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BizReport : Social Marketing : March 17, 2009

Forrester: Recession won't dampen social media marketing spending

A new report from Forrester indicates that companies are bullish on social media marketing, and over half intend to increase budgets, even assuming the economy is in recession in the next six months.

by Helen Leggatt

Forrester's latest report on the social media scene found that over half (53%) of the 145 interactive marketing professionals surveyed plan to increase their social media budgets. The report entitled "Social Media Playtime Is Over" also reveals that just 5% expect to decrease those budgets and 42% said their outlay would remain the same.

The report's author, Jeremiah Owyang, warns marketers not to treat social media marketing as an experiment. Why? Because, he says on his blog, the impact of toying with the media and not taking it seriously is "unlikely to be able to do enough to make an impact or to have a secure source of funding for the future".

"In order to be successful, brands have to have dedicated strategy and programs to make these [venues] work like their other marketing vehicles," Forrester analyst Jeremiah Owyang writes.

Despite the online business world's obvious interest in social media marketing, spending on the channel remains relatively small with three-quarters of respondents to Forrester's survey spending $100,000 or less. Much of this can be put down to a lack of measurement tools in an environment where accountability is key to securing funding.

The areas in which the majority of respondents intended to increase budgets were social networking, blogs and user-generated content.

Tags: blogs, budgets, Forrester, recession, social media, social media marketing, social networking, user-generated content

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