Even more dollars to be thrown at social media marketing

For the social media non-believers out there, listen up…it’s here to stay.  So much so, that According CMOs, they are going to almost double their social media spend over the next 12 months…and triple their spend over the next five years. Interestingly, their reported current and future spend hasn’t meaningfully change over the past 18 months. 

Here are some of the results from the February 2011 CMO Survey conducted by the American Marketing Association and Duke University’s Fuqua School of Business provided courtesy of eMarketer.

Percent of Marketing Budget Spent on Social Media According to US Marketers, Aug 2009-Feb 2011

 

I know what you are thinking…are there any differences based on the type of company?  Glad you asked…yes there are.  In fact, service-based companies reported a large scale increase in their current social media spending—particularly B2C service companies.  The opposite is true for product companies.  Check out the chart below for more detail.

Social Media Marketing Spending by US B2B and B2C Marketers, Aug 2009-Feb 2011 (% of total marketing budget)

Okay, so these are interesting facts but why should you care?  You should care if you are a service-based company because you are going to experience competition you didn’t even know you had.  You should care if you are a product-based company because, as your competitors spend less on social media, you probably have a greater opportunity to gain the “mind space” of your current and potential clients/customers.

Happy Marketing!

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