As the US economy continues to sputter along, there does appear to be one surprising factor that is preventing it from becoming even worse, online marketing.
With the rise of the internet a new way for companies being able to make their presence known was created. In the past companies would have to advertise in traditional media outlets such as print, television and radio, often paying relatively high rates for the exposure. However, businesses are finding out the digital marketplace is rapidly becoming a cost-effective medium to accomplish the same goals.
The U.S. Marketing Spending Survey revealed that in 2013, companies will be increasing their marketing budgets with a significant portion of it going to online marketing.
The report noted that companies spend an average of 10.4% of their annual revenue on overall marketing activities, which includes salaries and costs associated with both digital and traditional marketing.
As customers are increasingly changing their habits to where they are now getting the majority of their information from digital channels, companies are beginning to adjust their marketing budgets accordingly. The report noted 43% of the companies they contacted said they were planning on increasing their operating budgets this year. Media companies, which also devote a larger share to marketing expenditures, have said they plan to increase their spending by 9.9 percent this year.
On average companies are now spending 25% of their marketing budgets on digital media activities, with some spending over half of their budgets in this area.
In the past, increasing your web presence consisted of simply putting up a website and advertising on Google or Bing. However, with nearly all companies having websites, in order to stand out from the competition organizations have had to expand the ways in which they reach current and potential clients.
In the past companies had their own departments that were tasked with marketing their product; however with the vast amount of platforms available in digital media, companies have begun to outsource these responsibilities.
The digital marketing survey revealed that up to 50% of all digital marketing activities are outsourced. Part of the reason is due to the fast-paced technological changes that are occurring in the digital realm. For instance, not too long ago MySpace was used by a large number of people, yet today it has been largely supplanted by other social media platforms such as Twitter and Facebook. These types of changes have resulted in companies reaching out to organizations such as Endurance SEO that specialize in this arena.
The UK based company offers a range of services to companies globally by working with them to help develop solid, marketing products and strategies. In addition to helping with ad placement, Endurance SEO offers a variety of services to help expand a company’s web presence including managing their social media platforms, quality writing and editing services, pay per click management, local business marketing, and press release and reputation management services.
The services have struck a chord with companies, “What SMBs Spend on Digital Marketing Services,” a 17 page report that breaks down the specific expenditures companies spend on digital marketing reveals that thousands of businesses spend an average of $17,000 per year using these types of services.
While outsourcing has frequently been associated with a loss of jobs, in this instance local economies are reaping the benefits of outsourcing. The Marketing Spending Survey revealed that nearly half of marketers said the use of digital media is helping them to stretch their budgets. Additionally, they are using the savings to reinvest it in more digital marketing, which in turn helps them to obtain more business.
With many companies still operating on lean budgets following the Great Recession, outsourcing their digital marketing is actually helping to create jobs in their local areas and helps to create a larger tax base for cities and municipalities.