Marketing Spend and how to budget for 2022

Last year marketing budgets even amongst top marketing leaders took a historic hit. Nearly shrinking by half from 11% of total revenue down to 6.4%.

At InsightzClub we have reported on the uncertainty created by the covid pandemic’s impact on the economy in the past. But with consumer confidence slowly returning, many marketers are making a rebound this year, with a majority expecting to increase their marketing budgets for 2022.

Here’s what you should take note of so that you can maximise the gain from your marketing spend.

Digitalizing Marketing

Many marketers jumped onboard the digital marketing trend that has transformed the way brands have traditionally interacted with their customers.

An overwhelming majority of marketers plan to invest in this highly contested space, which includes Digital Video, Influencers and Social Media.

With the top priorities currently being: branded content by influencers, ads in social media stories and feeds, smart TV ads and online display ads.

Marketing automation has also become more popular with many brands spending up to nearly a quarter of their budgets on marketing technology. While software can evolve marketing processes, it’s always a good idea to assess what’s actually being used, what isn’t and what else is needed.

Goal Balancing Strategies

Long-term brand building seems to have taken a back seat as often brands prioritize sales activation for showing immediate performance result, however, this can be hazardous in the long-run and hurt the brands budget later on.

Brands navigating uncertainty will struggle to plan beyond the present business needs. Unless the brand’s survival is at stake, there is no sense in cutting brand building initiatives.

Practicing Agility with a Readiness to React

If the pandemic had taught businesses anything it is how to adapt to new situations and overcome new challenges. Being flexible has proven to be greatly advantageous for many brands that have emerged from the pandemic stronger than before.

A strong budget strategy always begins with maximising Return on Investment. Only through frequent monitoring will you identify underperforming marketing elements and have time to respond with improvement ideas.

As such having a vigilant oversight team that strategically optimizes your budget is so important for budget efficiency.

To learn more about how InsightzClub’s marketing performance tools can help you optimise your marketing spend, feel free to reach out to us.

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