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Cutting Marketing Spend: When It Works (and When it Doesn’t) [INFOGRAPHIC]

Gartner says that marketing budgets have started to plateau in 2017, after years of steady growth. That’s one of the main things they found in their 2017 CMO survey, which also reported that only two-thirds of CMOs expect a significant increase in their 2018 budget while a third believe their budgets will be cut.

There’s obviously a lot of reasons why companies slash marketing budgets (including tough economic times, shifting priorities, cost-cutting measures, and scaling down operations). Most of these factors are simply beyond any marketing decision-maker’s control. But marketers still influence how much business impact their marketing activities can have. And that’s through carefully planning how (and how not) to spend their budget. That’s what we’ll feature in today’s post.

Cutting Marketing Spend - Infographic

 

Transcript:


When to Cut Spending


#1 The end goals aren’t clear.

Specific goals and objectives all move the revenue needle. If a marketing activity or your overall program doesn’t clearly show this, then it’s a prime candidate for the chopping block.

#2 Marketing isn’t aligned with sales.

There are all sorts of things that can go wrong when marketing and sales are out of whack. That’s why there’s no point in paying for a marketing tactic or project that doesn’t align with sales’ priorities.

#3 You can afford losing out to the competition.

Companies that were quick to cut marketing budgets in past recessions were all outperformed by competitors that maintained or even increased their marketing budgets during the downturn. If you can afford to lose out to the competition, then, by all means, reduce your marketing spend.

Related: Warning: Don’t let Your Market Competitors Eat you Alive

 


When Not to Cut Spending


#1 Decreased marketing spend brings only hard cost savings.

Cost-cutting measures result in two kinds of cost savings – hard cost savings and soft cost savings. If reducing marketing spend only results in hard cost savings, then you’re better off finding ways to maximize the budget you have instead of slashing your expenditures altogether.

#2 Cutting back results in cutting corners.

When cutting marketing spend means scaling down activities to the point where they no longer drive results, you have to wonder if you can really afford cutting corners just to cut costs.

#3 Cutting back is done to fix a misspent budget.

When marketing fails to hit goals, the problem won’t be fixed with budget cuts. The solution is to find new and better ways of using what you already have.

 

 

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Cutting Marketing Spend: When It Works (and When it Doesn’t) [INFOGRAPHIC]

Gartner says that marketing budgets have started to plateau in 2017, after years of steady growth. That’s one of the main things they found in their 2017 CMO survey, which also reported that only two-thirds of CMOs expect a significant increase in their 2018 budget while a third believe their budgets will be cut.

There’s obviously a lot of reasons why companies slash marketing budgets (including tough economic times, shifting priorities, cost-cutting measures, and scaling down operations). Most of these factors are simply beyond any marketing decision-maker’s control. But marketers still influence how much business impact their marketing activities can have. And that’s through carefully planning how (and how not) to spend their budget. That’s what we’ll feature in today’s post.

Cutting Marketing Spend - Infographic

 

Transcript:


When to Cut Spending


#1 The end goals aren’t clear.

Specific goals and objectives all move the revenue needle. If a marketing activity or your overall program doesn’t clearly show this, then it’s a prime candidate for the chopping block.

#2 Marketing isn’t aligned with sales.

There are all sorts of things that can go wrong when marketing and sales are out of whack. That’s why there’s no point in paying for a marketing tactic or project that doesn’t align with sales’ priorities.

#3 You can afford losing out to the competition.

Companies that were quick to cut marketing budgets in past recessions were all outperformed by competitors that maintained or even increased their marketing budgets during the downturn. If you can afford to lose out to the competition, then, by all means, reduce your marketing spend.

Related: Warning: Don’t let Your Market Competitors Eat you Alive

 


When Not to Cut Spending


#1 Decreased marketing spend brings only hard cost savings.

Cost-cutting measures result in two kinds of cost savings – hard cost savings and soft cost savings. If reducing marketing spend only results in hard cost savings, then you’re better off finding ways to maximize the budget you have instead of slashing your expenditures altogether.

#2 Cutting back results in cutting corners.

When cutting marketing spend means scaling down activities to the point where they no longer drive results, you have to wonder if you can really afford cutting corners just to cut costs.

#3 Cutting back is done to fix a misspent budget.

When marketing fails to hit goals, the problem won’t be fixed with budget cuts. The solution is to find new and better ways of using what you already have.

 

 

Read more Sales and Marketing, sign up for The Savvy Marketer

Learn more about how we generate leads for Businesses in Australia!

Dial +61 2 9037 2248

 

 

Grab a copy of our FREE EBOOK, The Ultimate Lead Generation Kit Ebook! Updated with links to the best and latest techniques that will help generate quality sales leads for your business

New and Improved Ultimate Lead Generation Kit to Jumpstart your Business! for FREE

Inside a B2B Marketer’s Arsenal of Productivity Tools
Reasons Why You Can't Get Rid of These "awful" Telemarketers
Outback Attack! Introducing Australia’s Top Ten B2B Influencers
A List of the Top IT Trends in the Outback [INFOGRAPHIC]

A List of the Top IT Trends in the Outback [INFOGRAPHIC]

People tend to think about the Land Down Under as the most dangerous place on earth. Basically, any animal you come in contact with has a potential to kill you. This has produced memes calling Australia the Land of Nopes.

But in recent years, the country has enjoyed relative growth in crucial sectors, particularly the IT industry. Much of this optimism has been spurned by the fact that Australian companies are beginning to uncover more opportunities in growing revenues and competing with international brands.

As things go at the moment, there is a lot of things to be positive about. Here are some of the trends you will expect that will have you saying “Yes!” instead of “Nope!”

