CMOs See Fading Brand Support, Rising ROI Scrutiny

Chief Marketing Officers (CMOs) are navigating an increasingly challenging landscape where executive support for long-term brand building is diminishing, while the demand for immediate return on investment (ROI) intensifies. New research from NielsenIQ (NIQ) reveals that marketing leaders are facing a "reputation and results reckoning" as they prepare for 2026, grappling with macroeconomic pressures and a shifting C-suite mindset.

C-Suite Support for Brand Building Fades

According to NIQ's "CMO Outlook: Guide to 2026" report, only 69% of surveyed marketing leaders believe their CEOs and CFOs support long-term brand investment, an 11 percentage-point drop from the previous year. This decline signals a significant shift, with 84% of CMOs now prioritizing ROI as their primary metric for budget allocation, driven by pressure to deliver short-term results. Marta Cyhan-Bowles, NIQ's Chief Communications Officer and Head of Global Marketing COE, emphasized this scrutiny, stating,

"Every marketing dollar is now under the microscope. With organizations prioritizing cost reductions, CMOs are being challenged not just to spend wisely, but to prove how marketing directly drives awareness, growth, and loyalty. It’s no longer just about efficiency; it’s about proving impact — all with largely flat budgets."

Brand Purpose and Budget Allocation Under Pressure

Compounding these challenges, confidence in brand purpose — the values a brand stands for beyond commercial goals — has also seen a sharp decline, falling from 83% to 71%. This erosion of belief comes amidst a divisive political climate where companies championing social justice, equality, and sustainability have increasingly faced public backlash. Despite these headwinds, a notable 83% of CMOs remain confident in their brand equity, even as fewer (55%) are allocating 60% or more of their budgets to long-term brand building, a four percentage-point decrease from 2024.

Navigating Data Fragmentation and Tech Hurdles

The pursuit of measurable ROI is further complicated by significant data and technology hurdles. A striking 54% of CMOs report struggling to integrate data from disparate sources, a substantial increase from 31% last year. This fragmentation makes it difficult to uncover actionable insights, with one-third of marketers requiring between five and 15 different tools just to measure ROI. Only 37% claim to have a single, centralized data source accessible to all stakeholders within their organization.

The Evolving Role of AI and Retail Media

Generative AI is emerging as a critical tool to alleviate marketing workloads and enhance efficiency, though it remains a work in progress. Nearly 70% of CMOs are currently using AI for content generation, 64% for personalization, and 55% for media planning and campaign optimization. As AI matures beyond its experimental phase, CMOs will be expected to quantify its impact and articulate its value at the executive level. Upskilling marketing teams to effectively deploy and understand AI solutions is seen as crucial for future brand growth.

On the channel front, retail media continues to gain traction, with 69% of CMOs deeming it critical and 67% planning to increase investments in 2026. While retail media networks offer the advantage of placing ads closer to the point of sale, thereby bolstering marketing ROI, their rapid proliferation has exacerbated marketplace fragmentation. NIQ highlights the urgent need for better integration of cross-channel data and the unification of off-site and on-platform retail media ads to create truly full-funnel campaigns in the coming year.

Cyhan-Bowles concludes,

"Data, AI, and retail media networks are reshaping the marketing playbook, and the most successful CMOs will be those who connect these forces to demonstrate measurable value for the organization."