How to market successfully during uncertain times is a top topic on every marketer’s and CEO’s mind. Many marketing teams are feeling resource challenged as they adapt to economic headwinds and customer journey changes. Fifty-eight percent of CMOs report they lack the in-house capabilities to deliver their marketing strategy. Yet layoffs and hiring freezes are limiting what people can take on in-house.
So, what are budget-conscious marketers and business owners to do?
Invest in your brand and your business.
Believe it or not, marketing spending is actually on the rise, climbing from 6.4% of company revenue in 2021 to 9.5% in 2022. We anticipate this number will remain steady—or even increase—as businesses work hard to drive profits in today’s competitive business environment.
So, where should your business be investing its marketing dollars in 2023? Here’s how we expect marketing budgets to shift as we enter a new year—full for new growth opportunities.
Where better to funnel your marketing dollars than into your business? We recommend allotting a portion of your budget to optimizing and automating the marketing technologies that power your business operations.
Consolidating disparate Martech is a fantastic starting point as this serves as the foundation of profitable modern marketing. You may want to consider investing in a larger Enterprise Resource Planning (ERP) software to provide a holistic view of your company. This is especially true for enterprise-sized companies.
We expect to see more investments in custom-built software and integrations in 2023, including:
It’s more difficult—and more expensive—to reach the right audience these days. Increased attention to protecting personal information and changing marketing platforms have limited the ways businesses can target people with relevant online advertising.
For example, Google is set to phase out third-party cookies by the end of next year due to rising privacy concerns. A cookieless world is one where marketers are less able to track user behaviour across the web, making it harder to deliver customized experiences that motivate people to buy.
That’s why first-party data collection is so critical in 2023.
First-party data can include:
Permission-based marketing is extremely effective, so protect your first-party data at all costs. Focus on building community and brand loyalty on the channels you own and control—rather than exclusively on those that are paid or earned. These are the individuals who’ve already expressed interest in your products or services, so they are more likely to purchase what you have to offer.
Video is everywhere—and we’re about to see even more of it. Every week, 92% of global internet users view some type of online video. Video and animation continues to grow, becoming one of the most popular formats for people to learn about brands, products, and services.
Given its popularity and the limited attention span of today’s buyers, marketers are investing in the production of short-form videos—videos that are bite-sized and digestible. These may include:
Predicted to be a hot trend in 2023, short-form video production is a worthwhile investment.
However you decide to allocate your budget, you’ll need a way to track how well your marketing efforts are performing across channels. Since 2023 is expected to be a bit unpredictable, regular reporting is crucial.
Some key digital marketing KPIs include:
First, start with some baseline measurements. Set some realistic goals and then regularly report on those metrics throughout the year. If you are analyzing data regularly (either in-house or with the help of an agency), you’ll be better able to adapt and pivot as things change over time. You can move your dollars into the most profitable initiatives to get closer to your goals.
Much of the world is experiencing digital burnout. People are spending so much time online, falling down the rabbit hole of mindless scrolling. We’re being bombarded with online advertising (some of which is skippable), and many people are becoming numb to it.
How does your business cut through all the noise online?
We recommend adopting a hybrid marketing model—with part of your budget dedicated to offline marketing initiatives. Reverting to more traditional forms of marketing (like mailouts and outdoor advertising) can stave off consumer digital fatigue and provide unique ways to connect with your audience.
Offline advertising can include:
Don’t be afraid to get out in the real world and make your business known!
2023 holds tremendous opportunities for marketers. While your budget allocation will depend on your industry and specific business goals, it’s smart to focus on key strategic initiatives like the ones recommended above.
Keep in mind that the financial uncertainties of 2023 could mean consumers will take longer to purchase, increasing the need for brand awareness campaigns and multiple marketing touchpoints. Your business needs to remain front and centre for when people are ready to make a buying decision.
We invite you to reach out to our marketing-technology agency if you need any help. Together, we can deliver more positive customer experiences, improve your marketing technology ecosystem, and grow your business.