• by Joe Mandese  @mp_joemandese, December 3, 2008

A survey of business-to-business marketers indicates that nearly half of all business media budgets are now spent online. The study, conducted by Hearst Electronics Group and Golden Group Communications, was fielded in August and September, indicates the trend toward online marketing spending - including display, search, Web site design and development, and webcasts - would continue into 2009, mainly because B-to-B marketers believe it generates better quality leads than traditional media.

"When web development, search engine marketing and webcasts are combined, marketers today are spending 47 percent of total budgets on online tactics," noted said GGC President Joel Goldstein. "The sense of urgency to move to online marketing has been felt by leading marketing organizations for some time now, but the extent to which budgets have been re- defined is dramatic. While traditional media still play a role in building a balanced program, clearly online spending for webcasts, search engine marketing and generating online content are now seen as the primary drivers of branding and lead generation for most companies."

The No. 1 lead source cited by the survey's respondents (24%) was their own Web site, followed by search engines (19%). Asked where their "best" leads came from, 15% of respondents cited "online" and "trade shows."

The study also found that search engine marketing - both paid and organic - now accounts for 11% of the typical B-to-B media budget, nearly as much as direct marketing media (both direct mail and email marketing), which account for 12% of B-to-B budgets. The No. 1 source of B-to-B media budgets continues to be trade shows, which account for 17% of the typical B-to-B marketer's pie.

"While trade shows are certainly among the most expensive tactics employed, and while shows have enjoyed a modest growth spurt from 2002 to 2007 in traffic and revenues, we had expected to see more trimming in that portion of the budget, as senior level executives and buying decision-makers continue to curtail their trade show attendance for many industries," Goldstein noted.

In terms of traditional media, print - including advertising, brochures and collateral materials - still dominates B-to-B media spending, accounting for 11% of budgets.