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SAMPLE: Marketing Budgets 2013
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SAMPLE: Marketing Budgets 2013
Econsultancy London
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+1 212 971 0630
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Copyright © Econsultancy.com Ltd 2013
Published February 2013
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Contents
1. Executive Summary and Highlights ................................ 5
2. Foreword by Responsys ................................................... 9
2.1. About Econsultancy ................................................................... 11
2.2. About Responsys ........................................................................ 12
3. Methodology and Sample .............................................. 13
3.1. Methodology ............................................................................... 13
3.2. Respondent profiles ................................................................... 13
4. Findings ......................................................................... 14
4.1. Marketing budgets ..................................................................... 14
4.1.1. Proportion of budget spent on digital ................................... 14
4.1.2. Proportion of revenue derived from digital marketing spend ...................................................................................... 16
4.1.3. Plans for overall marketing budget ....................................... 18
4.1.4. Increase in overall marketing budget .................................... 20
4.1.5. Plans for digital marketing budget ........................................ 21
4.1.6. Increase in digital marketing budget ..................................... 23
4.1.7. Plans for traditional (offline) marketing budget ................... 24
4.1.8. Increase in traditional (offline) marketing budget ............... 26
4.1.9. Change in budgets for digital marketing channels ................ 27
4.1.10. Acquisition / retention focus for investment ........................ 31
4.1.11. Change in budgets for offline marketing channels ............... 32
4.2. Investment in technology and resources .................................. 36
4.2.1. Investment in digital marketing team ................................... 36
4.2.2. Plans for digital marketing technology spend ....................... 38
4.2.3. Investment in digital marketing technologies .......................40
4.2.4. Investment in mobile channels or technologies .................... 44
4.3. Marketing effectiveness and ROI.............................................. 46
4.3.1. Understanding of ROI from digital channels ........................ 46
4.3.2. Understanding of ROI from traditional marketing channels ................................................................................. 48
4.3.3. Ability to measure ROI from digital channels ....................... 50
4.4. Barriers to further investment .................................................. 55
4.5. Most important area of digital focus in 2013 ........................... 57
Marketing Budgets 2013 in association with Responsys Page 4
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5. Appendix 1: Respondent Profiles .................................. 59
5.1. Geographic location .................................................................. 59
5.2. Job roles ..................................................................................... 60
5.3. Type of companies – supply-side respondents ......................... 61
5.4. Industry sector .......................................................................... 62
5.5. B2B / B2C focus ........................................................................ 63
5.6. Annual company revenue ......................................................... 65
5.7. Annual marketing budget ......................................................... 66
6. Appendix 2: Marketing Budgets by Company Revenue .......................................................................... 67
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1. Executive Summary and Highlights The fourth annual Marketing Budgets Report, published by Econsultancy and sponsored by
Responsys, is based on a survey of more than 800 company and agency marketers, carried out
in December 2012 and January 2013.
The report looks at relative levels of planned spending this year across a range of marketing
disciplines or channels, comparing online and offline budgets while also looking at planned
investment in different types of marketing technology.
We have identified six key findings:
1. A positive outlook for marketing investment
Overall, this research paints a very buoyant picture for marketing investment, both for overall and
digital marketing spending.
Reflecting a slightly more optimistic economic environment, 54% of companies surveyed intend
to increase...
Overall marketing budget
Digital marketing budget
Traditional (offline) marketing budget
2012 2013 2012 2013 2012 2013
Proportion of companies planning to increase
Average expected increase
Other findings include:
75% of agency respondents say their clients’...
SAMPLE: Marketing Budgets 2013 in association with Responsys Page 5
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2. Foreword by Responsys Marketing is a dynamic business. It seems each year brings a new technology, a new channel, or a
new trend. But despite all of these advancements and amazing new technologies, too many
marketers have been applying the same mass marketing techniques used in the offline world to
the digital world. Send more messages. Buy more ads. Launch more campaigns.
As we enter 2013, it’s clearer than ever that we’ve reached a significant tipping point. The
campaign-centric mindset that drove transactions in the mass marketing era is failing. Consumers
are tuning out generic, mass-market messages and are choosing which marketing messages they
receive – when, where, and from whom. They expect, even demand, interactive and consistent
communication across every digital channel.
