Companies Expected To Enhance Their Digital Marketing Budget in 2015
Posted by Manoj Tiwari
The recent study conducted on Digital Marketing strategies of the companies by 2015 has revealed that companies are expected to enhance their digital marketing budget in 2015. This might be surprising but true since, marketers have learnt that investment for driving business advantage and revenue growth is important for better customer experience. And not only the companies will make their digital marketing budget healthy, but they will also focus on their overall business growth in the coming 12-18 months.
The study is based on “The Future of Digital Marketing” that is conducted through an online survey on 262 companies’ executives including both B2B and B2C. When the stats of these companies is evaluated, it is revealed that 40% of these companies will enhanced their digital marketing budget by 5% and 10%, while 32% claims to increase between 10% to 15%, and 9% companies plans to enhanced in between 0% to 5%.
While companies have decided to enhance their digital marketing budget for the year 2015, how this enhancement will impact the overall productivity of their organization.
How Increasing Budget Will Benefit Companies?
While increasing budget might put some pressure on the business from investment front, but it would definitely do good for enhancing their productivity because they finally will have the budget to hire great professionals from all across the world. When they will have significant number of good talents in their work pool, they will obviously get benefitted with their vast experiences and skills. However, the study has also revealed about the top hiring barriers that are hindering the businesses in hiring the real talents from the IT market and those barriers includes searching for the highly skilled talents (as reported by 65% companies), impressing the top talents (as reported by 21% of companies), cost involved in hiring quality staff (as reported by 30% of companies), culture fitness (as reported by 26% of companies), and maintaining the top talents ( as reported by 16% of companies).
This decision was taken in regard of the overall turnover of a company because companies often face this as a major issue of their business growth. According to the study, the average tenure of professionals in companies is in between 12 months to 18 months while the average tenure of CMO in companies is around 45 months. Owing to the growing demand, the professionals continue on switching their jobs for better pay and career growth. Now, when the companies have planned to extend their budget required for hiring and maintaining their talent pool, it becomes obvious that their talent pool will not face major turnover as increased budget will obviously motivate urge between them to stay in their current job and focus on their job responsibilities, which is necessary for the growth of both the employees and the organizations.
The study has further revealed the top skill sets that will be hired by the companies in 2015 and it includes social/digital (54%), content creation (44%), analytics/big data (33%), and mobile digital strategy (30%).
While the digital marketing professional are going to get more job opportunities in 2015, traditional marketing skills will be given low preferences since, only 24% marketers will be hired by companies for ingenious services and 22% marketers will be hired for brand/product knowledge.
The study also divulges that mobile will stood at top position acting as the key driving factor for better user engagement (as responded by 24% marketers), and it will see more enhancements in three to five years accounting for 70% of total user engagement over a website. Future also sees video as the important driver of customer engagement in future accounting from 13% at current to 61% in future, while social media will see an increase of 49% in the future when compared with the 38% at current.
Another major shift that is predicted in 2015 is more towards flexible workforce that includes shift from the permanent workforce type to contractual and freelance workforce type. At present, nearly 42% companies constitute permanent workforce, which is expected to drop to 23% in the upcoming 12 to 18 months. Meanwhile, the companies that consist of both contractual and permanent workforce type accounts for 1%, which is also expected to see an enhancement up to 30% in the 12 to 18 months.
Eventually, the increasing digital marketing budget will be profitable for both the branding purpose and for enhancing the customers’ experience as it will pave new way of strategizing the marketing policies to meet the customer demands. Also, the connected economy is all set to modify a company’s relationship with its target markets and customers and this economy will definitely create more opportunities for the businesses as well as the customers to gain benefits because this will offer relevancy to the customer’s demands as it will be governed by the actual consumption behavior.