Krishen Iyer, the founder of Managed Benefits Services, a full marketing, and consultancy service, continues to play a role in the success of companies because of his insights into the marketing world itself. The recent release of information showing just how rapidly the marketing industry is growing sheds light on just how important it is for organizations to invest not only heavily but wisely in marketing today.
Worldwide Spend on Marketing Continues to Grow
The annual worldwide spending on marketing of all forms has reached a new level. By 2025, it is expected to reach $4.7 trillion. That information comes from a Forrester report. As of 2021, marketing spend was $3.6 trillion, creating growth of more than $1.1 trillion in just four years. That is an annual growth rate of 7 percent. That is far above the expected growth rate by many and well above the 5 percent growth in the industry from 2015 to 2019.
Who is spending the money? About 53 percent of the spending across the world came from U.S. and Chinese companies. What’s even more impressive is that these same companies will be responsible for about 73 percent of all spending by 2025. That’s impressive, and it also provides clear indications of where money should be spent in this industry.
Krishen Iyer – Who is Spending That Money?
When you consider the biggest industries in this sector, it is no surprise that IT software and services are at the top of the game. In fact, IT software and services make up about 7 percent of all marketing investments made in 2021. From 2021 to 2025, this sector is likely to make up as much as 14 percent of the dollar growth in this industry. One key reason for this is the continued pandemic which pushed digital marketing to the highest level of importance across the industry.
Why does this focus matter? “It’s important to see just how much of an impact digital marketing spend is becoming. There is no doubt that companies need to focus their spending on digital platforms to help them compete in this industry. The pandemic may have fueled the industry change to digital, but there is not much evidence to suggest that it is going to drop in the coming years. In fact, reports indicate that companies will continue to put money here,” says Krishen Iyer.
What Does This Mean for Marketing Companies?
Marketing and ad companies need to see the vital importance of having a game plan to address digital marketing. However, it is not just about making the move to invest in digital. The type of digital marketing applied to any situation can be a critical investment.
What is going to matter going forward? “In a digital world, there are various components to digital marketing that can make or break a company’s effort. Staying on top of trends is a critical step in this process, yet there are a few fundamentals that stand out across all connection points with customers,” says Krishen Iyer.
Consumer engagement is essential
One of the core components that drive modern digital marketing is consumer engagement. There are a few components that make this up. For example, it is important to meet consumers where they are without a doubt. For example, it is critical to have an omnichannel experience. That means creating numerous touchpoints for consumers across various platforms. That includes social media, blogs, and email marketing. Make it easy for people to find you.
More so, be sure your message across all platforms, and all brand image components, remain the same. The consumer should be able to tell the company is the same no matter which platform they connect with your brand. It is easier than you realize to create content and branding when you have a focused plan across all platforms.
The next step is to meet consumers at the point where they are in the customer journey. For example, a customer at the beginning stages needs to know why they should buy this product or invest in this service. They need to see the benefit to them. A customer later in the journey may need a different type of level of information to convince them to invest. Providing the right information at the right time in the right format really does make a big difference.
Build a strong brand
To create that omnichannel experience, you first have to have a well-defined and clear brand. That is not always easy to create today when a wide range of information comes in at customers from various vantage points. “Controlling the message about your business, product, or service is not always easy. There is no doubt that it’s important to invest some time and work into this process,” says Krishen Iyer.
How do you create a brand image like this? Spend some time focused on building your mission statement. Define what your brand has to offer the world that is different or better than the competitors in some way. Determine what your brand is. That means considering things like your brand’s image, but also the wording that you will use, the type of message you want to communicate, and the features of your products or services.
Create a brand that is all-encompassing and answers all of the key questions, including who, what, where, and how. Build out target customer personas and determine what type of messaging you will use. The more clear and developed your brand is, the more likely you can promote it in a positive manner across all channels.
Krishen Iyer – Put Money Into Marketing
The reports continue to be impressive. Yet, as a business owner, it’s important to invest in marketing on a consistent basis. Some industries have seen a significant rebound or maintained their consumer draw on digital through the pandemic. That includes online retail and healthcare, for example. However, other industries have struggled, including travel, property, and financial services.
No matter which sector your business is in, bolster your investment in marketing now. Even if you are doing well, there is competition coming and growing against most businesses. Looking at the next few years, it is likely that marketing budgets need to be larger and more comprehensive to ensure that companies stand out as the field crowds.
More money is not the only thing to focus on. It is also important to develop your organization’s brand, market where your customers are – whether that is through social media or through email – and create targeted, personalized ads that reach the right people. Companies that put the time necessary into this process are the companies that are most likely to have success long term.
It is a crowded marketplace. The fact that the industry is growing is a good thing, but that means companies need to reassess what they are investing in to ensure it is able to provide the very best level of results for your organization. You may be investing more, but are you investing in the types of digital marketing that are going to propel you above the competition?
This article does not necessarily reflect the opinions of the editors or management of EconoTimes