Companies are spending more on social media marketing according to CMO Survey, but they also continue to struggle to see quantitative results from their digital efforts.
The survey of 324 marketers sheds light on where CMOs will be focusing their budgets and attention in 2019.
- Spending on digital marketing will increase by 12.3% over the next 12 months, while spending on traditional marketing will fall by 1.2%
- Currently, digital marketing accounts for 44.3% of all marketing budgets. Over the next 5 years, digital spending is forecast to increase to 54.1% of total marketing spend.
- Spending on Social Media is expected to increase by 66% over the next 5 years
Even though spending on Social Media is surging, marketers are struggling to show the actual business impact of its Social Media efforts.
The CMO Survey found that 39.3% of respondents could not show any business impact from using Social Media. Another 36% said they are seeing a qualitative impact, with 24.7% seeing an quantitative impact. In short, that means 25% of marketers can show the ROI for their Social Media efforts.
So obviously, companies won’t continue to increase spending on Social Media without being able to show a return on those dollars. Digging deeper into the numbers, I believe I spotted two reasons why some of these marketers are struggling to prove the effectiveness of Social Media for their companies.
First, one of the questions posed to respondents was “How Effectively Does Your Company Integrate Social Media?” The question was scaled from 1 to 7, with 1 being “not at all effectively” and 7 being “very effectively”. When it came to “integration level for linking social media to marketing strategy”, the score was 4.2. When it came to “integration level for integrating customer information across purchasing, communication, and social media channels”, that score was 3.5. So while companies are doing better at integrating its social media strategies into their larger marketing strategies, they continue to fall short when it comes to sharing customer information and communications across the enterprise. This hurts overall marketing effectiveness and can lead to a disjointed and inconsistent service experience for the customer.
Second, only 3.9% of marketing budgets are devoted to employee training and development. This amount actually represents an 8% decline over the last 6 months. What’s worse, for B2C companies, that figure is only 2.8%.
So you can see how these two areas would be related, to a degree. First, I’m a big believer in equipping your employees with the proper training and skills they need to do their jobs effectively. It increases employee productivity, as well as their satisfaction with their work. And research has shown that just a 10% increase in the efficiency of your social media strategy nets a 2% increase in revenue. Corporate training is a smart way to increase production and employee satisfaction.
Check out the entire CMO Survey here. It’s got a ton of great takeaways on where marketers will be focusing their attention in 2019.
