0%
20%
40%
60%
80%
100%
Percent of projects using marketing analytics before a decision is made

Contribution of marketing analytics
remains low
72
Figure 10.3. To what degree does the use of marketing analytics contribute to
your company's performance? (1 = Not at all, 7 = Very highly)
*This question was asked in Aug-12 for the first time.
Overall 3.8 (SD=1.8)
B2B Product 3.8 (SD=1.8)
B2B Services 3.4 (SD=1.8)
B2C Product 4.6 (SD=1.6)
B2C Services 4.3 (SD=1.9)
3.9
3.7
3.5
3.7 3.7
3.2
3.7 3.8 3.8 3.7
1
2
3
4
5
6
7
Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17
Mean Contribution Level

Process and people failures largest
disruptors of marketing analytics use
73
32.2%
28.6%
16.5%
14.9%
9.5%
7.5%
0% 10% 20% 30% 40% 50%
Lack of process/tools to measure success through analytics
Lack of people who can link to marketing practice
Not highly relevant to our decisions
Does not offer sufficient insight
Overly complex
Does not arrive when needed
Figure 10.4. What factors prevent your company from using more marketing analytics?

Most firms do not evaluate quality of
marketing analytics
74
30.4%
69.6%
34.9%
65.1%
0%
20%
40%
60%
80%
100%
Evaluate Do not evaluate
Figure 10.5. Does your company formally evaluate the quality of marketing analytics?

Marketing analytics contributions by sector
and firm differences
75
Table 10.2. To what degree does the use of marketing analytics contribute to your company's
performance? (1=Not at all, 7=Very highly)
Sector* Mean
Banking/Finance/Insurance 3.1
Communications/Media 4.2
Consumer Packaged Goods 4.4
Consumer Services 5.9
Education 5.4
Healthcare 3.9
Manufacturing 3.6
Mining/Construction 2.3
Retail/Wholesale 3.3
Service/Consulting 3.1
Tech Software Biotech 3.9
Transportation 3.5
Sector Mean
B2B Product 3.7
B2B Services 3.6
B2C Product 4.0
B2C Services 4.1
Firm sales Mean
0% of sales 3.3
1-10% of sales 3.8
>10% of sales 4.2
*Energy and Pharmaceuticals are not displayed due to too few respondents.

Most firms lack quantitative metrics to
demonstrate marketing spending impact
76
Figure 10.6. How companies demonstrate the impact of marketing spending
37.1%
42.4%
20.5%
34.5%
47.2%
18.3%
0%
10%
20%
30%
40%
50%
60%
Proved the impact quantitatively Good qualitative sense of the impact,
not quantitative
Haven't been able to show
the impact yet
Short-Term Impact Long-Term Impact

The 2017 CMO Survey Award for
Marketing Excellence – Overall Winner
78
Participants were asked to nominate a company in response to the question:
Which company across all industries sets the standard for excellence in marketing?
Apple Inc. Apple has won this award for ten
consecutive years. Christine Moorman’s
review of this accomplishment in 2012
still largely holds:
http://www.forbes.com/sites/christinemo
orman/2012/07/10/why-apple-is-a-great-
marketer/#7897d34b6cb0

Participants were asked to nominate a company in response to the question:
Which company in your industry sets the standard for excellence in marketing?
The 2017 CMO Survey Award for Marketing
Excellence – Industry Winners
79
(Retail) (Transportation) (Consumer Packaged Goods) (Consumer Services)
(Consumer Goods)(Consulting/Services)(Communications/Media)(Manufacturing)

Preview
80
Next survey: July 2017
Participate: Sign up here
Media: Press release and coverage
Feedback: Send comments to moorman@duke.edu

The CMO Survey Highlights and Insights February 2017

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The CMO Survey Highlights and Insights February 2017