Search Engine Optimization Company and SEO Services - Real SEO Firm

Marketers investing more in Web marketing

Nearly two thirds of marketers now see digital marketing as having a very high or high level of strategic importance within their organizations, and over 75 percent of respondents plan to increase spending on digital marketing as a percentage of their marketing budget this year, according to a survey of marketing executives released today.

The online poll, entitled the Digital Marketing Dialog, was commissioned by Responsys, Inc., a premier provider of email marketing solutions, and sponsored by the CMO Council, BtoB Magazine and USA TODAY in the fourth quarter of 2003.

The study received over 400 responses from top marketing decision makers regarding the impact, role, value, and uptake of digital marketing technologies and programs across all industry sectors.

Digital marketing techniques, including email campaigns, website interaction, online advertising, and e-newsletters are growing rapidly in strategic importance, according to the study findings. Over 70 percent of respondents said brand awareness is a key use of digital marketing, second only to customer lead generation.

Spending on digital marketing is expected to increase significantly in 2004 from last year, with the biggest year-to-year increase expected for those who spent between 11-20 percent on digital marketing last year. Nearly 40 percent of those who forecast spending for 2004 said they would spend more than 20 percent of their marketing budget on digital marketing.

"The study confirms digital marketing is an essential component of a marketer's overall marketing mix," said Kathy Gogan, Vice President of Marketing for Responsys, Inc. "Those who hesitate to embrace the digital channel will miss a critical opportunity to build stronger relationships with customers, promote their products, and cost-effectively build their brands."

Business to business (B2B) companies appear to be engaging in digital marketing techniques like never before. 63 percent of the survey respondents are from the B2B sector, and these marketers are spending more and allocating a higher percentage of their marketing budget toward digital marketing.

The survey reports B2B companies are employing digital marketing for new customer lead generation (87 percent); website traffic generation (58 percent); and customer education (54 percent). Business to consumer (B2C) companies are using the channel to improve customer relationships (74 percent), as well as for cross-selling/up-selling to existing customers (63 percent), and product sales.

"Although business-to-business companies are dramatically increasing their spending for digital marketing in 2004, they seem to be focusing on one-way information transfer," added Gogan. "The business-to-consumer market has recognized digital marketing as an effective vehicle for personalized, two-way dialogs which are critical for maximum results from the online channel."

Increased spending levels on digital marketing are due in large part to the ease, speed, and measurability of the online channel. 60 percent of respondents said digital marketing campaigns are gaining in popularity primarily because of the low cost of implementation, speed of delivery, and measurable ROI.

"We have found that online channels, including online marketing tools, are an effective and engaging means of reaching our customers in new ways," said Alan Gellman, former Vice President of eBusiness at Blue Shield and a survey respondent. "We've increased revenues, decreased costs and improved consumer satisfaction through the effective use of the digital channel."

Despite the clear advantages of digital marketing techniques, many marketers gave themselves barely passing grades when it comes to digital marketing. Nearly 40 percent graded their use of online marketing at a C, D, or F, admitting there is plenty of room for improvement utilizing digital marketing more effectively.

The top areas of improvements identified by respondents included better analytics and more multi-channel integration. Half of all respondents said top improvements would include better customer profiling and analytics, integration of both online and off-line channels and touchpoints, integration of email campaigns with personalized website interaction with customers, and integration of customer information and eCRM/e-support systems.

Respondents noted three primary barriers to effective digital marketing results. Spam and other email filters and email inbox clutter were mentioned by over 60 percent of respondents as key barriers, followed by the development of qualified email lists. Recent anti-spam legislation and privacy issues are also impacting e-marketing efforts. Nearly half of survey respondents said they would place more emphasis on the quality of email lists and over 40 percent have adopted a policy of "opt-in" email communications only.

The survey included all major industry sectors, including financial, retail, travel/hospitality, healthcare and consumer packaged goods. Almost 70 percent of the respondents held the title of Director of Marketing or above, with CEOs representing nearly thirty percent of the sample.

Source: CPU Review.com

Posted by nakul at January 20, 2004 04:48 PM | TrackBack