According to a recent poll conducted by Duke University’s Fuqua School of Business, social media trends are showing that spending is expected to double over the next five years. The poll surveyed 468 different chief marketers.
As of right now, most B2B and B2C businesses contribute, on average, around 10% of their annual budget to their social media campaigns. But after conducting the poll, it was found that both B2B and B2C companies expect to increase their spending on mobile and social media marketing up to 20%, or even more, in the coming years. Christine Moorman, the marketing director who runs the school’s biannual CMO Survey, noted that, “This is a significant increase in attention being paid to social media. When we first asked the question in 2009, they were spending 3.5% on social media. Now they’re saying they will spend 11.5% this year and 21.6% in five years.” It’s also important to know that marketers have said they plan on reducing spending on traditional marketing by up to 3% in 2013 to make up for the increase in spending on social media.
The ironic thing about this new information is that marketers have admitted that their social media strategies are not directly tied into their overall business goals. When they were asked, on a scale of 1-7, how integrated their social media campaigns were, the average response was only a 3.8. Less than 10% claimed their campaigns were very effective, while 15% believed their campaigns were not at all effective.”This integration gap is kind of natural” for a relatively new marketing medium, said Moorman. “When companies first started doing broadcast advertising, they didn’t know how to integrate it with their sales activities.”
Along with this, the social metrics don’t really spotlight ROI contribution. “Conversion rates” were fourth while “revenue per customer” was eighth. “Hits/visits/page views”, “number of followers or friends”, and “repeat visits” rounded out the top three. “It’s difficult to conceive of the direct impact of social media,” said Moorman. “The customer is moving through a process; learning about a product, getting a referral. Social media metrics are leading indicators for downstream revenue, so that’s how marketers are approaching it.” She also pointed out that the assessment of social media is an important issue in many of the courses offered at the Fuqua School of Business.
It seems to be pretty apparent that marketers are in a period of transition from analyzing and integrating large amounts of customer data that come from the efforts of social and digital marketing. On average, the respondents did say they planned on increasing spending on marketing analytics up to 66% in the coming years, but they also plan on decreasing the amount of projects driven by analytics in the coming year from 37% to 30%.
Moorman theorizes that human resource issues could be a major impediment to businesses’ social and data driven marketing efforts. “Companies have just not figured out who the social media people should be and where they should fit in their organizations. Where do you hire them? To whom do they report? What’s their career path? The routines are not developed yet”, concluded Moorman.
So it is apparent that companies recognize the need for social media marketing as a part of their overall marketing strategy, but it is also clear that they are still figuring out how to best optimize these efforts. There is no question that an increase in spending will only aid these efforts, but there will also be periods of trial and error and frustration. The key thing to remember is that social media is indeed an important part of any marketing strategy and WILL work if you know how to do it the right way. We here at AnchorSTL should know. We’ve tried and tested numerous social media strategies and KNOW what works.
Don’t let the market surpass you simply because you do not know how to properly enact a social media strategy. Jump on it today and let us help you!
(Information pulled from dmnews.com)
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