Gartner Survey Shows U.S. Digital Marketing Budgets Average 2.5 Percent of Company Revenue
"Gartner for Marketing Leaders" Program Examines Key Issues Facing
Digital Marketers Analysts to Discuss Survey Findings During Complimentary Webinar,
"Why Digital Marketing Budgets Are Underfunded," on March 26
Digital marketing spending averages 2.5 percent of company revenue, and
these budgets are expected to increase 9 percent in 2013, according to a
survey of U.S. marketing executives by Gartner, Inc. The survey found
that, on average, companies spent 10.4 percent of their annual 2012
revenue on overall marketing activities; these expenses include
salaries, advertising research, agencies and software as a service.
These findings are included in Gartner's U.S. Digital Marketing Spending
report that is based on a survey of more than 250 marketers from
U.S.-based companies with more than $500 million in annual revenue,
across six industries (financial services and insurance, high-tech,
manufacturing, media, retail and healthcare). The survey was conducted
in November and December of 2012. The report examines how marketers are
allocating their budgets, what activities are contributing to marketing
success and other factors.
"While digital marketing has been a growing area of investment in many
organizations for a decade, the scope is increasing and the techniques
are maturing," said Yvonne Genovese, managing vice president of Gartner
for Marketing Leaders. "However, increased funding is a double-edged
sword as it brings new opportunities, but it also puts more pressure on
marketers to measure and attribute investments to revenue and profit
growth."
The majority of survey respondents are spending between 10 percent and
50 percent of their marketing budget on digital marketing activities,
with the average at 25 percent.
"Digital advertising accounts for the largest share of digital marketing
budgets at 12.5 percent, while content creation and management account
for the second-largest share," said Laura McLellan, research vice
president at Gartner. "Marketers today are emphasizing the use of
content marketing as part of a shift to drive more inbound marketing.
While outbound marketing emphasizes finding audiences and delivering
messages to them (for example, digital advertising and email marketing),
inbound marketing focuses on techniques to get found by potential
customers and create an ongoing dialogue with them (for example, social
marketing and communities)."
Improving commerce experiences is the activity that will get the largest
budget increase in 2013. The focus on commerce experiences will be in
improving the ability to find the commerce site and the shopping
experience. It will also include strategies to embed commerce in digital
marketing channels such as search, social and mobile.
When asked to identify how they are funding their digital marketing
activities, two in five marketers said they realized savings from
digital marketing compared with traditional techniques, and they are
taking that money and reinvesting it into their programs. On average, 28
percent of marketers say they have reduced their traditional advertising
budget to fund digital marketing activities.
The corporate website and digital advertising were both ranked as the
top digital marketing activities for marketing's success, while social
marketing emerged as the next most important activity.
"The survey results suggest that the corporate website will not be
displaced anytime soon by a brand's social media presence," said Bill
Gassman, research director at Gartner. "That's all the more reason for
marketing leaders to continuously invest in measuring and optimizing
their websites through Web analytics and testing, paying attention to
all aspects — from customized landing pages to compelling content that
encourages visitors to be engaged with your brand."
Additional information is available in the report "Key Findings from
U.S. Digital Marketing Spending Survey, 2013." The report is available
on Gartner's website at http://www.gartner.com/digitalmarketing.
Gartner analysts will provide additional details from the survey in the
complimentary webinar, "Why Digital Marketing Budgets Are Underfunded,"
on March 26, at 10 a.m. EDT and 1 p.m. EST. The analysts will examine
how marketers are disrupting traditional budgets as they shift the
marketing mix toward social, mobile and digital commerce experiences. To
register for the webinar, please visit http://my.gartner.com/webinardetail/resId=2332815?srcId=1-2994690285.
This research is part of the Gartner for Marketing Leaders program. This
program provides real-time, personalized digital marketing guidance,
from vision through execution. Gartner for Marketing Leaders is focused
on helping digital marketers succeed in eight key areas: emerging
digital marketing trends and techniques, social marketing, mobile
marketing, monetizing digital marketing through commerce, multichannel
marketing, data-driven marketing, digital marketing essentials and
digital marketing programs. Additional information is available at http://www.gartner.com/digitalmarketing.
For additional details, email GML@gartner.com.
About Gartner
Gartner, Inc. (NYSE: IT) is the world's leading information technology
research and advisory company. Gartner delivers the technology-related
insight necessary for its clients to make the right decisions, every
day. From CIOs and senior IT leaders in corporations and government
agencies, to business leaders in high-tech and telecom enterprises and
professional services firms, to technology investors, Gartner is a
valuable partner in 12,400 distinct organizations. Through the resources
of Gartner Research, Gartner Executive Programs, Gartner Consulting and
Gartner Events, Gartner works with every client to research, analyze and
interpret the business of IT within the context of their individual
role. Founded in 1979, Gartner is headquartered in Stamford,
Connecticut, USA, and has 5,300 associates, including 1,390 research
analysts and consultants, and clients in 85 countries. For more
information, visit www.gartner.com.
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