Re-Engineering Marketing's Operating Model for the Modern Age With AAR

Today’s CMOs are navigating a perfect storm: rising commercial pressure, ballooning complexity, and a marketing landscape transformed by technology, data, and AI. Expectations are soaring while resources remain tight – and with every channel, platform and campaign under scrutiny, the call for more impact with fewer inputs is deafening.

AAR’s latest research puts a spotlight on how marketing leaders are responding – not just with strategy, but with structure. Developed in partnership with ISBA, the report explores how CMOs are actively reengineering the People, Partners, Process, and Platforms that make up their marketing operating model (MOM). As ever, AAR is going beyond diagnostics to offer real-world guidance.

“AAR commissioned this report as we hear loud and clear that marketers are hungry for support and guidance on how to navigate this challenge,” says AAR CEO Victoria Fox. “Our ambition is partly to evidence the issues they’re facing but, more importantly, to offer advice and a perspective from both our own AAR experts and a wonderful panel of CMOs from organisations that are deep in transformation of their models.”

Moving beyond theory, the research provides a frontline view of an industry in flux – where success increasingly depends not simply on what marketing delivers, but how it gets done.

In this article, we dive into the standout insights from the findings – but it’s worth digging into the full report to get the full picture, which you can download here.​

People: Teams Built for Change

The skills gap is one of the biggest challenges CMOs are facing today. Most acknowledge that their teams lack the capabilities needed for modern marketing, especially when it comes to data, customer experience, and generative AI. Nearly half have already restructured their teams or reduced headcount to align talent with strategy – but far fewer have invested in formal upskilling. There’s a risk, therefore, that training is lagging behind transformation.

CMOs are also rethinking team design, balancing specialists and generalists to foster more collaboration. Some are embedding marketers within product units; others are building teams around customer segments. Agile, T-shaped teams are in demand.
One notable shift is the rise of marketing operations. Every CMO surveyed has now established some form of this function, in one way or another, with over a third doing so in the past year. These teams handle workflows, data, and tools, freeing marketers to focus on the important stuff like strategy.

To meet the demands of both long-term brand building and ‘always-on’ content, many are adopting “two-speed” models: small, nimble squads that handle fast-turn content, while core teams manage major campaigns. As Victoria Fox puts it, culture and mindset are just as important here as org charts. She notes that a healthy culture – one that encourages experimentation and psychological safety – can unlock innovation even more than formal structure.

Partners: A More Fluid Ecosystem

The research shows how CMOs are reevaluating their agency relationships. A third reviewed their rosters in the past year; a quarter plan to do so soon. Some are building in-house capabilities, particularly in creative production (46%) and media buying (44%), while others are pulling back, with 41% planning to outsource again. The right answer, of course, depends on the organisation – there is never a one-size-fits-all model.

Hybrid approaches are becoming more and more common, with in-house teams handling quick-turn content and strategy, while agencies bring firepower for big campaigns and specialised skills. Integration, however, remains a challenge, with over half of CMOs saying that aligning creative and media is still difficult.

To address this, many are consolidating rosters and treating agencies as extensions of internal teams, sharing platforms and processes to reduce friction. The rise of always-on content is accelerating this shift. Marketers are becoming “doers”, taking on content production to gain speed and control costs.

But still, agencies remain vital for that strategic depth. Some brands that once had fully in-housed content are now reintroducing agencies for concept development. What really matters is flexibility – that only comes from designing a partner ecosystem that adapts to each project and delivers both creativity and efficiency.

Process: Making Work Flow Better

Even with strong teams in place and trusted partners at hand, poor processes can derail even the best-laid marketing plans. Almost half of CMOs have introduced new governance structures or ways of working in the past year to improve agility. Many are turning to agile workflows, streamlined approvals, and clearer roles to break down silos.

The focus is shifting from outputs to outcomes – rather than prescribing every deliverable, CMOs are aligning teams on goals and giving them flexibility on execution. The aim is faster delivery without compromising on quality.

But bureaucracy is still a barrier to success, with CMOs citing too many approval layers and unclear handoffs. To fix this, they’re adopting tools like RACI/RAPID frameworks and daily stand-ups to enhance cross-functional collaboration. Workflow mapping and project squads are also becoming more common.

Automation is playing a role too, but, as one CMO puts it, “a bad process automated is still a bad process.” The goal is to simplify first, then automate the repetitive tasks like reporting or content adaptation. 43% of CMOs are automating parts of their workflows, but doing so with care – ensuring humans remain central to creative and strategic decisions.

Marketing operations teams are increasingly the engine room of execution here, managing tools, best practices, and performance metrics. When done right, improved process design means faster speed to market, greater agility, and better outcomes.

Platforms: Harnessing Technology and Data

The final pillar is technology. But instead of adding more tools, CMOs are now focused on getting value from their existing ones. 86% are re-evaluating their martech stacks to eliminate overlap, simplify systems, and maximise return on investment.

This shift from expansion to optimisation involves better integration of CRM, analytics, content platforms, and ad tech. It also means upskilling teams and cleaning data. The goal is a “Goldilocks” stack – that means, not too complex, not too thin, but just right for the business.

AI, however, is the exception, with generative AI being seen as a game-changer and 52% of CMOs running trials. But adoption is cautious – CMOs are testing use cases like content generation and campaign optimisation, scaling only when results are proven.
Data is staying put as the sturdy foundation, as without high-quality, integrated data, AI and automation won’t deliver. Many CMOs are prioritising first-party data and linking systems to create a single source of truth – essential not just for performance but also for navigating privacy rules.

So, Where Next?

Only half of CMOs rate their current marketing operating model as ‘high-performing’. And that statistic alone should be a red flag – because what’s being asked of marketing today has never been more complex, more critical, or more visible to the boardroom.

This report arrives at a moment when transformation isn’t being spoken about as some kind of long-term ambition, but a live, urgent reality. Marketing leaders are having to redesign teams, rethink partnerships, rewire processes, and reconfigure technology stacks – often simultaneously. It’s enough to make your head spin, unless you have a structurally sound MOM to support you. The research reveals the scale of that challenge, but also the momentum behind it. Across the industry, the dial is shifting from theoretical ambition to practical reengineering – and it’s happening quickly.

As Victoria Fox puts it, “There is no silver bullet.” But there is a clear direction of travel. CMOs are building two-speed teams to manage long-term brand and always-on content. They’re consolidating partner ecosystems to unlock both control and creativity. They’re investing in marketing operations as the engine of modern delivery. And they’re confronting the reality that AI, automation and data integration will reshape how marketing is done – not someday, but really, really soon.

The marketing operating model is fast becoming the defining factor in whether a brand can adapt, scale and lead. And this report offers the most complete picture yet of how leading marketers are getting their house in order.

If you’re leading a marketing team – or advising one – this should be essential reading. The conversation is already happening. The only question is whether you're in it.