"The main culprit is the economy," wrote Rich Vancil, VP of IDC Executive Advisory Strategies, in a recent blog post. "Management teams are not willing to spend until better signs of demand pick up. The second factor is media shift: Going-to-market with digital vs. traditional media."
Tech marketing budgets hit a low point in 2009, falling 8.3% in the wake of the financial crisis. In 2010, tech marketing budgets increased 3.7% over the previous year, and then rose 3.5% in 2011.
Below, additional findings from IDC's 2012 CMO Tech Marketing Benchmark Study, based on a survey of 91 tech companies conducted from May to August, 2012.
Software companies and smaller tech brands are the most confident
Software vendors are increasing budgets some 5.2% in 2012, whereas hardware vendor budgets are falling 0.5% and services vendor budgets are falling 3.7%.
Also, companies with revenues of less than $500 million are expecting average marketing investment growth of 15.8%, compared with 5.2% growth for those with revenues between $1.0 billion to $2.9 billion, and 0.5% for those with revenues over $10 billion.
Digital allocations, as a percentage of total budget, continue to rise