The end of the year is fast approaching. Consequently, it is time for brand marketers to take stock of the return on investment (ROI) of their 2018 marketing spend. This assessment, in turn, will provide the raison d’etre and impetus for the 2019 budget.
The importance of determining the ROI of the marketing spend is highlighted by the Deloitte’s report on The Wall Street Journal. This article notes that companies spend on average 7.5% of their total earnings on marketing with businesses in the tech industry spending up to 13.8% of their total revenue on marketing.
Components of a marketing strategy
A company’s overall marketing strategy should be made up of different channels like Pay-per-click – PPC, Search Engine Optimisation (SEO), print media, social media marketing (SMM), as well as television and YouTube advertising campaigns.
The mix of marketing channels is primarily determined by the products and services that the company sells. And it stands to reason that different products and services have distinct consumers. Because different companies have diverse target audiences, they need to prioritise the channels that are most relevant to their unique audiences.
What is a target audience and how is it determined?
In essence, a target audience is made up of a specific type of consumers. It is usually described as a persona-type.
For example, a persona-type can be made up of teenage men and women, aged 18-24, who are part of the upper-income bracket. Also, they are brand-aware and image conscious. They follow influencers on social media (Facebook, Instagram, and Pinterest). Also, they very seldom read any print media. In summary, they are fully assimilated into the online world.
The people in this persona still live with their parents in large homes in upper-class neighbourhoods, all drive their own cars that were given to them, and they receive substantial monthly allowances. They are trend followers, and buy the latest gadgets like mobile devices, and they keep up to date with the latest fashion.
Thus, it is clear from this description that this persona-type is cash-flush and enjoys spending money on high-value items that are manufactured by top brands.
The marketing mix in 2019
The best way to describe what brand marketers should consider for 2019 is to cite a simple case study. Let’s assume that the company has developed a one-person shooter mobile app. This app is currently only available on iOS (iPhones and iPads) devices.
Therefore, the question that needs to be asked and answered is: What are the best marketing channels to market this mobile app?
It is clear from the above persona-type description that this mobile app’s target audience should be people that fit into the persona-type described above. It must also be noted that the product is a mobile app; thus, there will be very little ROI on a print media campaign. This is because this the consumers linked to this persona-type do not read print magazines.
On the other hand, using the SMM and PPC channels to market this product will derive the best ROI on the marketing spend as this is where this product’s target audience spends most of its time.