Article

It’s Not ALL About ROI

Andrew Kordek

In December, I began working on a project with Econsultancy to understand where marketers are allocating their budgets in 2010. Consistent with other reports, we found the migration of budgets from traditional to digital channels continues. In fact, digital marketing budgets will increase by an average of 17% in 2010, and 28% of marketers are migrating at least part of their overall marketing budgets from traditional to online channels.

54% of marketers plan to increase email budgets in 2010. Another 43% plan to keep their email marketing budgets the same, leaving only 3% that will decrease spending on email. So yes, our expertise will be in demand for the foreseeable future.

Questions about how and why budgets are being reallocated are more intriguing. We’re all familiar with reports showing that ROI from email is very good. The DMA reports figures each year and, while we may debate the finer points, few disagree with the general premises that email is very measurable and provides a good return.  According to our study, email is one of the most successfully measured marketing channels, along with paid search. As such, it makes sense that people would increase their investment in email and search.

However, only 17% say they do a good job measuring ROI from social media, while 70% are planning to increase marketing budgets in this area. Granted, figuring out how to track and calculate ROI for social media is a hot topic. I attended OMMA Social in San Francisco last week and there was a lot of talk about ROI: tracking, proper calculation, allocation, etc. (Sorry, I didn’t walk away with any answers.) But that’s beside the point. The point is that something other than ROI is motivating brands to increase social media budgets — while cutting budgets for print, radio, and television.

So what is? Brand reputation.

Continue Reading on MediaPost: Email Insider

Originally From “It’s Not ALL About ROI”| Published February 3, 2010

About the Author(s)

Andrew Kordek

Andrew Kordek is a Co-Founder of Trendline Interactive.

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