How CMOs can be superheroes in FY25: Leveraging existing assets for strategic growth, higher profit contribution
As a new fiscal year approaches and businesses navigate a fluctuating economic landscape, the role of Chief Marketing Officers is rapidly evolving from budget spenders to budget savers and revenue generators through the potential of owned media.
Traditionally seen as chief spenders, CMOs are poised to become the revenue-generating heroes of fiscal year 2025. This shift in perception and responsibility hinges on the strategic use of owned media. With the right approach, CMOs can steer their organisations toward profitability by adopting innovative commercial models and reducing reliance on paid media.
From cost centres to revenue generators
With increased pressure on marketing budgets to deliver ROI, owned media channels are becoming increasingly popular amongst marketers. Unlike paid media, which often involves hefty budgets for temporary exposure, owned media offers sustainable and long-term engagement opportunities with audiences.
The benefits of owned media are multifaceted, as they can build a direct and authentic connection with consumers, providing valuable insights into customer preferences and behaviours through data analytics. CMOs have direct control over the brand narrative and a unique opportunity to engage deeply with target audiences without the recurring costs associated with paid media.
Owned media’s first-party data capabilities enable better targeting, conversion and reporting than any paid media channel. This allows CMOs to cut down expenses but also increases the marketing department's contribution to net profit margins.
By going one step further and turning these channels into revenue-generating assets, CMOs can demonstrate direct contributions to their company’s financial health, aligning marketing more closely with overarching business goals and proving the inherent value of strategic marketing investments.
Sector-specific opportunities
From finance to travel, the potential of owned media extends across multiple industries. Here, we explore how CMOs in different sectors can leverage their unique media ecosystems to foster engagement, enhance credibility, and drive business growth:
- Finance - As found by Sonder, Finance is the highest growing sector, increasing 19 per cent YOY, as financial institutions realise the significant value of their vast media ecosystems and customer bases. Finance CMOs are leveraging multiple owned media avenues, from customer emails, transactional websites, and dedicated mobile apps to create personalised financial advice, timely offers, and more engaging partner brand content.
- Education - Educational institutions, such as universities, have a unique owned-media opportunity to enrich the educational experience and foster community. Through the creation of digital magazines, academic blogs, and even online webinars, education CMOs can offer a wealth of resources that attract prospective students while keeping alumni engaged.
- Grocery and liquor - Grocery and liquor businesses have the highest commercial potential at an average of $94m per business, per annum. The frequent and necessary nature of grocery and liquor shopping creates the opportunity for regular customer contact points through owned media channels such as in-store digital signage, apps, and loyalty programs. Use of these channels stands to boost immediate sales while building long-term customer relationships, securing sustained revenue streams.
- Travel - In FY 2024, the travel sector saw a 7 per cent decline as airlines reduced their media footprint post-pandemic and traveller numbers dropped, highlighting a strategic re-evaluation of marketing investments during recovery periods. However, the low-cost nature of owned media makes it an ideal tool for the sector's recovery. By leveraging owned media such as websites, customer newsletters, and loyalty apps, travel CMOs can reconnect with customers, promote brand partner experiences, and rebuild trust.
- Retail - Retail aggregators represent the largest sector, growing 17 per cent year-on-year with a commercial potential of $1.4bn. From detailed product reviews and behind-the-scenes videos to interactive catalogues and how-to guides, to providing valuable partner content that assists consumers in making informed purchasing decisions, retailers can strengthen customer loyalty, increase satisfaction, and ultimately drive sales.
Including the value of owned media support in sponsorship negotiations can reduce the investment significantly over a number of years.
Capitalising on owned media
Reducing reliance on paid media
In the wake of tightening marketing budgets and an increasing demand for measurable ROI, CMOs find themselves having to reduce their dependence on paid media.
Owned media channels will become increasingly popular amongst marketers. CMOs can redirect focus towards enhancing owned media channels which provide long-term benefits at a fraction of the cost. Notably, the first-party data capabilities enable better targeting, conversion and reporting than any paid media channel. This allows CMOs to cut down expenses but also increases the marketing department's contribution to net profit margins.
Leveraging sponsorships
Owned media provides a dynamic platform for sponsorships. For example, strategic sponsorships can be integrated into social media platforms, in-store digital screens, email marketing and website promotion. Including the value of owned media support in sponsorship negotiations can reduce the investment significantly over a number of years.
Enhancing loyalty offers
Loyalty programs enhanced through owned media directly contribute to revenue growth by deepening customer engagement and increasing the frequency of purchases. By leveraging owned channels to offer personalised partner offers special purchase discounts, and early access to new products, CMOs can generate media revenue, drive repeat sales and increase average order value.
The future of marketing leadership
As the digital landscape continues to evolve, the modern CMO must be able to innovate with owned media and develop corresponding strategies that both save costs and generate revenue.
By adopting a forward-thinking approach to owned media, CMOs can position themselves as leaders who understand their market and audience and directly impact the company’s economic outcomes.
The path for CMOs in FY25 and beyond involves a strategic blend of creativity, analytics, and financial acumen — traits that will define the next generation of marketing leadership. Embracing this shift from traditional advertising to owned media-centric strategies will reposition today’s CMOs as tomorrow’s superheroes.
Jonathan Hopkins is Founding Partner of Sonder.
Jonathan Hopkins is Founding Partner of Sonder which has helped unlock more than $10 billion in owned media revenue for corporations around the world including American Express, Virgin, KFC, Woolworths Group, Coles Group, Telstra, Optus, David Jones, CBA, Officeworks, BIGW, Rebel, AGL, Myer, Bing Lee, Mecca and Crown Resorts. Jonathan has 25 years’ experience working in media and marketing and is passionate about helping companies unlock the value of their owned assets.
