So now we’re officially in recession where should the marketing spend go?

January 23, 2009

So we’re officially in a recession now (according to official government figures via the BBC) with no sign of things getting better anytime soon. Marketing budgets are being slashed by many and redundancies are spreading like wildfire. So, if you want to either make the most of your marketing budget, or if you’re in marketing and you want to hold onto your job, where should you be putting your money in online?

It’s pretty simple to be honest, just keep spending but make sure it’s working for you!

Something I’ve been doing for many years is capping all my online marketing spend through the use of a CPA (cost per acquisition) limit. Work out what you can afford to spend per sale/referral/lead and still make a profit, optimise your use of the various marketing channels available to keep your cost per acquisition under the limit, and then keep spending!

Hard to justify in the current climate? Just build a business model to show your boss (or yourself) which demonstrates the returns available by keeping spend tied to a CPA.

This is one of my bugbears, especially with regards to PPC (paid search). If it’s working for you, your campaigns are optimised continuously, and you’re coming in under your CPA, then why not throw more money at the campaign? Yes, you have to be diligent to ensure that your CPA limits are adhered to, but once you have it embedded as a process in your organisation it’s not that difficult to grow your spend and as a result your return.

So where should the marketing spend go (in online)? Well, into channels which are measurable and where you can track the returns. Paid search, affiliate marketing, banners (yes, you can work to a CPA if you use the right tools), social media campaigns, viral and of course natural search (search engine optimisation). Of course SEO deserves a different CPA to other channels as it’s naturally cheaper to do as long as you stick to the principles and don’t get sold by an agency looking to charge you the earth for something that costs nothing but common sense.

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