What analytical approach can be used to determine the optimal marketing budget and its allocation across digital marketing channels? We all know that it is impossible to predict the ROI of a particular marketing initiative with 100 percent accuracy. Having said that, you can at least make a reasonable forecast using marketing analytics data like impressions, page views, keyword volume, conversion, social media engagement, and the audience growth.
What is analytics and why does it matter? Marketing analytics also allows you to get to know your customer better by collecting data about your audience’s profile depending on your goals from different social media channels. Marketing analytics involves thorough and smart media planning, analyzing audiences, channels, platforms, messaging, and advertisements to discover the most effective marketing methods to promote your brand or product or service.
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What is a good marketing budget? The right marketing spend for your business ambitions for every business depends on whether there is opportunity to grow market share or a threat of losing share that could be addressed with better advertising spend. A general rule of thumb is to allocate a percentage of revenue for marketing budget. U.S. Small Business Administration, an independent agency of the United States government, recommends spending between 7 to 8 percent of gross revenue. There will naturally be wide variation on this marketing budget benchmark between different industry sectors and business activities.
Ad budgeting thought experiment.
What is a good marketing ROI? The practice of attributing profit and revenue growth to the impact of marketing spend is ROI. By calculating return on marketing spend can help guide business decisions and optimize marketing efforts. The rule of thumb for marketing ROI is typically a 5:1 ratio is considered strong for most businesses, with exceptional ROI being considered at around a 10:1 ratio; meaning every $1 spent on marketing generates $10 in sales.
What is micro-influencer marketing? People who create content on social media and have between 1,000 and 100,000 social media followers and use their social media presence to promote products relevant to their interests or expertise. Their smaller audience is a plus not only does a smaller audience result in smaller fees and compensation expectations and more long-term relationships with a lot of brand loyalty; you get a rare combination of quality and quantity.
How do you measure the ROI of influencer marketing? As a marketer how do you prove the influencer marketing channel’s value? Platform with a 360-degree view of how influencer marketing fits into your marketing mix and capability to understand the channels that are driving website traffic, brand engagement, and ultimately boosting sales is what you need to show that influencer marketing is a worthwhile channel.
With the GetGoingHub marketing analytics software marketers can put data into perspective, allowing them to detect trends which can be leveraged to improve corporate performance. And Account managers may be able to use this analytics information to gain new business, reallocate resources to the most efficient marketing channels, and forecast new opportunities. The benefits are clear; incorporating marketing analytics tools into the sales procedure can save time and improve ROI.