The number of options to reach consumers through platforms, channels and devices has rocketed in recent years. Nowadays, consumers are online anytime and anywhere. They seamlessly switch between different channels and devices. The chances of reaching potential customers have increased immensely, but the available marketing and advertising budgets haven’t.
The pressure on marketers to build the right budget is therefore increasing considerably. Predicting the impact of future activities on sales is difficult. And collecting detailed data on advertising spend and performance is a challenge for many marketers. How can budgets be used efficiently? Which measures are effective and which aren’t?
HOW TO MAKE OPTIMIZED BUDGET DECISIONS
In order to find the right answers, different aspects have to be considered. Our article offers 5 tips to help advertisers meet the challenges of their budget planning.
1. MAKE DATA-DRIVEN DECISIONS
Data helps to make well-founded decisions and this also applies to budget planning. Instead of manual, time-consuming analyses or relying on decisions from previous years, and thus taking the risk that these decisions may not have been efficient, marketers need to plan their advertising budgets with support of the collected data.
Marketing attribution helps marketers evaluate their channels and campaigns holistically. The success of their advertising can thus be assigned exactly to these marketing contacts that are responsible for it. Recommendations for action can be derived from these insights and advertisers can make future budget decisions based on this data.
2. HAVE A HOLISTIC VIEWS OF YOUR MARKETING WITH HELP OF A COMPREHENSIVE PLATFORM
Marketers that want to optimize their media mix need a holistic view of their customers and touchpoints with the brand. However, the use of different platforms and data sources makes it difficult for marketers to make progress towards efficient marketing.
Technology and data needs to be unified in order to start building a relevant attribution model. Only when data has been cleansed and brought into a uniform format can it be integrated into a modeling system.
3. EXPERIMENT WITH DIFFERENT ATTRIBUTION MODELS
Many online marketers still rely on the Last Cookie Wins Model to track advertising success. This often distorts the actual influence of different touchpoints in a customer journey. As a result, wrong budget decisions are made that affect later performance. Instead, advertisers need to find out which channels and campaigns are truly effective. It is worth experimenting with different multi-touch attribution models and methods. This allows you to determine which model is most appropriate for your data and which process is most effective in meeting business needs.
4. USE A SCENARIO PLANNER
Scenario planners allow advertisers to run simulations of various budget scenarios. This allows you to estimate the impact of potential budget redistributions and gives marketers important insights into the relationship between the advertising budget and the acquired ROI.
With the help of what-if analyses, different scenarios with various factors can be tested. Marketers can then determine the optimal budget to invest per channel to maximize ROI saturation.
5. REMAIN FLEXIBLE
Budget optimization is a long-term and ongoing process. Especially in the digital age, marketing is constantly changing and new channels and platforms offer new opportunities but also new challenges for advertisers. It is therefore all the more important to be able to make adjustments and to keep up with the times. This way, marketers ensure that budgets continue to be used efficiently and are not based on outdated data and forecasts.
SUCCESSFULLY APPLY GAINED INSIGHTS
Marketing is becoming more and more complex. Most marketers today have to meet greater demands with the same budget. With strong competition and an increasing number of options to reach consumers, the advertising budget must be used efficiently. After all, setting the right marketing budget is critical to success.
Using the right tools, technology and expertise to gain an overview of how marketing spend is impacting performance helps advertisers achieve this goal.