Revealed: How marketers will be spending their bigger budgetsby
Big bucks will be spent on marketing in 2014, thanks to companies bumping up their budgets. According to new research, marketing funds are at their highest in five years, with 60% of businesses intending to invest more in their marketing strategies in the coming 12 months, compared with 54% in 2013 and 45% back in 2012.
But are the investments going to be used wisely? Overall, marketing priorities for 2014 lie, somewhat surprisingly, with recruiting new customers. The percentage of companies with acquisition in their sights is now 34%, up from 31%. Attentions are straying far from the perhaps more lucrative strategy of nurturing the existing client base.
The findings come from The fifth annual Marketing Budgets Report, published by Econsultancy in partnership with Responsys. They show content marketing to be the most popular area for increased investments, with 74% of the 600 companies surveyed saying they plan to plough more money into it this year than in 2013.
Digital channels are a top priority for 71% of companies, who propose to spend more on this strain of marketing, as opposed to only 20% who are devoting more funds to offline channels.
Mobile marketing is another biggie for the year ahead, with 63% increasing their mobile budget to recruit new punters, and 60% for acquisition.
Simon Robinson of Responsys notes: “It is a matter of concern that a third of companies still plan to increase focus on acquisition marketing, while just 18% will focus on retention strategies this coming year. By failing to sufficiently fund activities that drive loyalty and lifetime customer value, these companies will remain stuck in this cycle of never ending campaigns, with diminishing returns.
“But I am optimistic that in 2014 we will see more adoption of marketing orchestration, in which marketers optimise a customer’s entire journey with a brand, not individual interactions. In fact, 59% of companies report that they will focus more on the customer than on the campaign during 2014, while 79% will focus on trying to break down internal silos to better integrate and orchestrate marketing efforts. This data is encouraging.”