How to blow your marketing budget
Whether your business is in the financial, fintech, insuretech or construction and property industries, one rule holds true for every organisation – your marketing budget is limited. And easily wasted if you’re not careful.
Here are our top two marketing budget busters – and how to avoid them.
- Google AdWords
The need to appear at the top of the search engine results is undeniable. And Google AdWords offers a quick and easy way to jump to the top – for a fee.
But for highly competitive sectors, the competition for keywords is fierce, driving up the cost for each ad Google displays. So although you can set a budget to prevent overspend, that sum may be quickly consumed with minimal ad displays.
Google AdWords is a valuable tool, but only when used as part of an intelligent, finely tuned campaign – otherwise you’re simply burning your marketing budget needlessly.
- Display advertising – aka “banner ads”
Despised by web users, banner ads are widely regarded as one of the worst innovations in the history of the internet. Display ads have a shockingly low engagement rate; just 0.12% of banner ads result in a click-through according to eMarketer.
And in the age of mobile web browsing, over 60% of clicks on banner ads are due to “fat thumbs”. In which case the engagement rate falls to just 0.07% – a terrible return on investment.
Worse still, more and more users are relying on ad blocking tools to prevent banner ads being displayed as they surf the web. So you could be paying for ads that are never even seen by your target audience. And newer display ad techniques like remarketing simply consume your marketing budget even more quickly with similarly dubious results.
Both of these marketing budget busters fail because they follow the old “broadcast” techniques. But in an age where customers are not only able but prefer, to carry out their own pre-purchasing research, “shouting” about your products and services online is a complete waste of time, energy and money.
The answer – for every industry sector – is inbound marketing. Using carefully crafted content you can help attract the attention of search engines and genuine prospects you stand a far better chance of generating the leads and sales you need.
If you don’t, your competitors will
Dumping outbound marketing may require a change of mindset, but it is crucial to stay ahead of your customers. Because if you’re not using inbound marketing, your competitors certainly are – HubSpot found that 3 out 4 marketers are prioritising inbound marketing.
This means that at least 75% of your competitors are using content and inbound marketing techniques to pull prospects towards their business and away from yours. And they are generating a better ROI on their marketing budget in the process.
In effect, inbound marketing gives your customers greater reach with their assets and frees up the budget to further improve their campaigns So they will only continue to outperform your campaigns, eating into your market share in the process.