As Social Media Grows, Marketing Spend Increases

A recent Bellwether Report of 300 UK marketing executives reveals that companies tended to cut their marketing budgets in Q2 of this year. A waning of business confidence and general optimism amongst the executives seemed to be the main explanation, which confirms that the economic recovery remains tentative at best.

The survey also found that direct marketing and the internet are the only marketing budgets likely to have seen an increase – demonstrating the continued attraction of social media as a marketing tool for a broad range of organizations. From a research perspective, the fact that social media marketing is data-driven offers a level of measurability and accountability that is particularly valuable to executives grappling with stretched marketing budgets. 

PSB ‘s A More Social Future survey found that social media is becoming ubiquitous, even though it’s still driven by mainly younger users.  Given its increasing prevalence and the increasing comfort of all age groups with the concept – 57% of those aged 50+ surveyed in our poll had social media accounts – it is hardly surprising that businesses are using these platforms to market their products and brands. 

Though the Bellwether study is focused on the UK, it's likely that this trend is also affecting marketing budgets in other developed countries. Furthermore, with internet and social media marketing still in its infancy, it will be fascinating to find out whether certain industries find the tactic to be more effective than others in delivering a greater bang for their marketing buck.