CMO Survey Finds Marketers Plan to Significantly Increase Their Social Media Spend
There were differences in the percentage change across sectors. Business-to-consumer marketing of a product reported the greatest anticipated increase over five years—to 24 percent of the overall marketing budget. That number currently is 10.5 percent.
Marketers admitted they have a ways to go toward integrating social media in their strategy. On a scale of 1-7, with one being “not integrated at all” and seven being “very integrated,” almost a quarter of marketers (22.3 percent ) selected “one” to describe how well their company’s social media is integrated with the firm’s overall strategy.
The number was only slightly better for integration within the marketing strategy—16.9 percent selected “one” for this question. Only 9.1 percent chose “seven” for social media being integrated within the company’s strategy (the average was 3.4) and 12.8 percent selected “seven” for the marketing strategy (the average was 4.0).
“Social media is not an add-on or after-thought,” Moorman added. “However, until executives understand social media well, it is difficult for them to think strategically through the lens of social media. This will take time.
“It is also important that companies keep spending on social media among internal groups and not outsource it. Outsourcing increases the likelihood that social media and strategy will not be integrated.”
Several other indicators in the survey point to how managers might continue to perform well despite tough times. Results indicate that more firms are planning to go directly to the customer, presumably through the Internet (from 8.4 percent to 11.2 percent planned in the next year); expand sales to international markets where growth has not stalled out (from 18.7 percent to an expected 24.7 percent); and spend to ensure their business stays close to their customer and uses customer insights to drive strategy.
The CMO Survey is conducted two times per year (August and February). Learn more at www.cmosurvey.org/results.