One-third of the UK’s marketing directors predicted an increase in marketing spend in the period July to December 2010. Less than one in seven respondents (13 per cent) thought their budget would be cut over the next six months, implying a positive second half of the year for the marketing industry.
This is in contrast to the last survey in 2009 when only one-quarter (26 per cent) expected an increase, with a further 25 per cent expecting a drop in budget, and just under half (49 per cent) expecting their marketing spend to stay the same.
The survey of more than 100 of The Marketing Society’s top-level marketing directors, working for some of the world’s largest brands, also revealed that marketers are prioritising their budget for acquisition activity. Some 43 per cent of respondents agreed that finding new customers would be their primary focus for the next six months. This figure has increased significantly since the last survey when 28 per cent stated they would be committing the lion’s share of their budget to acquisition.
However, 19 per cent will still be concentrating on retaining existing customers as their lead marketing objective. Some 15 per cent specified brand building as their primary concern, while upselling (10 per cent), demonstrating ROI (seven per cent) and re-engaging lapsed customers (1.4 per cent) all struggled to achieve critical mass.
Meanwhile, marketers’ choice of channels for the next six months revealed a trend towards ‘narrowcasting’ of messages, which is synonymous with customer acquisition as it underpins personalised, targeted marketing. SEO (natural search) was named as the most important medium by 45 per cent of respondents, followed by social media (42 per cent) and advocacy/word of mouth (37 per cent). Direct mail remains a tried and trusted communication method, with 27 per cent claiming it will be a priority channel in the coming months. Mail fared almost as well as email (28 per cent).
The study also suggested traditional broadcast media such as TV (24 per cent), radio (six per cent) and cinema (1.4 per cent) are lagging behind in popularity. The full results will be available at www.mmc.co.uk, Royal Mail’s resource to provide intelligence, inspiration and innovation for marketers.
Mark Thomson, Media Director at Royal Mail, said: "This, the second such poll of The Marketing Society’s members, paints a positive picture for the marketing industry and indicates optimism that we will continue to climb slowly out of economic difficulty. It seems that marketers are cautiously confident for the second half of 2010 with many expecting to have more budget at their disposal.
"The focus of budget on more tactical objectives such as customer acquisition and retention indicates that marketers want tangible results from their spend, which plays well to the strengths of media channels such as mail."
Gemma Greaves, Marketing Director of The Marketing Society, added: "Marketers have been under pressure in recent times as they responded to the economic climate by choosing channels and tactics more appropriate for times of austerity. Our survey indicates that balance is returning to the sector, with a renewed focus on acquisition. The marketing industry still has tough choices to make, but the fact that many of our members are confident about budgets increasing in extremely encouraging."
