How Much Does Average Business Plan To Spend On Marketing For 2015?
As 2014 comes to a close, it’s time to start thinking about next year. What will you do the same, and what you will do differently in 2015? One change many businesses are planning to implement is increased spending on digital marketing. The Internet is clearly not losing speed; in fact you can no longer ignore the importance of having an online presence.
The latest annual Digital Marketing Spending report released by Gartner reveals some telling information about what to expect for 2015. Gartner’s survey reaches across all sectors, including retail, transportation, hospitality, financial services, media, manufacturing, and high-tech. Allow us to provide answers and insights, explaining what the numbers all mean for your 2015 digital marketing budget.
Digital Marketing Budgets For 2015
According to Gartner’s annual Digital Marketing Spending report, digital marketing accounted for ¼ of the average business-marketing budget in 2014. But in 2015, 51% of businesses plan to increase spending by 17%.
The more revenue a company reportedly makes, the more they are planning to spend for digital marketing next year. Businesses that bring in over $5 billion plan to spend an average of 11% of revenues for 2015. Businesses that make between $500 million and $1 billion plan to spend 9.2% of revenues on marketing. As for businesses that have continually beaten out their competitors over the last year, they plan to increase their budget by 13.6% in 2015.
Clearly these numbers speak volumes, for the last few years businesses have been getting more and more engaged creating websites, social media, and other forms of digital marketing. Those that are doing things right have seen tremendous results. Otherwise, no one would be planning to increase digital marketing budgets for 2015. Overall, digital marketing, along with mobile advertising, is expected to continue expanding throughout next year.
The big focus next year will remain centered on creating relevant ads that reach just the right set of people so that advertising funds are not wasted. Programmatic media is helping to fuel the acceleration of online marketing, programmatic media is the ability for marketers to pinpoint their specific target audience and then bid on ads based on the value they deliver. In 2014 a large percentage of budgets were allocated to online ads, but 2015 may see a slight shift as marketers latch on to new ways of connecting with specific target audiences. (More information)
Overview of Marketing Budgets For 2014
The Internet is where people obtain news and content, shop and socialize; it’s a place that offers a little bit of everything. The best apps and online tools incorporate into your everyday life, and make things easier, more efficient, and overall more enjoyable. This integration of everyday life and the digital world has caused an actual need for businesses to be present on the web.
In 2014 the average amount of money companies spent on digital advertising hovered around 10% of total revenues. In the first quarter of 2014, over 40% of US marketing professionals increased their budget for data-driven online marketing tools, compared with 38.4% the previous year (see full stats).
Throughout 2014, Gartner reports that digital marketing remained the number one priority for organizations of all types. In fact, digital marketing is becoming tightly intertwined with traditional marketing, as the two approaches work best together instead of separately.
According to Laura McLellan, the research vice president at Gartner, “For marketers in 2014, it’s less about digital marketing than marketing in a digital world. Hence, marketers manage a much more balanced and integrated marketing mix than in previous years, which were characterized by online and offline silos. The resulting digital experience moves customers toward a more self-service buying model, allowing reductions in sales budgets that were designed around older, physical models.” (Learn More)
The Importance Of Customer Experience in 2015
In 2014 digital marketing services dished out the most money working to improve customer experience, just beating out product innovation.
It’s not only about earning new customers, but also it’s about hanging onto your loyal customers. People like to connect and interact with their favorite brands online, and with so many companies striving to earn their attention it’s important that you don’t lose your current customers to someone with a better user experience. Hence why improving customer experience is expected to earn a good percentage of business budgets in 2015.
In the digital age, social media, and blogs give companies a real identity that people that can reach out to, communicate with, and stay in the loop about updates and new products. Regardless if your customers are happy or unhappy, you are sure to hear about it via Twitter or online reviews.
Bad reviews or feedback is not fun for anyone to receive, but it is actually a blessing in disguise. Knowing what makes your customers dissatisfied grants you the unique opportunity to reach out and make things right, as well as change your own policies or products in a way that prevents future customers from having the same complaints. The business that ignores customer complaints and negative reviews is the business that will continue to receive them.
Marketing For A Prosperous 2015
2015 could be your best year ever, so long as you don’t get left behind in the fast-paced, and always changing world of digital technology. Want to enhance your marketing for next year? Contour Graphics has the tools, experience, knowledge, and power to help your business thrive! Contact us today to learn how we can help you institute a winning marketing campaign that reaches across all platforms.