Why online marketers are raising their budgets
With today’s consumers dictating that online purchasing and interaction is the way forward, UK businesses need to embrace the digital age and the commercial opportunities it presents. The ever expanding digital landscape provides consumers with simplicity to purchase goods and interact with their favourite brands. In order to stay ahead of the game, online marketers are increasing their online marketing budgets.
An written for Adage details the study of 262 digital marketing executives conducted by Mondo in 2015. The study found that 80% of companies were planning to increase their digital marketing budgets. The study confirms that, of those companies surveyed:
“40% said they would increase them between 5% and 10%; 32% said they would increase them between 10% and 15%; and 9% plan to increase them between 0% and 5%”
UK is a global hotbed for digital marketing
A published by The Guardian predicted that the UK will become the first country to dedicate 50% or more of its advertising budget to digital marketing. In the article Bill Fisher – a respected analyst at eMarketer – highlights the reasons behind the surge in digital advertising in the UK:
“Digital reaching the 50% threshold in the UK is a significant moment for the ad industry,” The UK ad market is notable for its aggressive embrace of online advertising and its rapid adoption of mobile advertising.”
“Because so much TV and radio programming appears ad-free in the UK the comparative spending on digital channels has always been high.”
The report highlights the top ten countries which designate the highest percentage of their marketing budget to online marketing:
Digital ad spend percentage share of total advertising spend, by country, 2015.
1. UK 50%
2. Norway 45%
3. China 43.6%
4. Australia 43.3%
5. Denmark 43.1%
6. Netherlands 35.4%
7. Canada 34.3%
8. US 31.3%
9. Sweden 30.5%
10. South Korea 28.4%
The benefits of digital marketing
Digital marketing allows businesses to promote their products and services via digital mediums such as social media, mobile phones and the internet. Whereas it is advisable for companies to continue using any traditional marketing streams that are profitable, digital marketing can open doors to global audiences with just a few ‘clicks’.
Leaflets from mail drop marketing campaigns are often un-read and quickly disposed of into the recycling bin. Digital marketing, on the other hand, provides significant lead generation for organisations by targeting prospective customers through email marketing and social media channels and at no cost to the rain forest.
Businesses can create a dynamic online marketing strategy for a relatively modest cost compared to more traditional marketing streams such as television, radio or printed media. A global marketing campaign using traditional marketing methods would require a considerable financial commitment. Digital marketing gives businesses global exposure in shorter timescales and at a fraction of the cost.
Measuring the success of traditional marketing campaigns can be a slow process. Online analytical applications provide real-time evaluation for companies, enabling them to identify which campaigns are working and allows the company to change its marketing focus should it require.