• by Masha Geller , March 18, 2002

The majority of U.S.-based software marketing executives voted Internet marketing as the big winner in 2002 according to a nationwide survey jointly conducted by Smith & Suita and Marketing Innovations about “What Matters Most when Marketing in a Tough Economy.”

According to survey findings, 70% of the companies interviewed are planning to increase their Internet marketing efforts and only 5% will spend less money in this area in 2002. Online direct mail is also becoming increasingly important, respondents said, pointing to its lower cost, quicker response time and targeting flexibility when compared to print mail.

Interestingly enough, 55% of the companies interviewed plan to decrease their overall spending in 2002, and only 27% planning to increase their advertising budgets. Software executives mentioned that along with its expense, the impact of advertising is difficult to measure, and with marketing measurement being a key finding in the survey, many are moving money from advertising to other areas.

Not surprisingly, software companies in the study are struggling with generating sales and getting additional business while many are facing reduced marketing budgets and increased pressure to make each dollar spent accountable.

Exhibiting at large national trade shows is also less popular than in the past, due to what many respondents notice as a general drop in show attendance and their perceived lack of return on investment. Money is shifting to highly targeted regional shows with an increasing emphasis on pursuing speaking opportunities.