You have now decided what your overall marketing budget is for the upcoming period. But where should you invest these dollars? It can be difficult to decide what to allocate for tools, technology, analysis and the media spend itself including agency fees. First, we’ll discuss current trends in marketing budget allocation and then we’ll give you some tips on how to divvy up the money you have at your disposal.
According to Forrester Research, 38 percent of B2B marketers (in all industries) are expecting to increase their digital marketing budgets between 1-9 percent. 27 percent expect to increase it between 10-19 percent and roughly 16 percent are increasing more than 20 percent in the coming year. The numbers for B2C marketers are similar with the majority planning to increase SEO and paid search efforts.
This positive trend is encouraging for digital marketers, as it appears that marketers are benefiting from new attribution tools as they are made available. For instance, 80 percent of B2C marketers report having generated sales from social channels, while 90 percent of B2B marketers attribute leads or sales to social. ROI and digital attribution is becoming more of a deciding factor to allocating budgets to the digital marketing arena; this is something we’ve been emphasizing forever. Good digital marketing pays for itself (and then some). Now that you know what other marketers and companies are doing, let’s talk strategy:
Marketing budgets can be tight, so it’s important to try and marry your initiatives. Some examples: utilizing budgets allocated to R&D is prudent for something like social research, the act of listening to unsolicited consumer conversation in order to gain insights about your business. HR hiring initiatives can be put into place via social or paid media and additional funds can be allotted from that department as well. Thinking about various “marketing” initiatives as a holistic approach to improving your company can open up the doors to combine forces with other departments.
The good news is that digital marketing initiatives are just that–digital. This means they can be altered at any time. Many of these digital campaigns can be adjusted daily in order to maximize your budget. The most important factor is tracking performance in order to make the best decisions about where to go next. Budget allocation is great for planning the coming months – and remember that you are not completely locked in like with traditional media. Take advantage of the opportunity that digital affords to shift funds between initiatives in order to better reach your targeted audience and improve bottom line conversions.
Find more insider tips from leading industry experts by visiting the Industry Insights page of the Business-Software.com blog.
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