Discussion Topic Week 6

A major problem facing marketing managers is how to allocate their communications budgets across both traditional and new, digital media (search like Google, social networks like Facebook, and others). What factors would you consider in making this allocation decision?


Allocating the communications budget is not going to easy, but we can definitely start with focusing on the target audience and their general trend of media usage. Other factors to consider would be if the product or service that is being advertised suits the media, cost to advertise if we can measure the effectiveness of the ad – things like that.

As a marketing manager, we have many options to choose from, such as print media (newspaper, magazines), radio, TV and now with internet usage on the rise globally, social media and other ad mediums are immensely popular. But, it is all about reaching to the potential customer. If we do not target our audience carefully and do not reach them, then we would not use our budget wisely. Knowing the target audience is critical and how to reach them. And one strategy might be region specific and might not work in other parts of the world. For example, the internet is widely used in USA, Canada, so social media ads can be considered in these countries, but social media ads might not be an option where internet is not widely used yet.

Next factor to consider how effective the ads are and one way to make ads effective is to reach the target audience as much as possible. Which can be difficult with TV or radio, speaking strictly keeping millennials in the USA, in mind. Many of them do not even watch TV or listen to free radio. They mostly use ad-free subscription services. Then how to reach these millennials?

According to Boston Consulting groups, US millennials have combined annual buying power worth $1.3 trillion.  And according to pew research, 87% of the millennials between ages 18 – 29 use social media such as Facebook or Instagram (Egan, 2015). And using this information we can focus on reaching to them. Target advertising and cost on click makes ads on social media and ads on search pages really efficient. And moreover, we can measure click-through rate and sales conversion rate that helps marketing managers to tune the ad campaign.

Now, most of the items can be sold on the internet and a brand awareness can be created over the internet, but print media is still a great way to reach the target audience. Say if we are selling a product or service targeting exclusively to men, then we can put an ad in men’s magazine, such as “Men’s Health”, same goes for women. But other media such as TV, radio or print media does not give us the conversion rate, we will not be able to find out, how many sales are originated due to the ad campaign. For this reason, internet ads are efficient.

Besides, for internet ads, one can set exact budget, which can work on a small budget, but for any other media, it is usually not so small. Like an ad slot during super bowls which help to reach millions cost in millions.

According to Robert Allen in the year 2017 US retailers spent $16.95 billion on digital ads and they are projected to spend $18.97 billion. On the other hand, traditional advertisement spends are going down every year. And mostly for the reasons stated above – you cannot measure the direct impact of your ad, usually expensive than internet ads and worst of all, the ads on TV or radio are not efficient enough, it is not guaranteed that the ads will reach to the target audience at all.

Essentially these are the factors I will consider, and if internet advertising is not an option then we will have to find out the next best option, where we can reach the most number of the target audience, most effectively and efficiently.


Egan, J (January, 2015). 18 statistics markets need to know about millennials. Retrieved from http://www.leadscon.com/18-statistics-that-marketers-need-to-know-about-millennials/

Allen, R (November, 2016). 2016 US Digital Marketing Budgets: Statistics and Trends. Retrieved from https://www.smartinsights.com/internet-marketing-statistics/2016-us-digital-ad-spend-statistics-trends/


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