Beneath the Surface, a Dramatic Shift in Marketing Priorities

In case you’re still wondering, the online marketing train has definitely left the station. That point came across clearly in ITSMA’s 2008 Budget Allocations and Trends Survey.

But what’s more surprising is how the emergence of online has busted up marketing’s overall priorities.

We all know that marketing has limited resources—especially when economic times tighten. When we choose a new strategy or campaign, it usually isn’t in addition to everything else we’re already doing. More often the new comes at the expense of something else—we borrow money and resources from other areas or eliminate them altogether.

Clearly, marketers are facing this kind of dilemma for 2008—and beyond.

Behind the perennial mantras of differentiation and sales force enablement—which top the list of priorities this year as they almost always do—marketers have shifted their priorities dramatically. Priorities have changed so much that priorities number two (developing and refining the marketing strategy) and number four (deepening customer insight) from 2007 do not even make the top 10 this year. Generating demand and improving customer satisfaction and loyalty have moved up the list to the number three and four spots, respectively.

Meanwhile, online marketing rose from number 16 on the list in 2007 to number seven in 2008. This is a dramatic leap, but it supports ITSMA’s recent research. Marketers who identify themselves as having a significant impact on the business are experimenting much more with online tactics such as social networks and blogging than are marketers who say they have limited impact on the business. As the next generation of business leaders comes of age and joins the workforce, Web 2.0 will only become more prevalent. The marketers who are experimenting with Web 2.0 now will be in a much better position to communicate with the next generation than the marketers who are taking a “wait and see” approach.

Online Marketing Budget on the Rise

Despite the continuing controversy over whether online marketing is having real business impact, ITSMA research shows that the best marketers are forging ahead with experiments. Indeed, among marketers who told us that they are having the biggest business impact, a large majority are getting their hands dirty working with new digital tools and approaches.

Almost 80% of respondents plan to increase their digital/online budgets. Additionally, ITSMA members are shifting more of their marcom budgets from offline to online in 2008. In 2007, online activities made up 29% of marcom budgets. However, this year marketers are allocating 34% of their marcom budgets to online.

ITSMA believes this trend toward online marketing will continue. This marketing vehicle is a less expensive way to create opportunities for clients and nonclients to get together with each other than traditional customer engagement activities such as conferences and social events. Furthermore, marketers have realized that they can no longer control their messages or reputations. They can, however, shape and amplify them by influencing the right people. One way to do this is through online tactics.

Online Budget Allocation

So where are marketers placing their bets? This year, marketers are especially high on search engine marketing, with 70% of the respondents reporting they are increasing their investment in search, both paid and organic. Between 50% and 60% of respondents also indicate they are increasing spending on:

• Online communities
• Microsites
• Intranets
• Webinars
• Blogs
• Podcasting

Wikis and virtual worlds like Second Life are less popular. Fewer than 30% of the respondents expect to increase spending in these areas in 2008.

To get more information about ITSMA’s 2008 Budget Allocations and Trends Survey, please visit www.itsma.com.

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ITSMA specializes in helping companies market and sell services and solutions more effectively. We work with the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA annual program clients include business leaders such as AT&T, Cisco, Deloitte, EMC, Fujitsu, Hewlett-Packard, IBM, Microsoft, SAP, and Tata Consultancy Services, among others. Our comprehensive research, consulting, and training on topics including ITSMA Account-Based Marketing℠, Brand Positioning, and Solutions Development provide the insight and experience companies need to improve business results. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.