A List of the Top IT Trends in the Outback [INFOGRAPHIC]

Transcript:

Augmented and virtual reality gets increasingly popular

There is a growing market for virtual reality software caused mainly by curiosity and interest towards the concept. IT companies, in this way, will have to exploit this trend and add their own brand of innovation to the fold. After all, VR is still a work in progress, but developing fresh ideas about it will eventually give the IT industry a good boost.

Related: 4 ways for your IT Business to Access to New Markets

Analytics-driven marketing

The IT market will become even more complex as new players are bringing in powerful guns. The competition will get even tighter as companies continue to invest heavily in developing better technologies. Along the lines of marketing their products, Australian tech companies need to focus a great deal on the most important metrics from which they can create better audience engagement strategies.

Related: 13 Reasons Why You Should use Data Profiling and Get Accurate IT Contacts

Everything-as-a-service becomes important

A Deloitte report sees that IT enterprises will skew inevitably to adopting bulked software services that benefit core business operations. This will, in fact, lead to making important operational as well as organizational changes, and for IT companies to upgrading to ERP platforms.

Related: IT and Software: Mastering Product Knowledge Before your First Sales Pitch

Higher business penetration rates

Deloitte also points out that IT companies will continue to secure better opportunities for their brands. This is due to the fact that more and more businesses see the significance of setting up efficient software and IT infrastructure to streamlining their day-to-day operations. We should expect higher demands for automated marketing services and emerging technologies benefitting core business processes.

Related: Is Technical Jargon Necessary in Communicating with IT Leads?

Data intelligence is the intelligent way to go

Lastly, the IT industry will see more prominence in data acquisition and analytics. In fact, applied data intelligence has been listed as a top priority in “Gartner’s list of Top 10 strategic predictions for 2017.” Even more so, businesses will invest heavily in adopting smart technologies and training their teams on how to handle these tools and make the most out of them.

Related: Jaw-Dropping Growth of Fintech Industry After 18 months

 

 

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Grab a copy of our FREE EBOOK, Why You Should Bet Your Money on Digital Marketing (And Win)! We brainstormed ideas, analyzed data, and interpreted recent developments vis-à-vis previous trends before coming up with a realistic view of this year’s marketing trends.Why You Should Bet Your Money on Digital Marketing (And Win)

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The Australian Preferred Mode of Business Communication

Australian Prospects Preferred mode of Communicating By Statistics [INFOGRAPHIC]

More than 50% of Australian are shopping online. Items such as clothes, shoes, accessories and even travel related purchases are done online. Most of the time, they search for information about the product and services before they buy them.

According to The 18th Edition of Nielsen’s Annual Australian Connected Consumers Report, almost all of Australians use the internet to purchase items every week. If you are a marketer, you know that in order to reach a wider audience you need to be where your prospects are. So how would you know what channel to use to communicate and engage with your prospects?

Here are some of the preferred modes of communication of Australian prospects according to statistics.

The Australian Preferred Mode of Business Communication - infographic

Transcript:

Social Media

Social media is a way for businesses to communicate, engage and interact with potential and existing customers. Based on Sensis Social Media Report for 2016, Australians are now spending more than half a day per week (12.5 hours) on Facebook alone, up four hours from last year.

It is best to know and understand who your target prospects are and their preferred channel to use when searching for a product or service. For example, if you are targeting younger people between 18-29 years old, you must know that their preferred mediums to use are Facebook and Instagram. On the other hand, people between 40 to 49 years old use LinkedIn and Google+.

Here are the statistics for each medium

  • Facebook – 95% of Facebook users spend more than 12 and half hours every week on Facebook.
  • Twitter – At 19%. 2 points higher than last year.
  • Instagram – Almost doubled its reach at 31% since 2013. This is used by 58% of the younger audience between 18-29 years old.
  • LinkedIn – 24% lower because of its many restrictions. Commonly used by medium and large businesses.
  • Google+ – 10% lower than last year

Source: Sensis Social Media Report 2016

Here’s the secret ingredient in turning your social followers into qualified leads.

 

Smartphone or Mobile Device

They can’t live and won’t leave home without a mobile phone. More and more people globally use mobile phones to communicate and talk to a family member, friends, discuss work, check and respond to their emails, and learn about what’s new in technology, etc.

According to the mobile statistics in Australia from IAB Australia (Mobile Ratings September 2015), smartphones and tablet owners, internet surfing trends and the total time spent on mobile devices continues to increase.

  • Smartphone owners – 15.3M
  • Tablet owners – 11.2M

The result of the Google Consumer Barometer Survey says that 40% of millennials (ages 35 and up) do their research and purchases on smartphones and other mobile devices.


The time spent of Australians on mobile devices has increased by 63% 


 Email

According to a blog post from campaignbrief.com, 97% of Australians use emails and sending or receiving email was the most popular activity on the web.

Others are doing online banking or paying bills and reading news and about sports.

The time spent of many Australians on their mobile devices has increased. Emails allow business owners to accomplish tasks more quickly. They use emails as a form of business communication to;

  • Coordinate with their business partners and suppliers
  • Update and provide information to their customers

 While 84% are looking for information on products and services.  


Whether a formal or informal way of communication, prospects have a preference as to which channel to use to communicate and search for products and services. Use these stats as your guide in choosing which channel to include in your marketing campaign. Whatever you decide, bottom line is, you have to be where your prospects are at all times.

 

 

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Grab a copy of our FREE EBOOK, Why You Should Bet Your Money on Digital Marketing (And Win)! We brainstormed ideas, analyzed data, and interpreted recent developments vis-à-vis previous trends before coming up with a realistic view of this year’s marketing trends.Why You Should Bet Your Money on Digital Marketing (And Win)

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