Three-Quarters of Marketing Budgets to Go Digital
More than half of your marketing budget may go to digital campaigns. That’s how we read the Accenture report. That’s what 35% of the senior marketing officers say. But 37% say that digital marketing may eat about 75% of their budget. This research involved nearly six hundred executives in more than ten countries and was conducted from late 2013 to early 2014. This research opens insights to what we should expect in the latter part of the 2010s. so if you’re a marketer, you have something to think about for 2019.
One thing is sure. While TV advertising isn’t going away, it’s not making its way to the top choices of any companies in the future. The opposite is actually happening, following a downward trend of TV as a choice of media among marketers and advertisers. What do people do during commercial break anyway? They text their friends, go to the toilet, check their Instagram, or switch to a different channel. That makes TV advertising an expensive, yet ineffective, way of selling to people. Of course, companies that shell out large funds for ads on screen aren’t going away either.
People are deaf and blind to TV and magazine ads. They don’t even care about ads appearing on websites and social media sites. Nonetheless, even well placed mobile-friendly marketing campaign on top social media channels carries risks of low ROI and customer acquisition or brand awareness.
So where do we go from there? If you ask 42% of marketers, they will tell you that analytics and metrics are becoming key factors. Digital marketing hypes can sway even smart marketers. Those who shell out huge funds for strategies that have not been carefully studied are at risk of wasting their investments. On the other hand, lack of monitoring and evaluation of strategies creates misconceptions and opens risks of failure not because of bad or ineffective tactics but because of incorrect implementation.
It has been predicted that by 2019 half of the marketing budget of companies will go to mobile-friendly campaigns. Remember that mobile devices alone don’t comprise the entire digital world. Digital marketing, which basically involves every type of marketing done on digital media, will eat 75% of the marketing budget by 2019.
Leading CMOs have the following tips for entrepreneurs and novice marketers:
- Meet your audience on different channels. Don’t just be on a few sites. Be on different platforms. Serve your audience with different media.
- Integrate real-time analytics into your channels.
- Invest in cloud-based services.
- Adjust your marketing models based on existing changes.
- Hire a smart and flexible marketing team.
Remember your marketing budget is just a slice of your overall operational expenditure. It makes sense to funnel your money where it will yield results.
