Budget season is upon us!
With media inflation projected at 4.3% for 2025 (WARC), businesses will need a 4% budget increase just to hold steady. Now more than ever, marketers must align their strategies with financial realities. So how do you get your CFO on board?
Speak Their Language: Marketing as an Investment, Not a Cost
The key to winning over your CFO is simple—talk finance. Marketers often struggle to justify their budgets because they frame marketing as a cost center rather than a growth driver. If you position marketing spend as "intangible capex"—building brand assets that drive future growth—you're speaking the CFO’s language.
CFOs are used to evaluating investments using discounted cash flow (DCF) models, which focus on long-term value rather than short-term returns. Marketing’s impact on future sales and brand equity far outweighs the immediate spend, making it a long-term growth strategy, not just an expense.
At the recent IPA Effectiveness Conference, Dr. Grace Kite and her team at Magic Numbers emphasized the importance of this approach, launching a new tool to help marketers frame their proposals like financial investments. The message was clear: if marketing is to maintain relevance in budget conversations, it needs to be seen as a strategic investment in the company's future, not just another cost to trim.
Three CFO-Approved Tips for Smarter Marketing Investments
The Big Picture: Protecting Budgets in 2025
To survive media inflation and ensure sustainable growth in 2025, marketers need to think more like CFOs. This means embracing long-term financial modeling and focusing on brand-building efforts that yield returns over time. Marketing, when done right, isn’t just another line item—it’s a fundamental pillar of long-term business success.
But you’ll need more than just numbers to win this argument. Build a relationship with your CFO now, and lead with creativity to demonstrate the value of every dollar spent.
Focus on What Matters
Too many marketers get lost chasing the latest trends or diving into attribution debates. Focus on what really drives results:
One of the simplest, yet most effective, KPIs we recommend is Share of Search. It's a powerful indicator that consistently correlates with market performance and can be applied across products and regions.
Start speaking your CFO’s language, focus on long-term value, and you’ll find your marketing budgets not only protected but championed. Let’s transform marketing into the investment it truly is.
Posted at MediaVillage through the Thought Leadership self-publishing platform.
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The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.org/MyersBizNet.