How do marketers determine the potential risk versus possible reward of experimenting with new marketing channels and tactics?
More importantly, how can you convince leadership to invest in new technologies?
Pitch and follow the proven strategies and case studies of hundreds of other small to medium-sized businesses (SMBs).
CallRail surveyed 601 marketers at SMBs to learn what challenges marketers face when seeking an increase in budget for new marketing channels and tactics.
In this article, we will share some valuable insights from SMB marketers into investing in marketing experimentation on new channels.
Continue reading to explore the highlights of this report, or download the full report here.
SMBs Are Ready To Take Their Marketing To The Next Level & Next Channel
The majority of SMB marketers are ready to experiment to keep up with or get ahead of the competition.
If you’re not ready to experiment, your business may fall behind.
98% of those surveyed agree that it’s worthwhile to connect with audiences on new channels.
88% of SMB marketers agree that it’s worthwhile to follow emerging trends. 86% find it worthwhile to execute experimental marketing campaigns.
This makes sense, considering social networks like TikTok can go from launch to 1 billion users in just a few years. For SMBs targeting teens and young adults, it’s a marketing trend that has helped a lot of businesses build brand awareness.
Why are SMB marketing departments so willing to experiment with new channels and tactics? 66% of SMB marketers find it very easy to compete with other SMBs on social media.
What’s more impressive is that 61% of SMB marketers find it very easy to compete with larger brands on social media. While large brands may have larger budgets, they are not always as agile as SMBs.
SMBs That Take Risks Are Rewarded
SMBs don’t just want to take risks – they have been taking them, and with profitable results.
91% of marketers surveyed have tested a new channel, and 80% have run an experimental marketing campaign within the last 12 months.
The channels that have produced the most return on investment (ROI) for SMBs include:
Beyond an increase in revenue, 96% of SMB marketers have seen an increase in customers from their efforts. 86% have also seen an increase in followers, which could ultimately result in more revenue for your SMB.
The Drawbacks For SMBs That Are Cautious
What happens to marketers who err on the side of caution when choosing channels and campaigns to reach customers?
65% felt that their company would lose business to the competition because they lack an effective marketing strategy. Competitors that have the right strategies in place would be able to reach their target customers more effectively.
53% felt that their company would lose business to competitors for not having a brand presence on new channels. This can be particularly true if a new social platform is wildly popular with your target demographic.
These marketers avoided new channels and experimental marketing campaigns because of unrealistic expectations (70%), complex social media algorithms (78%), and low staff bandwidth (69%).
SMBs Combine Proven Tactics & New Channels
While SMBs invest more in sponsored content and influencer marketing than radio or out-of-home advertising, most still invest in proven marketing strategies.
The top two strategies that SMB marketers trust above others are paid search and paid social.
According to 83% of marketers, leadership is hesitant to spend more money on marketing. 67% say the main problem is getting leadership approval to test new channels.
Those who are hesitant in investing in new channels would rather invest in proven tactics as their budget doesn’t cover risks, and a failure could be detrimental to the company’s revenue.
SMBs Need Better Tracking To Prove Value Of New Channels
What would it take for more marketers to experiment with new channels or tactics?
97% of SMB marketers would be willing to try new channels if they could see the results of their efforts immediately.
Unfortunately, 64% of marketers don’t feel that their current tools can demonstrate what is and is not working in their marketing strategy.
Furthermore, over half of marketers feel they don’t have the data to justify investing in emerging trends or new channels.
While many platforms offer their own analytics and insights, it would take a lot of time to piece together all of the data available. Even then, you would still find missing data points that would make it difficult to determine across multiple platforms which ones and what efforts were making the biggest impact.
On average, marketers are willing to spend $156,098 annually on ROI tracking. The ability to determine which marketing tactics and channels deliver the best results would inspire more marketers to experiment with new campaign strategies.
See More Marketing Experimentation Insights
To learn more about how SMB marketers can become more comfortable with taking marketing risks, download CallRail’s full report on Marketing Risk Vs. Reward. Or, if you need better insight into the marketing strategies that drive the most revenue, learn more about call tracking from CallRail.
Learn more about how SMB marketers can become more
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The opinions expressed in this article are the sponsor's own.