With global inflation increasing and the cost-of-living crisis dominating the news, it’s not a surprise that some companies are considering cutting their marketing budgets. In fact, the UK Government has even suggested that companies cut the prices for consumers using money they would otherwise use on marketing. For many businesses, both large and small, marketing is seen as a revenue-taking department; something that can be trimmed as and when required.
But this is a very short-term view, with long-term repercussions. The Harvard Business Review has examined these effects in companies that reduce spending in recessions, and come to the conclusion that ”firms that maintain their marketing spend while reallocating it to suit the context – be it in product developing, advertising and communication, or pricing – typically fare better than firms that cut their marketing investment”.
But knowing this, and being able to prove it to your CEO, MD, board of directors, or investors is different. So how do you do this? We can start with cold, hard data!
Prove your ROI.
Marketing Mix Modelling allows you to see which bits of media investment offer the best ROI right now, long-term, and which combinations give the best results. It takes all of your sales figures, media data, and general market trends, alongside any seasonal effects and macro trends. The data is modelled then put into a simulation where you can see what the optimal media mix is for your budget, or even if you should increase it in certain areas. It clearly demonstrates the impact these changes will have on short-term sales and long-term brand KPIs.
Track your brand.
Continuous brand tracking allows you to see exactly how your brand is doing in the wider world alongside your competitors. By understanding your brand’s strengths and weaknesses, you can be better equipped to deal with events such as the cost of living crisis or new market entrants. Brand tracking gives your marketing team the data they need to get your audience to listen. Nepa’s Brand Noise Reduction tools further strengthen continuous tracking to make this as accurate as possible.
Ensure your campaigns are as efficient as possible.
Relying on your gut feelings simply isn’t good enough in 2022. Campaign evaluations allow you to prove that the campaign you have put together will have the impact you want before you print your billboard posters or commit to costly tv slots. It allows you to prove to the budget owners that you’re targeting the right people, at the right time, in the right way.
When your competitors are cutting back, your share of voice will increase if you can maintain or increase your advertising budget, but in the right ways. Want to know more about dynamic marketing intelligence? Get in touch!