Over the years, many events have shaped what marketing looks like today. But the evolution is far from over. From the introduction of the internet to the recent pandemic, every day, an event marks a new benchmark for the industry that marketers strive to achieve. Solution- retool, rebudget, rehire.
In this article, we talk about how marketing priorities shifted with a focus on three major turning points:
- Need to retool
- Why rebudget?
- Rehire/reskill to cope with the talent shortage
Need to retool
Pivoting marketing strategies in the face of a downturn is nothing new, but the last two years have been unprecedented. A pandemic has made businesses even more aware of how critical remaining agile is. With the introduction of Big Data, artificial intelligence, machine learning and cloud computing, the face of marketing has changed forever. The marketers are now faced with the challenge of adapting, as the times pose a perfect example of the survival of the fittest. Marketing is undergoing changes to cope with the changes in technology, right from the tools used. Technology has enormously impacted marketing, making campaigns more personal and immersive while creating ecosystems that are integrated and in line with what marketers want. And it is not a one-way street. Companies worldwide have used new marketing tools, changing how organisations conduct their procurement while improving the bottom line. Data is another aspect that needs to be dealt with caution. With huge volumes of data at disposal, marketers now have to put it to good use. You can have the most advanced technology, but it will not deliver a good R.O.I. without marketing intelligence that unifies data insights.
Technology, therefore one of our most versatile and valuable tools that is helping us communicate better. It is making our communications more personal with things like personalised advertising at scale. Experiments in smart marketing are empowering us to be accountable & transparent. Anyone who misses out on leveraging tech will lag far behind in the race. So retooling is no longer an option but a measure to ensure survival in the longer run.
Research findings
In a recent Marketing In Asia (M.I.A.) study, 36% of the respondents said their company is looking forward to retooling because of the change in metrics and increased automation. 27% said the changed metrics and increased automation (together) were pushing their organisation to retool its marketing.
Why rebudget?
A marketing budget is just one strategic instrument for achieving marketing goals. If you have not defined or updated your company’s business goals, it is a good idea to step back & reconsider how you want to market the business. In addition to promoting and growing your customer base, marketing allows you to reach your target audience by strategically spreading information. It is not easy, though, because the expense varies depending on what kind of marketing you do, so you must be careful about budgeting. Research suggests that firms should spend 25-35% of their total profits on marketing & promotion to operate a successful business. For B2B firms, 13% is the recommended amount based on company revenue [1]. But recently, marketing has been experiencing a massive shift.
Research findings
A recent M.I.A. study revealed that 27% of respondents said their organisation is refocusing on marketing to cope with the rise in digital channels. Marketers also see a lot of changes as we move towards more online channels, and traditional marketing strategies are no longer as effective. It was further reported that 30% of marketers felt that rebudgeting ocuured owing to the increase in cost of marketing due to inflation in C.P.I. Inflation can affect advertising costs in many ways. For instance, when C.P.C. (Cost Per Click) for search advertising increased in 2022, it impacted the advertising costs for marketers [2]. Inflation is damaging to your business as it reduces the spending power of consumers and can complicate budgeting. This may, in turn, affect your marketing decisions and the amount of profit you can make from growing your company. In our survey, 15% of respondents also said that low R.O.I. was the main reason for rebudgeting, and 28% said all these factors combined contributed to rebudgeting in marketing.
Also read: 7 Reasons To Switch To Cloud Analytics For Better Marketing
Rehire/reskill to cope with the talent shortage
With the advent of new technologies comes a whole new digital age rapidly changing the face of work, leaving many people unable to find jobs. Technology-focused companies are beginning to realise that they need workers who have skills in this area. Research from the World Economic Forum suggests that 85 million jobs may experience a fundamental alteration in terms of what tasks are allocated to humans and A.I. (Artificial Intelligence) by 2025 [3]. Meanwhile, another 97 million new jobs will likely be created in the future. These would have a division of labour between man, machine, and algorithm. H.R. managers are upskilling and reskilling to meet the needs of their workforce in line with the changing job landscape. They have a critical responsibility – to keep on top of emerging trends and developments that might disrupt their business or affect the quality of service they can provide, like when machines start taking over work.
Research findings
Companies often resort to rehiring, reskilling, or upskilling to combat skill shortages. This skill gap is very real, and it is imperative for companies to deal with it in time—43% of respondents in M.I.A study said their organisation was looking forward to reskilling because they need to meet the demand for deliverables, 14% answered because there was high attrition, 10% voted for the need for new skills, and 33% said that all these reasons together were responsible for rehiring in the organisation.
Also recommended: Top 10 Content Marketing Trends In 2022 To Stay On The Top
Conclusion
As technology advances, these three factors, namely, rebudget, retool and reskill, will continue to reinvent marketing. The future is of machines, and it will not be long before most of the human jobs will be lost to A.I. Therefore, the only way to survive will be to reinvent yourself, be it on a personal level or your company level keep evolving.
To know more about other shifts in marketing, download the full report.
Endnotes:
- https://www.business2community.com/b2b-marketing/marketing-budgets-are-growing-again-say-cmos-and-marketings-standing-as-well-02397092
- https://www.wordstream.com/blog/ws/2022/05/18/search-advertising-benchmarks#:~:text=The%20typical%20cost%20per%20click%20for%20a%20search%20ads%20in%202022%20is%20in%20the%20range%20of%20%242%20to%20%244
- http://www3.weforum.org/docs/WEF_EGW_White_Paper_Reskilling.pdf