The mass marketing era is dead. We’ve entered the relationship era. To succeed, companies will
need to flip their approach to marketing on its head. Rather than focusing on a marketing
campaign calendar that aligns to the marketer’s needs, the focus must be placed squarely on the
individual interactions and experiences that each consumer will have with the brand. It’s an
approach designed to deliver long-term relationships, not short-term transactions.
The good news is that marketing budgets and strategies are shifting accordingly. In this report, we
see data point after data point that shows that marketers are transforming their businesses for the
relationship era.
Econsultancy’s recent research finds that marketers will continue to invest in the digital channels
and advanced marketing technology with 71% of companies increasing digital spend in 2013 vs
just 20% increasing offline spend. This is largely fuelled by the desire to have individual
conversations with consumers at scale, measure ROI across channels and derive value from the
vast amount of data available to marketers. To that end, this year’s figures show that over two-
thirds of companies are driving more than half of their revenues from digital marketing spend.
What’s more is that the percentage of companies planning to invest in cross-channel has grown
year-on-year, demonstrating the increasing importance of an integrated marketing strategy. The
rise of mobile is another way that marketers are interacting with consumers on their own terms,
and in 2013 we’ll see marketers increase their investment in mobile optimized email and mobile
search marketing.
While respondents were unequivocal on their digital intent, one surprising element is the relative
attribution of spend on retention and acquisition-based marketing. A higher percentage of
respondents said that they will focus on acquisition in 2013 at the expense of retention. This
highlights the very real danger that some marketers are investing too much in mass marketing
and not enough to engage with and retain existing customers, and that the value of establishing
long-term relationships with customers is being underestimated. Successful marketers in the
relationship era will be those who dedicate more resources toward forging real, individual
relationships with their prospects and customers.
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Technology and data will undoubtedly continue to shape marketing, but cultivating the right
talent must not be overlooked. The ability to hire staff to fully capitalize on investments made in
the relationship era is not easy. The research shows that this is having a negative effect on digital
investment with firms reluctant to purchase technology because they feel they lack the human
capital to maximize the value of that investment. The rapid pace of change means that
developments in mobile, social and analytics are emerging faster than organizations can up-skill
to keep pace. To fill this gap, companies need to start seeking marketers who can think beyond
the campaign level and develop smart cross-channel programs that resonate with the consumer.
Being a marketer in the relationship era will inevitably present challenges and opportunities in
equal measure. The research shows that marketing spend in 2013 is healthy, but at the same time
there is understandable pressure to show ROI. Marketers should be careful that this pressure
does not translate into campaign-centric, short-term thinking. Long term value will be driven by
fostering relationships with customers and prospects across the digital channels with a consumer-
centric approach to marketing.
Simon Robinson
Senior Marketing and Alliances Director EMEA
Responsys
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2.1. About Econsultancy Econsultancy is a global independent community-based publisher, focused on best practice digital
marketing and ecommerce, and used by over 400,000 internet professionals every month.
Our hub has 185,000+ subscribers worldwide from clients, agencies and suppliers alike with over
90% subscriber retention rate. We help our subscribers build their internal capabilities via a
combination of research reports and how-to guides, training and development, consultancy, face-
to-face conferences, forums and professional networking.
For the last ten years, our resources have helped subscribers learn, make better decisions, build
business cases, find the best suppliers, accelerate their careers and lead the way in best practice
and innovation.
Econsultancy has offices in London, New York, Sydney and Singapore and we are a leading
provider of digital marketing training and consultancy. We are providing consultancy and custom
training extensively across Europe, Asia and the US. We trained over 5,000 marketers and ran
over 200 public training courses in 2012.
Join Econsultancy today to learn what’s happening in digital marketing – and what works.
Call us to find out more on +44 (0)20 7269 1450 (London) or +1 212 971 0630 (New York). You
can also contact us online.
