Marketing gets the butt-end of any budget discussions. In competitive environments, marketing budgets are critiqued the most and it pushes companies to maximize the effectiveness of every dollar spent. However, when those analyzing the marketing spend take a look, they never do so through different lenses which leads to missed opportunities and insights that could inevitably boost ROI.
Understanding the Importance of Detailed Marketing Spend Analysis
While companies will track the programs, channels, and campaigns they’re investing in, they only do so at a glance. It’s important to categorize and analyze the marketing spend through different lenses – as mentioned above:
1. Funnel Stage
Anyone who is managing marketing campaigns should understand how much money is being allocated to the top, middle, and bottom of the marketing funnel. Top is all about awareness, so casting a broad net for potential customers is key and usually comes with a higher allocation of funds. The middle of the funnel focuses on engagement and means you’ll have to allocate a budget to nurturing the interested people caught in your casted net. The bottom of the funnel is when the conversion takes place. Each stage is different in terms of strategies, content types, and budget. Sometimes, companies fall into the issue of spending too much or too little at each stage and it can cost them potential clients.
2. Customer Segments
Ideal Customer Profiles (ICPs) are important for everything you do in marketing. Content is associated to this, funnel stages are associated with this, and understanding which are receiving the most marketing attention is key. Different segments respond and engage with different types of messaging and marketing tactics. For example, some tech-savvy millennial named John might prefer engaging digital ads. On the flip side, a decision-maker in a corporate setting might be better engaged with detailed whitepapers and case studies…
3. Geography
Finding where marketing spend is being spent on a regional or national level and then finding which areas are yielding the most ROI is another layer of insight people will usually ignore. Cultural nuances, economic conditions, and market saturation can vary greatly by geographic area and influence the effectiveness of your marketing campaigns – for better or for worse.
Real-World Benefits of a Multi-Faceted Spend Analysis
By adding multifaceted approaches to analyzing marketing as a whole, companies can find a ton of insights that might benefit them:
Effectiveness at Different Funnel Stages: Depending on the specific stage of the funnel an individual is at on their buyer journey, certain types of content might be better for them or more effective to them. An example of this is ToFu is better paired with educational content while BoFu is better associated with product comparisons.
Segment-Specific Creative Success: Creative approaches will have different outcomes depending on the audience in which they’re targeted to. Tailoring creative content to the preferences and behaviors of each segment can enhance conversion rates and engagement.
Regional Campaign Profitability: Some companies perform better in one geographic area than they do another. This could be due to competitive presence, market maturity, or just local preferences. However, understanding the company’s performance per region can help the marketing decision makers allocate budgets more effectively and boosting ROI.
Takeaways
Looking at marketing spend through a detailed filter won’t just optimize budget allocation; it reveals further insight that might help your company strategically in terms of optimizing pipeline and revenue growth. Realistically, a successful marketing campaign or investment has to have the mindset of: it’s not how much we spend, but where we spent that matters.
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