Major Portions of Marketing Budgets Are Shifting to Interactive Mediums in 2010
One of the key trends underscored by the 1,068 respondents polled by Alterian for its 7th Annual Industry Survey is the shift in marketing budgets away from traditional media. “40% of respondents anticipate a shift of over a fifth of their budget towards digital channels, with 21% of respondents predicting more than a third of their budget will shift.” The shift in budgeting is a result of the industry’s increasing awareness of the fact that traditional media channels just don’t deliver the results they used to. “Empowered consumers today expect a customized, interactive brand experience that goes way beyond a 30-second television spot or two-dimensional print ad,” exclaims Forrester.
The benefit of interactive and social media to both the consumer and the campaigning brand is clear, but what is the benefit to agencies who embrace this trend?
“Success in digital, interactive and social channels would seem to come at a lower cost than success in traditional direct marketing,” says Alterian. According to Forrester, “interactive tools are less expensive, more measurable, and better for direct response than traditional media.”
As demanding consumers expect customized, interactive brand experiences marketers are opting for the more attractive, less expensive interactive tools that are efficiently monitored and the return on investment can be accurately measured. Forrester’s latest Interactive Marketing Forecast calls for spending on interactive marketing/advertising channels to grow to nearly $55 billion and represent approximately 21% of all marketing budgets by 2014.
Tags: Apparel Media Group, Budget, Interactive, Marketing, Social
Some pundits have criticized the Alterian survey’s sample size and geographic distribution. Here’s another survey conducted by Econsultancy and ExactTarget that demonstrates the same trend of budget reallocation: http://blog.exacttarget.com/blog/the-exacttarget-blog/0/0/marketing-budgets-2010