Website Marketing Costs: In 2015, digital marketing budgets will increase by 8%, according to a recent Gartner’s CMO Spend Report, a survey of 315 marketing decision makers representing organizations with more than $500 million in annual revenue.
Customer experience is the top innovation project for 2015, continuing its role as the top priority for marketing investment in 2014. The survey also found that
- In 79% of companies, marketing has a budget for capital expenditures — primarily, for infrastructure and software
- Marketers are managing a P and L and generating revenue from digital advertising, digital commerce and sale of data
- 68% of organizations have a separate digital marketing budget — it averages a quarter of the total marketing budget
- Two-thirds of companies are funding digital marketing via reinvestment of existing marketing budgets
Earlier this year, IBM found in its worldwide survey of CMOs that CEOs increasingly call on them for strategic input. Furthermore, the CMO now comes second only to the CFO in terms of the influence he or she exerts on the CEO. The survey also found, however, that very few CMOs have made much progress in building a robust digital marketing capability: Only 20%, for example, have set up social networks for the purpose of engaging with customers, and the percentage of CMOs who have integrated their company’s interactions with customers across different channels, installed analytical programs to mine customer data and created digitally enabled supply chains to respond rapidly to changes in customer demand is even smaller. Almost all CMOs, 82% of survey respondents, felt underprepared to deal with the explosion of data.
With this as a background, here’s a summary of what digital marketing and the CMO will look like in 2015, based on observations byScott Brinker, a leading commentator on marketing technology, Forrester, TopRank online marketing blog, Wheelhouse Advisors, and Brian Solis.