How Emerging Trends Impact The Marketing Vision, Plans and Budget

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How Emerging Trends And New Technologies Impact The Marketing Vision, Plans and Budget

Table of Contents:

  • Introduction
  • Marketing Budget on a Downward Trajectory
  • Recommendation:
    1. Budgeting
    2. Smart Media Spending
    3. Martech. To Buy or Not to Buy
    4. Success Measurement
    5. Outsource
  • Conclusion

Covid-19 has caused a huge turnaround in the economy and disturbed plans and forecasts that could potentially affect business.

But even before Cove-19, analysts predicted difficult economic times and recommended strategies that companies could adopt to reduce them.

Marketing Budget on a Downward Trajectory

One of the key findings from the report is that in the last four years, marketing spending has been sluggish at the 11% mark for some time and is already on the decline.

Despite this dark outlook, most of the CMOs surveyed noted that “the global economic outlook will have a positive impact on their business over the next 18 to 24 months.”

But what do things look like now? Where are the levels of pride and self-confidence felt by CMOs unfounded?

To answer these questions and better understand where your company should invest its marketing funds, we will look at the results and recommendations of the survey report.

 

Recommendation 1:

Activity-Based Budgeting

There is no single way to set a budget, although active budgeting is a more preferred method.

Recommendation 2:

Smart Media Spending

Before Covid-19, the priorities for marketing advertising spending were as follows:

Media: Against Biased Payment Advertising and Search

The survey shows that CMOs prefer media, especially paid media, with 26% of marketing costs going to paid advertising, as more organizations find that they do not rely on organic traffic alone. Nor can they reap the full benefits of their investment from investment marketing. According to a 2018 survey report, paid media spending was 23%.

Data LED Investment:

Although CMOs relied on the performance of digital advertising and social marketing to continue their strategy even in difficult economic times, they felt that if their investments were not advised with the right data. So, such ads will not target the audience as much as possible while purchasing them.

Lack of Privacy in Offline Advertising:

Although a significant investment still went into offline advertising, CMOs were sceptical of its continued support in dealing with economic difficulties. Part of the dissatisfaction with offline advertising is that its usefulness is not as easy to measure as digital channels. However, 16% felt that investing in offline channels such as radio and out-of-home is important even in times of economic hardship.

How can you pay for your media investment?

To get the best results for media investing, you should do the following:

  • Budgets must be visionary and purposeful. Marketing should not invest in the utility of a channel but instead, invest in different digital media channels based on their goals.
  • Invest in channels that give you the access you need, and provide you with standard leads on the best cost structure.
  • Constantly evaluate your marketing mix to make sure it’s still the best way to support your business goals.
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Recommendation 3:

Martech Buy or Not to Buy

From the 2019 survey, it looks like Martech investment is gone. However, this is not the case. The impact on Martech spending over the years has been attributed to front-loaded spending on new technologies followed by a reduction in maintenance costs, which are lower.

However, there are concerns when it comes to adopting new technologies within organizations. 24% study Respondents identified three areas of concern when it comes to managing Martech:

  • Strategy
  • Adoption
  • Use

Some of the recommendations for adopting and using a better trading strategy include:

HIRING SKILLED PEOPLE:

Customer demands are always changing, and you need skilled people to run technology stacks to help respond quickly to those needs.

UPGRADE YOUR TECH STACK:

Right now, remote work has become a MO for most companies. In addition, strengthening digital commerce is now seen as the key to staying competitive. For these reasons, what you should spend right now are the technologies that empower your marketing and sales units to manage pipelines remotely.

INVEST IN ANALYTICS AND INSIGHTS TO DRIVE PERFORMANCE:

Where analytics and insights were lacking in the list of marketing capabilities, the tune has changed with the 2019 survey. Marketers now consider this function strategic for their operations.

For most marketers, analytics and insights are strategically important for healthy marketing performance. CMOs focus on data-led marketing and are making strong investments in marketing analytics and competitive insights to maximize the effectiveness of strategy delivery.

Recommendation 4:

Success Measurement

 

When asked to identify metrics that drive decisions in their organization, CMOs identified the following:

  • Brand awareness and brand health. Brand awareness and brand health are considered as the first and second top brand metrics by 72% of CMOs and 64% of CMOs respectively
  • ROI and market share. 70% of CMOs consider ROI a top performance metric. 65% maintained that market share is the second most important performance and efficiency metric
  • 67% consider conversion rate as the most critical conversion metric.

Recommendation 5:

Outsource

Lack of expertise is a major concern for most marketing executives. The cost of having your staff skilled to handle all marketing tasks can be significant. This is an important reason why outsourcing marketing to agencies is still an important part of the marketing budget.

Marketing agencies are already equipped with the right technology to take your business to the next level. Outsourcing will also eliminate the need to invest in marketing technologies that you would not be willing to invest in.

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