Marketing budgets are set to change towards digital

Digital Marketing, Industry News By Josanne Griffin-Mason, 3rd July 2014

Senior marketing executives are expecting digital to account for 75 per cent of marketing budgets within the next five years, according to the Accenture report.  The report included a survey involving 580 senior marketers globally. 78 per cent of them believe that marketing will undergo fundamental changes over the next five years, with mobile and digital driving this change.

35 per cent of the marketers within the survey believe that mobile will account for 50 per cent of their marketing budgets. However, the majority of 75 per cent of marketers predict 75 per cent of their marketing budgets will go on digital marketing.

Big brands such as Proctor and Gamble who are big fans of digital marketing, have only put a third of their media spend into the digital budgets.  However, this number is likely to change when they look into improving their marketing efficiency.

Their main competitor Unilever only contributed 17 per cent of their marketing budgets into digital last year.

Now that marketers are feeling comfortable with using digital channels, it has increased by a whole 10 per cent in the last year. The effectiveness of using online search, online display and email is being discovered by many marketers.

“Digital is changing the world and CMOs know it. They are embracing digital channels with fervor, but it’s time to do more. The prize is not mastery of the channels but command of the opportunities to delight customers and drive superior business outcomes. Then the reward for customers and marketers alike becomes relevant and seamless experiences from brand promise through brand delivery,” states the report.