Digital Ad Spending Cannibalizes Traditional

Posted on 10/22/2008 by Julia Dudnik Stern | Printable Version | Comments (0)

According to a survey of 175 chief marketing officers, budgets are shifting to interactive and digital marketing—at the expense of traditional spending. Nearly two thirds (63%) of the executives surveyed see and increase in digital spending, while 59% report a decrease in traditional budget allocations.

The survey, conducted by Dallas marketing services firm Epsilon, indicates that social computing—including social networking Web sites, viral advertising and word of mouth—is the most popular emerging marketing channel: 42% of responding CMOs are considering adding social computing to their marketing mix.

Blogs were the second most popular channel, with 35% of survey respondents planning to pursue blogging and 19% already using blogs.

Podcasting and mobile marketing have been used by a respective 18% and 22% of CMOs; an additional 31% and 29% are considering their adoption.

Practically all (94%) respondents agreed that marketing plays a key role during tough economic periods. Still, 65% said money ad spending will decrease due to the economy.

The Epsilon survey included CMOs of some of the largest brands in the U.S.: 27% of respondents work at companies with 2007 revenues of over $10 billion.


Copyright © 2008 Julia Dudnik Stern. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz

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