Marketers Get More Responsibility, Clout And AI

Forbes

30-04-2025

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Marketers are getting both more responsibility and more clout , according to the most recent edition of the CMO Survey, conducted under the direction of Christine Moorman, a senior professor of business administration at Duke University's Fuqua School of Business. On a 14-point scale, with 0 representing no change, 7 representing significant expansion and -7 representing significant weakening, the marketers who responded to the survey ranked the expansion of their role at 3.2, and their increased influence at 2.9.
With more power and influence comes more scrutiny. Marketing leaders said that demonstrating impact on financial outcomes is their primary challenge. And in the last two years, marketers have seen at least a 10% increase on the pressure coming from CEOs (61% opposed to 51% in 2023) and CFOs (63% opposed to 52% in 2023). The study reveals that marketing leaders find their traditional emphasis on defending market position and investing in talent and capabilities is at odds with traditional C-suite objectives of innovation, growth and profitability.
But CMOs are getting more done through the use of AI, which the survey found powers 17.2% of all marketing efforts—a 100% increase from 2022. Such integration is expected to increase to 44.2% within three years. Generative AI for all uses has also surged 116% in the last year, and the technology is now used in over 15.1% of all marketing activities. Survey respondents say AI has led to an 8.6% improvement in sales productivity, 8.5% increase in customer satisfaction and a 10.8% reduction in costs.
The AI boom—which is coming somewhat late to the marketing world—is well-timed, as 43.5% of leaders reported that overall marketing spending is down, and nearly half said they are less optimistic about the U.S. economy than they were last quarter. The study showed that overall marketing budgets are still slowly increasing, but rates are lower—3.3% higher over the last 12 months. As tariffs, inflation and an overall economic slowdown roil consumer spending and marketing spend grows at a snail's pace, AI could prove a good assistant to ensure that brands and messages are still able to stay top of mind for consumers.
Tuesday was President Donald Trump's 100th day of his second term, and the branding that his administration has put on the United States has negatively impacted tourism. Through insults to foreign countries and leaders, a global trade war, and prolonged detentions of both foreign tourists and legal U.S. residents with foreign citizenship—often for minor reasons—the U.S. is quickly shedding its once-welcoming image. And in the months leading up to the summer travel season, the negative branding is beginning to show. A survey of Canadians done by travel market research firm Longwoods International shows that 6 in 10 Canadians are unlikely to travel to the U.S. in the next year because of the Trump Administration's policies and political statements, Forbes' Suzanne Rowan Kelleher writes. More than a third of the people surveyed actually intended to travel to the U.S., but have now changed those plans. Only 42% believed the U.S. welcomes visitors from Canada, and just 38% said they think the U.S. 'values international visitors.'
This change in perception is likely already impacting the economy, and it could be felt more acutely in the coming months. Canadians were the top international visitors to the U.S. last year, with 20.4 million people spending $20.5 billion here. But it isn't just Canadians who are now staying away. The number of international visitors in March was down 14% year-over-year, Kelleher writes. There were 17% fewer visitors from Western Europe—after the U.K. and Germany put out travel warnings about potential border detentions for tourists. Every region of the world saw fewer people visiting the U.S. last month, except for the Middle East, which increased by more than a fifth, and Eastern Europe, which posted a slight increase.
While fewer international visitors are coming to the U.S., domestic travelers are also planning to stay home. Fears of a recession are causing many people to cut back on their travel plans. With fewer summertime flights being booked, Southwest Airlines CEO Bob Jordan has said that the airline sector is already in a recession, writes Forbes senior contributor Alex Ledsom. Other major airlines have pulled their guidance for the year in the wake of softening demand—and the possibility of deeper and more prolonged economic pain. Last week, American Airlines was the latest to withdraw its guidance for the year, Kelleher wrote. 'We're taking a very cautious, even a negative, approach to growth as we take a look out to the rest of the year,' CEO Robert Isom said on the earnings call.
Last week, Meta's oversight board urged the company to bring greater transparency, consistency and fairness to content moderation on its platforms. At the beginning of this year, the social media giant changed its policies on content moderation, abandoning third-party fact checking and softening its hateful conduct policies. The company said the changes, which were announced January 7, would improve free speech and reduce censorship.
