As a marketing executive, how do you get your CEO to ask you to spend more? The answer is clear: talk CEO talk and build a marketing plan that aligns with financials and business outcomes.

1. THE FUNDAMENTALS TO GET YOUR CEO
ASKING YOU HOW TO SPEND MORE
THE CMO AND MARKETING EXECUTIVE’S
GUIDE TO GREATER POWER AND INFLUENCE

2. AGENDA
▸ Introductions and Background
▸ The Increasing Importance of CEO, CMO and CFO Alignment
▸ The Rapidly Evolving Marketing Landscape
▸ What Does Your CEO Really Want From the CMO?
▸ CEO’s Language and Key Questions for the CMO
▸ The Fear of Tribal Language Holding Back Unlimited CMO Power
▸ The Importance of Fundamental Metrics Focus
▸ 4 Ways A CMO Bullet Proofs Herself and Her CEO
▸ Business and Marketing Metrics To Drive Shareholder Value
▸ 3 Year Marketing Plan That Creates Shareholder Value
▸ Why This? Why Now? - Closing

3. INTRODUCTION
WHO ARE WE?
Mark Harnett
mharnett@gmail.com
▸ Principal at Drak Marketing
▸ 20 years growing businesses
at both large companies and
startups.
Sodan Selvaretnam
sodan@chiaventures.com
▸ CEO at Chia Ventures, Inc.
▸ 20 years of growing businesses with
roles as CEO, CFO/COO and General
Partner at venture capital, private
equity and public funded companies.

4. ALIGNMENT
WHY IT IS IMPORTANT FOR CLOSE ALIGNMENT BETWEEN THE CEO AND CMO?
▸ A Rapidly Evolving Business Landscape: 68 years in mid 20th century to 17 years in 2011
with 75% Churn over the next 10 years on S&P 500
▸ Market Pressure For Quicker Wins: Pressure for faster returns by shareholders leads to
increase pressure to CEOs which falls to marketers.
“It might just be a vicious cycle. In the 1980s, the average relationship between agency &
client was 7 years. A CMO’s average tenure was 4 years. Today, those relationships are 2.7
years and most CMOs get only 18 months.” -Alex Cheeseman, Head of Int’ Strategy, NewsCred
▸ The Marketing and Ad Tech Clutter: 2,100 marketing tech companies in Luma Landscape.
▸ Significant Funding To Disrupt Marketing: We’ve tracked nearly $3B in fundings,
acquisitions, and IPOs for marketing tech in Q1 of 2015. - Venture Beat, 2015

5. CHANNELS LOSE EFFECTIVENESS QUICKLY

6. CEO FOCUS
WHAT DOES YOUR CEO REALLY WANT FROM THE CMO?
▸ CEO is focused on:
▸ Growing the company with a view to profitability
▸ Increasing shareholder value and delivering results to Investors quarterly
▸ Capital allocation that will optimize for growth and ROI
▸ An expectation for repeatable success and leap frogging competition
▸ Punished by market and investors for “wasted” monies: “half of my advertising
dollars are wasted, I don’t know which half”

7. LANGUAGE FOR THE MEETING OF MINDS
THE LANGUAGE OF FINANCE USED BY YOUR CEO
‣ Shareholder Value and Growth: Strategy, Product, Business Operations, Capital
Allocation
‣ Risk vs. Return: Time Value of Money, Return measurements used by CFO
‣ Financial Statements: Balance Sheet, Income Statement, Cash Flow
THE KEY QUESTIONS FOR CMO TO EMPOWER CEO
‣ How are we performing in conversions and revenue year over year?
‣ What is our market share and share of voice?
‣ How are we performing compared to the competition?
‣ What channels are driving our paying customers?
‣ What is our current and projected ROI?

8. FINANCIAL LANGUAGE
THE FEAR OF TRIBAL LANGUAGE TO CREATES BARRIERS AND FEAR
‣ Balance Sheet - A statement of assets, liabilities and equity of a business or other
organization at a particular point in time
‣ Assets - Things you own - OWN
‣ Liabilities - Things you owe - OWE
‣ Equity - What you are worth - NET WORTH

9. FINANCIAL LANGUAGE
…BUT IT DOESN’T NEED TO BE THAT WAY.
‣ Income Statement - A financial statement that measures a company’s
financial performance over a specific accounting period.
‣ Revenues - Money you earns through its goods and services - EARN
‣ Expenses - Costs that are associated with the revenues - SPEND
‣ Net Income - PROFITS

10. MARKETING METRICS
THE IMPORTANCE OF FUNDAMENTAL METRIC FOCUS
Vanity Metrics
★ CPM: Cost per Thousand impressions
★ CPC: Cost per click
★ Likes, Followers, Interactions
Fundamental Metrics
★ CPL, CPA, CAC: Cost per Lead, Cost per Acquisition, Cost to Acquire a Customer
★ ROAS: Return on Ad Spend
★ LTV: Lifetime value

11. MARKETING METRICS
HOW DO BUSINESS AND MARKETING METRICS COME TOGETHER
Tying Fundamental Metrics Back To Business Outcomes/
Financials
★ CPA: Marketing Expense
★ ROAS: Revenue/Marketing Spend
★ LTV: Profits/Retained Earnings

12. MARKETING METRICS
CASE: 3 YEAR MARKETING PLAN CREATES SHAREHOLDER VALUE
‣ CEOs are looking for predictable long term plan for
Marketing contribution
‣ 80/20 Rule: Use 80% of budget on proven channels, 20%
for experimentation.
‣ Tie all targets back to the fundamental metrics
‣ Build marketing plan with metrics and tie back to
financials/business outcomes

13. MARKETING METRICS
THE EFFECT OF ATTRIBUTION ON MARKETING BUDGET ALLOCATION
W Shaped Attribution Model
‣ HoneyBook Facebook Ads
‣ Currently using Last Touch
Attribution
‣ Fails to capture FB Mobile Ad
contribution
‣ W Shaped Attribution Funnel
gives varying amounts of
credit for different stages of
the funnel.

14. MARKETING METRICS
HOW DOES THIS INCREASE YOUR STAYING AND SPENDING
POWER
Understanding the language, priorities and metrics that matter the most to
your CEO AND CMO (and Board) can help you:
‣ Communicate more effectively with your leaders to gain influence
‣ Keep your company moving forward and build success.
‣ Monitor your own progress to become more effective and gain more
spends to win
‣ BECOME THE SUSTAINABLE CMO AND MARKETING EXECUTIVE.

15. CONTACT
THANK YOU.
Mark Harnett
mharnett@gmail.com
Sodan Selvaretnam
sodan@chiaventures.com