Other related Econsultancy reports
Quarterly Digital Intelligence Briefings
http://econsultancy.com/reports/quarterly-digital-intelligence-briefing
Conversion Rate Optimization Report
http://econsultancy.com/reports/conversion-rate-optimization-report
Conversion Maximization – The Essential Workflow
http://econsultancy.com/reports/conversion-maximization
E-commerce Best Practice Compendium
http://econsultancy.com/reports/e-commerce-best-practice-compendium
Best Practices in Data Management
http://econsultancy.com/reports/best-practices-in-data-management
Content Marketing Survey Report
http://econsultancy.com/reports/content-marketing-survey-report
How the Internet Can Save the High Street
http://econsultancy.com/reports/how-the-internet-can-save-the-high-street
The Multichannel Retail Survey
http://econsultancy.com/reports/the-multichannel-retail-survey
Internet Statistics Compendium
http://econsultancy.com/reports/internet-statistics-compendium
SAMPLE: Marketing Budgets 2013 in association with Responsys Page 8
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and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2013
2.2. About Responsys Responsys is a leading provider of email and cross-channel marketing solutions that enable
companies to engage in relationship marketing across the interactive channels customers are
embracing today – email, mobile, social, the web and display.
With Responsys solutions, marketers can create, execute, and automate highly dynamic
campaigns and lifecycle marketing programs that are designed to grow revenue, increase
marketing efficiency, and strengthen customer loyalty.
Responsys’ New School Marketing vision, flexible on-demand application suite, and customer
success-focused services aim to deliver high ROI, increased levels of automation and fast time-to-
value.
Founded in 1998, Responsys is headquartered in San Bruno, California and has offices
throughout the world. Responsys serves world-class brands such as: American Family Mutual
Insurance Company, Avis Europe, Deutsche Lufthansa, Dollar Thrifty, LEGO, LinkedIn, Newegg,
Orbitz, Qantas, Southwest Airlines, United Airlines and UnitedHealthcare.
For more information about Responsys, visit responsys.com.
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and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2013
3. Methodology and Sample
3.1. Methodology The Econsultancy / Responsys Marketing Budgets 2013 report is based on a survey of more than
800 client-side marketers and agency respondents. Information about the online survey was
emailed to Econsultancy’s user base of internet professionals and marketers, and promoted
online via Twitter and other channels during December 2012 and January 2013.
The incentive for taking part in the survey was access to a complimentary copy of this report just
before its publication on the Econsultancy website.
Econsultancy and Responsys, the research sponsor, would like to thank those who took the time
to complete the questionnaire. If you have any questions about the research and methodology,
please email Econsultancy’s UK Research Director, Linus Gregoriadis ([email protected]).
3.2. Respondent profiles A total of 834 respondents took part in the survey, including 457 client-side marketing professionals and 377 supply-side respondents (including agency marketers and those working for technology vendors or other service providers).
For the purposes of this report, we have carried out separate analysis for both these groups and
the distinction is abbreviated to “companies” (including not-for-profit organizations) and
“agencies” (including vendors).
For more detailed profiling of respondents, see Section 5.
Figure 1: Which of the following most accurately describes your job role?
Respondents: 834
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4. Findings
4.1. Marketing budgets
4.1.1. Proportion of budget spent on digital
Companies surveyed are spending, on average, 35% of their total marketing budgets on digital, a
slight decrease from 36% last year.
Over half of responding companies (56%) are spending under 30% of their marketing budgets on
digital channels and just under a third (32%) are investing more than half of their marketing
budgets in digital.
Companies
Figure 2: What percentage of your overall marketing budget is spent on digital marketing?
Respondents 2013: 395
Respondents 2012: 238 | 2011: 216
According to supply-side respondents,
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4.1.2. Proportion of revenue derived from digital marketing spend
The chart below shows that over two-thirds (70%) of companies surveyed derive up to 50% of
their total revenues from digital marketing spend. As was the case last year, just under a fifth
(18%) of client-side respondents indicate they derive more than 70% of their earnings from their
investment in digital marketing.
Based on this data, companies are deriving, on average...
Companies
Figure 3: Approximately what percentage of your company’s total revenue derives from your digital marketing spend?
Respondents 2013: 393
Respondents 2012: 239
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4.2. Investment in technology and resources
4.2.1. Investment in digital marketing team
As the chart below shows, half of companies surveyed are planning to recruit more people into
their digital marketing teams in 2013, down slightly from 56% in 2012.
