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26/07/2009 by
10203 views

47% Of USA CMO’s Increase SMM Budgets

Most marketers see their marketing budgets decrease during the credit crunch- 71% of USA CMO’s say their budgets have decreased. But 47% of total USA CMO’s will increase their spend on social media marketing. My question: do we need a crisis to really understand the shift in marketing reality?

saving-money-during-hard-financial-times

51% of USA CMO’s expect their marketing budget to drop 20%, says Forrester Research. Most budgets will be saved on traditional channels. Off all CMO’s that need to decrease budget, 61% has moved away budget from print, TV or radio.

52% of the CMO’s will save money on cutting in direct mailings. 11% will cut on e-mail marketing.

The last one is surprising to me. Because I thought all smart marketers had created their own opt-in and CRM databases to run a cost effective and impactful consumer contact improvement program via e-mail by now? How naive I was…

Back to our USA CMO’s. 7% of them want to cut money on social marketing. I was pleasantly surprised since I thought: okay, so at least 7% of the CMO’s have already put budget into social marketing. But I smiled even more when I read that 47% of the CMO’s will spend more budgets on social media marketing.

Also Forrester predicts in its USA Interactive Marketing Forecast 2009-2014 that spend on interactive marketing will be 55 Billion Euro in 2014. That is 21% of the total marketing budget.

I think that marketing budgets will keep shifting in favor of search engine marketing (SEM), display advertising, e-mail marketing, mobile marketing and social media marketing (SMM). And based on their report, Forrester seems to validate my opinion.

So, do I cry about the credit crunch? No! I feel it was the needed help to really understand the shift in marketing reality. Marketers now do embrace the accountability of the internet and massively shift towards a different mentality: “I need proof of results, an accountable agency and ROI.”

And due to the growing demand for measurability, accountability and ROI, the demand for our ViralTracker– that proofs the ROI of viral and video marketing- has increased significantly. So here the crisis seems to be our “wish pot”.

Next I think that the crisis will offer tremendous opportunities to agencies with an accountable DNA. Agencies that also focus at driving marketing and sales. We have plenty of advertising agencies that only care about their cool TV commercial.

And we have plenty of media agencies that think that “reaching people cheap” is their only and ultimate goal. Agencies will need to shift to the same marketing reality: if they want to build long term relationships with clients, they should get their heads out of the sand and try to act like a partner towards clients.

So the new and accountable marketing and sales driven agency might move up the marketing value chain sooner than we expected. Agencies that i.e. are good at driving sales and eCommerce.

Agencies that do not only focus at shouting campaigns, but do focus at eCRM to keep the loyal clients glued to the brand.

I think we get a very interesting time in the agency world. And I think digital agencies can play that new role.

What About You?
Don’t you feel a lucky bastard that you have chosen to be in the digital marketing industry?

 

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