In line with past years, digital marketing budgets continue to grow in 2016 and make up a key component of any business budget. But before you throw your money around, be sure that with an increase in budget, comes an increase (or development) of real world ROI that your agency and/or internal teams are held accountable to.
A recent global report ‘Marketing Budgets 2016*’ published by Econsultancy in association with Oracle Marketing Cloud, reported that 72 percent of businesses are increasing their digital marketing budgets in 2016 – which is great news. However, for the majority of respondents, digital still represents less than half their overall marketing budget, with the most common share being 1-10 percent of the marketing budget going to digital.
Of that 1-10 percent, spend across digital marketing tactics is spread quite broadly, with paid search taking the largest slice of the digital marketing spend. See below figure for a breakdown of digital spend.
From this report, it’s apparent that measuring ROI from digital marketing spend still remains to be a challenge in many organisations. Apart from paid search and email marketing, all other digital channels rated fairly poorly among those surveyed. See below figure for percentage of businesses who rated measurement as “good”.
As proving ROI seems to be a pain-point for most marketers, it is increasingly important to invest in data management, tracking and marketing analytics to measure the progression of marketing efforts into conversions. Through implementing these digital tools, we’re able to provide business with a wealth of information about customers’ purchasing habits.
If you’re interested in finding out more tracking your digital marketing efforts, get in touch with Rosie at firstname.lastname@example.org and we’d be happy to talk you through your options.
* The report surveyed 500 digital marketers and ecommerce professionals, in various countries and business sectors in January and February 2016.