How To Allocate Your Marketing Budget for 2013

Oct 20, 2012

As the year winds down and the fourth quarter begins, we have a feeling that you are doing one of two things: fretting about year-end sales or planning for 2013. If you are doing the latter, we are here to help. While we can’t provide you with the answer on how to make 2013 your best year ever, we can provide a recommendation on how to most effectively allocate your marketing budget for the upcoming year.

The Breakdown

We are strongly advocating a 40/20/40 breakdown in spending on all marketing endeavors for the coming year. In our proposed allocation of funds, we have allotted 40% for mobile technology, 20% for social media and 40% for traditional marketing strategies that your company currently uses.

Mobile

Last week we wrote about why mobile is the future and we are here today to reinforce this concept. According to Gartner, in just two years 90% of all US bandwidth is expected to be mobile devices. Even more impressive is that by 2015 mobile commerce will be a $25 billion industry, up from today’s $3.5 billion. Focusing on mobile doesn’t mean that your entire staff needs to run to the Apple store and beg for the iPhone 5 in order to be up to snuff with current technology. Instead, consider mobile devices the new desktop. Consumers are more frequently searching for information on mobile devices and when a page is not optimized for mobile browsing, chances are they are going to return to the search engine and click to your competitors’ page. We highly recommend (with a forceful shout) that you have mobile friendly landing pages in order to remain relevant. Many companies are already investing in mobile or have plans to do so. Ride the wave in 2013 so that you don’t have to play catch up in 2014. Another thing to consider when investing in mobile is advertising. It has been shown that 2/3 of consumers will notice and ad on a mobile device and 1/3 of these ads result in a click. Don’t miss out on opportunities to gain new customers.

Social

A recent study by Gartner found that 22% of online time is spent on social media sites and that number is expected to grow exponentially in the next few years. This means that not only do you need to have a presence on social media but you also need to ensure that all your social channels are optimized. In order to be able to present your customers and followers with the highest quality of information, invest time and money in content creation. Write pieces that are relevant to your company or industry and that will compel followers to engage with that content. Engagement is the key to social media marketing.

Traditional Marketing Strategies

When we say traditional we aren’t referencing solely the classically defined traditional platform that is print media, we are referencing what we define as tradition as of 2012 – this means television, internet, radio and various other media outlets that are not mobile or social. While the impact of these platforms is steadily decreasing, their effectiveness hasn’t evaporated overnight. Utilize these platforms as you had in the past but try not to rely as heavily on them as you had in previous years.

Don’t stop what you’re doing but be open to making improvements for 2013, especially in the mobile and social sectors.