Marketing costs are going up and budgets are getting tighter. The good news? There is something you can do about it.
There are three mindset shifts that will help you adjust to the new reality and generate more revenue at less cost, ensuring that marketing is a core revenue driver and not an uncontrolled cost center for your company.
First, it’s never too early (or too late) for a marketer to start thinking about CAC in the same way a CEO or CFO might. The ability to connect marketing activities to the overall health of the business gives marketing a seat at the leadership table.
Second, even though it may seem counterintuitive, dedicate more of your paid ads budget to long-term awareness advertising. This will improve the returns of short-term demand capture campaigns and support their long-term sustainability by creating more demand to capture over time. The result is an ad program that’s more cost efficient and durable overall — through lean and flush times alike.
And third, focus is your friend. All companies do targeting, but most companies can do it better. Improve your targeting with an ICP and segment it to deliver tailored messages to solve different buyers’ needs and jobs to be done. Creatives that are aligned with the interests and behaviors of your ICP segments will have more success in getting your message across.
Cost control is all about using data to repeatedly target only the most valuable customers, with the right ad messages on the right channels.
Make these shifts now as an investment in company fitness and profitability. You’ll be in good shape to handle difficult macroeconomic changes — and you’ll shine even brighter when conditions are great.