Many enterprises have experimented with digital and social media marketing, and in some cases, have outsourced the effort. Now that these marketing strategies have become part of the long-term term business plan, managers must optimize their methodologies and move the functions in-house.. Research by Boston Consulting Group shows that doing so can help businesses cut costs and boost sales.
Currently, BCG analysts say that businesses still in the experimental phase of new media spend about 10% of their marketing budget on digital formats. In the building stage, a company allocates more than 10% of marketing budget on new media such as display ads or social media. By the time a company has fully committed to digital, the budget allocation ranges anywhere from 20%-50%. Businesses in any of these stages can benefit from better integrating their digital goals with their overall strategy.
Boston Consulting Group’s benchmarking study on how digital marketing works within businesses found that taking specific steps can deliver the following benefits:
- Align digital strategy with business objectives – 10%+ improvement in brand perception
- Integrating social media with marketing strategy – 0.7% to 1.1% sales increase
- Refining media mix to include more efficient channels – 10%-20% cut in inefficient media spending
Older organizations must be prepared to leave behind traditional marketing skills such as analyzing consumer trends or market conditions and solidifying the organization around the ‘brand vision and strategy’. Instead, companies must champion digital skills. This means investing in real understanding of the technology that drives mobile and social media and digital advertising. And the organizations must shift to regular monitoring of new digital trends.
BCG analysts point out that many marketers lack the talent and resources necessary to manage their own digital and social media efforts. But as new media grows in strategic importance, savvy organizations will want to bring this effort in-house. Businesses that move quickly to integrate their digital and social media strategies completely will benefit from a more effective use of marketing resources and see their sales increase.[Source: Sayre, Katharine. Marketing Capabilities for the Digital Age. Bcgperspectives.com. 31 Jan. 2012. Web. 15 Feb. 2012]