According to a recent Digital Marketing Spending Survey published by Gartner, the world of digital marketing is quickly dividing into the “Haves” versus the “Have Nots”. Currently companies spend over 10% of revenue on marketing and digital marketing commands approximately 25% of the overall marketing budget according to Gartner.
As you might expect, the level of commitment to digital marketing can have a big impact on the investment attached to the digital realm. Companies that employ a dedicated digital marketer spend nearly 10% more of their marketing budget on digital marketing than those without. This certainly makes sense as all forms of online marketing require technical knowledge that is constantly updating. If an organization falls behind in the digital marketing space, it’s easy to lose efficiency and optimization, which can kill return on investment.
According to Gartner, digital marketing spending averages 2.5% of company revenue, with budgets projected to increase 9% this year. In addition, 70% of companies have a Chief Marketing Technologist who can serve as the tip of the spear in terms managing and monitoring all the subcategories within digital marketing. SEO, paid search, social media, analytics and email mail marketing all have seen exponential growth in the tools and technologies available. They’ve also seen drastic changes within the algorithms that dictate response and success. Having a dedicated CMT to analyze and manage the rapid pace of change only makes sense when 25% of the budget is involved.
Another interesting note within the Gartner report is that up to 50% of digital marketing activities are currently outsourced. This shouldn’t be surprising considering the breadth and depth of razor-sharp skills required to be successful within the various digital marketing subcategories. Although a successful digital marketer needs to be well versed in all aspects of digital marketing, it’s virtually impossible to be an expert at email marketing, social media marketing, paid search AND search engine optimization, among others. If you can build and maintain a consistent knowledge base within all aspects of digital marketing, you’re also smart enough to realize the expertise required to optimize, especially in competitive industries.