Are CMOs prioritizing short-term wins over long-term brand building?

In today’s fast-paced environment, chief marketing officers (CMOs) are under growing pressure to deliver immediate results. This shift towards quick wins, often driven by short-term financial demands, risks compromising long-term brand value. Industry experts caution that prioritizing short-term gains over sustained brand building could erode customer loyalty and weaken brand equity.

Shift from brand building to selling

Harit Nagpal, managing director and chief executive officer (CEO) of Tata Play, observes a shift in today’s marketing landscape, moving away from traditional brand-building practices. “A brand that has been built in a hurry, with weak bonds with its customers, runs the danger of being dislodged in a hurry too, by someone offering a slightly better commercial proposition," he explains.

Nagpal, formerly group marketing director at Vodafone, recalls how brands once invested deeply in forming lasting consumer relationships. Taglines like ‘Hamara Bajaj’ and ‘Har ghar kuch kehta hai’ resonated because brands valued connection over short-term reach. Today, memorable taglines are rare, signalling a departure from the marketing that once ingrained brands into consumers’ minds.

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Previously, brands adhered to the AIDA model—Attention, Interest, Desire, Action—allowing time for each stage to nurture consumer loyalty. Campaigns were seen as long-term investments, not projects requiring instant returns. “Early in my career, I was never asked about the immediate bottomline impact of a campaign, let alone quarterly results," Nagpal says. The push from “Tell, Tell, Tell" to “Sell" has created campaigns focused solely on metrics, often at the expense of brand depth.

Growing influence of financial investors

This shift is partly due to the growing influence of financial investors who prioritize quick outcomes over sustained growth. Unlike strategic investors, financial investors push for short-term results and compressed timelines. Nagpal notes that this pressure has trimmed the AIDA model down to a single focus on “Action," sidelining the storytelling that once built strong consumer connections.

Sandeep Goyal, industry veteran and chairman of advertising agency Rediffusion, argues that CMOs have limited freedom under these pressures. “Today, CEOs are bound by quarterly performance demands, which shape both company and brand agendas," he explains. This constant push for immediate results leaves little patience for the slow cultivation of brand identity. In Goyal’s view, brand-building takes time, like a nine-month gestation. Rushing this process dilutes brands into “90% scheme, 10% theme," depriving them of depth and distinction.

Evolving role of the CMO

As companies grow more results-driven, the CMO’s role has evolved from brand steward to performance-oriented executive. Sreeraman Thiagarajan, co-founder and CEO of Agrahyah Technologies and adjunct professor at the Indian Institute of Management, Tiruchirappalli, notes how CMOs, once the “voice of the customer," now focus on relentless growth.

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“Now, CMOs are constantly chasing consumers across platforms, often with influencer marketing or forced AI (artificial intelligence) integrations—sometimes losing sight of long-term brand identity," he says. In the drive to stay current, brands may adopt trends without aligning them with brand values, which risks diluting the message and weakening consumer connections.

Brand equity vs immediate gains

Brand equity is an invaluable asset built over years, easily destroyed by short-term focus. A brand with strong equity commands loyalty, pricing power and competitive advantage. But in today’s rapid marketing cycles, brand equity is often sidelined for quick gains. When campaigns favour instant sales over storytelling, they compromise the emotional resonance essential for brand affinity.

Nagpal highlights this risk, noting that today’s campaigns may generate high click-through rates but lack timeless appeal, unlike taglines such as ‘Hamara Bajaj.’ The scarcity of lasting slogans today underscores how the focus has shifted from brand building to rapid selling.

Can CMOs reclaim their brand-building role?

The debate over short-term wins versus long-term brand building raises critical questions about the sustainability of current marketing practices.

Although financial pressures and investor expectations persist, CMOs can make strategic choices that balance immediate goals with brand integrity. Some brands are exploring hybrid models that combine short-term calls to action with storytelling for lasting impact.

“Nailing the balance is essential," says a CMO from a two-year-old startup. “While many focus solely on brand building or immediate results, we’re committed to both. Performance marketing drives quick wins, but brand equity is our foundation, and that’s non-negotiable."

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“CMOs are increasingly prioritizing short-term wins over long-term brand building, but this shift is a function of the culture and environments they operate in," said Sidharth Shakdher, CMO and business head at Paytm. “The CMO function outcomes are closer linked to shorter-term business outcomes than before. They are frequently working in organizations in a race for valuations, which is the core cash driver for operations. Vanity narratives like fast growth, winner takes all, no place for second best, etc., have taken hold, and become native wisdom almost. An underlying reason for all of this could also be executive compensations which are now linked more than ever to short term financial goals, and to compound it, executive actions not being held to a higher standard by ‘passive or friendly’ boards," Shakdher said.

As consumer expectations shift, there’s room for brands to return to the fundamentals of brand building, prioritizing trust and authenticity over instant metrics. Creating a memorable brand, as Goyal stresses, requires patience and time—qualities in short supply today. Yet, for CMOs willing to resist the lure of immediate gains, the rewards of long-term brand equity may far exceed the fleeting benefits of short-term success.

Ultimately, today’s CMOs face a critical choice: short-term gains or long-term brand value? With financial pressures intensifying, the emphasis often skews towards immediate returns. But the enduring benefits of strong brand equity—loyalty, resilience, and enduring appeal—suggest that a balanced approach may ultimately serve brands best.