Every year brings new opportunities to market your brand, and every dollar counts. Costs for advertising, social media, and digital efforts—plus software and agency support—add up as you vie for audience attention and could take a hit with the oncoming recession.
We’re entering a season of leaner marketing budgets. The good news is that working with Creators provides cost-effective reach with an even higher ROI than traditional advertising media. Discover how to get the most out of your marketing budget in 2024 and why collaborating with content Creators isn’t just a trend; it’s a strategic move.
The Value of a Marketing Budget
The world is your oyster to elevate your brand. Paid ads! A snazzy new commercial! Influencer marketing! But stop and think a moment about what would be realistic, affordable, and effective. A marketing budget ensures you don’t put the cart before the horse, providing a viable way forward.
Strategic Planning and Allocation
Brands can’t just spend as they wish—there’s too much to account for, from operations and overhead to marketing. A marketing budget allows you to strategically allocate and track resources overall, and it informs the right marketing mix.
Online or offline campaigns? The marketing budget defines the funds available for advertising, content creation, and more based on your anticipated ROI, business goals, and target audience. With it, you can compare dollars spent versus estimated budget and ensure money isn’t being wasted.
Business Investment and ROI
Remember: Investing in marketing is an investment in the business. A marketing budget provides insight into how much to invest to see a desired ROI.
You can use this budget to track expenditures against key performance indicators (KPIs) via analytics. This assesses how well your marketing efforts are working. Noticing any patterns? Your tracking efforts can improve budget efficiency and empower data-driven decisions by isolating high-performing strategies so you can weed out ineffective ones and optimize campaigns.
Competitive Edge
A marketing budget and investment provide a competitive edge. By analyzing competitors’ marketing investments and the new players in the market, you can plan your budget to stay on the cutting edge and respond to industry trends.
As a best practice, some marketers recommend the 70/20/10 rule to guide your initiatives, using set percentages of your marketing budget in certain areas:
- 70 percent on proven, established channels
- 20 percent on less proven, emerging channels with broad adoption
- 10 percent on new platforms without much competition
Risk Mitigation
Facing financial challenges? Budgets keep brands agile because you can adjust based on market conditions. By undergoing periodic marketing budget reviews, you can not only navigate these uncertainties but also take opportunities to recalibrate your marketing initiatives to improve results.
Reaping the Rewards of Working with Content Creators
Stretch your marketing budget with influencer marketing. Collaborating with Creators provides tremendous value to your marketing mix, regardless of the economic landscape.
According to LTK research, shoppers continue to spend on product recommendations from Creators, as Gen Zers and millennials exert increased buying power despite recession risks and inflation. Gartner shows that brands generally see the power of this opportunity, with 49 percent of companies surveyed increasing their influencer marketing investment in 2023. The LTK x Northwestern University Retail Analytics study goes a step further, revealing that 36 percent of surveyed brands spend at least half of their marketing budget on Creators,
It’s easy to understand why Creator partnerships remain a priority when the benefits keep adding up. You just can’t ignore the value provided by:
Authenticity and Transparency
Creating genuine, relatable, and transparent content builds the authentic relationships followers and young customers crave. A Creator partnership helps your brand craft a form of user-generated content as influencers explore your offering on a deeper level and advocate for something they’ve actually tried. In doing so, they establish credibility to help you build those deeper connections with your target audience.
Access to Diverse Expertise and Marketing Mediums
Maybe you’ve dipped your toes into traditional media but haven’t fully leveraged digital yet. Or your paid team is busy running campaigns, while your social channels stay silent. Creators close those gaps because they often specialize in different areas, such as articles, videos, and social media. The right partnerships provide access to experts to execute a well-rounded marketing strategy.
Not sure where to look? Use social media to start brainstorming, but don’t overwhelm yourself. LTK’s next-level platform removes the guesswork of finding the right partner(s) to achieve your goals. With over 12 years of data to rely on, we can connect you with Creators who are effective across the channels you want to target based on historical performance.
Increased Engagement
A big following equals big opportunities. Content Creators already have established and engaged audiences. They’re perfectly positioned to craft visually appealing, shareable content—leveraging their own audience to get the word out and drive engagement among your target audiences.
As masters at building connections, Creators think outside the box to advance your brand. In addition to articles and videos, the right partners can organize opportunities including livestreams and giveaways, contribute product reviews, create shoppable posts, and even add your brand to their shopping guides.
But not just any partner will do. Take the time to understand potential partners’ audiences—from location to age, gender, and beyond—to find the right fit so you get the most out of the investment. Consider using LTK Connect to streamline your search. With it, you can connect directly with LTK's curated Creators, who provide integrated campaigns complete with in-depth performance data. Plus, with the new LTK Marketplace feature, you can take the back-and-forth and guesswork out of the equation by allowing Creators to submit proposals directly to your brand!
Stay Current with Trends
Content Creators are on the cusp of the latest trends and cultural shifts. Their knowledge and influence keep your marketing content aligned with the same so you stay relevant and appealing to your target demographic. LTK research indicates that 77 percent of Gen Zers and 67 percent of millennials have made in-store purchases based on influencer trends, while 42 percent of Gen Zers have shopped at a new store because of a Creator’s recommendation.
Make Your Marketing Budget Work for You in 2024
Your marketing budget defines the financial lines your brand should aim to stay inside, but it also gives you room to pursue innovative marketing strategies. From traditional media to digital tactics and beyond, get the most out of your marketing budget. Creator partnerships should play a part because they provide a window to reach consumers with the highest buying power today.
Articles, videos, and social media collabs just scratch the surface of Creator marketing. We find the right partners to make your brand stand out in the market. Discover the benefits of LTK and how we can help you make the most of your marketing budget.
