What’s the best approach to optimizing a marketing budget?
Successful companies are always looking for ways to trim down costs to boost return on investment (ROI). Marketing departments are usually the first on the chopping block. Trimming departments is an important aspect of building an effective and prosperous company.
Optimizing a marketing budget doesn’t have to be tough or time-consuming. Find out how you can enhance your marketing budget below.
Optimizing a Marketing Budget: Getting Started
There are many ways to cut a marketing budget. If you’re being asked to make significant cuts to your budget, here’s where to start:
Identify What Works
By this point, you already have an idea of what your marketing budget entails. Pull up the analytics of all of the areas your marketing budget utilizes money and resources. Look at the numbers and watch how they correspond to the investment put into them. For example, if your employees are spending 40 hours a week interacting with social media and you’ve received no sales in the past six months, this 40 hours a week isn’t contributing to ROI.
By cutting that time by 15 hours and investing in a Facebook ad, you can divert those hours and free up employees to work on additional initiatives. This will help you to identify a marketing strategy that not only works better for your company but frees up time and resources.
Flush What Doesn’t Work
Be malleable. If you’re working four different campaigns for a new product and two of them are vastly underperforming from the projections your team created for the life of the campaign—dump them. It’s hard to know when to give up on campaigns that aren’t meeting expectations, but if that campaign isn’t performing 30 percent into its life, it doesn’t make great business sense to continue to pay for that campaign if you’re looking at optimizing a marketing budget.
Acknowledge lackluster campaigns, ensure they aren’t meeting the intended ROI by checking with your analytics team and stop investing money into them.
Craft a Strong Base of Pillar Articles
Being active on social media is great. Sharing and engaging with consumers helps boost your brand reputation and can direct consumers to your website. But what content are you sharing on social media? If you’re not sharing your own articles and blogs, you should be.
Create a strong base of information about your products with pillar articles on your own website. This allows you to feed smaller, more specific articles into those pillar articles and drive all of that website traffic you’ve been giving away directly to your website, thereby increasing sales and optimizing your marketing budget.
You have an ideal market in mind when building your business, but the pitfall that many businesses succumb to is sticking specifically to that given market. Every few months it’s integral to look beyond the target market and look at ways to market to a new audience. It’s easy to get used to a steady ROI and not want to rock the boat but to grow your company, you have to grow your customer base.
Optimizing your marketing budget means diversifying your customer base and looking at ways to increase revenue. It may be difficult but it’s not impossible. And, if those different tactics don’t increase your ROI, you at least know what to avoid going forward with your next experiment.
Trust the Process
The most important step of this optimization process is to give your marketing budget the space to succeed and fail. Being afraid of failing doesn’t fit into the world of marketing strategy. By trusting in the process, your strategy and company will see improved ROI and fantastic growth over time.
When optimizing a marketing budget, be sure to focus on what works. Micromanaging a budget down to the cent for fear of losing cash, doesn’t. Expect to fail so you can learn to succeed.