Clients often want to know “How much of my marketing budget should be allocated to digital channels?”
Customers and audiences are moving online en masse, so re-allocating a portion of the marketing budget from traditional media to Google and Facebook ads as well as relevant websites is now critical to survival in the marketplace.
To give clients a sense of what other companies are doing we have pulled stats from varying sources to provide some context:
2011 – 24% of budgets were spent on digital marketing. 6smarketing
2012 – 27.5% overall marketing spend was in digital channels in Canada. Interactive Advertising Bureau of Canada
2013 – 35% overall budget was allocated for digital marketing by Proctor & Gamble, notes this article from the Wall Street Journal.
Here is part of the story:
World’s Largest Advertiser Says as Much as 35% of Ad Budget Going to Digital Media
Proctor & Gamble Co. is now spending more than a third of its U.S. marketing budget on digital media, an aggressive shift as Americans for the first time are expected to spend more time online this year than watching television.
“The bottom line is we need and want to be where the consumer is, and increasingly that is online and mobile,” a P&G spokesman said.
After testing the waters, our clients continue to re-allocate more of their budgets to digital channels, where costs can be kept low, target audiences can be met, and transparency of data helps understand customers at the same time as reaching them with marketing messages.
An advantage to being a smaller business in this era is that you can make quick decisions and move more fully into these channels, taking advantage of excellent ROI, while larger companies are more slowly, but surely wading in.