Why innovation deserves a place in your 2018 marketing budget
Marketing budgets are increasing and technology is the driving force behind it.
Webstrategies found that total marketing budgets are between 7-12% of total revenue in 2017. In 2018, the average firm is expected to increase their online marketing budget due to the popularity of the digital world.
Correct budget allocation is not always a recipe for success. 2017 Content Marketing Trends report recently published by Content Marketing Institute and MarketingProfs found that only 57% of companies’ content-based marketing strategy helped increase sales. Though content is important, 43% of companies are not seeing any impressive results.
Despite this, 50% of companies are planning to keep their budgets the same next year!
We have a better solution: Incorporating innovation into your marketing budget can revitalise sales results and efficiency.
How to make room for innovation
The most popular model used by innovative companies is the 70:20:10 model. This has been implemented by large corporations like Coca-cola and Google, but it can be adapted for smaller businesses.
In this model, your marketing budget allocates 70% to immediate business tasks and costs, 20% to expand on innovative ideas or revamping existing campaigns and 10% on developing brand new concepts/products.
These clear categories help make data collection at the end of the year extremely easy. You will be able to see which area has generated the highest ROI.
The model is simple enough, but does it actually work?
Coca-cola allocates 20% of their budget to innovation. They argue that it is a critical expenditure in order to outdo the competition. If this 125 year old company had not been innovating over the past century, you can imagine its demise would have taken place a long time ago.
Coca-cola’s flexible marketing strategy and shift into the digital age has helped the company remain a leader of its industry.
Facebook are similarly combining new technology with their marketing strategy and the results have been impressive. The acquiring of Oculus Rift, a revolutionary VR headset, put Facebook at the forefront of technological innovation. Their social VR initiative is set to extend customer’s interaction with the site. Facebook is a billion dollar corporation for a reason, part of that is never shying away from new challenges.
We realise that not all companies have the resources to spend millions on the latest inventions. Instead of being innovative through creating a new product, you can improve existing processes in innovative ways.
Apps are a perfect addition to any marketing campaign. Whether it is report apps to measure your progress or sales demo apps to show off your services, Fliplet’s apps are improving marketing strategies.