Marketing Budget
Companies with small marketing budgets dominate in terms of study participants, with 62% reporting a budget of under $1 million, a significant increase from 40% last year. 12% report a budget which is slightly larger ($1 million to $4.9 million), a decline from 21% at the end of 2007. The greater presence of companies with smaller budgets may be related, at least in part, to a greater representation of small companies.Emarketing Strategies, Tactics, Budget Allocations and Expectations
Marketers are relying on using digital tactics more often than traditional. Company Web Sites and Email are the most frequently used tactics, followed by Public Relations, Tradeshows (in-person) and Search Marketing. Marketers have not yet widely adopted the usage of Virtual Trade Shows (the tactic used least frequently of all studied) and traditional tactics such as Outdoor Media, Radio and TV Advertising are also used on a relatively infrequent basis.
Looking at overall usage changes from 2007 to 2008, it is clear that usage rates of digital tactics has remained essentially the same, while the usage of many traditional tactics has declined.
In terms of dollar allocation, traditional tactics and media still command the majority of the marketing budget.
While a greater proportion of respondents indicate using their Company Web Site more than any other tactic, this media receives, on average, the sixth-largest budget allocation, behind Tradeshows/Conferences (in person), TV Advertising, Inside Sales/Telemarketing, Direct Mail, and Print Advertising.
Marketers are more likely to indicate increased effectiveness with digital tactics than traditional, and the presence of digital media in the marketing mix is forecasted to increase. A greater proportion of respondents expect to increase spending on digital tactics when compared with those anticipating increases to traditional media.
Marketing Tactics Used
The data suggest that marketers are relying heavily on certain digital tactics.
The top two media used are Company Web Site (91%) and Email (81%), followed by some traditional tactics, such as Public Relations (72%) and In-Person Tradeshows (70%).
Marketers are also using Search Marketing (64%) at a greater rate than traditional tactics such as Direct Mail (60%), Print Advertising (55%), Inside Sales/Telemarketing (54%), Sponsorships (46%), and Executive Events (45%).
Respondents use Virtual Trade Shows least often (8%), yet it is worth noting that compared with other infrequently used tactics, such as TV Advertising (9%), Radio (10%), and Outdoor Media (11%), this digital tactic is a relative newcomer to the marketing arsenal.
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