For most large businesses, those with over $500 million in annual revenue, the transition to digital marketing is a work in progress. These enterprises have definite opinions about which digital formats are working best for them and which areas require outside expertise. This year, industry watchers can expect to see larger enterprises focus more on their corporate websites than on their social networks.
The findings in Gartner's U.S. Digital Marketing Spending report were based on 250 larger marketers who participated in the survey and reveal that about 25% of the marketing budget in general is spent on digital. Looked at through another lens, the average larger company spends about 2.5% of revenue on digital marketing – a figure that includes advertising, research, salaries and services.
The digital advertising component snaps up 12.5% of the digital marketing budgets, on average. Content creation and management (11.6%) and search marketing (10.6%) are the other large components of digital marketing spending. Generally, businesses fund their digital marketing expense through savings they realize by shifting money from traditional advertising.
Marketers also acknowledged that some of their digital marketing needs were best handled by outsiders. For about half of the companies in this survey, search was the top function to be outsourced. Only 27% outsourced the management of their corporate blogs.
The digital marketing budget will grow another 9% this year. The top emphasis will be the corporate website. Senior marketing executives at these companies believe that the website, along with digital advertising, represent their most successful efforts. However, they identify social media as ‘the next most important activity.’
If you’re working with a large marketer, have you noticed the trend of emphasizing corporate websites over social media?[Source: Key Findings from U.S. Digital Marketing Spending Survey. Gartner.com. 13 Mar. 2013. Web. 26 Mar. 2013]