How to allocate your marketing budgets in 2022? 2021 was tempestuous to say the least, more so for marketing budgets as they took a colossal hit to reach a historic low of
6.4% (as percentage of total revenue). The good news is that budgets are now in recovery mode as they have managed to climb up to a decent 9.5% albeit still lower than the pre-pandemic average of 10.5%. An interesting thing to note here is that while marketing budget shares may have declined, digital ad spending grew by 30.5% in the last year.
According to a recent report by
eMarketer, Digital ad spending in Canada in 2022 is predicted to grow by 11% compared to 2021. Moreover, digital ad spending will account for more than twice the traditional ad spending, making up 68.3% of the total ad market in Canada. These are tell-tale signs of growth for advertising agencies in Canada, provided they remain flexible and account for new consumer demands.
The key focus areas for 2022 should be scrutinize the budget to get rid of any fluff and take a data-driven approach to maximize ROI. Here’s what you need to do in order to plan your 2022 marketing budget, read on:
Prioritize brand building without losing sight of short-term goals
With the rise of performance marketing, brands sometimes rely too heavily on sales in the hope of quick results and revenue growth. It’s imperative that PPC companies in Canada also invest in long-term brand building, especially during challenging times like these and it’s advisable to not cut down spending on brand-building too much. It should be seen as an investment that’ll pay dividends in the years to come.
Invest in digital video spending
With the growth spurt in online video marketing, branded content by influencers, display ads and social media ads are at every turn. Naturally, advertising agencies in Canada are expanding their media budget for video content.
Be selective about your investment in MarTech
The Gartner CMO Spend Survey recently revealed that marketing technology takes up the biggest chunk out of the marketing budgets, about 26.6%. Tech may be instrumental in keeping up with the ever-changing consumer expectations. However, to dabble in all the new trends in tech may not be such a great idea from an ROI perspective as you may not be able to garner actionable insights from them.
Take a good look at the available tech resources and re-evaluate your needs by separating out the tech that’s essential to your business from the ones that aren’t.
Maximize ROI via regular performance assessments
If there’s something the pandemic has taught us, it’s that you don’t know what the future holds for you. This applies to your budgeting strategy too. Flexibility and quick response to the changing landscape should be the way forward. Regularly monitor the effectiveness and efficiency of your marketing strategy and optimize it based on what’s clearly working for you and the current trends.
Search or display ads? - Get smart with ad spending
Search marketing has been at the helm of ad spending. However, the B2B digital market has showcased an interesting trend. Display marketing is soon catching up with Search marketing. In fact, as per the eMarketer mid-year report, B2B display ad spending is forecasted to surpass search ad spending by 2023 for B2B brands.Marketing budgets were squeezed across all Industries during the pandemic, yet many advertising agencies in Canada, India and a few other countries managed to come out unscathed and meet the expectations of their clients.
The good news: 2022 brings a lot of opportunities for marketing teams in Canada and across the globe. Chimp&z is here to help you squash your marketing goals. With a proper budgeting strategy in place, your marketing team or PPC company in Canada can thrive even during times of uncertainty.
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