E-commerce grew 20% for Costco in fiscal 2015—20 times faster than store sales.
Marketing dollars are moving toward social media, mobile, search and e-mail marketing and away from TV, print and radio advertising, says a new report from e-mail services provider ExactTarget and e-commerce consulting firm Econsultancy.
Marketers are moving spending away from TV, print and radio advertising to social media, mobile, search and e-mail marketing, a new report from e-mail service provider ExactTarget and Internet marketing and e-commerce consulting firm Econsultancy finds.
Overall digital marketing spending will increase 17% this year, the firms predict. Two out of three of the 1,000 marketers surveyed say they plan to increase their digital marketing budget in 2010, earning digital channels nearly a quarter of marketers’ total spend, the survey finds.
“The shift from offline to online is in full swing as marketers look to measure direct increases in top-line sales and 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.”
Social media is the fastest-growing digital marketing channel, according to the survey. More than 70% of responding companies are increasing their budgets for marketing on social networking sites such as Facebook and Twitter, as well as on online blogs and forums. Nearly 65% of companies plan to spend more on such social media features on their own sites as blogs or ratings and reviews.
“The research shows a healthy outlook for the digital marketing industry with the majority of 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 e-mail marketing will remain buoyant.”
The survey also finds:
- 28% of marketers are shifting marketing budgets from traditional to digital channels.
- Two-thirds of marketers are planning to increase investments in social media even though less than 20% say they can effectively measure their return on that spending.
- 56% plan to increase budgets for mobile marketing.
- 54% plan to increase budgets for e-mail marketing. m