CURRENT MARKETING STRATEGIES, TACTICS AND BUDGET ALLOCATIONS ( eMarketing Strategies)

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.

Search Marketing Spending and Trends

Search dominated by paid placement, more SEO to come.

New data provided by the Search Engine Marketing Professional Organization (SEMPO), based on research conducted by Radar Research, sheds light on how search marketing dollars are being spent.

In 2008, $13.5 billion was spent on search marketing. The space was mostly made up of paid placement and search engine optimization (SEO), with a sliver going to technology providers whose software assisted in the execution of search campaigns. Paid search ads saw 88% of the total pie, SEO only 11%.


The ratio of paid placement to SEO will change in the future.

“Internet users prefer organic listings to paid search. They generally find them more relevant—or simply more acceptable—than advertising,” said eMarketer senior analyst David Hallerman. “Therefore, they tend to click on organic results more often than on paid search ads.”

SEO is also cost-effective and works across all search engines. In addition, an optimized site doesn’t drop off the first results page even when a marketer’s spending slows or stops, as paid search does.
“Marketers are realizing that even if optimization’s effects are not as obvious as paid search advertising,” added Mr. Hallerman, “SEO delivers longer-term results that support any search marketing campaign.”

Search marketing spending will thrive in the coming years. SEMPO estimates that $14.7 billion will be spent in 2009.


Other sources are not quite as bullish, but they only cover the US, so it not surprising that the figures are lower. Myers Publishing, Credit Suisse, Oppenheimer and Co. and Barclays Capital all had lower 2009 projections, $13.0 billion, $11.6 billion, $11.6 billion and $11.2 billion, respectively.

eMarketer currently estimates that search ad spending in the US will reach $12.3 billion in 2009. But revisted figures are due out soon. Watch for them.