If your clients are having trouble figuring out how to set their marketing budgets, they’re in good company. Businesses are also scratching their heads about marketing mix. Should they use more digital? More mobile? And how often should they adjust their budgets? The Nielsen Company sought answers to these questions by interviewing 200 marketing execs at B2C companies with revenue of at least $10 million. Here’s what they learned and published in their Solving The Marketers' Dilemma report.
B2C marketers report they’re being asked to do more with less. Specifically, the number of advertising formats has increased significantly in the past few years. Ad budgets have not. Marking professionals face the following challenges:
- Determining optimal marketing mix to maximize ROI 63%
- Predicting how changes to marketing mix will impact bottom line 65%
- Responding to budget changes that impact marketing during the year 57%
Back in the day, big marketers may have established their budgets at the beginning of the year. The speed of commerce has increased substantially in recent years. Now, most marketing professionals tweak their budgets regularly:
- 10+ times a year: 8%
- 5–9 times a year: 15%
- 2–4 times a year: 58%
- Set annually: 20%
Marketing Mix Models
Businesses can adjust their budgets by using marketing mix models. These models “look at the historical relationships between marketing spend and business performance in order to determine business drivers.” Only about 42% of smaller businesses, revenue under $5MM, use these models. At larger businesses, those with $20MM+ in revenue, the use rate is 53%. Overall, about 48% of businesses use some form of marketing mix modeling.
That statistic may explain why 60% of businesses lack confidence in their marketing budgets. Nielsen research found that businesses with some form of marketing mix and attribution modeling in place had more confidence in their planned spending. If your solutions include marketing mix modeling, show clients how they can improve their ROI. You can also show them how they stack up, digitally, against the competition. Run a Digital Audit on AdMall from SalesFuel and share the information as part of your pitch to help them sell more.