Digital marketing budgets to increase 10% in 2014
Gartner releases results of digital marketing survey
Digital marketing budgets will rise by 10% in 2014, following a double-digit percentage increase in 2013, according to a survey of marketing executives by Gartner, Inc.
The findings, which are included in Gartner's Digital Marketing Spending report, are based on a survey of 285 individuals located in the US from July to September 2013. The report reveals that on average, companies spent 10.7% of their annual 2013 revenue on overall marketing activities, with digital marketing spending averaging 3.1% of revenue.
The respondents represented organisations across eight industries including: financial services and insurance, high-tech, communications, manufacturing, media, retail, government and healthcare.
"Marketing leaders are securing bigger budgets to define markets, develop offerings, and attract, acquire and retain customers," said Yvonne Genovese, managing vice president at Gartner. "Digital marketing is taking an increasing share of the marketing budget with annual digital marketing operating budgets totaling 3.1% of a company's revenue in 2013, as compared with 2.6% in 2012, representing a 20% increase."
The report examines how marketers are allocating their budgets, what activities are contributing to marketing success and other factors.
Eleven per cent of respondents said they spent more than half of their marketing budgets on digital activities in 2013 compared with only 3% in 2012. Digital marketing represented an average of 28.5% of the total marketing budget in 2013, as compared with 25.5% in 2012.
A further survey finding was that 77% of companies have a chief customer officer (CCO) or the equivalent and 81% were found to have a chief marketing technologist in 2013, which is up from 70% in 2012.
The survey found that 12.2%, which is the biggest share of the digital marketing budget, was allocated to digital advertising in 2013, just as in 2012.
In 2014, marketers plan to make long-overdue expenditures for mobile marketing tools and techniques.
"Until now, many marketers have taken a cautious approach to mobile because it involves so many variables such as different operating systems, devices and carriers," said Michael McGuire, research vice president at Gartner. "Now that more than 50% of American adults are smartphone owners, marketers are compelled to develop mobile strategies that ensure their products and services can be found and purchased by consumers on the go."