Marketers Anticipate Spending More on Digital Than Traditional

According to a survey from ThinkVine, more than half of marketing executives expect to spend more on digital media than traditional channels within the next two years. 25% of senior-level marketers say that their spending in online display, social, mobile and other digital channels currently exceeds spending on TV, radio, print and other traditional media. Another 31% believe their digital budgets will overtake their traditional spend within the next two years. Just 11% don’t expect digital to surpass traditional in the foreseeable future, while only 3% of respondents say the shift will never happen.

Projections For Traditional and Digital Spending Mix (% of Senior Level Marketers)

Digital to Exceed Traditional?

% of Respondents

Yes, already has

25%

Yes, this year

15

Yes, next year

16

Yes, 2-5 years

24

Yes, in 5 years or more

8

No, not in foreseeable future

11

No, never

3

Source: ThinkVine, April 2014

Most of 200 CMOs, marketing vice presidents and directors at companies with less than $100 million to more than $10 billion in revenue are confident that digital spending will eventually exceed traditional spending.

ThinkVine CEO Mark Battaglia said “… marketers shouldn’t blindly follow the crowd… survey results show that most marketers are moving budgets to digital channels before they have all the information they’d like…  they rely more on factors like experience, perceived current performance, historical spending, and trends… tracking and model-driven analytics…is still an opportunity for marketers to improve results… by using data and analytics in new ways…

Other findings from the survey include:

       The insurance, entertainment, finance and technology industries are leading the way in digital adoption. At least 35% of marketers from these industries report that they already dedicate half or more of their budget to digital (40% for insurance, 38% for entertainment, 36% for finance and 35% for technology).

       36% of companies with $1 billion or more in revenue have already seen digital spending outpace traditional or expect to see the shift within the next year. By contrast, 9% of companies with less than $100 million in revenue don’t expect this shift to occur.

       Depending on the channel, one-fifth to one-quarter of marketers said that their ability to determine historic ROI by channel for digital display, search, social media and mobile was “excellent.” By contrast, one-third rated their ability as either “fair” or “poor.”

For more information about ThinkVine, please visit here.

 

 

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1 comment about "Marketers Anticipate Spending More on Digital Than Traditional ".
  1. Elliott Walters from Student , May 6, 2014 at 11:05 a.m.
    "Marketers Anticipate Spending More on Digital Than Traditional" At that moment, shouldn't we stop tallying the difference? Digital becomes traditional. For that matter, digital is not just one medium, let's stop talking about it as if it were. It's print, TV, radio...