Friday, November 02, 2007

Survey Reveals Disconnect in Social Media Marketing Programs

Survey Reveals Disconnect in Social Media Marketing Programs

Research highlights trend toward social marketing tools,though budget allocation does not correlate with objectives

SAN MATEO, Calif., – October 30, 2007 – Coremetrics, the leading provider of digital marketing optimization solutions, today announced the results of its Second Annual ‘Face of the New Marketer’ survey. This poll of marketing professionals, drawn from the country’s top eCommerce and online media/content companies, found that social media marketing is quickly gaining popularity as a way to gain competitive edge. However, the survey also revealed that time and budget allocations are not yet reflective of this trend.

The study found that the use of Web 2.0 or social media marketing tools, defined as user generated content (including reviews), RSS feeds, podcasts and wikis are becoming more important parts of a complete online marketing program. While most marketers recognize this trend, and are eager to participate, very few have budgets that are in line with that objective.
The findings included the following:

A clear disconnect between the desirability of social marketing and the budget allocated to it:

78% of respondents see social media marketing as a way to gain competitive edge, but only 7.75% of total online marketing spend is devoted to it
This compares with an average of 33% of spend going to online advertising and 28% to online promotion design and implementation

However, progress is being made in the field:
58% of respondents have implemented user-generated content or reviews in the past year
31% of respondents have implemented a blog in the past year
25% of respondents have implemented an RSS feed in the past year

The findings showed that most marketers have concrete plans to implement a social media marketing program at some point, even if not within the next twelve months. Of those marketers, the majority recognize the need to implement or improve their social marketing programs, but cite a lack of tools and expertise as their biggest challenges.

50% of respondents plan to implement user-generated content or reviews
22% of respondents plan to implement a blog
20% intend to implement social networks, and another 20% plan to implement an RSS feed

It is not just social marketing activity objectives that are misaligned with time and budget allocation:
Search Engine Optimization (SEO) was ranked as the #1 priority over nine other choices, including email campaigns and online analytics, but ranked only fourth in terms of both time and budget allocation
Email campaigns continue to demand most of a marketer’s time (22% on average), while the biggest portion of budgets (33% on average) go to online advertising. This is despite the fact that SEO was consistently ranked as the #1 priority
Online promotion design and implementation was ranked as relatively unimportant, (#5 of 9) but comes in third in terms of both time and budget allocation, ahead of SEO, online campaign analytics and email marketing programs, among others

“This study echoes many of the qualitative findings that we hear from our customers on a day to day basis—marketers are aware of the impact that social media marketing can have on their overall program, but view it as uncharted territory, not worthy of their budget,” said John Squire, SVP product strategy, GM marketing services at Coremetrics. “As more and more marketing tools become available, we’ll continue to see a greater divide between perceived importance and resource allocation. The ability to accurately monitor the ROI achieved by new marketing tools will help marketers take that first step toward incorporating new digital marketing programs, as well as rethink the effectiveness of current campaigns.”

The survey of 116 senior marketing professionals was conducted during the third quarter of 2007. Coremetrics asked marketers which social marketing tools and activities they were using or intended to use, and how much of their time and budget is spent on social media as opposed to traditional marketing activities.

For a copy of the Second Annual ‘Face of the New Marketer Survey’ research results, please email: coremetrics@lewispr.com.

About CoremetricsCoremetrics is the leading provider of digital marketing optimization solutions. Its solutions generate high return on online marketing investment and continue to pay daily dividends in improved marketing performance. Over 1,000 online business sites, transacting over $15 billion this year, are now using Coremetrics’ Software as a Service (SaaS) solution to optimize online marketing efforts. Coremetrics’ solutions encompass advanced online analytics and precision marketing applications, including search engine bid management, email marketing and cross sell applications to acquire customers more cost effectively, increase conversion rates, and increase lifetime customer value. Clients have recognized over $300M in documented ROI and 87% of clients recognize ROI in 12 weeks or less. The company is privately held with funding from Accel Partners, FTVentures, and Highland Capital Partners and is headquartered in San Mateo, California. To learn more about Coremetrics, visit http://www.coremetrics.com or call 877-721-CORE (2673).

Coremetrics has strongly supported online privacy since its inception. To learn more, visit www.coremetrics.com/privacy.

4 Comments:

At 10:51 AM, Blogger tesol said...

American TESOL Institute launches two Websites http://www.tesolabroad.com/ and http://www.tesol-jobs.com/ .

 
At 9:53 AM, Blogger steven edward streight said...

Nice to see you're on Blogger. Me too, for 5 years or so. I use it for client blogs, too.

The Great God ROI is appeased by accounting processes, and angered by visionary leadership that senses in a gut feeling that something, like new carpet, business cards, and social media experimentation, are worthy activities.

The Face of the New Marketer is one of worry, cowardice, and unimaginative mediocrity.

Outsourcing to China, and getting defective or toxic products with their brand on them, that's okay.

But boldly researching, and implementing new methods and new media, that's to be avoided?

The new media, YouTube, blogs, Twitter, Jaiku, Digg, Kyte.TV, are not mysterious, murky, unanalyzed paths.

At least Ron Paul, who used New Media, the Internet, to raise $5 million in 24 hours, doesn't fear such tools, nor consider them dangerously "uncharted".

I'm using New Media to promote this survey for you. Cost = zero. Time invested = 10 minutes.

I have also Twittered a link to this page, providing valuable content for my 524 Followers, most of whom are PR, Marketing, and Social Media specialists and pioneer bloggers.

Vaspers on Twitter

Steven E. Streight
aka Vaspers the Grate

 
At 3:01 PM, Blogger seo7 said...

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At 3:03 PM, Blogger seo7 said...

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