Is the Bloom off the Rose for Digital Marketing?
By Heidi Tolliver-Walker on February 26th, 2013
Did I really write that headline? Yes, I did.
I don’t mean that the trend is moving away from digital marketing. We all know that isn’t true, but there may be a slowdown in growth due to the difficulty in measuring ROI from these efforts. Clearly, companies know they need to be marketing via social, email, and mobile marketing. But there may have been an over-eagerness to invest in these channels that is now being pulled back somewhat.
According to Econsultancy in its Marketing Budgets 2013 Report, 71% of companies surveyed plan to increase their spending on digital channels overall, but the overall percentage of their budgets being spent on digital marketing is actually down — 35% of their marketing budgets, on average. This is a slight decrease from 36% last year. The majority (56%) reported spending less than 30% of their budgets on digital channels. At the same time, 20% of respondents plan to increase their traditional offline budgets in 2013. This is up from 16% last year.
This is not a seismic shift in budget planning, but it’s significant.
Then this morning, I saw another statistic that backs up this slowdown. According to Online Media Daily, Software & Information Association surveyed 100 marketing executives from member and other companies in Q4 12 about their social media, mobile and email use. It found only a quarter are including mobile in marketing programs. This is down from 29% one year earlier.