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Junior Member
 
Group: Forum Members
Last Login: 01/07/2008 15:31:06
Posts: 12,
Visits: 251
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| I work for a large retailer with both online and offline businesses. But how much of my marketing budget should I dedicate to online? Is there some kind of industry percentage I dont know about?
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Forum Newbie
Group: Forum Members
Last Login: 10/04/2008 11:38:26
Posts: 2,
Visits: 3
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| Emma, the question I can only answer as follows; make sure whatever you spend is measurable. It it's phone response, make sure you record it, i.e get admeter.co.uk to do that for you. If it's online you can measure it of course too. That's all I can give you for the moment as I don't know your business. But even if you measure it all in terms of response v expenditure you'll be doing better than most! Boyd Butler.
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Forum Newbie
Group: Forum Members
Last Login: 04/04/2008 18:03:37
Posts: 2,
Visits: 6
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| I couldn't agree with Boyd more. It really shouldn't be too difficult to structure your marketing activity both on and off line so that it can be measured. It is scary how many people commit their marketing spend purely based on their own perception of their market rather than on tangible research/analysis evidence. When it comes to splitting your budget between traditional and digital activity then it would be impossible to say without more knowledge of the market you are in and your customers purchasing habits. However the beauty of the digital medium is its flexibility and versatility, allowing you to execute and analyse sampling activity both quickly and inexpensively. This should enable you to compare ROI data against historic data from traditional activity (if you have such data available to you). Good luck.
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Forum Newbie
Group: Forum Members
Last Login: 08/07/2008 16:14:22
Posts: 1,
Visits: 152
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| In my experience, the welter of data marketeers have access to when placing their ad-spend digitally only confuses them. There's no substitute for experience.
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Forum Newbie
Group: Forum Members
Last Login: 16/09/2008 11:07:47
Posts: 3,
Visits: 234
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| I agree with the above...
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Forum Newbie
Group: Forum Members
Last Login: 17/09/2008 10:09:26
Posts: 2,
Visits: 6
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| In short there is no one size fits all approach. The IAB/PWC figures showed that last year 15.3% of advertising spend was being spent online (57.6% of this on paid for search). Retail now represents 5% of all online advertising. Should you be spending 15.3% of your budgets online? The short answer is you need to research effectiveness first. Normally online budgets are established on two principles: 1. How much of your audience is online, and how cost effective is it to pursuade them to buy your product versus other options such as TV and radio. 2. How many people are in market to buy your products from your website or partners. Is it more cost effective than existing opportunities. The first principle is based around 'brand' and changing people's minds with regards to your products, the second is about the actioning of a sale, or 'Direct Response'. The first principle directly affects the second. So you need to establish the potential size of the prize first (how many people can you effect or get to buy), and then test to see how effective your online communications are. Hope this helps.
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