– Many marketers are looking for quick fixes rather than strategic repositioning.
– Brands should allocate a minimum of 10% of their budget to data collection and insights.
– Understanding unit economics is crucial for making informed marketing decisions.Allocate a minimum of 10% of the monthly budget for data collection and insights to optimize ads and messaging relevant to sales.Brand: We don’t have the budget.
Me: You spend $xxx,xxx on ads per month.
Brand: But we know what we’ll make from that.
Me: How did that work for you in Q4? Since May?
Brand: We spent double the amount but had less than double the return from last year.
Me: Maybe it’s time to change your approach?
Brand: We’re trying other channels.
Me: All channels will eventually become the same. You’re just delaying the inevitable.
I’ve been having this same conversation with people for 18 months. Before, during, and now after iOS updates.
The truth is, most marketers are looking for a quick fix rather than a strategic repositioning.
There has also been a push to “go back to the fundamentals,” which is basically the stuff they should have been doing the entire time.
The gap isn’t having a budget; the gap is having knowledge of the ecosystem and the people necessary to roll out new strategies, as well as a good understanding of unit economics.
For a brand spending $100k per month, a minimum of 10% of your budget per month should be allocated to data collection and insights on how to use that data. No questions asked.
If your ad spend is less than that, the percentage should be higher. You have to learn and optimize your ads and messaging relevant to your sales before spending more, or else you’re just wasting money.
Right now, the average brand spends 5% of that on agencies to manage what can largely be classified as guessing.
I have yet to meet an agency that has a data play related to running ads for a business outside of just combining and forecasting multiple data sets.
This isn’t a data play; this is table stakes.
Data strategy is a foundation for growth, yet I keep hearing brands question its importance.
It baffles me how many brands hire people to create emails, ads, and content that’s all based on guesswork.
We have created an entire industry that utilizes fancy decks, presentations, and promises to drive results, yet none of it is based on data insights that can be backed up with accuracy.
What if, and bear with me for a second, you made your marketing decisions based on real data?
What if your marketing strategy could be backed by information provided to you directly by your visitors?
To me, this is a no-brainer, but not everyone is there yet.
Which brings me to my final point: understandinghttps://www.linkedin.com/in/jivanco