Risking It To Get The BiscuitRisking It To Get The Biscuit

Life is all about taking risks, so it makes sense that taking risks is a huge part of the business world. Within today’s society, companies are presented with a more complex task when it comes to marketing effectively. The need to provide the right content to the right people, at the right time has always existed, but has become harder. There has been a transition to using new media as a medium for marketing, as no longer is anyone in the well-charted territory of traditional marketing. Now dealing with new media, influence can shift quickly, and its existence has not been long around enough to have the time for multiple trial and error cases like what took place with traditional marketing.

Life is all about taking risks, so it makes sense that taking risks is a huge part of the business world. Within today’s society, companies are presented with a more complex task when it comes to marketing effectively. The need to provide the right content to the right people, at the right time has always existed, but has become harder. There has been a transition to using new media as a medium for marketing, as no longer is anyone in the well-charted territory of traditional marketing. Now dealing with new media, influence can shift quickly, and its existence has not been long around enough to have the time for multiple trial and error cases like what took place with traditional marketing. Marketers are constantly trying to figure out which messages work, where they should be advertised, when they should be released, how they should be scaled, and whom they are trying to target. With all of these questions, it is safe to say that the degree of ROI risk has increased. With all of these risks at hand, companies are still spending money on new media. Although there is no exact way to increase ROI regarding advertising with new media, there is an alterative approach, which may be helpful to your company.

Marketers are constantly trying to figure out which messages work, where they should be advertised, when they should be released, how they should be scaled, and whom they are trying to target. With all of these questions, it is safe to say that the degree of ROI risk has increased. With all of these risks at hand, companies are still spending money on new media. Although there is no exact way to increase ROI regarding advertising with new media, there is an alterative approach, which may be helpful to your company.

When you realize that your company needs significant changes regarding the way in which their marketing spending is allocated, there is no need to suddenly implement drastic changes. Set some risk parameters that will enable changes in your marketing strategy, while limiting the total shift in any given year. For example, set limits on annual spending reductions in some channels or increases in others. This will allow for a gradual shift over to new media, while maintaining stability by abating the risks, which will ultimately allow for more flexibility to pilot, test and learn along the way.

Managing risk is critical, and marketers shouldn’t be shy about confronting and discussing this issue directly. With thoughtful scenario planning and cross-functional participation, such discussions can be extremely rich, insightful, and rewarding.

When you realize that your company needs significant changes regarding the way in which their marketing spending is allocated, there is no need to suddenly implement drastic changes. Set some risk parameters that will enable changes in your marketing strategy, while limiting the total shift in any given year. For example, set limits on annual spending reductions in some channels or increases in others. This will allow for a gradual shift over to new media, while maintaining stability by abating the risks, which will ultimately allow for more flexibility to pilot, test and learn along the way.

Managing risk is critical, and marketers shouldn’t be shy about confronting and discussing this issue directly. With thoughtful scenario planning and cross-functional participation, such discussions can be extremely rich, insightful, and rewarding.

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