With the advent of social media and digital PR and declining budgets during this economic downturn, many PR and marketing folks out there are left with a bit of a budgetary quandary: how should I spent my marketing and PR dollars so that I get the best reach for my product/service?
While I focus on more traditional methods of marketing, direct mail and telemarketing for instance, I believe that there is an optimal solution when it comes to marketing spend. And, that optimal solution is going to vary depending on your business/market and your audience.
The biggest issue marketers face is how can I maximize the ROI of my marketing programs. And, regardless of whether you use revenue or profit to determine the ROI, you need to make sure that you minimize your expenses so that you can maximize your ROI. And, that’s where the problem creeps in…you go cheap to keep your costs low…but you get no conversions from your marketing expenditure at all.
So how do you know if your spend is optimal? Here are a few helpful hints:
- You achieve qualified responses from each method you employ
- You can close/convert business brought in by each method
- You increase the reach of your program at a 2 to 1 or more spend ratio as you ramp up your campaign
- You obtain profitable, longer-term customers through each method you employ
- You make more from your campaign than it cost you—either through a Revenue-based or a profit based ROI calculation
Hope this helps!