I’m afraid I’ve got some bad news for you. Marketers are wasting half of their budget and fail to measure the effectiveness of their strategies.
Proxima’s research into the state of digital marketing spend has found that companies are ineffectively spending between 40 and 60 percent of their digital budgets, with most wastage coming from non-human traffic and poor viewability.
These are numbers are scary.
It is very common to see digital marketers spending money without having the right knowledge and taking the necessary precautions. It makes mad at yourself to see your hard earned money wasted on misguided marketing effort.
With a lot of tools, apps, and promotion tools that come up on a daily basis, it is easy to get distracted from doing the right tasks and spending money on useless. stuff.
If you want to start a marketing campaign and make the highest return on investment, then you need to be clear about your business goals. Clarity in business is crucial.
Without taking the proper steps and strategically targeting your audience, then you will blow your budget in a week.
In this post, I will highlight 20 ways to drain your marketing budget.
For the highest return on investment from your online ads, there are important steps we recommend you take before opening your wallet. We’ve developed a four-step process, outlined below to help you reduce waste and get the most from your advertising spend.
Lack of a solid marketing strategy.
If you’ve achieved financial success without planning, consider yourself lucky. Success in business without strategic planning is possible, but most businesses get some momentum then stall and hit roadblocks. A marketing strategy helps analyze all aspects of your business that are not efficient and do the necessary tweaks to get back on track.
A marketing plan is not a guarantee of success. However without a strategy in place, you will reach fewer clients, your business grows slowly, and you will end up spending more money on advertising with little ROI. You risk losing your marketing budget if you rely on the hit or miss approach of advertising. Also, you may feel like you’re desperately searching for customers and waiting to see who buy your products.
Targeting the wrong audience.
The cost of marketing to the wrong people can cost you a fortune. In my opinion, lead conversion rate is the most important metric that every marketing should consider. Creating ads and sending visitors to your website page is just a small piece of the puzzle. You need to convert those visitors into leads and clients.
Your visitors should become customers. If this not the case, then it is a sign that you are targeting the wrong audience and the money you spend on advertising will serve to nothing.
It’s time to target a different audience, or you will continue bleeding money for nothing.
Comments, likes, and shares are also indicators of customers engagement. If the engagement is low, then there is a good chance you aren’t reaching the right people for your business.
You forget that your customers are people.
One of the biggest mistakes online marketers make is praising too much their products. They spend a fortune on ads and write entire copy that talks about how awesome and great this product is. The truth is when you do this too much, you sound desperate and a client can smell it from miles away.
A great product is good for your credibility as a marketer, but people don’t care about it, they only care about themselves. How can you help them solve their problems? Are going to make their lives easier? What makes you different?
If you are not solving their problems, your marketing efforts will suffer as well as your button line.
You focus too much on advertising.
Throwing money massively on advertising without understanding the big picture of your business may drain your marketing budget. I used to check regularly internet marketing forums and communities and noticed this problem. Most internet marketers believe if they spend x amount of dollar on marketing campaigns, they will get Y amount of sales. This is a huge trap that you should avoid at all cost.
Spending more money on advertising your business may help your business in the short term, but In marketing, quality is more important than quantity.
Effective marketing is delivering the right message to the right people at the right time.
Tracking software is a must for your online business. Data collection and analytics tools help determine important information like:
- Which traffic sources are generating the most traffic?
- How much you’re spending on each traffic source?
- What type of people is most responsive?
Many tracking tools are available and most of them are free. However, many online marketers neglect the importance of data analysis in business. They entirely rely on assumptions and intuitions rather than real information.
The purpose of any business is to get and acquire customers. One of my biggest mistakes made when I started marketing affiliate products is I didn’t use email marketing. If you’re afraid of spending money on CMR software then you’re losing money
People rarely make a purchase the first time they see a product. Tools like Aweber, GetResponse, and Infusionsoft help build a relationship with your customers and sell to them again and again. As you spend money on online marketing, you want to get the highest return from investment and email marketing allows to do that. If you’re not doing so, you will get a negative ROI.
Brand Awareness is The Wrong Target
Brand awareness is one of the best things you can do for your business. It’s an essential element to make your target audience aware of your products and services. However, brand awareness is the wrong objective. If you are spending money on advertisement and creating content to make your brand known in hope of gaining massive exposure, then your wasting time and money. As a marketer, your entire focus should be around selling your products to your audience.
Lack Of Specialty.
Customers who shop online aren’t looking for many purchase different products at once. At least at the beginning. Most people on the internet are looking for something very specific like a weight loss program for adult, Business coaching, debt consulting..etc. Whether you are using PPC ads or content marketing your goal should be convincing your visitors to buy that product from you. Sending your visitors to your homepage or somewhere else where you’re not selling your products and service, then you’re wasting your time and marketing budget.
