Companies to spend more on digital marketing than traditional in coming years

Recent surveys are finding more companies than ever are spending more on their digital marketing than “traditional” marketing formats.

money_floating_in_data_365863

In fact, marketing mix optimization solution provider ThinkVine released results from a survey which indicate “more than half of marketing executives expect to spend more on digital media than traditional channels within the next two years.”

Traditional marketing includes such formats as radio, print, TV, etc., and these days those outlets simply don’t reach as large a market as online or digital marketing does. In 2014, “a quarter of senior-level marketers say that their spending in online display, social, mobile, and other digital channels currently exceeds spending on . . . traditional media.” With another 31 percent projecting similar budgets by 2016, digital marketing will soon officially be the most popular of all marketing outlets.

These survey results cake from a poll of 200 corporate marketing officers, marketing vice presidents, and CEOs. Their companies ranged in revenue from less than $100 million a year to over $10 billion per year. Just 3 percent of respondents thought the preponderance of spending on marketing would never shift from traditional to digital.

However, ThinkVine CEO Mark Battaglia cautioned companies against abandoning caution and throwing themselves into online marketing immediately. He said, “Marketers shouldn’t blindly follow the crowd. Consumers in general spend more time with digital media, but it’s important for each brand to know how their specific customers consume media and how different media types work together to achieve sales and brand objectives.”

ThinkVine’s survey also found that insurance, entertainment, finance, and technology companies tend to invest most heavily in digital marketing. Over 35 percent of marketers in these industries already spend more time online than in traditional formats. It also found that companies with higher revenue streams have a higher percentage of their marketing budget focused in online outlets. Just 9 percent of companies in the lowest revenue bracket had concentrated their efforts in their online presence, compared with 36% of companies with over $1 billion in profit.

Online spending still has room for improvement, though, Battaglia said, as “results show that most marketers are moving budgets to digital channels before they have all the information they’d like to have.” He counsels marketers to “gain a competitive advantage by using data and analytics in new ways across the marketing mix.”

Source: Digital Journal

 

Facebooktwittergoogle_pluslinkedinmailby feather
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *