US digital marketing spend averages 2.5% of revenue


Gartner has recently reported that across USA, companies spend 10.4% of their revenue in marketing of which 2.5% of revenue (or almost 25% of their entire marketing spend) on an average is spent on their digital marketing efforts. The more interesting finding of this survey is that this number is expected to rice to 9% this year. The survey was done with over 250 marketing executives from across 6 industries in USA towards end of 2012. The complete findings of the Gartner’s US digital marketing spending report can be found on their website.

The largest chunk of digital marketing spend went to digital advertising, possibly with Google Adwords leading on this spend.  Such increased spends are increasingly being seen even in India. However this also means that ROI on digital marketing needs to be more specific and tangible than ever before. The digital marketing spends and efforts need to be measured with sales growth, brand recall and actual market penetration.

Gartner also reported an increase in spends on content management and content driving marketing. So while digital advertising pushes customers to the brand, content marketing actually pulls customers and creates a community where brands can interact and excite customers.

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