CMOs Will Spend More on IT Than CIOs

Andre Yee, Senior Vice President, Eloqua | 12/7/2012 | 12 comments

Andre Yee
According to Gartner, by 2017, CMOs will spend more on IT than CIOs. Surprised? You shouldn’t be.

In fact, you should count on the influence of the marketing department to further increase as the social web drives more buying decisions. Leading CMOs, who understand how to leverage modern marketing technologies (marketing automation, social sentiment monitoring, etc.), are at the forefront of this shifting landscape.

In view of this Gartner report, how should CIOs respond? Rather than viewing this as a threat to their relevance, smart CIOs should respond positively, and see this as another way to drive value for their companies. Here are four suggestions on how to do so:

1. Get Into the CMO’s World: Most CIOs are playing catch up, here. They simply don’t understand the world the CMO lives in. They have no sense of what’s important to the CMO, nor the business pressures that CMOs live under. CIOs need to intentionally and strategically partner with CMOs.

2. Drive Value Through Your Technology Expertise: Most CMOs aren’t steeped in technology -– at least not the way CIOs are. That’s an opportunity for the CIO to be of significant value to the CMO in numerous ways, but in particular, in the selection of technology solutions.

From my experience, I’ve found that most marketing organizations aren’t particularly experienced in purchasing software -– in defining requirements and managing a formal evaluation process. This is where CIOs can add value. IT organizations are used to purchasing software and tools. They are accustomed to addressing issues like security, vendor lock-in, and scale.

3. Move Fast: You want to know why many marketing departments don’t like involving IT? Speed -- or rather the lack of it. Marketers fear that involving IT will slow things down and put their initiatives at risk. Bear in mind that the average tenure of the CMO is 22 months. If you’re not sure if you’ll be around after two years, showing results and doing it fast is high on your priority list. CIOs who partner well with CMOs learn to move fast. They add even more value by teaching marketing organizations Agile techniques that have been proven successful in the IT world.

4. Keep One Step Ahead: Again, most CMOs aren’t as familiar with technology CIOs. They often see technology as a means to an end and may lack the natural interest in new, emerging technologies -- the kind that can disrupt a competitive landscape.

CIOs can drive value and lead the way by introducing new technologies to the CMO in consumable, relevant chunks. For instance, if anyone is drowning in data, it’s the marketing department. There are metrics generated by online campaigns, contact information collected through various channels, and reams of unstructured social interactions to analyze. This screams big-data, but most CMOs don’t know where to start.

CIOs who understand how to explain big-data technologies and apply them appropriately to the kinds of problems marketers are trying to solve will make themselves invaluable to the CMO. More importantly, they will make a difference in driving revenue for their companies.

Will CMOs actually spend more on IT than CIOs? Maybe, but don’t fight it. Even if CMOs get bigger budgets for IT, and drive more purchasing, it doesn’t necessarily equate to a lesser role for the CIO. In fact, for smart CIOs, partnering with the CMO to help drive the revenue engine means the future is brighter than ever.

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singlemud   CMOs Will Spend More on IT Than CIOs   12/28/2012 7:27:30 PM
CMO is more aggressive
CMO is more aggressive than CIO. They also lead a bigger department than CIOs. CIO is just a support role for CMOs
Zaius   CMOs Will Spend More on IT Than CIOs   12/24/2012 1:29:29 AM
Knowing more about your company always helps
Everyone is assigned a specific task inside the company, but it does not hurt to have healthy curiosity. Knowledge about another group inside the company will help find efficient ways. Even, it can open up new opportunities, service ideas and collaborations. 
Andre Yee   CMOs Will Spend More on IT Than CIOs   12/10/2012 2:02:08 PM
Re: Teaming up with Marketing
@Umair - great insights from your comment and I share that view as well.   There are problems and opportunities that CMOs will be wrestling with - leveraging big data being one - CIOs can offer much to help guide the CMO toward the right solution
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Andre Yee   CMOs Will Spend More on IT Than CIOs   12/10/2012 1:59:45 PM
Re: Teaming up with Marketing
I think the upside for CIOs is that collaboration with CMOs will bring them closer to the "revenue engine" of the company and help promote the role of CIO as a strategic driver for the company
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SaneIT   CMOs Will Spend More on IT Than CIOs   12/10/2012 8:01:13 AM
Re: Teaming up with Marketing
That doesn't really surprise me, I'm seeing more and more often that departments want to "own" the systems that they use.  In short they don't want anyone else to be able to use space on systems that they depend on, it's kind of tough to juggle since the IT industry is moving toward consolidation and I'm seeing so many departments wanting to become silos of technology.
angelfuego   CMOs Will Spend More on IT Than CIOs   12/8/2012 11:56:37 PM
Re: Teaming up with Marketing
Great article, Andre. I am not surprised that more money will be sent on IT than CIOs. Could you imagine a corporation without IT? Computers and information management are the central core of any corporation.
Broadway   CMOs Will Spend More on IT Than CIOs   12/8/2012 11:20:22 AM
Re: Teaming up with Marketing
The key, for sure, is that helping the CMO is one sure-fire way that the CIO can show ROI on his or her work. With big data and analytics, the CMO can drill down and target niche customer bases, and show the results with increased sales and such. 
Umair Ahmed   CMOs Will Spend More on IT Than CIOs   12/8/2012 7:48:29 AM
Re: Teaming up with Marketing
Excellent post, Andre. The extent at which we have seen the growth and success in digital marketing, the prediction seems very much realistic. Helping the CMO in digital marketing and big data analysis, is a wonderful opportunity for a CIO to re-characterize the image of its department as a profit center. Or else IT will remain be the cost center / support department in the eyes of the rest of the C-Suite.
Technocrat   CMOs Will Spend More on IT Than CIOs   12/7/2012 11:38:41 PM
Re: Teaming up with Marketing
I really like your insight Andre, and I agree CMO's will be driving much of large enterprise IT spending in the coming years,  businesses must mine new customers and keep the ones they have . 

This is the domain of marketing - and CIO's would be shortsighted not to realize and work with CMO to provide another aspect of revenue generation to their traditional mix.
Andre Yee   CMOs Will Spend More on IT Than CIOs   12/7/2012 1:36:57 PM
Re: Teaming up with Marketing
@SaneIT - absolutely correct.   I think you've touched on just a few areas where IT can significantly help the marketing organization.  Security and orivacy audits are other areas.
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