Marketing is an investment

June 7, 2017 at 9:00 AM

An important part of the growth of companies is related to the investments they make in marketing. The business models that have an organic growth that does not need any type of investment are very limited and it is very casual that this fact occurs. At Fragment Agency, as a digital advertising agency, we’ve done an analysis of what marketing investments represent to us and why we reject to consider them an expense.

No, marketing is not magic

Although it’s hard to believe, marketing does not include any component of magic. It is an investment like any other: if you do it with intelligence and being aware of the risks you win, otherwise, you lose. It is a quantifiable element, which allows us to calculate the money invested, and the return on investment, ie the money generated from the amounts invested. Understanding this premise, it is basic to listen to marketing specialists and take into account a number of elements around marketing investments.

1. Patience

Like any other non-magic element, patience is necessary to observe results. Investments require patience, first before investing, to identify the most appropriate time for the investment, and once initiated, patience to observe tangible results and not lose money. At the same time, investments in marketing imply the need to not be in a hurry and rely on the decisions made.

2. Set goals

It is essential to set goals prior to any action. In order to make informed decisions, these objectives should be set with a cool head, in order to ensure that decisions are not influenced by the events of a given moment. Goals can obviously be modified if any major issues occur, but it’s recommended following goals set with a cool head to avoid making hasty decisions.

3. Diversify

Following the logic of any other investment, it is essential to diversify and not go all in. In the case of marketing, if we project all the investment in a single media, it can multiply their prices by four or in case of Google, it can change the organic algorithms and destroy our results. In case of diversification, gains may be lower in the short term, but in the long run the risk decreases and investments are safer.

4. Quantify the results

In order to know the success of investments and to guarantee a good distribution of them, it is essential to quantify the results numerically. Using current technologies and the indicators that we have, it is possible to very precisely calculate the return on investment and the most profitable platforms.

So, as a digital advertising agency, at Fragment Agency, we recommend acting smart with regarding marketing investments and keep in mind that results, very often, appear after much effort and patience.