Digital Advertising and marketing is extra essential now than ever > GSA Enterprise
Posted by Chris Manley, Engenius CEO
Half a dozen years ago, I read a study that indicated that Fortune 500 companies would spend 80% of their marketing budget on digital marketing and only 20% on traditional marketing by 2025. Traditional marketing includes things like television and newspaper ads, event sponsorship, and billboards – historically trustworthy places to invest marketing dollars. Many laughed at the time that companies were pulling away from these so much to spend on things like websites, online ads, and search engine rankings.
2020 was full of uncertainties. The only thing that has been constant since mid-March is how much we’ve shifted even more to digital. Between March 1 and March 17, home internet usage in the US increased 18% – in less than three weeks. By the end of March, over 80% of consumers stated that they either had already consumed more online content or expected this in the coming weeks.
In times of uncertainty, many companies try to cut their marketing budgets. History shows that this is not a smart move. Companies that recover from difficult times invested in modernizing their marketing plans and building new customer loyalty.
Digital marketing is here to stay
Americans’ habits have changed, and most experts agree that even after the pandemic is over, we will not go back to what it was before. Compared to brick-and-mortar stores, consumers are increasingly reliant on online purchases. Companies do more research online with vendors than in the ubiquitous lunch meetings of the past. More than ever, people are staying at home and working from home – they are changing the way they consume media.
Is your marketing budget current?
We are often asked: “How much money does our company have to spend on marketing?” The answer is: it depends. Are you trying to grow 5% a year or 15% a year – or even 50%? Is your customer base unique or do you have a recurring revenue model?
While these questions are important, it is also important to ask how you would like your marketing budget to be spent. Most surveys show that corporate marketing budgets have moved closer to digital marketing and are now over 50%. These resources are used for web design, content marketing, search engine optimization (SEO), online ads, social media ads, and more.
A trustworthy partner is key
A great website isn’t enough for most businesses to be successful in digital marketing – but it’s a great first step. In order to steer the constant evolution of marketing, it is important for companies to have a trusted partner to help them advance their marketing path. Often times, for less than the cost of a full-time marketer, small businesses can partner with a company that has decades of digital marketing experience to help develop a strategy for your business. This trusted partner can tell you where to invest in marketing and, most importantly, where not to waste valuable time and resources.
The world has changed. People’s behavior has changed. Is your company adapting? Is your digital marketing strategy positioning you for success? Is your marketing budget in line with today’s trends and data? Do you have a digital marketing partner who can help you navigate the rapidly changing marketing landscape?
On the other side of this uncertain time, if you want to be successful, these are the questions you should ask. Digital marketing is here to stay. Those who invest wisely will be the companies that thrive.
This content was first published in the GSA Business Report Book of Experts.