Steve Ohanians, accidental entrepreneur, co-founder and CEO of WebEnergia .
Don't cut your marketing budget in times of economic uncertainty. Even with the threat of a recession next year, businesses need to prioritize marketing to stay ahead of the competition. In fact, marketing costs are increasing; Now is not the time to back down. Cutting costs shouldn't be the strategy that drives your annual marketing budget; in this way, it will not be able to achieve its growth objectives. Instead of developing marketing initiatives based on price, focus on proven effectiveness.
Data from the 2022 CMO survey shows that marketers prioritize initiatives such as building trust and creating superior customer service. It is a key part of modern marketing practices and connects consumers to brands. Even in times of economic uncertainty, customer-centric marketing is essential. Investing in digital marketing initiatives and knowing which best suits your business needs is a sustainable strategy. In fact, digital marketing spending is expected to increase significantly in the coming year; According to the CMO survey, it now accounts for 57.1% of marketing spend.
The key to properly allocating marketing resources is understanding your unique business needs. Using a digital and data-driven marketing strategy is the best way to allocate your budget during times of economic uncertainty. The following five principles should be followed when setting next year's marketing budget.
Invest in what you understand.
Billionaire Warren Buffett says this when it comes to investment strategy, but it also applies to your marketing budget: don't spend money on something you don't understand. When planning your annual strategy, it's easy to get carried away by marketing trends. Traders want to do it all. Yes, omnichannel marketing works, but in times of volatility, you shouldn't invest in something you don't understand or can't directly measure.
When allocating your annual marketing budget, prioritize initiatives that you know will be most effective. For example, having a strong website and prioritizing SEO is always important. Digital advertising can be important for reaching new audiences. When you're under pressure, double down on the basics, the marketing strategies that have worked for you in the past, rather than trying to start something new.
Go digital.
Digital marketing is the first and best investment you should make (and many companies are already making great strides in this area). To put it bluntly: if you don't invest in a digital marketing strategy first, it's too late. Every marketing initiative should start in the digital space. B2B and B2C e-commerce sales continue to grow. B2B buyers spend much of their buying journey conducting independent research online.
In short, if your brand mission, product information, and other important elements aren't available online, your customers will quickly turn to your competitors. It's a question of comfort and accessibility. Therefore, companies should dedicate a portion of their marketing budgets to proprietary assets such as websites and digital content. The proportion of your website's budget from year to year will be determined based on when your website was updated, the timeliness and relevance of content, and web traffic data. Ultimately, the key to a successful digital marketing strategy is to simplify the buyer's journey. They need to be able to discover your brand, get insights, and take action in the digital space before directly reaching your business.
Think automation and AI.
Let's say you've identified a need for content, website updates, or additional information as part of next year's marketing strategy. Allocating funds to these initiatives has traditionally meant spending more time creating and distributing these assets. You need a writer who can create content, a designer who can redesign websites, and a developer or analyst for testing. Add investment. Yes, any marketing strategy will take time to design, edit, test and develop (etc.), but modern technologies like automation and AI can make the process easier.
Did you know that an AI system can generate blog content or other websites for your brand? This saves time and helps brands develop a steady stream of content. If SEO is part of your marketing strategy, you need fresh, relevant content for your website every week. Artificial intelligence can identify popular keywords and create engaging content. Similar technologies are available for website testing, reducing the time spent implementing and analyzing website changes.
Outsource as much as possible (freelancing, partnerships, etc.).
Partnering with freelancers, outside experts, or other industry organizations is a great way to spread the weight of your marketing strategy and get results. Look for opportunities where the partnership is mutually beneficial. For example, partnering with other agencies to achieve specific marketing goals can help your business and theirs while generating new business opportunities. Similarly, building a network of freelancers and independent contractors is a great way to support your overall strategy and ensure its sustainability. Whether your business is experiencing rapid growth, an influx of projects, or an exciting new assignment (due to your effective marketing strategy), having an existing network of partners ensures you are ready to pivot and work on the package when the opportunity arises. .
Run statistics and reevaluate.
In the end, marketing is everything. When the annual budget is allocated, important data, analysis and indicators should be part of this process. Weekly, monthly, quarterly and annual reports are important. Additionally, when data and metrics are integrated into budgeting and planning from the start, they can support the effectiveness of the overall strategy. Your marketing strategy can and should constantly change in a volatile economic environment. You need to know when to walk away if something isn't working. The data report will tell you when you need to make changes.
You need to allocate your budget so you can prioritize digital marketing, produce consistent and relevant content, and reevaluate your strategy when it's not working. Don't give up on your marketing strategy in times of economic uncertainty. Instead, find out which initiatives are most effective for your brand and invest in them first.
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