With the current economic climate and lots of chatter on the web about digital being easier to measure with better ROI then it must be true, right?
At Idealogy, we are a multi-service agency offering cross media solutions throughout all media types, from online to print through to PR and consultancy. It’s certainly true to say that the digital aspects of the business have grown substantially in the past 10 years, and in the past 2 years this has seen a 250% increase in the department size! So, if you ask what has driven this then the answer has to be client demand. Without this the business wouldn’t grow.
Now, having said that, we need to keep in perspective that the traditional media lines are eroding. No longer can we, nor should we, separate offline from online, DM from email, PR from Bloggers. It’s all about fully integrated campaigns combining multiple media channels for the best client results.
But still, it’s certainly true to say that the online spend of businesses across all markets is changing and increasing. The adage that online ROI is easier to measure is certainly true and the proof that email is usually more effective than DM is much easier to demonstrate. These points, alongside the economic climate in 2010, mean that clients expect better value for money with effective results. Then, throw into the mix the social media boom and we understand why digital spends are increasing across the board.
Now, once you say these things you need to back them up with facts and figures - it’s no use us pointing to our own business and harping on about this. So I took it upon myself to Google/Bing some stuff and see if my thinking was substantiated by real figures. The results are pretty compelling!
This shows it quite clearly, marketing budgets increase. But it’s just one blog…
Credit to http://blog.hubspot.com
So I found this 46% of companies increasing spend with 1000 surveyed and then this about digital shift in marketing budgets: -
And then I just kept finding them: -
- Whitepaper on digital marketingWhere you'll spend your marketing budget this year
- Digital marketing outlook
- Marketing spend increase
- Budget shifts from offline to online
- Allocating your marketing budget
So I came to the conclusion that I must be along the right lines!
Having said all that and read these facts/figures does this mean that we are going to see a dramatic decrease in other budgets, or perhaps a rethink about how budgets are set and allocated - the latter I would think (hope).
Whilst there’s no hiding the increase by many clients in the digital/online arena perhaps it’s time for everyone to take into account the eroding ‘line’ between above and below and start to assign marketing investment by market, product and objective rather than by media. Surely this is a more effective way of planning the marketing budgets than the old ways of 2005? Idealogy think so, and hopefully over time we’ll be able to help our clients think this way too. It provides a much better and effective way of looking at the yearly plan.
So onwards and upwards for digital in 2010/2011 or perhaps we should now say onwards and upwards for campaign integration in 2010/2011!
Posted by Simon Johnson