Saving 20% of your digital content budget is one of the easiest ways to increase your profit margins.
I had drinks with a couple of industry contacts recently. One works in a large, successful, multi-national. The other, like me, has spent the last decade working in-house and at agencies for big companies.
We started by discussing all the complex, cutting edge industry stuff. Things like Artificial Intelligence.
But we then also agreed that it was pointless for many organisations. Because most of hadn’t fixed the basics first. Savings are readily had almost everywhere.
Almost everyone we’ve ever worked with can get an, almost, free lunch.
Here are three easy ways to fix the basics, and save up to 20% of your digital marketing costs.
Saving on tools
Most organisations now pay for a wide range of tools – with overlapping capabilities. Audit them and you’ll usually find unused or under-used licenses.
Typically these will include tools for:
- Social listening.
- Storage and servers.
- Publishing (website, social).
These are all now easy to buy online. So many bits of your organisation will have bought them. Usually without coordination.
The simplest way to identify what you are buying is to ask your own finance department for a list of all spending of more than, say, £500. Or just ask everyone to report what they are buying.
Most tools are being bought for a reason. But if you look at what they are actually used for, you’ll find that you’ve got the wrong set of tools. Even if the set of tools is exactly right, you can usually secure a significant discount from tool providers every year when you renew your contract.
Savings: 1-5% of your costs.
2. Stop pointless activities
This sounds obvious. But most organisations have significant resources devoted to activities with very low impact.
Organisations often don’t have consistent reporting on what they are achieving. For instance it’s common to see Social channels which get resources, but virtually no reach. Stop this pointless activity and you have savings at almost zero cost.
Here is an analysis of a Twitter account, which took me 10 minutes. This account gets over 4 million impressions per month. Content type A (Pictures, with no caption) gets 3 impressions on average, Content type B (direct replies) gets 1,248 impressions and Content type C (normal tweets) gets 13,354 impressions.
Type A tweets accounted for 4% of the 380 tweets from this account in one month. Type B tweets were another 24%. Eliminating type A and cutting type B to necessary replies (maybe half of the total), would save 16% of resources, but only cut reach by 1%.
Common activities that are pointless include:
- Channels which don’t have any impact – either because of mismatch with your audience’s behaviours or low reach.
- Types of content which have no impact on your audiences. This is harder to know than it sounds, because a lot of content doing a brand job will have low engagement.
Savings: 10-15% of your costs.
3. Savings from less duplication
Modern organisations constantly create marketing content. Yet staff turnover and organisational siloes mean that once created it’s often lost in practice. These problems are even worse when more than one country is involved.
This means that content constantly gets re-created. In some organisations I’ve seen up to 40% of content being inappropriately created. In a large organisation this can be millions of pounds a year wasted.
Intranets are meant to solve this. But they have almost always failed until recently. New solutions, especially Google Drive and Slack, are now making it easy to share and find content.
This isn’t quite a free lunch. While Slack and Google Drive are cheap, they aren’t always free. And there’s some work to ensure that people adopt them, tag documents appropriately and get good habits.
Savings: 10-15% of costs
There are many other areas you can save on. But to start with, saving on these three areas is a lot easier than using cutting edge technologies.