Are You Ready to STOP Wasting Money on Marketing?
Stop wasting money on marketing! Whether yours is a nonprofit or for-profit business, this sounds like a pretty good idea, right? Especially when we spend so much on marketing in the first place.
Before we can stop wasting money on marketing, there are three things that must happen first:
1. Acknowledge the problem
Fortunately this is pretty easy, because marketing is broken and getting worse.
According to recent research:
- 40% of what we spend on advertising is wasted.
- 75% of marketers who try to calculate marketing ROI encounter problems doing so.
- Many suffer the compound effects of stress, staff turnover, lack of transparency, and the inherent knowledge that their marketing isn’t as effective or efficient as it could be.
Worst of all, most companies lack the belief that there’s anything they can do about it, so they begrudgingly accept the status quo that has persisted for decades!
Something’s clearly wrong, but what can you do about it?
2. Believe you can fix the problem
If you don’t believe that marketing can be fixed, you won’t bother trying.
Many believe marketing is too difficult to measure because the variables are out of their control, or because they don’t have the resources or perfect visibility into every step of the conversion process.
The truth is, sometimes businesses make measurement harder than they need to by attempting to be more sophisticated than their circumstances warrant.
Until we reach relatively high levels of marketing efficiency, basic experimentation works for most organizations.
The trick is to be able to scale measurement across multiple media and campaigns, and to make the information easily available to those who need it. This requires:
- Simplifying what is measured
- Adopting a systematic framework for planning, execution and analysis
Ultimately, it takes more than measurement to stop wasting money on marketing, and before we can find the answer, we must first…
3. Understand the problem
The first place many businesses look when seeking to improve their marketing is their tactics. They think, for example, if they “did social media,” sent more emails, or wrote better copy, that all would be well. This is almost always the wrong place to start, because tactics aren’t the problem.
The state of marketing has been blamed on many things, including:
- The inability to measure consistently across all media
- Dramatically changing consumer sentiment
- The sheer volume of media choices
While these are significant factors, they can be mitigated with the right approach.
So what is the problem? We believe there’s a bigger issue at play...
In our experience, businesses waste money on marketing because marketing is permitted to exist as an isolated black-box business function characterized by a series of random one-off tactics with little to no effort in analysis or optimization, little connection to top-level organizational goals, and a general absence of institutional marketing knowledge.
Breaking this down and analyzing the different issues at play holds the answer to how to stop wasting money on marketing and will be the focus of future posts.
If you agree that...
- Marketing is broken
- It’s within your ability to fix
- It involves more than tinkering with tactics
...then you’ve got the foundation for what it takes to stop wasting money on marketing, and you’re in the right place!