Want more on the CapEx budget and save on your marketing budget?
This clever idea moves costs to Capital Expenditure budgets and frees up the marketing budget. Having inside experience in a marketing department, I can fully appreciate the need for getting more out of the marketing budget.
Capital Expenditure, or CapEx, are funds used by a company to acquire or upgrade physical assets such as websites, apps, or digital technology. This can be an external expense or even the internal team’s hours. These assets are considered an investment and can be considered part of the value of the company’s assets.
The real trick is in consolidating the production of activities in order to consider them as part of the asset investment. It is easy to forget that a website build for example, requires a stack of content in order to fully realise the value of the asset. We separate out certain content production as an ongoing marketing activity but if it is done correctly it can be considered part of the asset development.
For example, if you are building a website then the explainer video, the testimonial videos, the photography refresh needed to update the brand, infographics, copywriting, UX research, and blog set up with some initial content can be captured as a Capital Expense. The website is more than the architecture that holds it together; the initial content is what makes it viable as a business tool and to be real value to the company.
Updates to the website and ongoing content are not usually a CapEx expense, and sit in the marketing budget. It takes careful planning and working with the right suppliers in order to fully develop a strategy that makes the website a rich experience for a customer and therefore increasing the value of the asset as well. Suppliers don’t typically provide all the services you need in order to effectively claim them.
Sometimes you settle for a provider that can provide some of the activities you need, but at a compromised level purely to meet billing requirements. Additionally, you can find yourself with inflated margins for handing the extra costs through this provider.
There are instances when these providers need to pre-bill in order to maximise CapEx budgets. The risk with that is that there is no longer the natural quality control mechanism in place where payment is the carrot dangled for a quality delivery.
A service like International Creative Services is here to consolidate projects, to get the best suppliers without having to shoehorn anyone, consider the strategic factors that drive any solutions and supplier choices – and the forgotten benefit is in keeping all the billing consolidated for maximum CapEx management.