I found an interesting article online today - As Social Spending Rises, Which Metrics Are CMOs Focusing On?
Whilst the article related to what SM metrics are used to convince management that spending on SM is the right thing to do, what I was fascinated with is that approximately 7% of marketing budgets are spent on SM, and this is considered lower than marketers had hoped!
At the moment, I spend $0 but plan to increase this substantially within the next 6 months, as part of a digital strategy we're working on.
I'm curious, what percentage of your marketing budget is spend online, and in particular on SM? And, how is this determined?
Unfortunately I am not involved with SM activities where I work, but I also saw and interesting post online that mentioned Coke is cutting traditional advertising spend by 6.6 percent to increase SM spend. I would imagine that as the medium becomes more familiar and there are better ways to measure the effects the spend will start to increase. The only thing is that companies need to act quicker to become better at it, if they don't they may miss out and the next big thing will be available.
ReplyDeleteRoss
Great post, Sarah. The Sensis Social Media Report has some more data on how much businesses are spending on SM. Their figures are similar to the ones you've found above. But they also indicate that businesses in Australia are planning to increase their SM spend considerably over the next 12 months.
ReplyDeleteI think at the beginning brands use a little of its marketing budget for social media. When the effect comes out, brands will use more of its budget for SM.
ReplyDeleteWe have spent very little in the past online and on social media but this is slowly changing. We are not currently working on a brand new e-commerce platform that will be launched in a few months so the allocation of our marketing budget to online resources will be changing. However, traditional marketing still plays an integral role in our business and still takes up the majority of our budget. I am certain that in years to come, online will take up the majority of our budget and traditional marketing will fade away and become a thing of the past.
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