Econsultancy and Exact Target have released a report based on joint research, polling over 1,000 marketers about their brand reputation strategies. The research found that marketers are slashing their budgets for radio, TV, and print, while looking online to build their brand reputation. The firms say the research indicates there will be a 17% surge in digital marketing spending this year.
"The shift from offline to online is in full swing as marketers look to measure direct increases in top-line sales, site traffic and improve overall marketing return on investment," says Morgan Stewart, ExactTarget's director of research and strategy and co-author of the report. "Interestingly, brand reputation is becoming a more significant driver of the migration to digital marketing, particularly when it comes to social media."
Over 70% of respondents to the survey say they are increasing budgets for off-site social media marketing through sites like Facebook and Twitter, while about 65% are planning on increasing their budget for on-site social media.
- 28% of marketers are shifting marketing budgets from traditional to digital channel
- Two-thirds of marketers are planning to increase investments in social media even though less than one-fifth can effectively measure ROI.
- 64% of companies plan to increase budgets in search engine optimization.
- 56% plan to increase budgets for mobile marketing.
- 54% plan to increase budgets for email marketing.
- 51% plan to increase budgets for paid search.
- 42% of marketers plan to keep budgets the same as 2009 and 13% plan to decrease their overall marketing budget.
- 41% of marketers plan to decrease spending on print and radio marketing in 2010.
"The research shows a healthy outlook for the digital marketing industry with the majority of responding companies increasing their budgets for most digital channels," says Linus Gregoriadis, research director at Econsultancy. "Social media marketing is the area where companies are most likely to be spending more money during 2010, but areas such as search engine marketing and email marketing will remain buoyant."
A summary of the report, titled More Money, More Channels: Marketing Budgets for 2010, can be found here.