Shift in Marketing Budget Spends

by Akash Sharma Akash Sharma

The marketing budget has been experiencing a shift in their spending since 2016, spends on digital marketing has been increasing in double-digit growth thus, reducing the share of the pie of traditional marketing in the overall marketing budget spends. The main reason for this shift is- technology and the internet, which has changed the way people consume or seek information; people are using the internet on smartphones, tablets, laptops to gather even the smallest of information and shop not just for clothes but even groceries.

As per media agency Group M, in 2020, digital marketing with a 35% market share of the total advertising budget has surpassed print which has 16% and is almost nearing TV spends which are at 45%.

The marketing budget of a business is usually between 6.5% to 12% of the total revenue, depending on the nature of the business. Due to the pandemic, a lot of industries have taken a step back in their revenues, thus squeezing the marketing budgets. Therefore, the marketers have to deliver optimum reach on a limited budget, and digital marketing is the best bet as it is affordable than traditional media and boasts a larger reach than the conventional media.

A cost-effective digital marketing campaign should include the following:

Search Engine Optimization (SEO) – SEO increases your website ranking on the search engine result page (SERP). SEO is keyword search; the correct keywords will make your communication reach out to more customers, which will benefit your business. SEO packages are based on the number of targeted keywords; careful research on keywords and optimizing your website both on the technical and content side will make it cost-effective. SEO drives the organic traffic to your website or communication.

Search Engine Marketing: It is a tool to increase your website/communication result in the SERP; it is a paid form of search and drives inorganic traffic. It is also referred to as PPC (pay per click).

Social Media Marketing: It is essential as people, on average, spend almost 2 hrs on social media websites every day. It helps you build relationships by investing time rather than money. The level of engagement is high on social media platforms and hence can get your target audience involved with the brand. Havells cricket family, a campaign done by RepIndia during Cricket World Cup 2019, is one such example of customer engagement.         

Content Marketing: Creation of different types of content like infographics, videos, podcasts, etc., and applying SEO strategies to it makes it the most cost-effective strategy.

Email Marketing: As the name suggests, it is a direct marketing tool that helps you communicate your message through email. Direct mailers (DM) are an example of email marketing. It is the most cost-effective tool used by marketers.  

The year 2020 has changed things for businesses in a way no one could have imagined. The companies that were traditional marketing-oriented are also shifting to digital marketing, and this has become "the new normal" in marketing.

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Created on Sep 15th 2021 03:21. Viewed 263 times.

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