Chasing New Customers
The most important sales in your business are the first ones you make to a new customer. The time you spend on creating content and the cost of your ads to get a new customer – combined with CRM software and SEO tools can drain the profit you made on that sale. The real profit comes from selling additional products to your existing customers, in other increasing your customer value.
It costs less to retain a customer than spending additional money on ads to acquire a new one.
Never forget that the purpose of business to acquire and keep customers. If you continue to invest your marketing budget on getting new customers rather retaining the new oneS, then you will lose along the way.
Lack Of A Lead Capture Page.
No matter how much you spend on a lead capture page, it’s worth it. In fact, the cost of not investing on a page builder tools cost more than creating a new one.
In my opinion, a lead capture page is the most important page on your website. Whether it is for your product or newsletter, this page can make or break your business. Not every visitor who comes to your website will purchase what you’re selling. People get distracted easily online, If you don’t capture their information right way and promote to them regularly, they may forget website by the time they’re ready to buy.
Buying Junk Traffic.
Although tons of traffic sources are available online, there are some terrible ones. Of course, you will get tons of visitors, they will not convert to leads and customers. I’m talking here about Giveaway events, buying email lists, and traffic exchange. If you continue using these sources, besides the constant disappointment you will get, the desire to give is just a matter of time.
Spending money on ‘big marketing’ too quickly
Starting a new business can be exciting and the internet makes it extremely easy. When the excitement speak, you make decisions with your emotions instead of logic.
You created a killer PPC ad and crafted many pieces of contents, and you want to make a profit as soon as possible.
Rushing in business is very common among marketers, especially beginners. At this stage, you should rein that rush and start slow, or you will blow your budget early in this game.
One of the main reasons to start slow if you don’t know yet what traffics sources, ads, social media platforms work well for you.
Marketing blindly without testing all aspects of your business is essentially gambling on what you think might work for you.
Aggressive Email Blasts
Email marketing is a smart investment, it is the best tool to promote your business and, it’s well known that it delivers a higher ROI. Many people are making the mistake to send the same message to their entire list. This results in a higher unsubscribe rate and low engagement. The days of aggressive email blasts have gone.
People are aware of this type of emails and they sense the person behind this email is desperate to sell his thing. Your email newsletter could be suspended if people start to report you as a spammer.
You’re not standing out.
The digital world of commerce has become harder than ever. New and old brands are fiercely competing to gain the attention of their target audiences. It seems the only way to do it is to be different and stand out from your competition.
If you can’t project your personality and values in your marketing, customers won’t have any reasons to buy from you. People won’t purchase anything unless they have a strong to reasons to give you their credit cards.
You’re Using the Wrong source of traffic.
PPC, Content Marketing, Social Madia, and SEO are great ways to market your business. Each one of these requires specific knowledge and skill to guarantee its effectiveness and maximize your bottom line. However, there is no guarantee they will work with you because every business is different and audiences response for different marketing channels.
You need to do a lot of testing for different marketing channels. Also, you should learn about your audience and ask questions like who are they? Where do they spend their time?…etc.
Skipping this phase and marketing on assumptions can cost a lot of money.
Your content is too promotional
Pissing off your customers with a lot of promotion is the last thing you want to do. Of course, your goal is to make sales, but you need to give something first. That thing has to be a solution to a specific problem. Pitching your products over and over is the wrong approach to do business with people.
Giving too much so you look smart.
The worst thing you can do is to be boring and overwhelming. People are easily distracted online if they don’t get what they’re looking for fast. Your content on web pages have to be informative and focused on who they will benefit from your business. So show the value and don’t try hard to sell.
Skipping The Market Research Phase.
Market research has always been an integral part of any business strategy. It gives digital marketers enough information about their target audience such as where potential customers are, how can they reach them, what problems are facing, etc.
Skipping the market research phase can make your marketing weaker and waste a lot of energy to make your campaigns profitable. Let say you want to lunch a product. How can you find solutions for potential problems if you don’t have a deep insight about your product, audience, and competition?
Building a Following on Social Media is a fruitless pursuit.
Many digital marketers are still that building a following on social media sites can lead to success. Social media platforms, especially Facebook and Twitter, have become the buzz topic for many businesses to reach potential customers in different industries. While building a following remain important in marketing, it is still an ineffective strategy for selling your products and marketing your business.
Not Testing Enough.
No matter how well you know your industry, audience, and product, you will never know what marketing message is going to work best. Assuming your first ad, article, a blog will perform well is a huge mistake and can cost you a lot of money. Testing different ad copy, headlines, and sale page is a strategic process that allows you to find new ways to increase your click-through rate.
Lack of planning and understanding can cost dry out your budget. If you ‘re just starting out, keep things super simple. Focus at first on a market that fits your marketing efforts and resources, then everything else will start to fall in place.
As Helen Edwards said, “The devil of great marketing is in the details.”Because of these details, even the best marketers can fall into traps of overspending on worthless things.