More Money Shifting to Online Marketing Budgets

The research highlights that in addition to the past upsurge in online marketing and branding efforts, the current year is expected to observe a 17% increase in digital marketing spending. Day by day, many companies are moving to online marketing after observing the huge online traffic.

"The shift from offline to online is in full swing as marketers look to measure direct increases in top-line sales, site traffic and improve overall marketing return on investment," says Morgan Stewart, ExactTarget's director of research and strategy and co-author of the report. "Interestingly, brand reputation is becoming a more significant driver of the migration to digital marketing, particularly when it comes to social media."

Nearly 70% of the survey respondents revealed their interest in increasing their digital marketing budgets especially for off-site social media marketing through sites like Twitter and Facebook. About 65% of them are developing plans for on-site social media marketing by still raising their budgets.

The other findings included:

* 28% of the respondents have planned and currently in the process of shifting their budgets to digital channel from traditional marketing

* In spite of the fact that below one fifth of the marketers are only able to measure their return on investment effectively for their online marketing investments, nearly two-thirds of them are all set for not only investing in online social media marketing but also further increase the investments.

* 64% of the marketers have planned to further rise their budgets in SEO (Search Engine Optimization)

* 56% of the companies aim to increase their mobile marketing budgets

* 54% of the marketers are ready to increase their budgets for email marketing channels

* 51% of the marketers are aiming for paid search and increasing their budgets in that section

* 42% of the respondents have planned to maintain the same budgets as the last year 2009; however, 13% are planning to lower their marketing budgets.

* 41% plan to reduce their expenses on print or radio marketing in the current year 2010

"The research shows a healthy outlook for the digital marketing industry with the majority of responding companies increasing their budgets for most digital channels," says Linus Gregoriadis, research director at Econsultancy. "Social media marketing is the area where companies are most likely to be spending more money during 2010, but areas such as search engine marketing and email marketing will remain buoyant."

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