As we approach the end of 2023, the all-important budgeting season looms over us.
I know, the immediate reaction is a collective sigh, imagining long meetings and endless spreadsheets.
But consider this: our 2024 marketing budget isn’t just an exercise in numbers. It's our strategic map to tomorrow's success. And if you haven't begun plotting out your course, now's the time.
The Landscape Shift: A Glimpse of the Data
The post-COVID world has brought a palpable change in business operations, not least in the realm of marketing. Historically, the average firm allocated 11% of its total revenue to marketing. Post-COVID, we witnessed a fluctuation in this figure.
In the immediate aftermath, a reactionary budget cut saw marketing allocations dip below 10% for many. But as the dust settled and the digital realm took center stage, the latter part of 2021 and 2022 saw a rebound to approximately 12-13%. The resilience of digital ecosystems, combined with a pent-up consumer demand, made this shift inevitable.
So, what does this mean for our 2024 budget?
1. Embrace Digital but Don’t Neglect the Physical: The post-COVID era saw a skyrocketing reliance on digital platforms, be it for online purchases, digital ads, or virtual events. While the importance of digital cannot be understated, with the world reopening, in-person events and physical marketing avenues will regain their significance. Your budget should account for both.
2. Innovation is Non-Negotiable: The modern consumer is more connected and discerning than ever. They crave fresh, innovative experiences. Allocate funds towards researching and implementing new marketing technologies and strategies.
3. Diversify Marketing Channels: Don't put all your eggs in one basket. The rapid rise of platforms like TikTok in recent years underscores the need to be present across diverse channels. While it's essential to recognize where your core audience resides, it's equally crucial to tap into emerging platforms.
4. Content is Still King: High-quality content drives engagement. This isn’t changing in 2024. Whether it's video, blog posts, or podcasts, ensure a sizable chunk of your budget is dedicated to content creation and curation.
5. Data & Analytics: The ability to measure campaign efficacy is invaluable. With the impending cookie-less world, investing in first-party data collection and analytics tools is crucial. Understand your consumer's journey, tweak your strategies in real-time, and deliver a personalized experience.
6. Training and Upskilling: The marketing landscape is ever-evolving. Set aside funds for regular training sessions, workshops, and certifications for your team. A well-equipped team is your biggest asset.
7. Sustainability & Social Responsibility: Modern consumers value brands with a conscience. Sustainable practices and social responsibility aren't just buzzwords – they're a necessity. Whether it's eco-friendly packaging or community initiatives, ensure your budget has provisions for this.
Prepping for 2024: Why Start Now?
Every seasoned marketer knows that a well-structured budget is the backbone of successful campaigns. Starting now offers several advantages:
- Scenario Analysis: This allows for thorough deliberation, multiple iterations, and room to contemplate different scenarios. If 2020 taught us anything, it's to be prepared for the unexpected.
- Stakeholder Buy-In: An early start provides ample time to gather insights from all departments, ensuring a comprehensive and cohesive strategy. Additionally, it offers ample time to secure buy-in from top management and align with their vision.
- Early Bird Advantage: Securing deals with marketing platforms, event sponsors, or ad spaces often comes at a discounted rate for early planners.
The Bottom Line
The post-COVID era has reinforced the centrality of marketing in driving business growth. As we look ahead to 2024, crafting a meticulous, forward-thinking budget is paramount. It’s not just about numbers and allocations; it's a reflection of our strategy, vision, and ambition.
So, to all my fellow marketers – grab that spreadsheet, that whiteboard, that coffee, and let's shape the future.
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