A Data-Approach for Marketers to Counter Withering Marketing Budgets
As a rule-of-thumb, companies spend 10% to 25% of sales on marketing. Even the successful behemoths such as Apple, Samsung, P&G spend billions of dollars of marketing every year.
Agencies fight tooth-and-nail to snag the biggest accounts. Recently, there has been a backlash from Companies such as P&G. This has been about the actual effectiveness of all the branding and marketing campaigns. In fact, this was what the CFO of P&G. Jon Moeller, said earlier this year,
"We see over $2 billion in savings opportunities in marketing spending, with half or more coming from media rates or eliminating supply-chain waste,"
"We're targeting up to half a billion more from reducing agency fees and ad-production costs. And we see about half a billion in sales from in-store materials, direct-to-consumer programs, and improved efficiency in trial and sampling programs."
This may be the canary in the mine, the writing on the wall, of a tsunami of marketing budget cuts by other large companies.
That is further worsened by reports about Click-Farms where up to 80% of traffic to your websites could be fake.
What do Marketers Do Then to Justify their Campaigns and Fees ?
We do know of any perfect solution to this problem. But we can try to mitigate it not by policing the outcome metrics more, but rather use more reliable data to plan better marketing campaigns. Start stronger at the Front.
In designing a campaign, if we have more hard data to justify what consumers want in a brand, a product or an event, and we know what consumers think of competitors' products, that would be a boon to marketers.
Because Marketers can justify creative decisions with Data. And present with confidence to clients their ideas.
One type of data which should definitely not be overlooked is customers conversations, opinions and views. This is unstructured data and the technology to make sense of it all is called Natural Language Processing (NLP).
We have to incorporate Machine Learning so that the technology becomes more efficient and effective in mining and sorting out the data and semantics.
Learn more about this technology and how we can use NLP to help in your marketing campaigns. Speak to us.