While the social media landscape has received a ton of coverage, the migration of advertising dollars to the medium has been slow to catch on.
Citing a study by TWI Surveys, Inc., the New Communications Network wrote that 70 percent of survey respondents were spending only 2.5 percent of their marketing budgets on "conversational marketing."
Even so, it looks like over the next several years, spending of marketing dollars on social media is going to increase in a big way, as another 81 percent of repondents say that by 2012, spending within the space will be as least as much as spent on traditional marketing.
“The rise of digital media continues to make significant inroads into the mainstream media pie,” said Joseph Jaffe, who featured the findings in his new book 'Join the Conversation'. “Conversational marketing investment will make up the third pillar of the new marketing model.”
Current major obstacles to increasing spending on social media, according to respondents:
Manpower restraints: 51.1 percent
Fear of loss of control: 46.9 percent
Inadequate metrics: 45.4 percent
Culture of their organizations: 43.5 percent
Nice work Gary, with great detail to the survey and forsight. On the article, I couldn't agree with you anymore than Mr. Joseph Jaffe had succintly put it. Like in every good thing, it takes time to convince and commit the doubters.
From business point, we have been saying this now since mid-2005. The signs are there but most high street shop now are feeling the heat.
Internet sales numbers are growing. Once these numbers even up with the high street sales, internet advertising revenue will grow exponentially. It is my view that internet advertising revenue will overtake the mainstream media before that 2012. We have evidences to suggest that. You know what, there are those set on their ways, those who still believe that "..television gives you credibility" and that is a drag.
Posted by: Humphrey Bo | January 16, 2008 9:19 PM | Permalink to Comment