Companies Will Increase Digital Marketing Budgets in 2016

0
1498

Two main factors are driving marketers’ interest in digital commerce: the need to point to tangible results from marketing investments, and the recognition that companies need more than a commerce platform to sell. In the past, we’ve seen digital commerce operations wholly disconnected from the marketing engine. Today, we’re seeing integration between marketing and digital commerce as two parts of a single discipline, where marketers bring everything from content marketing and brand storytelling to advanced analytics and multichannel campaign management to optimize digital commerce across channels.

B2C companies have long been considered more sophisticated in digital commerce, but we’re seeing growing appetite by B2B companies under pressure to reach customers directly with digital commerce initiatives. They are looking to engage customers directly to better understand their needs, preferences and behaviors.

As CMOs face the digital transition, the survey showed that overall marketing budgets are on the rise. This year, 61 percent of respondents said that marketing spending will be, on average, 11 percent of company revenue, up from 10 percent of company revenue last year. That one percentage point change represents a sizable increase — 10 percent, year over year — in marketing spend.

“Bigger budgets, however, come with sizable expectations,” said Mr. Sorofman. “Marketing is expected to drive profitable growth through the acquisition, retention and expansion of the most valuable customer relationships. As customer buying journeys and customer expectations expand, so, too, does marketing’s scope of responsibility. As a result, the marketing remit now often includes driving broad-mandate customer experience, digital commerce and innovation initiatives.”

More detailed analysis and additional survey results are available in the report “CMO Spend Survey 2015-2016: Digital Marketing Comes of Age.”

This research is part of the Gartner for Marketing Leaders program. This program provides real-time, personalized digital marketing guidance, from vision through execution. Gartner for Marketing Leaders is focused on helping digital marketers succeed in eight key areas: emerging digital marketing trends and techniques, social marketing, mobile marketing, monetizing digital marketing through commerce, multichannel marketing, data-driven marketing, digital marketing essentials and digital marketing programs. Add

LEAVE A REPLY

Please enter your comment!
Please enter your name here