Cahners Advertising Research Reports revealed the distribution of business-to-business marketing budgets and the results shake out just about as one would expect them to with a heavy investment in trade magazine and trade shows. However, there are a few surprises and the results definitely make one wonder whether companies are distributing their marketing budgets appropriately given the current trends in media advertising and consumers’ reactions to and interests in those media.
Here’s the breakdown courtesy of Branding Strategy Insider:
- Trade magazines 23%
- Trade Shows 18%
- Direct Mail 10%
- Promotion/Market Support 9%
- Internet/electronic media 9%
- Publicity/Public Relations 7%
- General magazine advertising 6%
- Dealer/Distributor Materials 5%
- Directories 5%
- Market Research 4%
- Telemarketing/Telecommunications 3%
- Other 1%
I’m pleased to see that 9% is being invested in internet and electronic media, but honestly, this number needs to increase. While companies and brands are still learning how best to leverage the internet to drive business, particularly the social web, they have to at least take some risks, get on board and start testing the waters. The age of passive marketing has passed, and active marketing is the way of the future. Companies that understand the shifting trend and embrace it will reap the rewards in the long run. This holds true for both the business-to-business and business-to-consumer markets.
I’m also surprised that 3% is still invested in telemarketing and telecommunications, unless mobile advertising is included in that number. If so, then the number makes more sense, and I’d expect we’ll see it grow in the future.
The other statistic that really sticks out to me in this report is the 10% investment in direct mail. Certainly, direct mail is a traditional advertising standard, and it’s hard to give it up. However, with postage costs rising to exorbitant prices, it’s time to start finding other marketing tactics to take the place of direct mail. That brings me back to my first point above about the need to boost marketing spending in internet and electronic media.
What stands out as surprising to you in these statistics? What statistic screams for change, and which ones are just right?
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