Digital Marketing sees Social Media Budget Increase
Due to the meteoric rise in recent years of social media as a marketing tool, there’s been a lot of discussion as to the actual worth of using social channels in this way. The problem has been, of course, the lack of facts and figures to back up what many are saying; that social media is a valuable tool for increasing engagement with customers, driving traffic and sales and improving a brand.
A new survey from CMO shows that spending is on the rise when it comes to the resource. Executives questioned about their social media marketing budget said that they are currently spending about 7.1% of their overall marketing budget on social media. This is expected to increase to 10.1% over the course of the next year and to 17.5% over the next five years.
Those in the know say that this demonstrates the power of the medium and it seems that companies no longer fear their competitors, they are more afraid of what they are getting up to online.
According to CMO Survey Director, Christine Moorman, “companies that most effectively deploy social media will be best positioned to serve their client bases”. This, she points out, is especially true thanks to the increasingly connected age we live in, something that gives consumers a lot more buying power and positions them higher in companies.
This means that businesses that listen to and interact with their customers are much better positioned to adapt in order to give them what they want, which is generally great service and a well-priced, quality product. If companies can achieve good communication with their customers and ensure that their shopping experience is a happy one, then that customer is not only more likely to buy, they are extremely likely to recommend a product or service to a friend.
According to Moorman, the current economic climate may even be holding marketers from spending as much as they’d like on social media marketing. She states that more growth was expected, based on results from 2009 survey.
This goes some way to proving that companies are finally waking up to the power of social networks such as Twitter, Facebook and Pinterest, especially since the survey also showed that companies have doubled dedicated social media employees.
Now that we have some kind of definitive proof that social media is indeed a wonderful marketing tool, companies should allocate their funding, appoint new employees to deal with it effectively and then turn their attention to the next big thing: apps.
It seems that there’s not quite an app for everything as yet and the smartphone revolution is set to continue to grow at a blistering pace. Now, it’s official, more people own a smartphone in the world than a toothbrush, which is something of a bewildering statistic if you’re a dental hygiene advocate.
According to The Mobile Marketing Association, out of the 6 billion people on the planet 4.8 billion own a smartphone, whilst only 4.2 billion own a toothbrush. For retailers, this means that they have a never-seen-before opportunity to connect with customers at all times, even when they’re out of the house.
This has led to the more tech-savvy companies paying to have their own apps developed in order to place them well ahead of the competition and is another ‘fear factor’ when it comes to what digital marketing strategies competitors are employing.
In order to address these fears, it would seem more sensible to join the race and get an app developed that fully represents a brand and connectscustomers on the move effectively, by allowing them to access the full spectrum of excellent marketing opportunities now available to them.
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