SALESFUEL TODAY

CMO Survey: Social Media and Mobile Advertising Set for Significant Budget Increases

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Ear­li­er this month, we dis­cussed the com­ing increase in mar­ket­ing bud­gets pre­dict­ed by the CMO Sur­vey pro­duced by Dr. Chris­tine Moor­man at Duke University’s Fuqua School of Busi­ness. Busi­ness­es, on aver­age, will boost their mar­ket­ing bud­gets by 8.67%. A good por­tion of these bud­gets are spent on mobile and social media cam­paigns. Here are the details.

Mobile

Your clients and prospects allo­cate near­ly as much spend­ing to mobile chan­nels as they do to social media: 12.75%. And five years out, the mobile bud­get will rival the antic­i­pat­ed social media bud­get: at 21.77% of the total.

When it comes to mobile, some indus­tries have embraced the for­mat more than oth­ers. Com­mu­ni­ca­tions and media com­pa­nies, for exam­ple, spend just over 20% of their bud­gets on mobile ini­tia­tives. And edu­ca­tion com­pa­nies state their aver­age mobile mar­ket­ing spend amounts to 29% of the total.

Not sur­pris­ing­ly, these indus­try ver­ti­cals also report high­er than aver­age con­tri­bu­tion to the bot­tom line as a result of mobile mar­ket­ing. On a scale of 1 to 7, edu­ca­tion com­pa­nies grade mobile at 4.88, and com­mu­ni­ca­tions and media com­pa­nies say mobile is at 3.86. On aver­age, though, busi­ness own­ers do not give mobile mar­ket­ing rave reviews and rate it at 3.07.

Social Media

Mobile isn't the only growth vehi­cle on the hori­zon. Mar­keters spend about 11.9% of their bud­gets on social media. In the next year, they expect that fig­ure to rise to 15.33%. Social media man­age­ment con­tin­ues to be out­sourced at a fair­ly high rate: 23.5%. For all of the spend­ing that goes into social media, most busi­ness­es are only giv­ing the for­mat a luke­warm thumbs-up. On a scale of 1 to 7, the mean score for whether social media is mak­ing a dif­fer­ence for the com­pa­ny is 3.29. To date, only 24.1% of mar­keters have quan­ti­ta­tive­ly proven their invest­ment in social media on the bot­tom line. Despite con­tin­ued skep­ti­cism about the for­mat, mar­keters pre­dict spend­ing lev­els on social media will rise to 22.5% of the bud­get over the next five years.

Your clients may be strug­gling with social media cam­paigns because they aren’t prop­er­ly align­ing their efforts with how their tar­get audi­ences use the for­mat. Run a Dig­i­tal Audit on their social media pres­ence and check out how audi­ences engage with top plat­forms like YouTube and Insta­gram. The Dig­i­tal Audit tool is avail­able on AdMall from Sales­Fu­el.

Kathy Crosett
Kathy is the Vice Pres­i­dent of Research for Sales­Fu­el. She holds a Mas­ters in Busi­ness Admin­is­tra­tion from the Uni­ver­si­ty of Ver­mont and over­sees a staff of researchers, writ­ers and con­tent providers for Sales­Fu­el. Pre­vi­ous­ly, she was co-own­er of sev­er­al small busi­ness­es in the health care ser­vices sec­tor.