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