Raja Walia is the Founder and CEO of GNW Consulting.
You’ve probably heard business leaders insist that marketing should never be seen as a cost center. The thinking goes that every dollar spent is an investment, one that should generate measurable returns. It’s a compelling argument, especially when budgets are under scrutiny. But the reality isn’t that simple.
Marketing will be a cost center at times, whether companies admit it or not. And that is not a flaw. HR, IT and finance do not generate direct revenue, yet no one questions their value. Marketing should be no different.
While marketing can drive revenue, there are times when its primary role isn’t about direct ROI but about laying the groundwork for long-term success. Ignoring this nuance can lead to unrealistic expectations and short-sighted decisions. Let’s break down why marketing sometimes needs to be a cost center and why that’s not necessarily bad.
Revenue Cannot Be Directly Attributed To Brand
Brand building is an incredibly important, foundational part of marketing. It’s also a powerful driver of long-term growth. Unfortunately, the impact of brand-building initiatives isn’t immediately visible in spreadsheets or sales reports. This is because, unlike lead generation or direct sales efforts, brand building works behind the scenes to create trust, recognition and loyalty.
There are aspects of marketing that cannot be tracked, and trying to measure them is a waste of time and resources. Brand storytelling and thought leadership shape perception and trust, but there is no direct way to quantify their impact. Brand equity cannot be measured on a dashboard, yet it influences everything from recognition to customer preference.
Companies and executives often reference marketing pioneers like Steve Jobs, who understood that brand building is just as critical as product innovation. Jobs focused heavily on design, innovation and storytelling, none of which had immediate or trackable ROI—and yet Apple became one of the most valuable brands in the world.
Expecting every marketing effort to be tied to a measurable outcome often leads to cutting these essential activities, weakening brand presence and long-term market position. The reality is that measuring success requires looking beyond immediate KPIs and focusing on metrics like share of voice, brand sentiment and customer retention.
The Need To Futureproof Against Market Changes
A strong brand acts as a shield against the unpredictable. Customers gravitate toward brands they know and trust, especially during economic uncertainty or competitive market shifts. For example, a well-established brand can weather downturns by maintaining loyalty and capturing new customers seeking stability.
Similarly, a compelling brand becomes a key differentiator in saturated markets, where products and services often look alike. Companies that neglect brand building risk becoming interchangeable with competitors, which can force them into a race to the bottom on pricing.
When you look at the bigger picture and decide to put budget and resources toward brand building, you’re not going to make a major impact today—but you will in the future.
Why Not Make Every Department A Profit Center?
If marketing is expected to operate as a 100% profit center, then departments like HR and IT should also be measured for their profitability and impact on revenue. Businesses often overlook the financial consequences of poor hiring decisions or inefficient technology, yet these areas directly affect the bottom line. If marketing is held accountable for generating measurable returns, the same standard should apply across all departments.
Consider the cost of a bad hire. A misaligned employee can drain productivity, increase turnover and require additional training and recruitment efforts, all of which come at a significant expense. HR is responsible for ensuring the right talent is brought in, yet its success is rarely measured in financial terms. If marketing must justify its value in revenue, why should HR not be evaluated based on the cost savings and efficiency gains of making the right hire?
The same applies to IT. When technology fails or is poorly implemented, productivity drops, deadlines are missed and operational costs rise. Downtime, inefficiencies and security risks all have direct financial implications, but IT is rarely scrutinized for its profitability. If marketing’s impact is measured by revenue contribution, then IT’s effectiveness should be assessed by the business value it enables.
In Closing
Every department impacts profitability, so if marketing must prove ROI, the same should apply across the board. Companies need to rethink how they measure marketing. Obsessing over short-term ROI ignores its broader impact. Brand building, trust and positioning are essential, not optional.
Instead of forcing every effort into a profit metric, businesses should focus on what drives long-term success. Not everything is measurable, but that does not make it less valuable. Marketing is more than lead generation or some hybrid version of sales—it is a strategic driver of growth.
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