What Size Company Should Hire a Chief Marketing Officer (CMO)?

Every business dreams of growth—but growth doesn’t happen without the right marketing leadership. That’s where a Chief Marketing Officer (CMO) comes in. A CMO is the senior executive responsible for developing, implementing, and overseeing marketing strategies that drive brand visibility, customer engagement, and revenue growth.

But here’s the truth: not every company needs a full-time CMO right away. For startups and smaller firms, hiring such a senior executive may feel like an over-investment. That’s why many businesses today consider an alternative: a Fractional CMO—an outsourced marketing leader who provides part-time strategic guidance.

According to a 2023 Gartner survey, 77% of CEOs see marketing as a top driver of growth, but only 42% of small businesses have a dedicated marketing leader. This gap creates both a challenge and an opportunity: when and how should a company invest in a CMO?

This blog explores the factors that determine whether you should hire a full-time or fractional CMO, how to assess your company’s size and complexity, and what benefits each option brings.

Key Takeaways

• Not all businesses need a full-time CMO; a Fractional CMO can be a cost-effective solution.

• Fractional CMOs bring flexibility, specialised expertise, and fresh perspectives.

• Indicators you may need a CMO: lack of a marketing leader, ineffective campaigns, or ambitious growth goals.

• Companies should consider budget, organisational culture, and long-term objectives before hiring a full-time CMO.

• Growing companies often benefit most from fractional CMOs until they reach a stage of sustained marketing complexity.

Does Your Business Need a CMO?

1. Assessing Business Size and Complexity

The larger and more complex your business, the more likely you’ll need a CMO. Startups and micro-businesses can often manage marketing through agencies, consultants, or internal staff. But as companies expand into multiple regions, product lines, or customer segments, the challenges multiply.

• A small company with <20 employees may not justify a full-time CMO.

• A mid-sized company with 50–250 employees often benefits from a fractional CMO.

• Large enterprises with 500+ employees or multi-market operations usually need a full-time CMO.

Example: A SaaS startup generating $2M annually may rely on an agency for digital campaigns. But once it scales to $10M+, with plans for international expansion, a strategic marketing leader becomes essential to align messaging, branding, and go-to-market execution.

2. Evaluating Marketing Goals and Strategies

Your marketing goals determine your leadership needs.

• If your goal is basic brand awareness, an agency or consultant may suffice.

• If you’re aiming for market penetration, multi-channel campaigns, or sophisticated analytics, you need leadership.

A CMO ensures your strategies align with broader business objectives. Without this alignment, marketing campaigns risk becoming scattered and ineffective.

Data point: According to HubSpot, companies with documented marketing strategies are 313% more likely to report success compared to those without one. CMOs help ensure this documentation and alignment happen consistently.

3. Analysing Market Competition and Growth Opportunities

If you’re in a highly competitive industry—technology, fintech, healthcare, or e-commerce—a CMO’s leadership can make the difference between gaining or losing market share.

• In competitive markets, speed and strategic clarity are vital.

• CMOs help companies identify and capture growth opportunities faster.

Example: A retail brand expanding into D2C (direct-to-consumer) sales needs an experienced marketing strategist to guide digital adoption, customer retention, and pricing models.

Key Considerations Before Hiring a CMO

1. Budget and Resources

CMOs are not cheap. A full-time CMO’s average salary:

• UK: £115,922 per year (Glassdoor 2024).

• US: $174,000 per year (Indeed 2024).

• Plus, benefits, bonuses, and equity often push total costs much higher.

In contrast, a Fractional CMO costs:

• UK average: £61,376 annually (part-time equivalent).

• US range: $5,000–$15,000/month depending on scope.

Companies must balance the cost of hiring a full-time CMO with expected ROI from marketing-driven growth.

2. Organisational Structure and Culture

Your organisation must be ready for a CMO. If the company lacks a proper marketing department or team, bringing in a senior leader could be premature. Instead, a fractional CMO or agency may be better suited to first build systems, train staff, and establish processes.

3. Long-Term Business Objectives

• If your goal is rapid scaling or preparing for funding/IPO, a CMO may be worth the investment.

