You need to rethink your marketing budget in light of your new owned media operation. This will be your bloodiest battlefield. Everyone in the company wants resources – money, people, space, technology and attention.
It’s critical that you get the right resources, or like any project, it will fail. The good news is your budget already exists, it is just being classified differently. The bad news is your budget already exists, it is just being classified differently.
That means it is likely under someone else’s control. This is where we have found executive buy in and support to come in handy.
Here is a rough guideline of what you should be looking for and where you could find it:
Currently, we have found that most enterprise companies are spending between 30 percent and 40 percent of their marketing budget on digital efforts. This is where the majority of your owned media spend should come from.
Look at pay-per-click budgets, organic search budgets, web design and development budgets, email marketing, and paid online media like banner ads and Facebook ads and retargeting. Also, look at application development budgets, money being spent on tools and technology.
How much of your paid spend is in digital? How much of your earned spend is in digital? How many people in your marketing department have been put into digital-only roles, or platform-specific roles like social media roles, email marketing roles and website-specific roles?
We think 50 percent or more of that money should go toward content development. Erik has a client who was spending $60,000 per month on pay-per-click advertising. After one year of content marketing, the client dropped his pay-per-click advertising and put his focus and energy solely on the content development side of his marketing.
Let’s say a company has a $3 million marketing budget. They are currently spending 40 percent of that on their digital marketing – or $1.2 million. Half of that should be devoted to content development – or $600,000.
If you’re spending $250,000 on your in-house staff’s salaries, that leaves you:
• $40,000 to $60,000 for software, tools, and training.
• $150,000 for additional outside assistance, scalability and specialized projects.
• $100,000 for other opportunistic spending.
Your marketing and public relations agencies should be involved in your owned media efforts. This is not a time to play one against the other or keep them from communicating with each other.
Encourage collaboration. Let them learn how they can all contribute to this new campaign. If it all goes well, this will soon mean more work and more business for everyone involved. Rather than jealously guarding their territories, this is a chance for them to work in a truly integrated way across paid, owned and earned to help each area maximize its performance.