Gartner: Digital Marketing Budgets To Increase by 10% This YearBy: Chris Crum - April 30, 2014
Gartner released some new findings from a survey of marketing executives. Among these are that digital marketing budgets will increase by 10% this year, and that on average, companies spent 10.7% of their annual 2013 revenue on overall marketing activities. Digital marketing spending averaged 3.1%.
The firm surveyed nearly 300 people in the U.S. mainly answering for their entire organization (21% reported U.S.-only data), representing businesses with over $500 million in annual revenue. The average was $4.4 billion. it spanned eight industries: financial services and insurance, high-tech, communications, manufacturing, media, retail, government and healthcare. The survey was conducted between last July and September.
11% said they spent over half of their marketing budgets on digital activities last year compared to 3% the prior year. Digital marketing represented an average of 28.5% of the total marketing budget last year, compared to 25.5% in 2012, according to the report.
77% have a chief customer officer (CCO) or similar position. 81% have a chief marketing technologist in 2013, up from 70% the prior year.
“Marketing leaders are securing bigger budgets to define markets, develop offerings, and attract, acquire and retain customers,” said Yvonne Genovese, managing vice president at Gartner. “Digital marketing is taking an increasing share of the marketing budget with annual digital marketing operating budgets totaling 3.1 percent of a company’s revenue in 2013, as compared with 2.6 percent in 2012, representing a 20 percent increase.”
“Customer experiences with a brand or organization span so many channels — both online and off — that customers have come to expect consistent experiences, no matter where an interaction initially takes place,” added Laura McLellan, research vice president at Gartner. “Customer touchpoints include websites, mobile apps, social profiles, directory listings, on-site search, email interactions, communities, call center and more; hence, the increasing popularity of the role of the chief customer officer to help guide the customer right through the buying cycle and beyond.”
You can find the full report here.
Image via Gartner