Friday, February 12, 2010

Connecting with Skeptical / Frugal Buyers drives Content Marketing Spending up Significantly in 2010

A recent research report on content marketing highlighted why marketing via feature / function / price is extinct, and why connecting personally with skeptical and frugal buyers is more important than ever.

With less money to spend on proposed projects, spendthrift executives have grown skeptical of B2B solution provider pitches and claims. These executives want help in identifying ways to save, and quantifiable proof that quick payback and return on investment are real.

As a result, significant demand exists for content oriented marketing campaigns, those that deliver education and personalized advice to customers. Rich internet applications (RIAs) such as on-line interactive assessment tools, ROI calculators, and TCO comparisons are important elements of such campaigns. These applications help buyers understand potential opportunities, and quantify the value that could be derived - in very educational and personal terms.

Over 250 marketing professionals, representing both small and large brands participated in survey conducted by Junta42, a content marketing research firm, on the demand and spending for content marketing programs.

The results indicate that content marketing is being used to establish new connections with buyers:

• Content marketing now comprises 33% of the total marketing budget (29% in 2008).

o Smaller companies are spending more on their content marketing as a percentage of budget than larger companies. Small companies (less than 99 employees) spend approximately 40% of their total budget on content initiatives. Our takes is that these smaller firms have learned that connecting personally with customers can lead to more business, and better sales and marketing effectiveness.

o Larger companies (100 employees or more) spend an average of 18% of their budget for content marketing. Our take is that large companies are spending more than small companies on general advertising and other generic initiatives which may have less impact than content rich and personalized campaigns, giving the advantage to smaller firms.

• For the third straight year, marketers are planning to spend significantly more on their content marketing efforts in 2010.

o For 2010, 59% of marketing professionals surveyed plan to increase their spending on content initiatives (as compared to 56% in 2009 and 42% in 2008).

o As a percentage of budget, marketers are increasing their content marketing spending 11% from the 2008 study.

The survey results can be found at:
http://www.junta42.com/media/38066/content-marketing-spending-2010-results-junta42.pdf

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