The board issued decisions for 11 different cases that deal with gender identity, apartheid, anti-immigrant speech, riots, and speech against people with disabilities. They wrote that Meta needs to live up to its public commitment to uphold the UN Guiding Principles on Business and Human Rights, and assess how its policies are impacting LGBTQ individuals, as well as minors, racial minorities and immigrants.
Meta's policy change was controversial from the start, explicitly saying that 'allegations of mental illness or abnormality when based on gender or sexual orientation, given political and religious discourse about transgenderism and homosexuality' would be allowed. The policy mirrors the community-based 'fact checking' on Elon Musk's X—which has seen its user engagement numbers drop and political polarization skyrocket after the centibillionaire bought the platform in 2022. Analysts said Meta CEO Mark Zuckerberg made the change to appease then-incoming President Trump, who has railed against moderation of hateful, inciting and false speech on social media platforms. Meta told Forbes it will respond to the recommendations within 60 days.
Photo Illustration by Algi Febri Sugita/SOPA Images/LightRocket via Getty Images
Meta, which also has an AI division, launched a standalone app this week featuring an AI chatbot and a 'discover' feed that allows users to see how others are using it. The app gives users access to many AI functions, including image generation, editing and a voice mode that allows it to be interacted with while using other apps. It also interacts with Meta's Ray-Ban glasses. While most competitors in the AI chatbot space released their own apps long ago, Meta isn't exactly late in development. Its AI assistant has lived in its social networking apps for about a year, and the standalone app can draw from users' Facebook and Instagram accounts for more personalized interactions.
A new way to bring an artist's vibe to AI music creation—without treading on their copyright—is also getting attention this week. Jen, which is headed by music tech veteran Shara Senderoff and advised by Grammy winner Imogen Heap, launched StyleFilters to allow users to bring a particular artist's style to their AI-created music, writes Forbes senior contributor David Bloom. StyleFilters lets Jen users choose artists' songs and the level of influence they want it to have in their creation. The artists who license their songs receive 70% of the resulting revenues.
Illustration by Cecilia Runxi Zhang for Forbes; Photos by Getty Images: LAW Ho Ming; Michael A. McCoy/Stringer
In the last three months, one of the personal brands that has fallen the farthest is that of Elon Musk. Public perception of the world's richest man was already drifting into the fringe at the beginning of last year as he launched the ostentatious—and largely unsuccessful—Tesla Cybertruck, waged a highly public battle for a massive $50 billion pay package that was invalidated by a Delaware judge, and turned the social media platform formerly known as Twitter into a den of inflammatory conservative speech. But then came his mega-support for Trump's candidacy and his high-profile role as head of the so-called Department of Government Efficiency—which led to his highly unpopular chainsawing of the federal government workforce.
All of this came to roost in Tesla's most recent earnings report last week. Income plummeted 71%, buffeted by a 20% drop in automotive revenues and 9% decline in sales. Musk told investors that he'd soon be stepping back from the federal government to return to Tesla, but that's unlikely to solve the EV maker's problems, writes Forbes' Alan Ohnsman. Musk's personal brand has been partially responsible for Tesla's downfall. A Washington Post-ABC News poll last week found that 57% of people disapprove of Musk's job in the Trump Administration, and a March YouGov/Yahoo News survey found that two-thirds of Americans would not consider buying or leasing a Tesla, with most citing Musk as the reason.
Sue Benson, CEO and founder of U.K.-based marketing firm The Behaviours Agency, told Ohnsman that Tesla is now at the same type of inflection point as Volkswagen amid the 2015 emissions scandal, which led to a major loss of confidence in its brand. 'Except this time, it's not about the product. It's about the person,' Benson said. 'It's too late to separate man and brand. And in the meantime, it's lost its EV advantage.'
Other car makers have picked up the EV baton first run by Tesla. In the last few years, several electric models have become available in the U.S. from General Motors, Hyundai, Kia, Honda and Rivian, as well as BYD in China. Tesla currently sells 43% of all EVs, down from 75% three years ago.
How can Tesla get its sales and market share back? It's highly tricky from a product standpoint, writes Ohnsman. On the earnings call, Tesla said it's working on refreshed and less-expensive versions of its Y and 3 models—not exactly a winning long-term strategy, analysts say. Tesla's new initiatives aren't in the consumer EV realm, with the company focusing energy on autonomous Cybercabs and humanoid robots—two areas that aren't likely to become profit centers in the near future. Meanwhile, Trump's tariffs will negatively impact Tesla's batteries, which rely on cells made in China, making it even harder for the company to post a profit.
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Video-sharing behemoth YouTube celebrated its 20th anniversary last week. As of then, how many videos had been uploaded to the site?
A. About 15 billion
B. About 20 billion
C. About 50 billion
D. About 100 billion
See if you got the answer right here.