A Little Mistake That Cost A Local Business $3,000 A Year On Their Marketing Budget – In this article, we will discuss how should we spend most of our marketing budget. For us entrepreneur, what concerns us the most is ROI (Return On Investment).
In simple terms, what do I get if I spend 1 dollar in advertising. In today’s media landscape, there are literally thousands of media that we can put our marketing budget into.
Some of them are good while some are bad.
For arguments sake, let’s do the math and let stats do the talking.
Let’s dive in …
Where Should You Spend Your Marketing Budget?
Over the past decade, where companies are spending their marketing budget has changed dramatically, but everyone knows that having a marketing plan is crucial to building a companies brand- especially their online presence.
The Gartner CMO Spend Survey for 2019-2020 found that 61% of CMOs expected their marketing budgets to increase in 2020, demonstrating the importance of a cleverly executed plan. However, this is not always as easy as it might appear. Throwing a load of money on only one strategy can often result in failure, and it is much better to have a broad vision when it comes to the strategies needed to build your company. So, where should your marketing budget be spent? Let’s review the three main areas for the year ahead…
In today’s age, social media is everywhere and if you’re not on it already, your business probably should be. But traditional media should not be neglected and both digital and traditional marketing approaches should work hand-in-hand.
The following video explains how a company can us a marketing budget in order to track lead generation and the number of qualified leads that come from individual marketing strategies.
First, the company must track marketing expenditures by month by itemizing which marketing strategies it is employing and how much the company is spending on each strategy.
Second, the company must then total all these marketing expenditures in order to come up with a total monthly cost of marketing.
Third, the company can then total up the expenditures across all three months in order to define the costs for the quarter.
Fourth the company then totals up its revenue by month and by quarter and determines how much it spends on marketing as a percentage of that revenue. Tracking the percentage helps the company to set goals and objective that are conducive to growing revenue and keeping customers.
Finally, the company defines its costs of lead generation by tracking how many leads, qualified leads and customers come from each marketing campaign.
Knowing what social media platform to invest in is essential, as not every platform will be applicable for your business. Below is a list of a few social media platforms:
As you can see in the following chart, Social media continues to offer opportunities for brands to connect with consumers in new, across a wide variety of platforms, with the number of people online increasing year-on-year.
If you are unsure of where is best for your business to be present, start by identifying your buyer personas and researching their most used social platforms. This will mean you are not just taking a wild guess where your audience are ad will therefore be more likely to see engagement.
Building an online presence on the leading social media platforms such as Instagram or Facebook isn’t as expensive as it is challenging to stand out. Bloggers and Influencers have perfected the art of building an audience, usually with no budget at all.
To maximise your sales on social media, without spending a great deal of money, you should look at similar brands or services that have a large following and see the types of posts that they put out there.
Giving your brand a personal edge, sharing behind the scenes images, and using video, will help generate interest in your product or service. Additionally, linking blog posts, collaborating with influencers, and doing giveaways are all excellent ways to build and engage an audience.
Hopefully, this article has provided an overview to where your budget could be spent in 2020. Remember, every company and industry is different, so you need to determine what is best for your company and then allocate those funds based on your desired ROI.
As entrepreneurs, we try to test the waters which will give us the most bang for our buck. It’s good to know that these statistics are here to give us insights on where to put our money.
Of course, the more popular a media is – it is going to be very expensive when it comes to advertising.
If you have read a good article we published few weeks ago. We have discussed certain alternatives to costly advertising we see today – you will notice that you can saved as much money in the long run and the benefit is really overwhelming.
Don’t take it on me. Let the clients tell you their experiences with the products. You can head on to our resources – or you go back to your old habit of advertising – you choose!
Quite frankly, whether you take my advice or not, will not AFFECT my financial situation, but it will affect on YOUR financial future!
So, almost a week now, I have been at my office at the back garden doing some client work. As I was reading some interesting artcles over the internet. Something came up, a lot of articles nowadays talks about the importance of content and how the internet is changing.
On the next issue, we will be discussing more about content, how you can create your own content – even if you are super busy. I will also discuss how you can leverage with the big guys … how they are doing it and what is your game plan to equal the playing field.
More of these on our next issue. With that being said, I say see ya later alligator !!!