There is no set rule related to how much brands should invest in social media marketing, but currently, the majority spend less than 20% of their market budgets on social media. That’s according to a study by Advertising Age and Citigroup that found 49.5% of U.S. marketers spent between 1%-10% of their marketing budgets on social media and another 19.0% spent between 11% and 20% of their budgets on social media.
The most surprising discovery from the study is the 9.7% of U.S. marketers who spend nothing on social media marketing. The specific breakdowns for social media marketing and digital marketing budgets follow:
- 0% of the Marketing Budget = 9.7% social media; 3.0% digital
- 1%-10% of the Marketing Budget = 49.3% social media; 24.3% digital
- 11%-20% of the Marketing Budget = 19.0% social media; 19.3% digital
- 21%-30% of the Marketing Budget = 8.5% social media; 11.4% digital
- 31%-40% of the Marketing Budget = 4.3% social media; 7.4% digital
- 41%-50% of the Marketing Budget = 3.6% social media; 6.2% digital
- 50% or More of the Marketing Budget = 5.3% social media; 17.2% digital
- Not Sure = 0% social media; 11.1% digital
On a positive note, respondents to the June 2012 survey did indicate that their budgets are increasing. In fact, 72.9% of respondents indicated that their social media budgets would go up in the next year. Of course, the biggest problems for marketers are getting executive buy-in to gain approval for a social media budget and tracking results effectively. Companies that aren’t investing in social media yet (the 9.7% mentioned above) are falling way behind and will have a hard time catching up.
I’m actually surprised by the digital marketing investment numbers, too. According to the survey, 27.3% of U.S. marketers are investing 10% or less of their marketing budgets in digital marketing. Given the fact that consumers and businesses typically turn to the web for product, service, and brand information first, it’s hard to believe that there are still companies that don’t invest in digital marketing or invest such a small percentage of their budgets into digital marketing. Let’s hope their digital marketing budgets will be going up in the near future.
What do you think? Will your social media marketing and digital marketing budgets increase in the next year? Leave a comment and share your thoughts.
Image: Sufi Nawaz
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