Optimize Marketing Spend: 6 Proven Strategies for Success

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In today's business environment, which is constantly changing under the influence of trends, competition and user needs, companies face new challenges. Every year, marketing costs increase due to the emergence of new communication channels and increased competition, which often leads to inefficient use of budgets and difficulties in achieving return on investment.

For Ukrainian companies, this problem becomes even more urgent due to the impact of a full-scale war, economic instability, and related difficulties that complicate planning and cost optimization.

MARKETING

What do the statistics say?
Global trends
In 2023, marketing expenses amounted to 9.1% of companies' total bulgaria telegram screening revenue, which is 1.4% more compared to 2022.
61% of marketers face difficulties in measuring ROI.
The cost of customer acquisition has increased by 60% over the past five years .
Situation in Ukraine
Among the key factors that hinder business development, entrepreneurs name :

low purchasing power;
war and occupation of territories;
economic instability and recession;
rising prices for goods, resources and rent.
All of this directly impacts promotion costs. Reducing marketing budgets has become one of the main challenges for marketing teams in 2023.

In this article, we will look at how to understand when it's time to optimize your promotion spend, and what steps will help you create an effective marketing budget.

When is it time to review marketing spend?
Optimizing your marketing budget becomes relevant for various reasons: economic difficulties, funding cuts, or a desire to improve investment efficiency. Below are the main signals that indicate the need to review spending:

Cost-to-revenue imbalance: If CAC (customer acquisition cost) exceeds LTV (customer value), ROAS (return on ad spend) is falling below expected levels, or ad spend is growing faster than revenue, it’s a sign that it’s time to act.
Conversion drop with a stable budget. A decrease in conversion with a constant budget signals the need to analyze advertising messages or campaign settings to avoid wasting money.
Low return on advertising costs. When advertising campaigns do not bring the expected profit, you need to review marketing costs and their effectiveness.
High cost per lead compared to competitors. This may indicate low competitiveness of campaigns or incorrect choice of promotion channels.
A large number of untargeted requests. If your ads are attracting customers who do not match your target audience, this may be a result of incorrect targeting or poorly formulated advertising messages.
Internal problems within the company. Inefficient internal processes, such as low employee productivity or logistics issues, can make it difficult to increase customer traffic. Before increasing marketing efforts, it is worth optimizing internal work first.
Identifying these issues will help you understand the real state of affairs in your business. Based on this data, you can proceed to marketing budget optimization, which includes six key steps.