The topic of the first Twitter chat that I moderated was Jack of All Trades or Master of One. You can read more about it here. This past weekend was Easter, and even though the kids are growing up, the Easter Bunny was still hopping!
That combination made me start to think about the way some companies put all of their budget into one channel. During #SMchat, the focus was on individual growth rather than corporate, but the general consensus was that in order to grow you needed to have experience in more than one area of marketing. If it makes sense for the marketer to diversify, it should also work for the companies that they represent, right? That’s why it is surprising to me that so many companies don’t make use of all of the online and offline marketing venues that are available. The explanation that I’ve heard is that there is not enough money in the budget to cover all of the media channels. My response to that is you’re doing your company an injustice if you don’t test every available area of marketing. You never know what will work best for your company without testing.
Testing marketing channels can be done relatively inexpensively, and once you have proven ROI you can determine how much more you can spend in that media. For example, I have worked for several companies who felt that TV is too expensive for their budgets, but I’ve run national DRTV (direct response television) tests that cost far less than what they’re spending on PPC SEM (pay-per-click search engine marketing) campaigns and bring in more revenue for the money spent, plus have the advantage of reaching offline viewers that may not see your ads online.
Another really great marketing channel to test is affiliate marketing. Affiliate marketing is wonderful because there are so many options and it is the most easily tracked – you can pay for the click, the sale, or even the phone call if you convert better over the phone than online.
Email traditionally has the highest ROI of any marketing channel but you need to test email marketing to see how it works for your company, plus you need to build your email list organically in order to have email perform at the levels it is capable of producing. You won’t get those high ROI numbers on a rented list.
Social media is the “new kid” and people are having difficulty determining ROI from Twitter, Facebook, YouTube, and the other social media venues. I see social media as the glue that brings the company and the customer together. You need to be where your customers are – and more and more people are on social media sites than any other with the exception of Google.
Do you agree – should your marketing budget be spread across multiple channels or should you focus on one aspect of marketing in order to spend your budget wisely? Please comment below to let me know!