When you're working on your company's marketing budget and determining where to spend it, which categories come to mind first? Surely there's your paid digital advertising. There's likely some asset creation like graphic design, videography, and photography, as well.
But what about martech? What portion of your budget are you allocating for that? Marketing technology is increasingly important for businesses that are creating and implementing successful digital marketing strategies and want to be able to see and measure tangible results. Some marketers for enterprise companies are spending as much as 22 percent of their overall marketing budget on their company's martech use.
If you really think about it, you could probably easily spend your entire marketing budget on martech, what with all of the amazing software programs available to improve marketing, measure campaign results, monitor online conversations, and more.
However, if you overspend on marketing technology, you won't have enough of your budget left for the other important parts like advertising, content creation, and actual labor for the marketing team and any outsourced work. That's why it's important to find a good balance once you've determined how your marketing budget is going to look overall.
Look at what matters most.
Start by ranking your current martech by what is most useful, and what is used most often, right down to the martech that is useful to have, but not completely necessary. This is especially helpful if you're looking to lower the amount your marketing team is spending on technology to allocate more budget to other areas. It can also help you to determine which technology you might be able to get rid of in favor of something better.
A few core technologies to focus on, if nothing else, are a good content management system (CMS), customer relationship management/community monitoring software, marketing automation software, and data management software.
Look at what you spent on martech last year.
Was what you spent last year a comfortable number? Many businesses actually decreased their martech spending from 2016 to 2017 to spend more on outsourced work and their team, so if you're looking to re-allocate your marketing budget, it's important to have an idea of what you spent in previous years.
Consider whether you want to decrease your martech spending to lower your overall budget or to spend more in other areas. Or, consider whether your business is in a position where you can invest in more and better martech to create more complex campaigns.
Remember that bigger isn't always better.
Many businesses are in awe of some of the more enterprise-level software options out there, and although some of them can provide your company with some serious assistance in the area of digital marketing management, they're not always worth the expense.
More often than not, the more robust the software, the more setup and configuring it requires. Don't forget to consider the in-house costs for getting the company set up with a new software, training team members how to use it, and reconfiguring other existing software to integrate with the new one.
If you're looking for more information how different software can work together, like our data management tools and the tools that you're already using, download our guide on how to build a coherent tech stack!