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BizReport : Social Marketing : August 27, 2015

Marketing spend on social to rise from 11% to a quarter of budget

Despite difficulties measuring the benefit of social media to marketing campaigns, chief marketing officers continue to move more budget to the channel, as new research from Duke University illustrates.

by Helen Leggatt

According to a survey of CMOs by Duke University's Fuqua School of Business, marketers expect spending on social media to account for almost a quarter (23.8%) of their overall budgets in the next five years, a doubling of the current 10.7% share.

However, according to Christine Moorman, director of the CMO survey and professor at the University's school of business, businesses are still struggling to "objectively assess the value they are getting from their social media investments". The survey found that just 15% of marketers were able to prove the impact of social media on business using quantitative approaches.

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Mobile, too, will see more budget allocation. The survey found that currently 6% of marketing budget went on mobile, but that investment is set to rise to 15.6% over the next three years - a 160% increase which, says the CMO Survey, "reflects a growing reliance on mobile to interact with customers where they look for information and make purchases. On top of it, companies hope to reach customers closer to the time of purchase in order to make them aware of offerings, deals, and additional information that may help close more sales".

Image via Shutterstock

Tags: marketing budget, mobile marketing, social media

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