How often do we, as marketers, have to hear the telltale old line: why is marketing so expensive?
It is a perennial debate older than time itself.
Marketing is the strategic powerhouse that connects companies with their audience, communicates value, and propels sales.
Without it, even the most exceptional products or services can remain hidden in the shadows.
In today’s competitive landscape, effective marketing isn’t just a luxury; it’s a necessity.
But does it mean you need to break the bank to be seen?
Common arguments that portray marketing as an expense include the perception of short-term costs. Often in the form of immediate advertising and campaign expenditures, which can strain a company’s financials.
The elusive nature of marketing ROI, its potential budget constraints, the cyclicality of marketing activities, and the perception of marketing as an occasional rather than a consistent investment contribute to this viewpoint.
Marketing focusing on intangible elements like branding and creative content and its difficult-to-quantify benefits, such as brand recognition and customer loyalty, can make it seem like it is merely an additional cost or a gimmick.
The reality check
Let’s look at a few real-world scenarios to evaluate this duality.
Consider a scenario where a company launches a targeted digital advertising campaign.
By analysing conversion rates, customer acquisition costs, and customer lifetime value, the business can assess the effectiveness of its marketing expenditure.
If the campaign results in increased sales and profitability surpassing the initial marketing costs, it demonstrates a return on investment.
Furthermore, brand-building activities can also be seen as an investment.
Over time, a strong brand can command premium prices and customer loyalty, providing a sustainable advantage that yields long-term profits.
Just think of brands such as Nike and LVMH. They definitely understand the value of good marketing.
In the digital age, data-driven marketing further blurs the line between expense and investment.
Companies can track and measure the impact of their marketing efforts with precision. If they use data insights to optimize strategies, marketing becomes a smart investment with potential significant returns.
While the cynics may argue about the immediate costs and elusive nature of marketing ROI, the real-world scenarios paint a different picture.
As the debate continues, it becomes clear that effective marketing is not just a luxury but a necessity.
So, the next time someone questions the cost of marketing, remind them that in a world driven by connectivity, innovation, and visibility, marketing isn’t merely an expense.
It’s an indispensable investment in the future success of any business.
By Leandra Meintjes, Chief Marketing Officer at PROVEN 360
