New Survey: Marketers to Increase Social Media Spending
Leading marketing executives are increasingly relying on social media in their overall marketing strategies, a new CMO Council survey indicates.
The 249 CMOs of U.S. companies who took part in survey noted they intend to increase their spending on social media from its current level of 7.1 percent of their overall marketing budget to 10.1 percent over the next year. They expect to see this number rise to 17.5 percent in the next five years.
The survey also found that executives are planning to increase spending on all forms of marketing. This is despite the fact that the survey was conducted from Aug. 1-23, a time frame marked by the S&P downgrade of U.S. credit and a Congressional battle over the debt ceiling.
Marketing budgets are expected to increase 9.1 percent and companies plan a 7.2 percent increase in marketing hires over the next 12 months. The latter figure is up from 6.2 percent when asked the same question in February 2011.
At the same time, optimism among marketing executives for the overall U.S. economy reached its lowest point in two years. When asked: “How optimistic are you about the overall US economy on a 1-100 scale with 0 being the least optimistic and 100 the most optimistic” the overall average of respondents was 52.2. The lowest time before this was in February 2009, when the average was 47.6.
“These findings dispel the notion that social media is just a fad,” said Christine Moorman, the T. Austin Finch Senior Professor of Business Administration at Duke’s Fuqua School of Business and the director of The CMO Survey.
“Social media is fast becoming an important strategic weapon in company arsenals and has proven to be a valuable tool in acquiring and engaging customers. Effective use of social media is no longer an option for companies—it is a requirement. Going forward, companies which most effectively deploy social media will be best positioned to serve their client bases, particularly as digitally-savvy customers assume a greater percentage of buying power.”