The commercial marketing leadership crisis: Why PE/VC-backed companies can't find the CMOs they need

The boardroom conversation is becoming painfully familiar. A private equity partner leans forward, frustration evident: "We need a CMO who actually understands the business, not just brand awareness." The CEO nods in agreement, having just parted ways with their third marketing leader in 18 months. Welcome to the commercial marketing leadership crisis that's quietly plaguing investor-backed companies across industries.

The great divide

Traditional marketing leadership has long been built on brand stewardship, creative excellence, and market positioning. These skills remain valuable, but they're insufficient in today's investor-driven landscape. PE/VC-backed companies operate under fundamentally different pressures: compressed growth timelines, rigorous performance metrics, and exit strategies that demand measurable value creation.

The result is a striking mismatch. Marketing leaders who excel at building brand equity often struggle with the commercial rigour that investor environments demand. Conversely, commercially minded marketers; those who can speak fluently about customer acquisition costs, lifetime value optimisation, and revenue attribution—remain shockingly scarce in the executive talent pool.

The numbers that matter

In investor-backed companies, marketing isn't just about reach and engagement; it's about unit economics. The CMO must understand that a 15% improvement in customer acquisition efficiency doesn't just boost quarterly performance; it directly impacts the company's valuation multiple at exit. They need to understand how marketing mix modelling impacts board presentations and why cohort analysis is more important than campaign creativity awards.

This commercial fluency extends beyond metrics. It requires understanding how marketing investments flow through to EBITDA, how channel performance affects working capital, and how customer segmentation strategies align with value creation themes that drive investor returns.

The trust deficit

Perhaps more concerning is the erosion of trust between boards and marketing leadership. Short CMO tenures have become self-reinforcing: boards lose confidence in marketing's commercial contribution, leading to quicker terminations, which in turn make the role less attractive to top commercial talent. The best commercially-minded marketers increasingly avoid CMO positions in favour of revenue operations roles or commercial leadership positions where their impact is more directly measurable and valued.

This dynamic creates a vicious cycle. Companies settle for marketing leaders who lack commercial acumen, then express surprise when marketing can't demonstrate clear ROI or contribute meaningfully to growth strategy discussions.

Building commercial marketing excellence

The solution requires recalibrating both expectations and development paths. Organisations must recognise that commercial marketing leadership is a distinct competency that bridges traditional marketing expertise with financial acumen and operational rigour.

Forward-thinking companies are beginning to structure marketing leadership differently, creating roles that blend marketing and revenue operations, establishing clear commercial KPIs from day one, and ensuring marketing leaders have direct access to financial performance data and board-level strategic discussions.

The talent development challenge is equally critical. The industry needs more pathways for marketers to develop commercial expertise; whether through rotations in finance and operations, formal training in unit economics and valuation principles, or mentorship programs that pair marketing leaders with commercially-experienced executives.

The opportunity ahead

For the rare marketing leaders who combine creative excellence with commercial rigour, the opportunity is substantial. Companies that find these individuals gain significant competitive advantages: faster, more efficient growth; clearer connections between marketing investments and business outcomes; and ultimately, higher valuations at exit.

The question isn't whether commercial marketing expertise will become essential; it already is. The question is whether the industry will develop this talent fast enough to meet the growing demand from investor-backed companies that can no longer afford marketing leadership that treats commercial outcomes as someone else's responsibility.

The companies that solve this challenge first will have a significant advantage in an increasingly competitive market for growth capital. The marketing leaders who develop these skills will find themselves among the most valuable and sought-after executives in the C-suite.

The commercial marketing revolution isn't coming; it's here. The only question is who will adapt fast enough to lead it.