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University CMOs Boost Enrollment but Not Donations

University CMOs Boost Enrollment but Not Donations

September 09, 20258 min read
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By Vicky Sidler | Published 9 September 2025 at 12:00 GMT+2

There was a time when university marketing meant handing out brochures of happy students sitting under a tree. Maybe toss in a few drone shots and call it a day.

That time is over.

According to research shared by The Conversation, American public universities are now adding chief marketing officers (CMOs) to their top teams at a record pace. The twist? They’re doing it while slashing faculty budgets and navigating one of the most challenging financial periods in decades.

So why are more universities hiring marketing execs just as the money dries up?

And what can small business owners learn from it?

Let’s unpack the findings.


TL;DR

  • Public universities are hiring more CMOs, despite budget pressures

  • Schools with CMOs saw enrollment grow 1.6 percent faster

  • CMOs helped with student recruitment but did not boost donations

  • Corporate experience does not always translate in education settings

  • Universities are using CMOs to define their value in a crowded market

  • Small businesses can steal a few smart ideas from this shift

Need help getting your message right? Download the 5-Minute Marketing Fix.


Table of Contents:


From Football Ads to Funnel Strategy:

Once upon a time, university marketing was all about visibility. Billboards on highways, branded pens at career expos, and brochures with vague words like "excellence" and "diversity."

Now, it’s all about performance.

Today’s university CMOs are expected to drive enrollment like marketers drive sales. Their tools? Not pom-poms or posters, but data, segmentation, and conversion tracking.

According to the study by Professor Prachi Gala and her colleagues, universities that added a CMO between 2010 and 2021 saw, on average, a 1.6 percent increase in student enrollment. That may sound small, but in tuition terms, that could mean millions in revenue.

The takeaway? Clear messaging and coordinated outreach work—even in higher education.

Marketing Works Better for Buyers than Donors:

Here’s where it gets interesting.

The research also found that having a CMO didn’t improve endowment performance. In some cases, it even made things worse. Especially when the CMO:

  • Had an MBA

  • Came from the corporate world

  • Was new to the institution

Now, before we all dunk on MBAs, this isn’t about competence. It’s about context.

Selling a degree is not the same as inspiring someone to hand over $10 million for a scholarship fund. Marketing to donors requires deep relationships, institutional memory, and a sense of shared mission.

That’s a different playbook.

Universities Are Feeling the Marketing Pressure:

Why the hiring spree now?

Simple. The market is shrinking.

Since 2010, college enrollment in the US has been dropping. The COVID-19 pandemic accelerated that trend. Public funding is down. International student numbers are expected to fall.

In short: there are fewer people to sell to, and less money to sell with.

And universities—especially public ones—can’t lean on prestige like Harvard. They’re competing with private colleges, online degrees, and even job training platforms.

Enter the CMO.

Their job? Make the university's value clear to skeptical students and parents. Explain why four years and a five-figure loan make sense in a world that now offers bootcamps, AI certifications, and TikTok side hustles.

Sound familiar?

If you run a service business, this is your world too. Shrinking attention spans. Distrust of institutions. DIY alternatives around every corner.

Internal Agencies and Cross-Campus Chaos:

The best CMOs are not running flashy ad campaigns. They’re solving coordination problems.

At many large universities, each department historically did its own thing. Biology had one tone. Law had another. Communications? Completely different language.

Now, marketing teams are operating more like internal agencies. They help align messaging across research centres, admissions, alumni, and fundraising.

They run targeted ads. Test value propositions. Respond to crises. And yes, they still make a few brochures.

It’s a shift from decoration to strategy.

Where It Goes Wrong:

Of course, not everyone is thrilled.

Faculty critics argue that hiring more execs while cutting teaching staff sends the wrong message. Others worry that branding risks oversimplifying academic missions in the pursuit of revenue.

The research suggests they have a point.

Not all CMOs help. In fact, corporate-style marketing skills can backfire when transplanted into relationship-based systems like fundraising.

So what’s the fix?

Universities need to define what success looks like—before hiring. Is it enrollment? Visibility? Donations?

