Obamacare Battles Marketing BudgetsPosted by Camden Smith on Sep 10, 2013 in Blog, Marketing, Politics, Timely Business News
Obamacare Health Insurance Cost Increases Battle the Marketing Budget
An increase in health insurance costs as a result of Obamacare may leave many executives wanting if they fail to create a robust marketing budget, when it comes to filling vacancies and producing revenues.
Leaders across the nation have appeared on national news programs announcing layoffs or marketing budget reductions to absorb Obamacare.
Southwest Florida businesses need every working body they have from January to May in order to meet the demands of seasonal visitors, so planning is key for businesses such as restaurants. Some companies may opt to pay the “health care” fine for not providing insurance. While health care is a hot topic, but marketing budgets should be also.
Layoffs Announced Due to Health Care Cost Increases
Case 1: In June, the University of Marilyn announced layoffs due to the reduced revenues anticipated as a result of the increase in health insurance costs known as Obamacare.
Case 2: Florida Community Bank recently reduced staff in August 2013 just prior to health insurance open enrollment, although no confirmation at the time of this blog if medical costs were the sole driving factor.
Case 3: In July, Collier County Commissioners asked staff to roll the 1.5 percent salary raises into health care instead to offset the cost increase of health insurance. The government is not laying off however, simply finding creative ways to offset the cost increases.
Our firm isn’t speaking for or against Obamacare or health care reform. As marketers, we are focused on creating solid marketing budgets which have not yet recovered from the economic recession.
Marketing Budget Effects and Goals
Since the 2007 economic recession, many executives of small companies have chopped the marketing budget in half and larger corporations have moved from multi-platform advertising to more online and coupon advertising in an effort to maintain adequate revenues.
2014 revenue projections, depending on which side leaders listen to, either look flat or show increases. As unemployed Americans seek work over the coming months, a reduction in a position’s median salary may arise as a result of the increased medical costs associated with positions.
The key for companies both small and big is to create even more targeted marketing campaigns to produce higher returns on investment (ROI).
As executives plan the upcoming year’s budget, marketing departments should help their leaders create smart marketing budgets. Condense advertising from year round drizzle campaigns with little consumer influence to targeted, heavy traffic campaigns for shorter periods.
For example, a Naples, Florida restaurant attempting to market to seasonal visitors should run online ads from December through April and to reach international visitors run online ads primarily in July.
If a company budgets $400 each month for 12 months of online advertising, the company might consider condensing that same budget into six months, doubling the advertising spend each month with improved results by reach consumers more frequently as they surf online.
The Sport of a Targeted Marketing Budget
Karate is a sport with very targeted, quick, striking moves.
Make your marketing initiatives and promotions campaigns strike fast and furious so consumers remember your brand every time they shop, dine or stay in Collier County.
Successfully improve revenues despite the debates over Obamacare, health care, health insurance and medical costs in the coming year.
Targeting your marketing budget to deliver quicker results, reach more consumers, while maintaining good fiscal planning.