Marketers’ investment in social media to increase: survey

A new U.S. survey of chief marketing officers indicates that social media spending will account for a greater share of companies’ advertising budget in the coming year, but the tactic has some way to go until it is fully integrated within the overall marketing strategy. The most recent iteration of The CMO Survey – a […]

A new U.S. survey of chief marketing officers indicates that social media spending will account for a greater share of companies’ advertising budget in the coming year, but the tactic has some way to go until it is fully integrated within the overall marketing strategy.

The most recent iteration of The CMO Survey – a bi-annual survey of 249 CMOs conducted in February and August – found that social media will account for an average of 10.1% of companies’ total marketing spend in the coming year, up from its current total of 7.1%.

The shift towards social media will be particularly pronounced in the business-to-consumer sector, with the tactic expected to increase from 10.5% to nearly a quarter (24%) of the total marketing budget within five years.

Christine Moorman, a senior professor of business administration at Duke’s Fuqua School of Business and director of The CMO Survey, said in a release that social media is rapidly becoming an “important strategic weapon” in the marketing arsenal and has proven a valuable tool in acquiring and engaging customers.

However, the study found that marketers still have some way to go when it comes to incorporating social media within their overall marketing strategy. On a scale of 1-7, with one being “not integrated at all” and seven being “very integrated,” only 12.8% of respondents selected the top score when asked to characterize how well social media was integrated within their company’s marketing strategy.

Meanwhile, in a new study produced by Marketing Sherpa, 31% of the more than 3,300 marketers surveyed said that social media is integrated to a “limited extent” with their other offline and online activities, while 26% of respondents said that it is “extensively integrated” with other marketing tactics.

In addition, 8% of respondents said social media is “extensively integrated” but only with other online tactics, while 11% of said that their company does not integrate social media with other marketing activities.

“Social media is not an add-on or afterthought,” said Moorman. “However, until executives understand [it] well, it is difficult for them to think strategically through the lens of social media. This will take time.”

Media Articles

Facebook discloses error on instant articles

comScore finds that iPhone traffic went under-reported for approximately two months

Yahoo faces possible Canadian class action suit

$50-million filing made Friday over compromised user info

The List: Maxus Canada makes a winning change

How a new structure helped propel the media agency to 18% growth in 2016

The biggest stories in Canadian marketing: 2016

A look back at the most read and shared news items from MarketingMag.ca

Amazon brings its video streaming service to Canada

Prime members get access to 'Transparent', 'The Grand Tour' and more

How we can close advertising’s biggest gap

AOL's David Shing on how companies can bring more empathy to advertising

The List: Wattpad’s evolving influence

The first of our selections for the biggest newsmakers of 2016

The case for companies staying off social media

It takes real commitment and, for many, it's just not worth the trouble

KitchenAid’s gingerbread social spectacle

A social media strategy for the holiday season pops up in Toronto