Are You Upping Your Digital Marketing Budget This Year?
There’s no doubt about it, businesses large and small must have a strong online presence in order to compete in today’s economy. No longer can brands ignore the fact that they’re being talked about online, in both good and bad ways, and the only way to influence the conversation is to join it. Digital marketing has experienced an explosion in recent years, especially with the advent of social marketing platforms like Facebook and Twitter. As the need for digital marketing services increases, so does spending on digital marketing efforts. That spending is what was examined in the SODA Digital Market Outlook Report.
Digital Marketing Spending Trends
According to the Econsultancy and SODA Digital Market Outlook Report for 2013, 55 percent of businesses intend to increase their digital marketing budgets for the year. Of the 814 marketers surveyed, 84 percent identified themselves as key decision makers in their respective organizations. Only 11 percent of respondents plan to decrease their spending on digital marketing, while 39 percent plan to increase it at the expense of other marketing channels. Sixteen percent will be increasing their spending across all marketing channels.
Should Agencies Specialize?
Both digital agencies and traditional agencies with digital services were surveyed with a fairly even split between the two, at 44 and 45 percent, respectively. When asked if they agree or disagree with the statement, “The best route to growth is specialization,” 56 percent of digital firms agreed. Only 32 percent of full service agencies agreed. Experts expect the trend toward digital marketing spending to increase in the coming years as the industry of online marketing continues to grow.
How the Internet Has Changed the Face of Marketing
Digital marketing has drastically changed the way businesses market themselves. Now, businesses are expected to have multiple digital channels on which to market themselves, including blogs, social media accounts, web content, mobile apps, photos, videos, and more, to connect with their customers. This strong online presence is needed both to complement and combat user generated content about their brands online, meaning product reviews, ratings, and comments on social media. Before the age of social media, one displeased customer wasn’t that big of a deal; now, one dissatisfied customer can influence flocks of other current or potential customers.
Customers More Discerning, but Targeting Them is Easier
Competition from both domestic and global firms necessitates a strong online presence. Comparison shopping has provided customers with up-to-the-minute information regarding brands, prices, and value. Customers have become more discerning, but targeting them has become easier. Digital advertising is less costly than traditional advertising methods, including television advertisements and direct mail campaigns. This targeted campaigning is possible via data collection regarding consumer activity. It eliminates much of the guesswork associated with traditional advertising methods.
Importance of Data Collection to Online Marketing Efforts
The survey indicated that 46 percent of business spending will be allocated to data collection and analysis. These analytics help marketers determine how effective their efforts are in the areas of website management, SEO strategy, and regarding the behavior of their consumers. Digital marketing spending will also increase by 45 percent in the Customer Relationship Management (CRM) systems. CRM systems are used to track and measure the effectiveness of marketing campaigns that are both online and offline through email, direct mail, and social media. Content management systems (CMS) and social media management systems will see increases in spending, at 41 percent and 38 percent respectively. These spending patterns indicate how valuable tracking and organizing data is to successful marketing campaigns. Other noted areas where marketing teams plan to increase spending are email management systems and PPC management systems.
How you spend your budget is as important as how much you spend. Contact Infintech Designs for expert, experienced advice on online marketing strategies and implementation.
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