Thursday, September 16, 2010

Marketing Budgets on The Rise. Sign of Economic Recovery, or Head Fake?

In perhaps a great sign that the economy may be in better shape than many are realizing, Duke’s Fuqua School of Business bi-annual marketing spending report reveals that marketing budgets are back on the rise. The latest survey in August 2010 indicates that CMOs are anticipating dramatic marketing spending increases of 9.2% over next 12 months. This represents a dramatic turnaround from last year where annually spending growth was indicated to be only 1.1%.

Although this growth is significant, many organizations are simply growing back to normal, recapturing some of the budget cuts over the past 2 years.

In looking at the allocation of spending increases, it should come as no surprise that Internet Marketing spending is expected to increase the most, with 13.6% annual growth expected. This is followed by growth in spending on new product introductions (9.1%), new service introductions (7.2%), customer relationship management (8.3%) and brand building (8.3%). On the decline, with negative growth of 2.5%, is traditional advertising spending.

A look at Social Media spending reveals that marketers expect to spend 9.9% of their budget on social media over past 12 months, that this is expected to almost double in next five years, to 17.7% of total marketing budget. These social spending estimates are up 30% from surveys a year ago.

A summary of the results can be found at: http://www.cmo.com/budgeting/new-cmo-survey-reports-marketing-spending-rise?elq_mid=95&elq_cid=622&cmpid=NR51

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