Show Me The Money - Crafting The Budget For Digital Marketing -

SHOW ME THE MONEYCRAFTING THE BUDGET FOR DIGITAL MARKETING

Brandon Chesnutt : @bchesnutt

#OGS11

No Tom Cruise references. I promise.

http://www.flickr.com/photos/xrrr/408985630

Key themes:

[Current budget trends]

[Managing human capital]

[Making smart digital investments]

Before we start…A quick marketing exercise.

http://www.flickr.com/photos/eole/4350200158

Think about your current budget.

What are you spending on your MOST effective marketing channel?

What are you spending on your LEAST effective marketing channel?

If you don’t like the answers, it might be time to start from scratch.

Marketing budget trends for 2011.

http://www.flickr.com/photos/teegardin/5494374837/

72% of companies will increase digital marketing budgets in 2011.

Econsultancy / SAS Marketing Budgets 2011 Report, Feb. 2011

About 37% of current budgets are spent on digital.

Econsultancy / SAS Marketing Budgets 2011 Report, Feb. 2011

Mobile spending is on track to increase 124% by the end of 2011.

http://www.flickr.com/photos/indi/4243069097

Mobile Marketing Association Survey Results, July 2010

Contrary to popular belief,offline media is still very relevant.

http://www.flickr.com/photos/susanad813/4168134880

Companies must find the right balance between offline and digital investments. They need each other.

Create systems designed to help move funds between media types.

Managing human capital.

http://www.flickr.com/photos/mendrakis/5081985675

Knowing everything about everything can be quite difficult.

http://www.flickr.com/photos/winkydo/5401752673

The Boston Consulting Group, Nov. 2010

The world’s best marketing plan could be sitting on your shelf.

http://www.flickr.com/photos/seeminglee/4556156477

http://www.flickr.com/photos/mkmabus/3043746314

Marketing managers should act like general practitioners.

[Provide “preventative care” marketing]

[Look at the big picture]

[Establish KPIs and outcomes]

[Identify opportunities and threats]

[Direct internal team / agency efforts]

http://www.flickr.com/photos/edster951/4666053308

Teams of specialists can own digital platforms.

[Experience with unique channels]

[Own small pieces of a big pie]

[Measure against KPIs and track outcomes]

[Found in specialized, internal groups or full-service agencies / digital shops]

Skill Sets of Digital Specialists

The average salary for a “Digital Strategist” is $55,000.

An agency could be half the price… or twice as much.

Statistic provided by Indeed.com, June 6, 2011

Experience matters. Really.

Making smart digital investments.

First: Set the benchmark.

http://www.flickr.com/photos/studiocurve/251108056/

Review channels and identify transactional vs. open-ended expenses.

Platform

TransactionalExpenses

[Creative][Software]

Platform

TransactionalExpenses

[Creative][Software]

Open-endedExpenses

[Content][Analysis]

Facebook

TransactionalExpenses

[Custom Tabs][App Development]

[API Integration]

Open-endedExpenses

[Monitoring][Content]

[Insight Analysis]

Spend on platforms that can accurately track success and performance.

http://www.flickr.com/photos/auntiep/17135231

[Monitoring solutions: $12,000]

[Web / search analytics: $5,000]

[Social CRM options: $2,000]

Let’s recap:

[Find a balance between digital and offline investments]

[Build specialist teams around general practitioners]

[Set benchmarks for digital investments]

[Account for transactional and open-ended expenses]

[Invest in tools that provide measurement capabilities]

THANK YOU!Slideshare.net/brandonchesnutt : www.identitypr.com

@identitypr : www.identitypr.com/blog