How Firms Are Investing In Digital Marketing

by CXOtoday News Desk    Oct 21, 2014

digital marketing

Digital marketing is becoming an unstoppable force, as a growing number of marketers are increasing their digital spends to woo customers and increase profitability. According to a recent report from Teradata and Econsultancy, nearly 70 percent of senior marketers at enterprise companies anticipate an increase in digital spend beyond inflation in 2015, and only 6 percent foresee a decrease, which is a negligible number. These firms are spending across enterprise and in differenr areas for better results.

The big spend

Enterprise marketers expect digital budgets to increase roughly 10 percent annually for the next five years, with average digital spend reaching 40 percent of total budgets by 2019, according to the report, which indeed is a whopping number.

Also there has been a noticeable increase in the digital marketing budget in 2014 from last year. In 2014, display and search accounted for the largest share of enterprise marketers’ budgets on average (17percent and 16percent respectively). Content creation was the third biggest spend (15percent of digital budgets on average), followed by websites (14percent) and email (11percent). Moreover, 34percent of enterprise marketers expect significant increases in mobile spend in 2015.

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On the whole, one-fifth of the respondents can expect significant increases in content marketing spend next year. Although 16 percent expect a notable boost on SEO, 14 percent also expect significant decline, making SEO the only digital channel with more than 10 percent of enterprise marketers expecting reductions.

Technology Investment

According to the study attribution systems, marketing clouds, and audience management systems are identified as the top three near-term priorities for technology not currently in use at their organizations.

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While 18 percent of enterprise marketers are planning to evaluate email management systems in the next 12 months, a high number compared with other mature technologies and an indicator of the channel’s continued importance.

The report was based on a survey conducted in July 2014 of 402 senior marketers from global organizations. All respondents were with companies with more than $500 million in revenue (56 percent with revenues over $3 billion).