Proving the value of social media spending is a particular challenge for top marketers. Only 15% of CMOs surveyed report proven quantitative impacts from their social media marketing. Another 36% say they have a good sense of the qualitative impact, but not the quantitative impact.
Moreover, almost half of the CMOs surveyed (49%) have not been able to show that their company's social media activities have an impact on their business.
However, despite their struggles to prove value, top marketers expect to increase expenditures on social media from 6.6% of their overall budget to 15.8% over the next five years
Below additional key findings from the report, which was based on a survey of 410 US marketers working primarily for Fortune 1000 firms.
Marketing Analytics and Big Data
- 60% of CMOs surveyed collect online customer behavior data for targeting purposes and 88.5% expect to increasingly do this over time.
- Marketing analytics is currently 5.5% of marketing budgets and is expected to increase to 8.7% over the next three years.
- However, the use of Big Data remains a challenge for CMOs. The percentage of projects using available or requested marketing analytics decreased from 35% in 2012 to 29%.
- CMOs report only "average" contribution of marketing analytics to company performance (3.5 on a 7-point scale where 1 is "not at all" and 7 is "very highly").
Ayaz Nanji is an independent digital strategist and a co-founder of ICW Content, a marketing agency specializing in content creation for brands and businesses. He is also a research writer for MarketingProfs. He has worked for Google/YouTube, the Travel Channel, AOL, and the New York Times.
LinkedIn: Ayaz Nanji