Netflix recently announced a staggering $2 billion marketing budget heading into 2019. That’s $700 million more than their budget for all of 2018. In the first quarter of 2018 alone, the streaming titan added over 7 million subscribers putting them on track to clear over $15 billion this year. Netflix is a shining example of how to take a proven business model and market its brand, content, and future projects. With only two months left in the year, have you decided what to do with your 2019 marketing budget? Taking a page out of the playbook of a company as large as Netflix may not be as crazy as it seems. No, you may not have $2 billion lying around, but the most successful companies, with all of their resources, commit to many of the same tried-and-true formulas that can be implemented by businesses of any size. Here are a few tips from the Haven team as we prepare to welcome the new year.
The 70:20:10 Rule
A longstanding hallmark of organizational marketing, the 70:20:10 Rule is a framework that can help you decide where to allocate different portions of your marketing budget. To start, 70% of your marketing budget should go toward maintaining business-as-usual. Use the bulk of your resources on activities that have worked for you and driven sales – whether that’s email marketing, local SEO, social media campaigns, etc. Whatever has worked for you in the past. 20% of your budget should go toward riskier ventures in an attempt to expand your core audience. Put your resources toward practices on the cutting edge, hop on a new trend, try and ride the wave of new ideas – it’s moderate risks that you focus on with 20% of the budget and the rewards could be big. The last 10% is yours to experiment with. It’s for your more wild and crazy ideas. Maybe you can launch a spur-of-the-moment campaign to cash in on a current event or social media trend – anything that you can play with and hold onto to utilize at the right time.
Decide Where You Need to Grow the Most
Self-honesty is a virtue that helps motivate us to improve in areas where we feel we may be lacking. It’s not easy to admit weakness, but it’s important to have the self-awareness to do so and then act accordingly. You should be the same way with your business. You aren’t doing your brand any favors by failing to address the shortcomings in your marketing game. In what departments are you lacking? Social media? Dedicated video content? Sufficient resources to build out your website and applications? It might be time to take a good long look in the mirror and decide what needs attention, where best to build out certain parts of your budget, and to improve in these key areas over the coming year.
Consider a Re-Design
One of the most important things you should be doing on a semi-regular basis is updating your company website to ensure that it is the most up-to-date, optimized, aesthetically pleasing version of itself. In a lot of ways, your site functions as the face of your company. It’s the first and sometimes the only point of contact for many of your customers and it’s the fastest way to access information about your brand and mission. Too often, developers leave their site’s maintenance on the backburner, sliding it further and further down the list of priorities as time goes by. In a day and age where trends in technology and web design are constantly being replaced and search algorithms changed, it is more pressing than ever to manage the upkeep of your site while making tweaks and updates to preserve its functionality and appearance. Doesn’t the main intersection of all your digital efforts deserve a little more love?