Agency responses paint a different picture, as the proportion of agencies indicating their clients
are planning to recruit more people into their digital teams has increased by 6% in...
Companies Figure 4: Are you planning to recruit more people into your digital marketing team in 2013?
Respondents 2013:342
Respondents 2012: 202 | 2011: 194
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4.3. Marketing effectiveness and ROI
4.3.1. Understanding of ROI from digital channels
Only half of companies surveyed claim to have a ‘good’ or ‘very good’ understanding of ROI from
digital marketing channels, down from 55% last year and continuing a trend of decline since 2010
when the figure was 67%.
The complexity of measuring ROI from digital increased...
Companies Figure 5: How do you rate your understanding of ROI from digital marketing channels?
Respondents 2013: 335
Respondents 2012: 197 | 2011: 189 | 2010:215
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4.4. Barriers to further investment Restricted budget for all types of marketing has remained, for the fourth year in a row, the most
significant barrier to investment in digital marketing. Moreover, the proportion of client-side
respondents mentioning this has increased in the last year, from 42% in 2012 to 49% this year.
As was the case last year, company culture and...
Companies Figure 6: What is preventing your company from investing more money in digital marketing?
Respondents 2013: 326
Respondents 2012: 191 | 2011: 184 | 2010:573
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5. Appendix 1: Respondent Profiles
5.1. Geographic location Just under half (46%) of survey respondents are UK-based. Around a fifth (19%) are located in
Europe (excluding the UK) and some 13% are based in Asia Pacific. The US accounts for 9% of the
sample.
Figure 7: In which country are you (personally) located?
Respondents: 834
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5.2. Job roles Figure 47 shows the job roles for client-side respondents taking part in the survey. As was the
case last year, the most common job title is manager (46%), followed by director/VP (17%),
executive (15%) and board-level executive or business owner (12%).
Companies Figure 8: Which best describes your job role?
Respondents: 433
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5.3. Type of companies – supply-side respondents Around a third (32%) of supply-side respondents work for full-service digital agencies. Some 21%
of respondents cited ‘other’, which in this context refers to other types of agency, including
research agencies, user experience consultancies, mobile media agencies, as well as other niche
specialists.
Agencies Figure 9: What type of company do you work for?
Respondents: 327
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5.4. Industry sector The respondents in this survey work across a wide variety of different sectors, including retail
(16%), services (10%), media (10%) and travel/entertainment/leisure (10%). Some 14% of
respondents said they work in ‘other’ sectors which in this context includes software, market
research, property and distribution.
Companies Figure 10: Which of the following best describes the industry your organization operates in?
Respondents: 430
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5.5. B2B / B2C focus Some 41% of client-side respondents are focused exclusively on B2B, while over a third (38%) are
B2C-focused. Around a fifth (21%) are focused equally on both B2B and B2C.
Companies Figure 11: Is your business focused more on B2B or B2C?
Respondents: 430
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A third (33%) of agencies say their clients are B2B-focused, while 35% say their clients focus on
B2C. Some 32% of agencies say their clients are focused equally on B2B and B2C.
Agencies Figure 12: Typically, are your clients focused more on B2B or B2C?
Respondents: 337
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5.6. Annual company revenue The chart below shows the range in size of the companies represented in this survey.
Around two in five companies surveyed have annual revenues of under £10m, while just under a
third (30%) turn over between £10m and £150m. Just over a quarter (29%) of companies
surveyed have a turnover of more than £150m.
Companies
Figure 13: What is your annual company revenue?
Respondents: 431
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5.7. Annual marketing budget Just under two-thirds (65%) of responding companies have an annual marketing budget of at
least £100,000. Just over a third of companies surveyed (34%) have an annual budget in excess of
£1m.
Companies
Figure 14: What is your company’s annual marketing budget?
Respondents: 395
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6. Appendix 2: Marketing Budgets by
Company Revenue
Companies
Figure 15: Plans for overall marketing budget by company revenue
Companies
Figure 16: Plans for digital marketing budget by company revenue
Companies
Figure 17: Plans for traditional (offline) marketing budget by company revenue
