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LO O K I N G F O RWA R D W I T H A P L A N !
G E T T O T H E H E A RT O F I T
I am going to tell you how to budget for marketing and where to
invest your marketing dollars.
YO U H AV E TO S H O P A RO U N D
C O M P U T E R S A R E YO U R F R I E N D S, F O R F I N D I N G
M O R E F R I E N D S
YO U R I D E A S M E A N E V E RY T H I N G
H o w m u c h s h o u l d I b u d g e t
f o r m a r k e t i n g i n 2 0 1 7 ?
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• How much are companies spending on marketing? • Where are marketing dollars invested offline and online? • What marketing strategies and tactics are getting results?
The answers to these questions come from a few reliable sources: • an annual survey of Chief Marketing Officers (CMOs) from a variety of industry sectors
and firm sizes • a leading research group report about interactive (digital/online) marketing trends and
predictions • other leading digital marketing research firms.
This post is broken down into the following sections:
1. Overall Changes In Total Marketing Budgets 2. How To Allocate Marketing Budgets Across Channels 3. Which Tactics Are Getting The Best Results? 4. Changes in Traditional Versus Digital Marketing Spend 5. Expected Changes In Marketing Budgets 6. What Percentage of Marketing Budget Spent On Digital? 7. How Much Should Your Firm Budget For Marketing?
SIMPLE THINGS TO CONSIDER OFF THE BAT
BUDGETS ARE CHANGING - OFFLINE AND ONLINE
H O W S H O U L D I A L L O C A T E A C R O S S C H A N N E L S ?
ESSENTIAL THE DATA
IN 2016, THE AVERAGE FIRM WAS
EXPECTED TO ALLOCATE 30% OF
THEIR MARKETING BUDGET TO
ONLINE. THIS WAS SLIGHT GROWTH.
THIS RATE IS EXPECTED TO GROW
TO 35% BY 2019
-MOST OF THAT WENT TO SEARCH,
-FOLLOWED BY DISPLAY
FYI ‘Mobile’ is a redundant term
now. No one is dumb enough to
skip mobile when they say ‘digital.’
WHAT’S MY RE TURN ON INVE STMENT HERE? 4
TRACKING IS NEARLY
IMPOSSIBLE
-BUT INBOUND MARKETING
CAN MAKE IT WORK!
How marketing funds are ultimately allocated is driven by the nature of the business, the competitive marketplace, and how target customers behave through the buying funnel.
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M a r k e t i n g t e c h n o l o g i e s a n d a u t o m a t i o n a r e p r o v i n g e f f e c t i v e
a t b r i n g i n g t o g e t h e r t h e m o s t e f f e c t i v e m a r k e t i n g t a c t i c s
( e m a i l m a r k e t i n g , o r g a n i c s e a r c h , a n d c o n t e n t m a r k e t i n g )
t o a c h i e v e b e t t e r r e s u l t s .
2017The first year Digital
outspends TV
E V E R Y T H I N G I S C H A N G I N G , Q U I C K L Y.
O M N I V O R E S A L W A Y S E A T .
Digital spend is only a portion of total marketing spend for most businesses. For 50% of businesses surveyed, digital represents less than 40% of total marketing spend.
Businesses who rely more heavily on the internet to generate sales (e.g. an ecommerce business), invest a greater percentage of their marketing budget towards digital.
For more traditional businesses, which rely on offline AND online activity to fill the sales funnel, a healthy mix of marketing investment is to be expected. Radio, TV, Newspaper are now search, email and social.
Single digit changes in marketing budgets are standard, usually 4-8% unless it’s a recession, you’re a new company looking to grow or something crazy happens.
I A M N O T A W E B C O M P A N Y,
B U T W E E X P E C T E D C H A N G E
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COPYING IS A FORM OF FLATTERY
W H A T P E R C E N T A G E O F R E V E N U E I S M Y B U D G E T ?
T H I S N E E D S T O B E S A F E . W H A T A R E O T H E R
P E O P L E D O I N G ?
TAKE AWAYS
THE DATA
• For B2B firms, marketing budgets as a % of firm revenue fell within the 7-8% range
• For B2C firms, marketing budgets as a % of firm revenue were around 9%.
• Businesses generating less than $25 million/yr in revenue were the only business to spend more than 10% of revenue on marketing.
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T h e r o a d b e l o n g s t o y o u .
I n n o v a t e w h e r e y o u c a n .
M i n i m i z e r i s k . M a x i m i z e o u t c o m e s .
T h e r i g h t p l a n s w i l l k e e p y o u o n t r a c k .
c o n t a c t D a v i d Z u c k e r m a n f o r c o n s u l t a t i o n .
d k z u c k e r m a n @ g m a i l . c o m / 3 1 0 . 9 8 5 . 3 5 9 4
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