• If your focus is steady growth without aggressive expansion, a fractional or outsourced CMO provides balance.

CMOs should not be hired as a “quick fix”—they must align with long-term strategy.

Alternatives to Hiring a Full-Time CMO

1. Part-Time CMOs and Consultants

• Provide strategic guidance.

• Work on specific projects like market entry, rebranding, or digital transformation.

• Lower commitment than a full-time hire.

2. Leveraging Marketing Agencies

• Ideal for execution-heavy tasks: ads, content creation, SEO, etc.

• But agencies may lack the strategic oversight a CMO brings.

• A fractional CMO can act as the bridge between agencies and leadership.

Advantages of Hiring a Fractional CMO

• Cost-effectiveness: Access top talent without paying full executive salaries.

• Flexibility: Scale engagement up or down as needed.

• Strategic perspective: External experts often bring unbiased insights.

• Specialised expertise: Fractional CMOs have cross-industry experience.

• Collaboration: They mentor in-house teams and improve marketing-sales alignment.

• Holistic strategies: Cover branding, digital marketing, customer experience, and more.

Signs You Need to Hire a Fractional CMO

• No marketing leader in your company.

• Lack of direction in marketing initiatives.

• Difficulty executing plans consistently.

• Campaigns underperforming despite budget spend.

• Need for structured growth but limited resources.

Example: If your ad campaigns consume thousands monthly but ROI remains poor, a fractional CMO can restructure strategy and optimise spend.

Growing Companies and the Role of a Fractional CMO

When businesses hit a growth phase, leadership must decide between “maintaining momentum” or “accelerating growth.” A fractional CMO helps define goals, refine messaging, and implement structured campaigns without the high overhead of a full-time executive.

Data point: Companies that align sales and marketing efforts grow 19% faster and are 15% more profitable (Aberdeen Group). A fractional CMO plays a key role in creating this alignment.

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CMO vs Fractional CMO: Cost Comparison

Key Insight: If marketing spend is less than 10–12% of annual revenue, a fractional CMO often makes more financial sense.

Benefits of Working with a Fractional CMO

1. Increased Marketing and Sales Alignment

Fractional CMOs create strategies that integrate marketing and sales pipelines, ensuring better lead nurturing and conversion.

2. Strategic Guidance and Direction

They provide clarity on goals, target audiences, channels, and messaging.

3. Cost-Effective Solution

Companies save 40–60% compared to hiring a full-time executive.

4. Flexible Engagement

Fractional CMOs adapt to short-term projects or long-term partnerships, scaling as the company grows.

Conclusion

Not every business needs a full-time CMO. For many small and midsize companies, a fractional CMO is the smarter, more cost-effective choice. They bring strategic expertise, flexibility, and holistic marketing leadership without the financial burden of a full-time executive.

As your company grows and marketing complexity increases, you may eventually transition to a full-time CMO. Until then, leveraging fractional leadership ensures your business remains agile, competitive, and aligned with growth goals.

Evaluate your budget, goals, and long-term plans before deciding. The right choice can provide a powerful competitive edge in today’s fast-moving market.

FAQ

1. What is the difference between a CMO and a Fractional CMO?
A CMO is a full-time executive overseeing all marketing, while a Fractional CMO works part-time or project-based, offering strategic support at lower cost.

2. When should a company consider hiring a CMO?
When marketing needs grow complex, strategies require refinement, or competition demands stronger leadership.

3. What are the main responsibilities of a CMO?
Developing marketing strategies, managing budgets, leading teams, and ensuring campaign success.

4. How does a Fractional CMO differ from an outsourced CMO?
Fractional CMOs provide ongoing strategic support, while outsourced CMOs are often hired for short-term projects.

5. What are the benefits of hiring a Fractional CMO over a full-time CMO?
Lower costs, flexibility, specialised expertise, and unbiased perspectives.

6. How can a CMO improve a company’s marketing function?
By aligning strategies with business goals, optimising channels, and improving ROI.

7. What factors should a mid-size company consider when deciding between a full-time and fractional CMO?
Budget, growth stage, marketing complexity, and scalability of future efforts.