In last week’s post about digital marketing budgets getting bigger, we referred to Gartner’s U.S. Digital Marketing Spending Survey for 2013. One of the findings of the survey is how digital marketing budgets are being allocated…
Interesting to us is that a meaningful percentage of the budget (greater than 5%) is allocated across so many different activities, and that there isn’t one particular activity with a disproportionate percentage of the budget. This broad distribution of the budget across activities creates some interesting challenges for marketing executives:
- How does one track the performance of all activities in an integrated manner, rather than for each individual activity?
- How does one measure the effectiveness of each activity, relative to overall business objectives?
- How does one make budget allocation decisions across the different activities?
With challenges like these, it is no wonder that 9.5% of digital marketing budgets is being allocated to analytics. But just throwing money at analytics is not enough. For organizations to effectively deal with this new world order, marketing executives will have to adopt a mindset that embraces technology and a data-driven approach to decision making.