How to stretch your marketing budget with personalized advertising
Marketers are probably tired of hearing that they have to “do more with less”. This common refrain has long haunted marketing departments, which historically bear the brunt of recession-related layoffs.
Unfortunately, the need to accomplish more with fewer resources is real for modern marketers. Gartner reports that marketing budgets fell to their lowest level in recent history last year, a reduction of almost 50% compared to pre-pandemic levels. Add to that the multitude of economic uncertainties facing the world – which resulted in the elimination of thousands of employees — and it becomes clear why it is so necessary for marketing departments to meet more KPIs with a smaller budget.
But all is not gloomy. The past few years have also seen marketing departments make historic investments in cutting-edge digital solutions. Nearly 90% of businesses are currently investing in personalized advertisingwhich is great news because 90% of US consumers find personalized ads more appealing than generic ads. Clearly, the industry is moving in a positive direction. The next step is for marketers to focus on solutions and initiatives that provide the best value for money, such as personalization and account-based marketing (ABM).
According to HubSpot research, 67% of brands have adopted ABM strategies. ABM, which focuses on improving the outbound sales pipeline rather than lead generation, is a powerful method for attracting B2B buyers with a high level of product interest. And when applied correctly, ABM can dramatically increase a marketing department’s return on investment. The key to achieving this? Evolve ABM into its next form: person-based advertising (PBA).
PBA can create and target appropriate KPIs
ABM led digital personalization spending since its creation in 2003with the modern ATM market is reaching impressive heights. There’s a reason for this remarkable traction. ABM increases marketing ROI at all levels by shifting the department’s focus from inbound to outbound efforts. Additionally, ABM links B2B consumer interest with personalized advertising and outreach, making eventual outreach more successful. Ergo, lead conversion rates skyrocket. This is why ABM remains an effective marketing strategy today – but a lot has changed in B2B marketing since ABM emerged.
According to Gartner, the average B2B buying decision is made by a team of six to 10 people. That’s a marked increase in the number of decision makers involved in every B2B purchase. As a result, advertising needs for personalization have changed. Marketers no longer need to personalize their ad content based on accounts; they should target specific buyers on those accounts. By focusing on particular players within an account, marketers can increase the effectiveness of their reach and improve the outcome of the sales process.
This is where the PBA comes in. Instead of focusing on account people who may be interested in a product or service, PBA targets people who have already shown interest using behavioral cues. For example, if a C-suite member from another organization clicks on a social media advertisement or browses a product website, they have demonstrated an initial level of interest. Interest metrics are ranked using behavioral scoring models that give marketers a clear picture of who is interested, when they were interested, and perhaps most importantly, how interested they are. Marketers can use this information to create accurate Ideal Customer Profiles (ICPs).
Accurate KPIs are an incredibly effective method of reducing expenses and increasing ROI. With KPIs provided by PBA, marketers won’t waste time (or crucial money) searching for uninterested account members. Instead, they can make informed decisions using exact people of interest. It makes a big difference because PBA has been shown to increase revenue by 208%.
But improved PCIs aren’t the only benefit of PBA. Using behavioral scores, marketers can further improve their digital personalization efforts.
Personalization drastically reduces spend per customer
Once marketers identify where a potential B2B buyer is in the sales funnel, they can apply this information to create enhanced, hyper-personalized advertising content. Person-specific ad creative enjoys far greater returns than generic content, including higher click-through rate (CTR) and sustained interest over time. This is promising, as personalized advertising content is relatively easy and inexpensive to produce. And in most cases, personalized advertising content can naturally fit into existing templates or campaigns.
To create hyper-personalized content, marketers can:
- Identify a KPI and review its behavioral score; and
- Reference the target person’s organization in future announcements.
For example, if an operations manager at Apple browses an organization’s website multiple times, they have demonstrated substantial interest in a product or service and likely have a high behavioral score. As a result, that person may see ads mentioning Apple in the future. This personalization touch is often enough to drastically increase buyer interest.
McKinsey reports that personalization can increase sales by more than 10% and increase overall marketing ROI by up to 8x. Combined with the revenue-generating opportunities of the PBA, these returns are even more massive.
In times of economic crisis, marketing teams are often the first to tighten their belts. But that doesn’t mean marketing teams can’t increase production and reach. In fact, modern marketing departments are positioned to “do more with less” if they prioritize the right strategies and tools.
Joe McNeill is currently Director of Revenue at Influx2 and a B2B technology sales leader who combines an enthusiasm for customer service delivery, employee empowerment, and robust revenue operations to position organizations for scale and growth. He has overseen business teams ranging from 50 to over 100 members, accelerating profitability by increasing conversion rates and transaction sizes and increasing annual revenue, scaling repeatable and scalable business growth. He has helped build several fast-growing technology companies offering cutting-edge technology services, including Proto Labs and Siteimprove.
