Gartner: 9% Rise In Digital Marketing Spend Expected in 2013

    Posted by Tracy Lewis on Mar 21, 2013 12:02:00 PM

    MoneyEarlier this month, Gartner released its 2013 U.S. Digital Marketing Spend Survey results, based on responses from 253 marketers at U.S.-based companies.

    On average, companies spent 10.4% of their annual 2012 revenue on marketing; 2.5% of this went specifically to digital marketing. In addition, digital marketing spend is expected to increase 9% this year.

    With these increases in budgets comes a greater demand for more accountability, service integration and technical know-how among marketing teams. 

    More Budget = More Responsibility

    While larger budgets bring opportunity, they also bring responsibility. According to the report, “[increased funding] puts more pressure on marketers to deliver and prove a return on investments.” And, yet, only 9% of respondents cited analytics—one of the best ways to prove ROI—as critical to their success.

    We agree with Gartner that a lack of focus on analytics is a severe oversight. It is those marketing teams that are able to turn data into intelligence, and intelligence into action that will be the most successful. These teams are better able to tie activities to bottom-line metrics that matter, which lets them report more accurately to executives, gain greater support ongoing and adjust campaigns based on performance.

    The End of Marketing Silos

    At 20% of companies, digital and traditional marketing techniques have merged so much that budgets are no longer allocated separately. Gartner expects that other companies will follow suit, as they realize that marketing programs can no longer run in silos.

    For example, today, it’s common to see traditional TV ads with a social component, billboards driving viewers to a dedicated landing page on the company’s website, and online content spurring PR campaigns. With the lines blurring, it will become harder to earmark budgets specifically to digital or traditional strategies moving forward.

    Technical Chops Required

    In addition to the rise of digital marketing budgets (stemming from changes in consumer purchasing behaviors), 67% of marketers have budgets to acquire marketing software licenses and infrastructure.

    This has created a need for chief marketing technologists, individuals with an understanding of both marketing and technology, in order to oversee and execute strategic programs. Today, 70% of companies have someone serving in a marketing/technology role.

    That said: we envision the need for tech-savvy professionals to only grow, as new technologies crop up that continue to change the way consumers purchase products, and consequently how marketers do their jobs. For more on this topic, download PR 20/20’s free ebook, The Evolution of the Prototype Marketer, the Hybrids are Coming.

    What’s Your Marketing Budget?

    How does your marketing budget compare to Gartner’s averages? Do you plan to shift more funding to digital? Why or why not? Share your thoughts in the comments below. 

    For additional insights from the report, visit the Gartner website.

    About the Author: Tracy Lewis is an inbound marketing consultant with PR 20/20, a certified Gold HubSpot partner and inbound marketing agency that combines content, public relations, social media and search marketing into integrated campaigns. She is also the community manager for Marketing Agency Insider, the hub for agency news, information and resources.

    Image Credit: 401(K) 2013

    Topics: internet marketing, PR 20/20

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