A new survey of senior marketers at technology companies, International Data Corporation’s (IDC) CMO Advisory Service found that two-thirds are expecting budget increases for 2014.
All told, it’s the latest data pointing to increasingly ballooning marketing budgets across the tech world.
Additionally, IDC forecasts that marketing budgets within the technology industry will increase 1.5-2.5% overall in 2014.
Third Platform companies – those with revenue primarily from cloud, social, mobile, and Big Data and analytics technologies – will see marketing budget increases that are six times greater than the rest of the industry, increasing their marketing spending between 8 and 12%.
Despite the projected gains, the average marketing budget increase is still less than half the surveyed companies’ projected revenue increase of 4.6%.
“IDC consistently observes that marketing budgets track closely to revenue momentum. As such, IDC has seen that as 3rd Platform companies gain revenue, the marketing budgets for those vendors have also increased,” explains Sam Melnick, Research Analyst for IDC CMO Advisory Service. “However, in the majority of legacy, 2nd Platform companies, marketing budgets have remained stagnant. 2nd Platform vendors must identify their high growth areas and aggressively invest budget to support them or risk being left behind.”