Study: Social media budgets
The AMA and Duke University have discovered that managed emarketing campaigns are increasing spending on social media, even though it is tough to integrate.
Study: Social media marketing budgets rise; integration falters
Friday, February 25 2011 by Catherine Ferguson
While budgets for social media are rising, the integration of social media into managed emarketing strategies is still a huge challenge for organisations across the world, it has been discovered.
The American Marketing Association (AMA) and Duke University’s Fuqua School of Business surveyed over 400 top marketers as part of the February 2011 CMO Survey and found that over the coming 12 months, social media spending will rise to 9.8 per cent. It is further expected to increase to 18.1 per cent in the next five years; it is currently at 5.6 per cent.
What’s more, social media spending will become a bigger percentage of overall marketing budgets for companies across the US and abroad. Chief marketing officers (CMOs) explained that challenges still face firms regarding the integration of the strategy into overall business strategies.
There was also a “remarkable difference” the August 2010 CMO Survey, according to eMarketer, as service companies back then were decreasing both present and future projections of spending, while product companies were increasing this investment in managed emarketing. Now, however, the results have flipped the other way around.
eMarketer continued: “The current challenge for companies is to figure out the balance of marketing that works for them, and that includes a focus on product development and traditional advertising.
“Service companies are also realising they must be on the cutting edge to gain clients, which includes being savvy when it comes to social media.”
Regardless of worries over integration, CMOs are still confident about the integration of social media into marketing strategies such as website promotion, though overall business strategies are a little shakier on this; 25 per cent of CMO respondents said social media is not effectively integrated in any way.
According to Rocket this week, digital marketing standards like search engine optimisation (SEO), email marketing and pay-per-click advertising (PPC) are still seen as more effective than social media for driving sales and building brands.
Living Streams “Improving clients’ profitability through better use of the internet”.