Social Media Marketing Budgets To Double In Next Five Years !! [Report]

 

Adopting social media marketing strategy in your business is one of the best tactics to improve your business. 56% of marketers worldwide say that they want to integrate their Email marketing with social marketing this year. Also, marketing professionals world-wide focus on social marketing this year. In addition, 80% of them said they planned to use social media data in their broader marketing efforts and they also think social marketing can drive business campaigns effectively.

Social media spending as a percentage of marketing budgets will be increased to more than two folds over the next five years, that’s according to a Duke University Fuqua School of Business survey of US marketers commissioned by the American Marketing Association (AMA) which was conducted in February 2013 which included 468 U.S. chief marketing officers.

“Companies are searching for novel ways to interact with their customers that will drive the growth of their companies,” said Christine Moorman, director of The CMO Survey and T. Austin Finch, Sr. professor of business administration at Duke University’s Fuqua School of Business.”Unfortunately, marketers are behind the curve with their current levels of social media expenditure, given the amount of time customers spend engaged with one another and with companies online. The good news is that marketers are seeing the imperative to rectify this through increased investment in social media marketing in the upcoming years.”

The CMOs survey noted that marketers are currently spending 8.4% of their budgets on social marketing. Over the next year, that number is expected to increase to 11.5 percent, and in the next five years it will reach 21.6%.

Social marketing spending in all four categories is now less than 10% and is expected to be more than 20% in the next five years.

The dramatic increases in social marketing spending were universal across different business sectors may it be B2B (product & service), B2C (services & product). The B2C (product category), including companies such as Procter & Gamble (P&G) and The Coca-Cola Company, expects the most increase, from 9.6% to 24.6%.

change in social media spending 2013

On a scale of 1-7, when CMOs were asked how effectively is social media integrated with your firms marketing strategy, only 9.9% of respondents believe that social marketing is “very integrated” to the firm’s strategy, while 15.2% believe it is not integrated at all, while the average was 3.8 (the same number from Feb 2011).

The survey also finds that over the period of time the companies have shifted from direct financial measures of social marketing’s impact, such as sales and profit, to intermediate referral metrics, such as willingness to refer the brand to others, buzz, friends and followers.

Inspired by the big data coming out from social media and digital marketing, CMOs expect their companies to increase their marketing analytics expenditures by 66% in the next three years. However, the number of projects using marketing analytics is expected to drop from 37% now to 30% over the next 12 months.

It is also said that the CMOs who participated in the survey expressed cautious optimism for the overall economic outlook. When they were asked to rank their optimism for the economy on a scale of 0 to 100, the survey respondents registered a 62.7 score.

In an other question where CMOs were asked to state whether they were more optimistic, less optimistic or no change compared to the prior quarter, CMOs who were more optimistic increased from 29% of the sample in August 2012 to 56% in the current survey.

Interestingly, with the rise of social marketing and other forms of digital marketing, spending on traditional advertising continues to plunge.

Click on the link to know about the best social media marketing tools.

Hi ,I'm shilpa shree b.n , did my msc in multimedia technology and now walking towards the success path in content editing at dazeinfo , which basically deals with the insights and analysis of technology , social media , mobile and so on...
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19 Comments

  1. Debanjan Raha

    March 21, 2013 at 10:05 AM

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  2. Livefyre

    March 19, 2013 at 3:18 PM

    Tweetwiets Me too ツ

  3. jakolien

    March 19, 2013 at 3:18 PM

    Tweetwiets Me too ツ

  4. Livefyre

    March 19, 2013 at 2:53 PM

    Ik hoop het echt! “jakolien: Social Media Marketing Budgetten verdubbelen in de komende 5 jaar! http://t.co/sr2ZlfLFMIFMI”

  5. Tweetwiets

    March 19, 2013 at 2:53 PM

    Ik hoop het echt! “jakolien: Social Media Marketing Budgetten verdubbelen in de komende 5 jaar! http://t.co/sr2ZlfLFMIFMI”

  6. ScottCBranch

    March 18, 2013 at 10:22 PM

    MariSmith Dazeinfo Great article, thanks for sharing. The future of Social Media will be interesting to watch.

  7. abladias

    March 18, 2013 at 9:50 PM

    MSigueros gracias! Leyendo :-)

  8. LaniDame

    March 18, 2013 at 7:35 PM

    vmguru Good to hear. And glad to see you’re starting with the VMUG circuit tour :-) Austin’s having their big one in two weeks …

  9. vmguru

    March 18, 2013 at 6:57 PM

    LaniDame Going well. Ramping up some marketing/awareness over the next few weeks starting with the Milwaukee VMUG. Dev has begun as well.

  10. LaniDame

    March 18, 2013 at 6:46 PM

    vmguru A girl can dream … with low expectations. Just thinking about you today. How’s the business?

  11. vmguru

    March 18, 2013 at 6:32 PM

    LaniDame Stay calm Lani. 2 x 0 still equals 0. :-)

  12. g4vegan

    March 18, 2013 at 4:57 AM

    MariSmith Dazeinfo This makes me happy

  13. Fritzgeraldnow

    March 18, 2013 at 4:20 AM

  14. byuialexandria

    March 18, 2013 at 2:21 AM

    MariSmith Dazeinfo that made my life!!

  15. DonnaGilliland

    March 18, 2013 at 1:32 AM

    RT MariSmith: Social Media Marketing Budgets To Double In Next Five Years !! http://t.co/WBk21iNf7Rf7R vDazeinfonfo [Awesome report!]

  16. necrotante

    March 18, 2013 at 12:51 AM

    “MariSmith: Social Media Marketing Budgets To Double In Next Five Years !! http://t.co/Ez8aSHZNqfNqf vDazeinfonfo [Awesome report!]”

  17. Kerstin_Reese

    March 17, 2013 at 11:59 PM

    Exciting!! MariSmith: Social Media Marketing Budgets To Double In Next Five Years !! http://t.co/7oDea6Sw7Ww7W vDazeinfonfo [Awesome report!]

  18. _missallison_

    March 17, 2013 at 11:08 PM

    Awesome RT MariSmith: Social Media Marketing Budgets To Double In Next Five Years !! http://t.co/Nl1ToxYuwiuwi vDazeinfonfo [Awesome report!]

  19. GlenGilmore

    March 17, 2013 at 11:03 PM

    Social Media Marketing Budgets To Double In Next Five Years http://t.co/bcPT08R4Zy4Zy vMariSmithiDazeinfonfo

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