Marketing in 2024: a business expense or investment?

As we close out 2023, business leaders naturally look to the new calendar year and the opportunities it can bring. Budgets are reviewed, forecasts are made and plans for a successful 2024 are underway.

Reducing costs and increasing profits are usually pretty high on the priority list for most companies. And fair enough — a huge part of building a successful business is making it profitable long-term.

When it comes to reducing costs, unfortunately, marketing can often find itself on the chopping block first (if it’s even considered at all). While it may seem like an easy option, cutting marketing budgets can have a catastrophic effect. After all, where do you think all those leads, sales, and brand awareness are coming from? So, if you have been guilty of looking at marketing as another expense that will eat away at your bottom line, keep reading.

Back to basics: the benefits of marketing

First and foremost, marketing is how you get the word out about your business. It's how you attract new customers and keep your existing ones coming back for more. Without marketing, you're just another business in a sea of competitors, hoping that the companies you have always worked with will always continue to work with you (even though you know nothing lasts forever…).

Marketing also helps you build your brand. Your brand is more than just your logo or your tagline. It's the way your customers perceive you and your business. When you invest in marketing, you’re investing in creating a strong brand that resonates with your audience and sets you apart from the rest. It is unique to you. And that alone is worth investing in.

Expense vs Investment?

Yes, marketing does cost money. But does that money just disappear into the ether? Not if you’re doing it the right way. When you invest in marketing, you're putting your money towards something that has the potential to make more money.

Think of it this way: if you spend $10,000 on a marketing campaign that generates $50,000 in sales, was it really an expense? Or was it an investment that paid off five times over?

Marketing efforts require time, effort, and resources to yield results. But once it takes root and starts to grow, it has so many benefits. Marketing provides the likes of increased brand recognition, customer loyalty, and revenue generation for your business.

Measuring ROI

Of course, it’s only natural that every business owner wants to know what the return on investment will be for their marketing efforts. And we agree — measuring ROI is vital as it not only helps you know what you’re getting for your hard-earned but also helps us to know what is worthwhile from a strategy perspective.

At AJ Marketing, we use a variety of tools and techniques to track the success of our clients' marketing campaigns. By analysing data and making adjustments as needed, we can help ensure that you get the most bang for your marketing buck.

Speaking of data, here’s some for you that highlights the ROI possible from marketing activities:

• Companies that prioritise marketing are 13x more likely to see a positive ROI than those that don't (Hubspot)

• For every $1 you spend on email marketing, you can expect an average return of $40 (Omnisend, 2022)

But it's not just about the numbers and dollar signs when it comes to ROI. Investing in marketing can also help you build relationships with your customers, foster loyalty, and create a sense of familiarity around your brand. These are all intangible benefits that can be difficult to measure but are just as important as the bottom line.

The cost of not marketing

Have you ever considered the costs of not marketing?

Without marketing efforts, your business can quickly become invisible to potential customers. You may miss out on opportunities to attract new customers and retain existing ones, leading to a decline in sales and revenue.

Additionally, your brand may lose relevance and become stale, making it difficult to stand out in your market. Efforts to scale businesses, or even sell them can mean a lesser result for companies with lower brand equity.

In today's digital age, marketing is more important than ever, and failing to invest in it can be detrimental to your business's success. By getting the word out about your business, building your brand, and increasing your sales, you can take your business to new heights.

If that’s not an investment, I don’t know what is.