Times are tough, no doubt about it. Budget cuts are being made left and right. Often the first thing to go is marketing, since after all it’s just an extra expense, right?
Think again. What’s the idea behind spending money on advertising and marketing? Brand awareness, promoting a new product, etc? Yes, but no. Dig a bit deeper. You spend a$1 on advertising with the hope of getting $2 (or at least $1.01) back in revenue. That’s the basic idea: ROI or whatever you want to call it. So that begs the question that if you know you can make more back in revenue than you spend in advertising, why would you ever, ever, cut that advertising budget?
The truth is (and this might sting a bit) you probably didn’t bother with making sure you got your money’s worth when times were good. It’s OK, we all get carried away sometimes in grandiose campaigns. But don’t let that alter your thinking into over-reacting in times like these and completely slashing your marketing budget. What should you do then?
Don’t cut your budget, but rather, make it more effective. Your budget for marketing that earns more revenue than it costs should be unlimited. Think about it this way: your budget for $1′s to turn into $1.01 should be unlimited. The great part about this is that you’ll also benefit from some less tangible (and less trackable) results from advertising like increased awareness in your community, especially when competitors are slashing their ad budgets instead of making them more effective.
But don’t just take my word for it, here’s what Seth Godin has to say:
If the local bank were offering a sale on dollar bills, ninety cents each, how many would you buy?
Most rational people would say, “I’ll take them all please.” Especially if you had thirty days to pay for them.
So, why, precisely, do you have an ad budget?
If your ads work, if you can measure them and they return more profit than they cost, why not keep buying them until they stop working?
And if they don’t work, why are you running them?
Read the rest of Seth’s thoughts over on his blog.
When you’re ready to make your marketing budget more effective rather than non-existent, come see us…(see below)
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Reel Motion Media Inc., is a Video & Web Marketing company that understands how to maximize your company’s exposure in the internet of tomorrow. Reel Motion has full video production capabilities and an experienced web marketing staff that will make every dollar of your budget count, even if your budget is only a dollar. Contact them today at info@reelmotioninc.com for more information on taking your company to the next level.