Aussie marketing budgets are up along with technology spend: Report

Econsultancy and Responsys' new Marketing Budgets 2013 Report finds more than half of Australian companies are increasing marketing budgets this year, with digital leading the way

More than half of Australian companies are increasing their overall marketing budget this year, and with it their investment into digital marketing technologies, a new survey reports.

According to the latest Marketing Budgets 2013 Report from Econsultancy in partnership with Responsys, 54 per cent of local companies will increase their overall marketing spend in 2013, up from 45 per cent last year. Of this, 71 per cent plan to increase their digital budgets, compared with just one in five raising offline spend.

The average expected increase in digital budgets is 28 per cent, which is nominally higher than the average expected increase in offline budgets (26 per cent). In addition, 56 per cent of companies increasing their digital marketing budgets will do so by more than 20 per cent.

Overall, companies are spending 35 per cent of their total marketing budget on digital channels today. Content marketing came up as the major priority in the report findings, with 70 per cent of respondents citing budget increases for content marketing activities over the next 12 months. This is the highest for any digital channel or discipline, the report authors claims.

In an illustration of how marketers plan to further optimise and integrate their channel strategies, the report also found more than three-quarters of companies plan to boost spending on digital marketing technology this year (71 per cent).

The top three types of marketing technology most likely to secure the dollars are analytics (46 per cent), CRM (45 per cent) and content management systems (41 per cent). These were followed by social media management systems, email platforms, paid search/big management, and conversion and optimisation tools.

While belief in digital marketing channels is clear, only half those surveyed claim to have a ‘good’ or ‘very good’ understanding of the ROI delivered on digital marketing channels, down from 55 per cent in 2012 and 67 per cent in 2010.

Click for Responsys' infographic of the report's key findings

Interestingly, the report authors claim this is because digital is longer seen as significantly more measurable than traditional marketing. Reasons for this include the blurring of the two areas, the rise in social media and video, and the increasing focus of marketers on digital as a branding medium.

Responsys senior marketing and alliances director EMEA, Simon Robinson, used the latest report to claim the end of the mass marketing era and the rise of relationship-based marketing. With it comes the need for new skill sets and smarter cross-channel programs that resonate with the consumer.

“To succeed, companies will need to flip their approach to marketing on its head and design cross-channel strategies to deliver long-term relationships, not short-term transactions,” he said.

“The good news is that marketing budgets are shifting accordingly. Successful marketers in the relationship era will be those who dedicate more resources toward forging real, individual relationships with their prospects and customers.”

The report was based on a survey of 800 marketers between December and January and is the fourth edition of Econsultancy and Responsys’ annual research.

The skills gap: Other report findings:

  • Half of client-side respondents and 73 per cent of agencies indicated organisation will recruit more people into their digital marketing teams in coming months
  • Lack of staff to make the most of digital investment is the third most widely cited barrier, after restricted budgets and company culture, preventing companies from investing more money into digital marketing.

Follow CMO on Twitter: @CMOAustralia or take part in the CMO Australia conversation on LinkedIn: CMO Australia.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Using artificial intelligence to surprise your customers

​We have expected artificial intelligence (AI) will become part of our everyday lives for quite some time.

Katja Forbes

Founder and chief, sfyte

Is customer segmentation dead?

Ginni Rometty, the CEO of IBM, announced the death of customer segmentation five years ago saying, "The shift is to go from the segment to the individual. She might have been a bit premature for most marketers, but if customer segmentation isn't dead yet, it's definitely on life support.

Richard Taylor

Senior digital strategist, Spinach

How people buy brands

Andrew Ehrenberg was a giant in the field of marketing science. He believed scientific methods could reveal law-like patterns of how people buy. In this post, I summarise one of Ehrenberg’s most important discoveries and its implications on how people buy brands.

Kyle Ross

Strategist, TRP

What a great article. Thanks for sharing. Today Digital Marketing is the basic need for a business to survive. As online presence is very...

Ecomsolver Private Limited

Want to master digital transformation? Stop thinking about your own problems

Read more

Feeling grateful that customer led digital transformation could improve business and generate more business growth. Many companies are no...

Lilly Lawrence

How a customer-led digital transformation has helped this CMO generate $6m in incremental business

Read more

If a business games me happy than there is a higher chance I will go to them.

Martinez

The Iconic: becoming customer-focussed transformed our business

Read more

That’s a great example of surprising AR ad that went viral because it was first of its kind. Probably a similar effect to some scale can ...

Natasha Kvitka

Using artificial intelligence to surprise your customers

Read more

Hey there! it is a really meaningful post. I too have written a few similar articles about SEM, SEO, Social Media, Digital Marketing Tren...

Rohit

Digital advertising continues to dominate marketing budgets

Read more

Latest Podcast

More podcasts

Sign in