Most Marketing Is Now Online

"Follow the money," as the old saying goes -- but when it comes to marketing budgets, it's possible the money is following something else: the online consumer. That's the finding of a new report that concludes, for the first time, that the majority of marketing spending is now directed to online channels.

“Marketers and advertisers are looking for a more-predictable way to track the effectiveness of their efforts,” says Matthew Conlin, director of sales at Clash-Media, a performance-based data marketing firm and sponsor of the report. “Tracking lead generation is a tangible way of doing this. You can follow the purchasing activities of opt-in consumers.”

Spending on lead generation marketing efforts grew to a projected $2 billion this year, up 71 percent from a year ago, according to the report, which was conducted on behalf of Clash-Media by international research firm E-consultancy. The rate of growth is twice that of Internet advertising as a whole, according to Conlin.

According to the survey, over 90 percent of marketers see online lead generation as a growth area -- up from 82 percent last year. More than 70 percent of those using online lead generation use search engine optimization, paid search, and email marketing to in-house lists.

“The way to achieve the best results is to realize that many methods have their own individual benefits,” says Christopher Petix, president of Clash-Media U.S. Even allowing for a case-by-case approach to generating leads, however, the research shows that the use of offline marketing methods has largely decreased, with only press and television advertising growing -- a distinction that Petix says is deserving special attention.

“It is interesting to note that the only two offline marketing methods [that] have increased in use are press and television. These are the two offline methods which can be most easily linked to online marketing channels such as search engine optimization and proactive online lead generation. Companies are increasingly taking an integrated approach to their advertising -- which is good because no one marketing tool will ever be 100 percent efficient.”

Brand advertising -- the kind of awareness-building efforts that national firms such as McDonald’s spend significant portions of their marketing budgets on -- will always have an important place in the overall advertising budgets of many firms, Conlin says. “That will never go away," he says. "But companies can complement their brand-marketing efforts with online lead generation, which provides a cost-effective [return on investment]. It provides companies a good way to identify prospective customers and it gives companies an effective way to work around Do Not Call and Do Not Mail lists.”

The survey also shows that 56 percent of U.S. respondents feel that they are effectively exploiting online lead generation, compared to just 37 percent for European marketers. Conlin suggests that, to be more effective using the online channel, firms need to ensure that they're making offers that are relevant to the targeted consumers.

News relevant to the customer relationship management industry is posted several times a day on destinationCRM.com, in addition to the news section Insight that appears every month in the pages of CRM magazine. You may leave a public comment regarding this article by clicking on "Comments" at the top; to contact the editors, please email editor@destinationCRM.com.

CRM Covers
Free
for qualified subscribers
Subscribe Now Current Issue Past Issues

Related Articles

Demand Generation's Last Frontier

Your Web site can drive conversion rates.

Demographic Marketing Goes Web 2.0

Understanding the individuality of how consumers approach social networking is crucial for marketers trying to take the Web 2.0 plunge, according to a new report.

Marketers Must Temper Their Behavior

A forum for online advertising warns about being invasive when targeting based on consumer habits.

Ace Mart Gets Smart on Marketing

The company uses Coremetrics to determine which online marketing initiatives are bringing in ROI, and which are not showing results.

Mercurial Marketing

Social networking sites have bloomed in the past year or so, but just how valuable are they to marketers and how can that value be leveraged?

Screen Testing

Marketers can make more opportunities by testing to facilitate performance decisions, rather than going on intuition. The question is, which test is best?

The Top Online Makeover Target

Some organizations grapple with attaching bottom-line value to their revamped Web sites, but crafting ROI models can help.

Yahoo! Acquires BlueLithium for $300 Million

The search engine stalwart aims to improve its behavioral-targeting capabilities -- and catch up to its peers.

Mobility Matters Most in Online Marketing

A new study reveals how marketing agencies are tackling emerging technologies. While mobile devices top the list, YouTube isn't far behind.

Online Sellers Still Lack Customer Visibility

Online retailers are reaching a crossroads in terms of gauging customer satisfaction, according to a recent study.

Unleashing the Partnership Marketing Opportunity

Create better products and more effective marketing campaigns at lower cost.

European Online Marketing: A Continental Divide

Europeans are set to double their online marketing spend over the next five years, thanks to consumer interest in the Web and marketers' growing affinity for online ads.

Direct Marketing Meets the Web

DMA B-to-B Marketing Conference '08: The Internet will forever change the marketing landscape -- in fact, the change may have already happened.

Coremetrics Connects Marketing

A platform divided cannot stand -- at least not for long -- prompting vendors to strive for the Holy Grail of marketing integration.

Tech Solution: Search-Engine Marketing Tools

Business Problem: A company's marketing department cannot effectively track and manage campaigns across multiple search engines.

The Marriage of Marketing and Content

Forrester says "persuasive" content management relies on having technology and marketing personnel understand each other.

U.S. Advertising Will Reach $43.4 Billion in 2013

The economic downturn pushes spending away from traditional advertising to more accountable online media.

Making (More) Money in Online Stores

eTail East '08: Provide your customers with relevant cross-sells and upsells -- it's a win-win situation.

10 Lessons NBC Learned from Beijing

Advertising Week NY '08: While television attracted the most viewers during the Olympics, the CEO of NBC Universal gives online media medals of its own.

B2B Marketers Still Hesitant to Get Social

Forrester report shows that B2B marketing, unlike its B2C counterpart, may be lax in diving into Web 2.0 business efforts.

Interwoven Weaves in Adaptive Targeting for Web Marketers

The content management provider looks to provide a more holistic Web marketing solution, according to company executives.

Budgets Hold Steady (So Far), But Online Marketing Actually Expands

A focus on Web analytics and the ability to measure online marketing combine to counter the stress of a down economy.