Whilst there is great optimism about the economy among senior Marketing Execs they expect spending on traditional advertising to fall by 8% as they shift towards Internet Marketing in a big way.
The study by Duke University’s Fuqua School of Business in conjunction with the American Marketing Association, which surveyed 511 top Marketing Executives of U.S. companies during the last two weeks of July, found that 59% of marketers are more upbeat about the economy than they were one quarter ago. 47% said they’re more optimistic about generating revenue from customers and 39% are more hopeful about revenue from channel partners.
48% believe there will be an increase in purchase volume, 44% expecting customers to buy more products and services and 35% predicting an increase in new customers.
The good news for those of us who have been talking about Social Media for a long time is that marketers expect to boost spending on Social Media efforts by more than 300%. Marketing budget allocations for Social Media—including social networking, video and photo-sharing and blogging—are forecast to increase from 3.5% to 13.7%, per the study. Respondents said Social Media plays a key role in brand building, customer acquisition, product introductions, customer retention and market research. Meanwhile, spending on traditional advertising is expected to decrease 8%.
When asked to identify companies that have “exceptional marketing capabilities” across all business sectors, CMOs most frequently cited Apple and Procter & Gamble.