In 2014, the average company spent just over 10% of its annual revenues on marketing activities, according to a recent survey of marketing executives performed by Gartner Incorporated. The survey also found that over 50% of companies will increase their digital marketing budget for 2015, in an effort to better connect with customers and, obviously, increase profits.
The survey included individuals from the United States, Canada and Great Britain who represent organizations with over $500 million in annual revenues. It was performed in July and August of this year among six different industries, including high-tech, financial services, media, retail, hospitality and transportation.
Jake Sorofman, the research director at Gartner, says that the survey found that “the highest marketing technology investment in 2014 is the customer experience… Just edging out product innovation.”
Gartner found that not only are marketing budgets very healthy, but also that the line between digital and traditional marketing is becoming less clear. For example, Laura McLellan, the vice president of research at Gartner, says that “for marketers in 2014, it’s less about digital marketing than marketing in a digital world.”
The survey shows that the spending trends of 2014 will continue into 2015, and that digital advertising will rank at the top along with mobile marketing. The survey also found that, among CEOs, the number one ranked priority for technology enabled businesses was digital marketing.
Digital advertising, as it has for the last few years, took the top spot as far as the allocation of a company’s digital marketing budget was concerned. It also showed however that, in comparison with previous years, there is less of a difference between digital marketing and other marketing activities.
One thing that’s fueling the digital marketing trend is the rise of programmatic media buying, something that allows marketers to better target their audience as well as automate bidding rules for ads based on value.
The results of the survey weren’t a huge shock, by any means, as in the last few years the increase in digital advertising has increased every year. The difference is that the line between “traditional” advertising and digital advertising is quickly fading away.