April 1, 2013 at 12:20 pm

Marketing Budget Effectiveness: Are your efforts a gamble?

Marketing Budget Effectiveness: Are your efforts a gamble?

marketing budget effectivenessTransparency is important when it comes to marketing. You not only have to know where your dollars are going – but gain a reasonable understanding of your marketing budget effectiveness. While some large companies may be able to afford a $2,000,000 super bowl commercial – small and medium businesses have to work within a more reasonable budget. Whether your annual marketing budget is $50,000 or $500,000 – the most important thing is that you know exactly how much business came from those efforts. Traditional marketing methods like print advertisements, television commercials, billboards and direct mail campaigns can be effective, but more often than not you’ll find that some traditional marketing efforts may be a gamble.

Cold Calling.
In the past, cold calling was an effective method of marketing. Purely a numbers game, cold callers are given a script. Their results are based on the number of calls that they make. If 1/10 calls results in an appointment, they work backwards to achieve their sales goals. The problem with this? These are sales leads generated through an outbound channel. Your employee is gambling by calling random businesses and hoping that their need for your services happens to be timely. It’s like playing roulette.

Direct Mail.
Beyond the expense of designing the direct mail piece itself, the rising cost of postage makes this option particularly dangerous. To make matters worse, all that money is spent knowing that 44% of individuals never open direct mail. And the response rate? 1%. Ouch. Hope you have a huge budget, because that’s like going all in on a hand of poker with a 2 and a 7. But hey – maybe you’ll get lucky.

Television advertising.
Three letters for you: DVR. 86% of people now fast forward through television commercials. Live television watchers are only really around for prime time television or sports events – and you know what the means. You’re paying premium to get that kind of exposure. That’s separate from the costs to write and produce a commercial.  But hey, blow on the dice. Maybe this time it’ll be different.

How are you measuring your traditional marketing? Take a step back and evaluate your efforts. If your budget is going into traditional advertising efforts, it’s important to measure them. If you understand the effectiveness of your marketing – you’ll know best where to invest that budget the next time around. There’s no reason you can’t (with calculated effort and measurement) come out on top.

It’s time to measure your marketing.

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