Sales Strategy

Things To Consider Before Formulating A Retail Advertising Plan For 2023 January 13, 2023 (0 comments)

Austin, TX--Formulating a retail plan for 2023 is essential for any business looking to achieve growth and increase revenue in the coming year. A well-structured retail plan that includes sufficient thought into advertising can help to guide a business's strategy, allocate resources and measure success. However, several important factors must be considered before formulating a retail plan.

[Photo by Valeriia Miller]

An article looks at several key considerations before coming up with a retail plan—the first point discusses planning your budget to hit your retail goals. 

As brands plan for 2023 and allocate budgets, there may be pressure to reduce advertising expenses in anticipation of a decrease in demand. While cost management is essential, it is crucial to consider two fundamental principles when considering potential cuts: performance advertising channels and increased spending.

These principles are to maintain or increase ad spend in channels where performance marketing efforts are meeting goals and to consider increasing ad spend during a recession. Research suggests that it can lead to a more significant market share gain than competitors.

The article suggests that when cutting back on digital advertising, it is essential to know how to minimize the negative impact on your program and where to make cuts that will least impact your bottom line. It suggests three digital marketing strategies to reduce wasted ad spend: 1. focusing on high lifetime value (LTV) consumers, 2. minimizing cross-channel frequency, and 3. eliminating waste in marketing channels that are not as targeted.

By prioritizing customers with higher LTV, testing the minimum viable threshold for cross-channel ad serving frequency, and cutting channels that don't allow hyper-targeting and don't see favorable cost-per-click (CPC) or cost-per-mille (CPM), advertisers can spread their budget further and reach more new customers while still trimming costs.

Learn more about this in the entire article.