Are you devoting enough resources to your digital marketing campaign? You might be falling well behind the curve and not realize it. I've put together a ton of powerful statistics in laying out a case for you to consider shifting your budget to incorporate more resources and attention to the rise of digital marketing so your business can continue to grow and achieve goals.
Could you be over-spending on traditional marketing?
Just because it has worked in the past doesn't mean it will work as well in the future, if at all. If you spent your annual marketing budget on mailers, brochures, catalogues, and conferences for as long as you've been around, don't feel bad. You're certainly not alone, but if you continue with your entrenched marketing tactics you may well be all alone soon. Your customers and your competition is leaning towards the online world for their information and resources.
One-third of customer service interactions took place online last year (social media, chat or email), but that volume is expected grow 53% in the coming year. - i-SCOOP
There was a time when companies got all of their leads and new business through traditional channels, but not anymore. Spending on trade shows and conferences continues to slide as marketers realize their costs are tremendously high and ROI continually more difficult to achieve.
According to B2B marketers, 14% of their marketing budgets will be devoted to in-person trade shows, conferences and events in 2015. 10% will be dedicated to digital advertising. - Statistica
Take a close look at your conversion data over the last 3-5 years for traditional marketing efforts. Has it been slipping? If it has you might consider reallocating some of those dollars towards online marketing efforts. Online cost-per-lead numbers are almost always lower than their traditional cousins.
Could you be over-spending on advertising?
Maybe you're spending a good amount of your existing budget on traditional advertising channels. Allocating a large chunk of your budget towards radio, TV, and sponsorships may be just the way you've always done it. You may want to consider reallocating some of those funds, however.
28% of marketers have reduced their advertising budget to fund more digital marketing. February 2015. - Business 2 Community
Digital ad spending rose 17.7% in 2014 and will rise another 15.5% in 2015, fueled by mobile. - emarketer.com
I'm not suggesting that you do away with your advertising budget, I'm advising that you once again shift it to the digital realm. If you haven't made this shift you're clearly behind the curve.
Digital ads will lead the way for global media growth in the next four years, accounting for 33% of total advertising revenue, nearly catching TV in the process. - Digital Strategy Consulting
Could you be over-spending on sales staff?
As digital marketing is on the rise, reliance on sales people is decreasing during the Age of the Customer. Gone are the days when prospects gather all their information during presentations and no one answers those cold calls anymore.
Prospecting is the most difficult step of the sales process. This issue is compounded by the fact that salespeople lack vital information before they reach out to leads. - HubSpot State of Inbound Sales Report
According to that same HubSpot report, buyers are not very trusting of salespeople. To regain credibility among executives, salespeople should arm themselves with content and become active on social networks.
You simply have to empower your sales staff with digital marketing tools if you want them to be successful. However, the answer may not be simply spending more on sales. The answer could be a reallocation of resources by letting under-performing staff go and shifting the cost of those employees to better support the ones that remain. If you're struggling to make room for digital in your budget consider slicing out a chunk from sales overhead.
2 sales reps + 1 digital marketing campaign can bring greater results than 3 sales reps
It's time to shift your mindset, and your budget, before you're left in the dust
It's no secret that organizations have been adopting digital marketing strategies at an increasing rate. According to Strong View's 2015 Marketing Trends Survey, 80% of US marketers planned to increase or maintain their digital marketing activities this year. If you think you can survive by continuing to stick your head in the sand about the rise of digital marketing you're not reading the tea leaves. Most growth-focused companies are clearly doubling down in their belief and investment in online marketing and advertising.
25% of total budgets were spent on digital marketing, with 51% of companies planning larger budgets for 2015. - Information Management
Budgets have grown to the point where they're commanding a significant share of revenue.
U.S. marketers spend an average of 2.5% of their total company revenue on digital marketing activities, according to a new report by Gartner Inc.
More than a third of CMOs say that digital marketing will account for 75% or more of their spending within the next five years. - AdWeek
Companies are stocking up on tools, resources, and support teams as they struggle to find the recipe for success.
38% of companies will hire more digital marketing professionals in the coming year. But about half of those positions will be filled by temporary or contract help, not full-time employees. - MediaPost
And the trend will only grow at an escalated pace as consumers become more and more reliant on technology and mobile devices.
More than a third of CMOs say that digital marketing will account for 75% or more of their spending within the next five years. November 2015. - marketingcharts.com
If your challenge is reaching customers, you have to recognize the power of inbound marketing
courtesy of HubSpot's 2015 State of Inbound Report
If you're not sure how to build a digital marketing strategy, we are
At Revenue River Marketing we design, build, and execute inbound marketing campaigns. Our focus is enabling sales departments through digital business development. We have a simple, no obligation discovery process that will educate us both. If you're ready to talk about your goals, understand your biggest opportunities, and see a plan for putting your organization at the front of the herd than let's get started. Here's a look at our straight-forward discovery process.
- Exploratory Call: We start by talking about your goals. What you’d like to do & what you have in place
- Marketing Diagnostic Review: We dig into your existing assets, offering observations, tips, and resources to understand options
- Proposal for Services: We present a plan to address your needs and reach your goals with a detailed support proposal
- Onboarding Project: We address the necessary foundational elements, crafting a strategy for everything we’ll execute
- Ongoing Campaign Execution: Our team of marketers works with you to build, publish, promote, and measure everything we’ve scoped for your digital marketing strategy
If you'd like help, I have options. First, you should check out our digital positioning guide. It's not gated, don't worry. Plus, we love to talk marketing. Just click the scheduling link below and let's have a call.
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special thanks to Business 2 Community's stats and facts research article and the CMO council's facts & stats on marketing spend