Winning Marketing Budgets

I found the chart below interesting. It was compiled by Marketing Sherpa. If you’re in the marketing field, you should really be subscribing to their newsletters. A lot of great information gets shared. If you’re not in marketing, you hopefully your marketing resources are keeping up on this info!

Ignore, if you will, the fact that the percentages add up to more than 100%. I’m sure it has something to do with new productivity standards and doing more with less.

Marketing Budgets Focused on Site, SEO and SEM

The lion’s share of budget is focused on the web site, SEO, SEM and content marketing (which to me is a sub-category of SEO for many companies). It feeds the marketing funnel – awareness, conversion, sale. The tools and systems are plentiful to allow tracking, optimization and clear reporting of the return on investment for these efforts. They miss, however, the opportunity of the social webs.

Marketing Research Chart: Allocation of online marketing dollars  
Online Marketing Budget Allocation

If you’re a believer that we operate in a marketing hourglass and not a marketing funnel, you’ll see half your marketing is being underfed. Reading the Sherpa article shows that social media spending is increasing. If you assume all the email and social media efforts are focused on nurturing relationships of your customers and driving repeat and referral business, you’re still only at 30% of your budget.

Marketing Hourglass

Marketing Hourglass

But this represents solidifying the relationship with a percentage of your audience where the hard work is done. You’ve already made the sale. If your product is doing its job (satisfying the customer need), it’s now your chance to turn that customer into an advocate. Build that relationship into one that drives future sales and new leads based on that customer’s recommendation.

Trend Your Marketing Dollars to Engagement

Social media experts are becoming Lead Gen experts because the tools and systems are rapidly coming online that provide a measurable ROI for these efforts as well. I’ll talk about those on another day. For now, the marketers who are load balancing their budgets to address the marketing hourglass will reap the rewards over those that remain focused on the marketing funnel.

 

 

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