Once that’s clear, they can hire the right leader for the job, with the right background. Someone who knows the context and has the credibility to lead across departments.

How Small Businesses Can Apply This:

You might not have a million-dollar marketing budget or an internal agency team. But the lessons still apply:

1. Define Your Message, Not Just Your Logo:

Universities that clearly explain what makes them different attract more students. Same goes for service businesses. People want to know: why should I trust you? Why now?

2. Match the Role to the Goal:

Not every marketing hire can do everything. Need leads? Find someone strong in performance. Need loyalty or brand equity? Look for relationship builders.

3. Use Marketing to Solve Operational Chaos:

Marketing isn’t just about promotion. It’s also about clarity. A strong message helps sales, hiring, onboarding, and referrals. Universities are learning this the hard way. You don’t have to.

4. Don’t Wait for a Crisis to Get Strategic:

Universities brought in CMOs because they had to. You have the chance to think ahead.

Want a Simple Way to Start?

You don’t need a CMO. You need a message that works.

The 5-Minute Marketing Fix will help you write one sentence that explains what you do, why it matters, and why someone should care.

👉 Download it free here

Because when the budget tightens and the pressure rises, clarity is the best investment you can make.


Related Articles:

AI Replacing Humans Backfires—What CEOs Miss

Universities are investing in people while cutting costs—this piece shows why betting on tech alone often fails, especially when leadership forgets context.

"Am I Doing the Right Things?" What Mailchimp's Marketer Learned

If you're wrestling with how to make your message land in a skeptical market, this one’s for you. It unpacks how Mailchimp navigates the same clarity challenge university CMOs face.

Celebrity Brand Fit—What Knix Got Right, AE Got Wrong

CMOs need to align message and market. This article shows what happens when brands get that right—or very wrong.

AI Business Advice: Why It Helps Some Owners but Hurts Others

Hiring a CMO is a human strategy move. This post explains why context matters just as much when deciding whether to trust AI business advice.

Taylor Swift's Orange Effect: 7 Industries That Can Profit Now

Trend marketing only works when it’s authentic. A fun, strategic reminder for CMOs and marketing leaders navigating crowded spaces with cautious audiences.


FAQs on University CMOs and Strategic Marketing

What does a university CMO actually do?

A university Chief Marketing Officer is responsible for defining and communicating the institution’s brand, managing student recruitment campaigns, overseeing digital and print marketing, handling public relations, and aligning messaging across departments. Think less about billboards and more about strategic enrolment funnels.

Why are public universities hiring CMOs now?

Because the market is shrinking and competition is rising. With fewer students, tighter budgets, and less public trust, universities need clear, consistent messaging to attract attention and enrolment. A strong CMO helps cut through the noise.

Do CMOs help with fundraising too?

Not always. The study found CMOs boosted student numbers but didn’t improve donation outcomes. In some cases, fundraising actually declined—especially when CMOs came from corporate backgrounds or held MBAs. Fundraising success seems to depend more on relationships and institutional knowledge than marketing tactics.

Isn’t hiring more executives during budget cuts a bad look?

Yes, and faculty have noticed. Critics argue that growing the executive team while cutting academic roles sends the wrong message. The key is making sure the CMO’s role is clearly aligned with institutional goals—not just added as a symbolic title.

What lessons can small businesses take from this?

Plenty. Strategic messaging matters, especially in crowded or sceptical markets. Hiring the right marketing expertise for the job can improve clarity, build trust, and increase growth. But the person (or agency) needs to understand your context—not just run a playbook from somewhere else.

How can I clarify my message without hiring a full-time CMO?

Start with the5-Minute Marketing Fix. It’s a free tool to help you write a sharp, simple one-liner that makes your value clear and compelling. Ideal for service businesses, and far cheaper than an executive hire.

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Vicky Sidler

Vicky Sidler is a seasoned journalist and StoryBrand Certified Guide with a knack for turning marketing confusion into crystal-clear messaging that actually works. Armed with years of experience and an almost suspiciously large collection of pens, she creates stories that connect on a human level.

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