One reason you should spend €5Mio on your online marketing

How well do you know your business' marketing ROI?

For most SMBs in IT spending €5Mio on marketing is a staggering number. But could such a large investment be justified?

It heavily relies on the way that you look at marketing. Do you just see the marketing department as a nice help for the sales or one of the standard parts of a business that just has to be included….or do you actually see it as revenue generating?

Question yourself: do you know what the ROI of your marketing activities is?

  •  If you do, you probably see it as revenue generating. 
  •  If not, even if you deny it, you clearly just see marketing as a nice help. 

How to calculate Marketing ROI

Make your marketing accountable for the outcome and calculate what goes in and what comes out. It’s actually quite the same as you would handle any sales department. If you wonder how, here’s a really quick way of doing it:

If you know that everything that you put in marketing comes out double (as shown in this example), of course you would spend €5M on your marketing: so the one and only reason you should invest this large amount of money on your marketing, is that you have proof it will come back as twice as much!

Run marketing like a machine

Now the bigger question is: ‘How can we make marketing generate a profit margin?’ The answer to this question is not so easy. In my opinion, the right answer is to run your marketing a little bit like you would implement an IT solution. Build a machine where you can control all different aspects of your marketing. In other words, create a (machine-like) process where you can repeat all the steps, while also improving them constantly. A process like this is called a ‘B2B marketing machine’. 

If you want to learn more about building a B2B marketing machine I can very much advise you to read the following whitepaper.

Online marketing funnel

If you have any questions concerning your marketing ROI calculation, please reach out. At Leadgate we can map your marketing data and help you to start building an online marketing funnel, as this is a really good first step for building a B2B marketing machine and calculating your ROI on marketing. Click here to start building your own online marketing funnel

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About the writer 

Sjors Teeuwen has 15 years of online marketing strategy experience and has helped over 70 IT businesses become successful online. As the founder of Leadgate Europe he is very keen to help you make the next steps in your online marketing journey.

Let's meet and see what is possible for your IT business!