Money. Something many of us do a lot of planning around in the beginning of a new year. I know I do it for my personal life and we often do it as part of our annual planning at work. There are only two primary figures that matter when building a budget: What’s coming in and What’s getting spent. For many businesses, marketing begins as a cost center, falling under the category of what’s going out. Over time, as marketing spend demonstrates correlation with revenue increase or business leads, it transitions to be a fully functioning driver of the business.
Wherever you are, philosophically, with your marketing budget; there are a few key tenants to follow when allocating it and validating its worth.
In this blog post, we discuss the macro trends around digital marketing budgets growing year over year. One clear reason is the vast majority of marketing is trending toward the digital space. Another factor is that paid social media is increasingly a larger part of the spend due to what’s often referred to as the plummeting of “organic” reach. As it becomes harder to reach followers “for free,” inherently businesses feel compelled to increase funding. Nurture the house they’ve built, if you will.
We also discuss the yin and yang of your production budget vs. your distribution budget. Paid media falls under the distribution side but content creation falls under the production column. How can you stretch you production dollars further than you have in the past? It often comes down to planning and repurposing a core asset into many smaller pieces. An approach we refer to as atomization.
Lastly, we share a few ways of measuring success. While not every business lends itself nicely to a clean ROI model for marketing, especially those in early start up phases or in the B2B verticals, there are ways to illustrate effectiveness that can be meaningful to leadership and assist in growing the pie for subsequent years.
If you are interesting in how to better manage your digital marketing budget in 2019, this is the episode for you.