3/28/2012

Allocation of Online Marketing Tactics

I came across this chart from Marketing Sherpa showing how online marketing budgets in the US is allocated to each of the following online tactics. Pretty interesting reading:


View Chart Online


View the whole article and chart at Marketing Sherpa:  
http://www.marketingsherpa.com/article.php?ident=32135


Or read the article here:


Paid search, website management and design, and search engine optimization are the top three tactics to which organizations designate online marketing dollars.

Organizations devote one-quarter of their online marketing budgets to their websites. Even the best marketing efforts are for naught if the website is not optimized (in terms of performance and design) to communicate the “offer” and trigger a “response.”

Paid search also comprises 25% of the budget. Because SEO tactics often take time before having an impact on search rankings, many organizations use paid search to supplement SEO efforts.

Paid and organic search can work well together as a means for establishing authority on a search engine results page. Further segmenting the data, we found B2C organizations allocate more than half of online marketing dollars to PPC and SEO, which is more than their counterparts with primary business channels.

Advertising on social networks is gaining traction, particularly when viewed in light of the budget allocations of other tactics in this list. Companies focused on both business and consumer channels allocate nearly 10% of online marketing budgets to this area.

Organizations advertising in this arena need to bear in mind that social media users are focused on social interactions, unlike searchers who are seeking relevant information to a query. For this reason, social media ads may work better when they do not attempt to drive traffic off the social media platform, but instead aim to attract and engage fans.

PPC is the biggest area of investment for organizations of all sizes. Medium and large organizations direct 28% of online marketing budgets into this tactic, whereas small organizations set aside 24%.

Along with PPC, search engine optimization is another big area of investment for small organizations. On average, these organizations earmark 22% of online marketing dollars for SEO. They also designate a greater percentage of online marketing budgets for content marketing, a strong complementary tactic to SEO. Search engines index content, while people share content, making content good for an organization’s SEO efforts.

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