Tactical Digital Marketing

Getting the Most Bang for Your Buck: Why Digital Marketing Success Isn’t Just About Spending More Money

Small businesses are spending less than $10,000 on marketing, with 47% falling into this category. While this may seem frugal to some, it could be the right approach. Spending more on digital ads does not always guarantee better results. There is a disparity between digital marketing spending and performance, indicating that the amount of money spent on marketing alone does not determine success or failure.

There are several reasons behind this gap. In 2022, data analytics gained more attention in digital marketing investments, as it provides a more targeted “buyer persona” profile for crafting convertible advertisements. However, the technologies used to aggregate and analyze data are becoming more complex, and understanding them requires time and expertise, which can detract from actual marketing efforts.

Converting data into actionable metrics can also be challenging. Marketers have access to vast amounts of data, but not all of them can effectively convert it into key metrics. The ease of access to information has made marketers impatient and sometimes leads to having a lot of data without proper context, which can hinder decision-making. Filtering out irrelevant data and drawing accurate conclusions from proper data sets is crucial to avoid poor decision-making and biased target audience profiles.

Mapping the customer journey has become more complex with businesses reaching out to customers through various mediums such as blogs, vlogs, social platforms, and third-party applications. The versatility of mediums complicates customer journey mapping, and imbalances in the customer journey blueprint can distort data feedback, leading to inaccurate metrics and ineffective marketing strategies.

To maximize digital marketing spending, it is important to strategize wisely. Starting small and applying the Pareto principle, also known as the 80/20 rule, can help businesses focus on platforms that generate the most results. Controlling the budget and targeting demographics can also optimize marketing efforts and ensure accurate reporting and data analytics. Scaling the business should be done cautiously, with surplus profit in hand to experiment with different campaigns without alienating the core consumer base.

In conclusion, spending more on digital marketing does not guarantee better results. The key to closing the gap between marketing spending and performance lies in the qualitative aspects of how the money is spent, including proper data analytics, conversion of data into actionable metrics, and careful consideration of the customer journey. By strategizing wisely and focusing on effective marketing efforts, small businesses can make the most out of their digital marketing spend.

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Source : Forbes an Article by Markus Kreth

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