According to an Econsultancy survey conducted in association with ExactTarget of more than 1,000 marketers, the shift of marketing budgets from traditional channels to digital channels will continue to rise in 2010. In fact, 46% of companies plan to increase their marketing budgets in 2010, and even more (66%) will increase their investments in digital marketing channels. This study-conducted in December 2009 and January 2010-focuses on where companies are investing their marketing dollars and how those companies choose to allocate their budgets across channels.
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MORE MONEY, MORE CHANNELS: MARKETING BUDGETS IN 2010
According to an Econsultancy survey conducted IN 2010, SPENDING ON in association with ExactTarget of more than 1,000 marketers, the shift of marketing budgets DIGITAL MARKETING WILL from traditional channels to digital channels INCREASE BY AN AVER-2010 will continue to rise in 2010. In fact, 46% of MARKETINGcompanies plan to increase their marketing AGE OF 17%, AND WILL budgets in 2010, and even more (66%) will increase ACCOUNT FOR 24% OF their investments in digital marketing channels. SPENDThis study-conducted in December 2009 and OVERALL MARKETING January 2010-focuses on where companies are investing their marketing dollars and how those companies choose to BUDGETS. allocate their budgets across channels. We'll outline key findings from the study in this research brief and explore the increasing shift towards digital marketing.
HIGHLIGHTS FROM MARKETING BUDGETS 2010 STUDY28% of marketers are shifting at least 1 some of their overall marketing bud- 1MARKETING BUDGETSgets from traditional to digital channels. Are you planning to increase your marketing budgets in 2010?ANALYSIS: At least part of the reason for the shift to digital marketing is that marketers find it Overall Budget Digital Budgeteasier to track the impact these channels have on hard financial metrics. In other words, marketers 46%tend to take a more "scientific" approach to their Yes 66%allocation of digital marketing budgets than they do when allocating traditional marketing budgets. 42%For example, 34% of marketers said digital No, keep the same 30%marketing budgets are allocated based on "more science than art" compared to only 20% who 13%No, decrease budgetallocate traditional marketing budgets based on 4%"more science than art." 0 10% 20% 30% 40% 50% 60% 70% 80%Marketers who focus on "brand reputa-2 tion" as a measure of marketing ef- Marketing Budgets 2010: Effectiveness, Measurements and Allocation Report, Econsultancy in association with ExactTargetfectiveness are the most likely to be shifting www.ExactTarget.combudgets from traditional to digital channels. ANALYSIS: Not surprisingly, marketers who focus on this metric are more likely to be increasing their investments in social media such as Facebook and Twitter. They're also more likely to be increasing investments in online display and mobile marketing, and less likely to be increasing investments in Search Engine Optimization (SEO), affiliate marketing, and acquisition-based email (i.e. email to rented lists). These increased investments in retention-based email marketing (i.e. email to registered customers) is on par with other marketers. www.ExactTarget.comB
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Marketers have the most difficulty measuring ROI in social 3 media and mobile marketing. MORE HIGHLIGHTS:ANALYSIS: Ironically, these channels are most likely to get budget . 70% of responding increases in 2010, despite marketers' inability to measure the effectiveness companies plan to increase of this emerging media. We found that the ability to measure ROI is not their budgets for off-site the primary factor in budget increases across digital channels. So what's social media (i.e. Facebook, the easiest channel through which ROI can be measured? Paid search. Twitter). But while 34% of marketers plan to increase paid search budgets in 2010, 13% will decrease spending in this area. . Only 17% of respondents 64% of marketers plan to increase SEO budgets while 54% are increasing their print 4 will increase retention email marketing budgets. Only 3% of media budgets, compared marketers plan to decrease budgets in each of these areas. to 41% who are decreasing spending. 15% of companies ANALYSIS: Not surprisingly, the majority of marketers are able to effectively are increasing their radio measure these established digital marketing channels. And when it comes budgets, but 36% are to digital marketing budgets, marketers feel confident increasing their spending less.investments when efforts can be linked directly to their bottom line. . More than half of companies DIGITAL MARKETING STILL POSES CHALLENGES plan to increase their budgets for mobile marketing (56%), In addition to examining how markete... [download for more]
