Gartner Survey Shows U.S. Digital Marketing Budgets Average 2.5 Percent of Company Revenue

  Gartner Survey Shows U.S. Digital Marketing Budgets Average 2.5 Percent of
  Company Revenue

  "Gartner for Marketing Leaders" Program Examines Key Issues Facing Digital
                                  Marketers

Analysts to Discuss Survey Findings During Complimentary Webinar, "Why Digital
               Marketing Budgets Are Underfunded," on March 26

Business Wire

STAMFORD, Conn. -- March 13, 2013

Digital marketing spending averages 2.5 percent of company revenue, and these
budgets are expected to increase 9 percent in 2013, according to a survey of
U.S. marketing executives by Gartner, Inc. The survey found that, on average,
companies spent 10.4 percent of their annual 2012 revenue on overall marketing
activities; these expenses include salaries, advertising research, agencies
and software as a service.

These findings are included in Gartner's U.S. Digital Marketing Spending
report that is based on a survey of more than 250 marketers from U.S.-based
companies with more than $500 million in annual revenue, across six industries
(financial services and insurance, high-tech, manufacturing, media, retail and
healthcare). The survey was conducted in November and December of 2012. The
report examines how marketers are allocating their budgets, what activities
are contributing to marketing success and other factors.

"While digital marketing has been a growing area of investment in many
organizations for a decade, the scope is increasing and the techniques are
maturing," said Yvonne Genovese, managing vice president of Gartner for
Marketing Leaders. "However, increased funding is a double-edged sword as it
brings new opportunities, but it also puts more pressure on marketers to
measure and attribute investments to revenue and profit growth."

The majority of survey respondents are spending between 10 percent and 50
percent of their marketing budget on digital marketing activities, with the
average at 25 percent.

"Digital advertising accounts for the largest share of digital marketing
budgets at 12.5 percent, while content creation and management account for the
second-largest share," said Laura McLellan, research vice president at
Gartner. "Marketers today are emphasizing the use of content marketing as part
of a shift to drive more inbound marketing. While outbound marketing
emphasizes finding audiences and delivering messages to them (for example,
digital advertising and email marketing), inbound marketing focuses on
techniques to get found by potential customers and create an ongoing dialogue
with them (for example, social marketing and communities)."

Improving commerce experiences is the activity that will get the largest
budget increase in 2013. The focus on commerce experiences will be in
improving the ability to find the commerce site and the shopping experience.
It will also include strategies to embed commerce in digital marketing
channels such as search, social and mobile.

When asked to identify how they are funding their digital marketing
activities, two in five marketers said they realized savings from digital
marketing compared with traditional techniques, and they are taking that money
and reinvesting it into their programs. On average, 28 percent of marketers
say they have reduced their traditional advertising budget to fund digital
marketing activities.

The corporate website and digital advertising were both ranked as the top
digital marketing activities for marketing's success, while social marketing
emerged as the next most important activity.

"The survey results suggest that the corporate website will not be displaced
anytime soon by a brand's social media presence," said Bill Gassman, research
director at Gartner. "That's all the more reason for marketing leaders to
continuously invest in measuring and optimizing their websites through Web
analytics and testing, paying attention to all aspects — from customized
landing pages to compelling content that encourages visitors to be engaged
with your brand."

Additional information is available in the report "Key Findings from U.S.
Digital Marketing Spending Survey, 2013." The report is available on Gartner's
website at http://www.gartner.com/digitalmarketing.

Gartner analysts will provide additional details from the survey in the
complimentary webinar, "Why Digital Marketing Budgets Are Underfunded," on
March 26, at 10 a.m. EDT and 1 p.m. EST. The analysts will examine how
marketers are disrupting traditional budgets as they shift the marketing mix
toward social, mobile and digital commerce experiences. To register for the
webinar, please visit
http://my.gartner.com/webinardetail/resId=2332815?srcId=1-2994690285.

This research is part of the Gartner for Marketing Leaders program. This
program provides real-time, personalized digital marketing guidance, from
vision through execution. Gartner for Marketing Leaders is focused on helping
digital marketers succeed in eight key areas: emerging digital marketing
trends and techniques, social marketing, mobile marketing, monetizing digital
marketing through commerce, multichannel marketing, data-driven marketing,
digital marketing essentials and digital marketing programs. Additional
information is available at http://www.gartner.com/digitalmarketing. For
additional details, email GML@gartner.com.

About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading information technology
research and advisory company. Gartner delivers the technology-related insight
necessary for its clients to make the right decisions, every day. From CIOs
and senior IT leaders in corporations and government agencies, to business
leaders in high-tech and telecom enterprises and professional services firms,
to technology investors, Gartner is a valuable partner in 12,400 distinct
organizations. Through the resources of Gartner Research, Gartner Executive
Programs, Gartner Consulting and Gartner Events, Gartner works with every
client to research, analyze and interpret the business of IT within the
context of their individual role. Founded in 1979, Gartner is headquartered in
Stamford, Connecticut, USA, and has 5,300 associates, including 1,390 research
analysts and consultants, and clients in 85 countries. For more information,
visit www.gartner.com.

Contact:

Gartner
Janessa Rivera, 408-468-8312
janessa.rivera@gartner.com