According to a new report released by research firm Gartner, digital marketing budgets and an overall emphasis on digital channels are steadily increasing for companies across the country. In fact, following a double digit percentage increase for 2013, Gartner is predicting that companies will invest 10 percent more into their digital marketing initiatives for 2014.
As the report reveals, digital marketing channels continue to demonstrate a strong ROI (return on investment), which is translating to a heavy emphasis on digital marketing initiatives. The report actually traces three main trends: that the focus on customer experience is pushing marketing in new directions, that digital marketing budgets are thus continuing to rise, and that digital channel investments are consistently driving measurable returns.
In fact, for 2013 the survey revealed that in terms of spending, companies were devoting an increasing amount to digital channels. According to Gartner’s survey, on average companies spent 10.7 percent of their annual 2013 revenue on general marketing activities, with digital marketing spend averaging 3.1 percent of this.
Gartner Managing Vice President Yvonne Genovese describes the significance of these metrics and marketing trends as such: “Marketing leaders are securing bigger budgets to define markets, develop offerings, and attract, acquire, and retain customers.” Part of this customer oriented marketing push is toward digital marketing, which has become a much more customer centric and interactive marketing approach in most industries. As Genovese explains, “Digital marketing is taking an increasing share of the marketing budget with annual digital marketing operating budgets totaling 3.1 percent of a company’s revenue in 2013, as compared with 2.6 percent in 2012, representing a 20 percent increase.”
Gartner is a world leading information technology research and advisory company based in Stamford, Connecticut, and works with technology business leaders around the world. Gartner’s report is based on a recent survey of 285 marketing executives located in the U.S. Respondents represented organizations with more than $500 million in annual revenue across eight industries: financial services and insurance, high-tech, communications, manufacturing, media, retail, government, and healthcare.
Essany, Michael. “Gartner: Digital Marketing Budgets to Climb 10% This Year.” Mobile Marketing Watch. 4/30/14.