At the beginning of a new financial year, all marketers sit down to draft their strategies in form of new media planning and budget allocations. With the new budgets, they more or less define the structure of marketing in the coming year. This media planning and buying is done, keeping in mind where they were present in the last year and how it affected their revenue stream.
However, great emphasis is laid on where they would like their business to be and how the revenue projections for it look like. Planning all of this is an extensive exercise with the basic focus on where their customers are and how the investment in each of these channels is going to prove to be value of their money plus expected profit margin.
While surfing through the internet, I came across an interesting infographic about the changing budget allocations. This infographic provides a great way to track customer migration from traditional channels like television and print to internet and especially social media. With them, the businesses are also spending more time, money and resources on non-traditional marketing media than ever before.
Evolving budget allocation
While the television spends are still the highest share, but with rapid growth of internet usage and the revenue generating opportunities through it, more and more funds are getting allocated to online activities. According to eMarketer Report in 2011, 10% of online spending is used for advertising on social networking sites.
Online ads are becoming more social and spending on lead generation and email marketing is shrinking. While planning a budget for 2011, most of the companies dedicated a big share of the pie to social media. Social media is no longer a support media, independent campaigns are designed for it and it’s counted as a separated revenue stream.
Survey by ECG group
ECG group conducted a survey in October 2010 (when most companies planned their budget for 2011) and asked companies: “What will you be including in your 2011 marketing plan that was not a big part of your 2010 plan?”
The results were as follows:
So clearly, more and more companies are leaning towards internet and per say social media marketing to reach out to their customers. Further, a great part of this cost is dedicated towards hiring the right people to do the job. The infographic does not talk about the PR opportunities and of course the revenue stream generated by it on social media, though we have written about it earlier on our blog.
Take a look at the infographic and if you are not there yet, now is the time :