One positive result of the COVID-19 pandemic was the accelerated drive to digital marketing. According to the September 2022 CMO Survey by Deloitte, marketing budgets as a percentage of overall company budgets are at their highest levels (13.8%). But now marketing budgets as a percentage of company revenues are returning to their pre-pandemic levels. Brands need to update their digital marketing initiatives to stay competitive and make the most of their new budgets.
Businesses to Adjust Digital Marketing Initiatives
Which Media are Marketers Spending Their Budget On?
So, what are marketers spending their shrinking marketing budgets on?
- Social Media: 88.4% of marketers include this in their budget
- Mobile: 52.4%
Out of all 13 categories that Deloitte listed under marketing expenses, only two are specifically advertising media types. So, one way to rethink your client’s digital marketing initiatives could be to expand the media types they use.
Social media’s percentage of the average marketing budget hit its peak in mid-2020. After that, it fell back down to just above pre-pandemic levels (about 15%) and has stayed in that range ever since. However, Deloitte says that change is brewing once again. Within the next five years, social media’s percentage of marketing budgets is expected to rise up to 21.3%, nearly matching its pandemic percentage. This will make it an important part of your client’s digital marketing initiatives in the near future.
Although mobile ads’ percentage of the average marketing budget has returned to pre-pandemic levels, their allotted budget is expected to rise. According to Deloiette, within the next five years, mobile activities are expected to account for 24.6% of the average marketing budget. So, be sure your client doesn’t give up on mobile as a part of their future digital marketing initiatives.
According to Deloitte, 44% of the average marketing budget goes toward paid media. Paid media includes:
- Search Engine Optimization
- Search Engine Marketing
- Digital display
- Influencer marketing
- Paid social
- Digital TV
- Shopper marketing
- Sponsored digital video
- Video ads
- And more
Only 10.4% of marketing budgets go toward digital marketing outside of these paid media types, on average.
How can you know which digital media types will be most effective among your client’s target customers? Check out the target customers’ profile on AudienceSCAN on AdMall by SalesFuel. You’ll get a full breakdown on which media types influenced what percentage of that audience to take action within the last year. With that knowledge, you can determine which digital marketing initiatives you should suggest to your clients.
For example, if you explore AudienceSCAN on AdMall by SalesFuel and find that your client’s target audience responds well to one or a few of the media types listed above, they should definitely be included in your client’s updated digital marketing initiatives.
Other Digital Marketing Initiatives
Outside of digital marketing media, there are other digital marketing initiatives that marketers are taking to optimize returns. The top initiative is optimizing the company’s website (75.1% of companies list this as a top digital marketing investment).
A great way to optimize your client’s website is to focus on content creation. As we said in a previous SalesFuel blog post, “You can’t educate potential or current customers about your client’s products or services without well-written and provoking email, blog posts, white papers, etc. And you can’t hold their attention if your client’s website doesn’t provide educational and detailed content.” Check out the rest of the blog to find out what kind of content consumers want from the businesses they already do or are considering doing business with. The type of content your client puts on their website could determine how quickly they land sales.
Photo by Christina @ wocintechchat.com
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