As we enter the last quarter of the year, it is time to start thinking about planning your budget for 2022. Marketing budgets shape the expectations and capabilities of creative and marketing teams while dictating the kinds of campaigns that can happen. They also dictate how effective these campagins will be, so it is crucial to be efficient in your decision making when it comes to your marketing budget, especially this year. According to Forbes, marketing budgets had always been first of the enterprise budgets to be cut and the last to be restored at times of crisis, and it doesn't look like it'll be any different this time around.
In this post, we’ll share 3 major budget trends that your organization should be aware of, and how to properly allocate your budget to address with them.
3 Marketing Budget Trends to Be Aware of in 2022
As 2022 quickly approaches, there are three marketing budget trends to understand when planning for the new year:
- Marketing budgets will not return to pre-pandemic levels,
- Marketers are shifting from traditional to digital channels, and
- Marketers are allocating more budget to ensure a strong website experience.
In order to fully understand what these trends mean for your organization, lets discuss each one in more detail.
1. Marketing budgets will not return to pre-pandemic levels
A recent Gartner report shared that in the last year, the average marketing budget was reduced to 6.4% of overall company revenue in 2021—the lowest level in recent history. That same report showed that CMOs are expected to continue operating with these budget cuts into 2022, as organizational leaders have settled into the ROI of the reduced marketing spend. Marketing teams have proven that they can do more with less, so for many teams, pre-pandemic budget levels are no longer in the cards.
As this trend does not look like it's going anywhere anytime soon, it is important for organizations to adapt to the "new normal" and make the most out of every dollar spent.
2. Marketers are shifting from traditional to digital channels
The combination of budget cuts and the shift to working from home has forced organizations to move away from traditional channels like billboards, bus ads, tradeshows and events. What they’ve done in place is experiment with digital channels, like search engine optimization, digital ads, social media, and more. Additionally, many organizations have achieved a better ROI with digital channels than with traditional channels in 2021. Since this new marketing focus worked so well, many companies have decided to double down on this approach in 2022.
As the growth in digital marketing continues to progress, traditional channels will begin to take on a more supporting role. With this in mind, when planning for 2022, it's important for organizations to continue experimenting with digital channels to find what works best for them.
3. Budgets are shifting to prioritize website
As people shifted from entering bricks-and-mortar stores to shopping online (even after businesses reopened), simplifying the online buying experience became a top priority for many organizations. In fact, well-designed, mobile-friendly websites are now considered a bare minimum requirement for businesses. Even the B2B world has made a big change to focus on ecommerce, which will continue to be a top priority. According to Miva, "Many [B2B] businesses are seeing a gain in efficiency because a customer can now serve themselves and place an order online without the need to interact with their sales representative."
Since customers now rely on a high-quality digital experience to know exactly what they're getting (like they once would in store), it is important for organizations to ensure they provide a well-oiled website to issue the highest level of customer satisfaction. In order to make this happen, companies will require the proper tech and staff to support their new standards; budgeting for this should be a top priority when planning for 2022.
How to Allocate Budget for Digital in 2022
As the big move to digital continues to progress, it is clear that none of these trends are going anywhere in the new year. Organizations will need to adapt to them in order to keep up with their competition. How, then, can teams allocate their budget to ensure digital success in 2022?
As your team starts thinking about their marketing budget strategy for the new year, there are four buckets to plan for:
- Media, and
Let's dive into each in more detail below.
There is an array of digital channels to consider depending on your business model, marketing strategy and target audiences. With that said, while it's important to build onto what you know works for your organization, it is equally important to leave room to experiment with new channels.
Some channels to consider include:
- Search Engine Optimization
- Pay-per-Click Campaigns
- Social Media Marketing
- Content Marketing
- Mobile Marketing
If you haven’t already, make room in your budget for an upgrade of your marketing tech stack. There are plenty of valuable tools to choose from that will help you get the most out of your budget and optimize what you have. A few technologies or tools to consider are:
- Digital Asset Management (DAM)
- Social Media Tools
Whether it’s photoshoots, professionally designed graphics, or video work, you need to budget accordingly to get the high-quality visuals that are required for the year. Appropriate, on-brand images are a top priority with the shift to digital and ecommerce; not something that should be sacrificed in the budget.
Consider what you’ll spend on agency or contract work, and make sure it’s reflected accurately in your marketing budget. Understand the capacity needed to complete the various initiatives that you want to pursue this year to identify periods throughout the year where you may need an extra hand from contractors.
Stay Ahead in 2022
The organizations that'll see the best results in 2022 will be those who stay on top of the trends and understand how to properly allocate their budget to address them. As organizations undergo digital transformation, top of mind for many marketers is digital asset management. In fact, a Forrester report found that 64% of global software technology decision-makers are adopting DAM to address some of their top challenges.
MediaValet is a leader in cloud-based digital asset management that helps organizations manage, organize and share their digital assets, improving productivity and increasing ROI. See MediaValet in action today.