Almost half (41%) of companies with more than 100 employees invest more than $500K in digital marketing every year. This is revealed in a US-based survey with 501 marketers published by The Manifest and looks to discover how businesses invest and how their investment might change in the coming year.
Respondents are a mix of senior level employees and companies. About 76% consider marketing has undergone more transformation during the last 2 years than 50 years before. With the advent of new marketing methods, traditional marketing like pamphlets, flyers or billboards have suffered a loss in popularity. 99% of Manifest’s respondents said they planned to increase spending on “at least one” digital marketing channel in the coming year.
Another report based on digital marketing, it was suggested that traditional media spend is being ousted by marketing automation tools for email and social, which has seen budget increases by 44% in just the last year. Meanwhile, marketing intelligence companies also predicted that total spend on social media advertising was set to grow by $28bn (£21bn) to reach $76bn (£58bn) by 2020.
Indeed, 64% of businesses surveyed by Manifest said they planned to spend both more time and money on social media marketing, while optimising their website was a priority among 55%.
An interesting bit is that businesses plan to put fewer resources on display and banner ads (19%), despite the ever-growing prevalence of automatic buying.
If your company doesn’t have a marketing budget of $500K per year, don’t worry just yet. According to co-founder and head of sales at B2B lead generation agency, the spending that a business should put aside for digital marketing varies by business and customer needs.
“It’s all over the map as far as industry goes. To figure it out, you need to understand who you’re trying to sell to and define those personas.
“Get a sense of exactly how people consume information and how they make purchasing decisions. If digital is really big for these customers, then digital marketing should be a massive amount of your budget”
“If you’re in an old-school industry that doesn’t really do a lot of digital stuff, digital marketing may not make as much sense.”