Marketing Budgets in 2010

econsultancy_logoEconsultancy and their partner ExactTarget, which is a global digital marketing provider, recently released their findings in a recent study that detail exactly how companies are dividing up their marketing budgets both online and offline in 2010.  Over 1,000 companies from the United States and the United Kingdom participated in the study in the form of an online survey taken in December of 2009 and January of 2010.  The report is said to compare spending trends across different traditional and digital marketing channels.

Some of the highlights from the marketing budgets report include:

1. 46% of companies say they are planning to increase their overall marketing budget for 2010.
2. 40% of companies have acknowledged they have restricted budgets for 2010 due to the economy.
3. A surprising 48% of companies admit to having a lack of understanding of digital marketing as their biggest barrier.
4. More than 50% of companies are planning to increase budgeting for mobile marketing.
5. 28% of marketers are shifting some of their budgets from traditional to digital medias.
6. Only a small 17% of companies have any plans to enlarge their budget for print media, 15% will increase amount of spending on radio advertising.
7. Print media is losing momentum, as most companies are planning on significantly decreasing print media such as newspapers and magazines, as well as radio advertising in favor of digital medias.
8. Companies concerned with brand reputation are the companies most likely to shifting budgets from traditional to digital channels.
9. An overwhelming 70% of the companies surveyed have plans in place to increase their budgets for social-media such as Facebook and Twitter.
10. Most marketers are unsure how to measure the return on investment (ROI) for funds spent on social media marketing.
11. Search engine optimization (SEO) is still important to most marketers, and 64% have plans to increase their SEO budgets in 2010 compared to 54% who plan to increase funding for retention email marketing budgets.
12. Paid search is still a high priority for many companies, as 51% had plans to increase their pay per click budget.

One of the reasons marketers are leaning toward shifting to digital marketing is that it is far easier to track how the budget directly impacts the bottom line.  Traditional advertising was at best a guess, as there was no concrete way to measure where customers originated.  While social media networking is a confusing prospect to many of the companies surveyed, it is too powerful of a tool to be ignored.  Overall, companies seem to lack t he training or staff to handle much of the digital marketing they want to accomplish, so this may be good news for consultants to step in and manage these aspects of advertising for the companies.