Social media spending is expected to climb to a 20.9 percent share of marketing budgets in the next five years. This share was only 5.6 percent in 2009. What is striking, however, is that only 3.4 percent of marketing leaders report that social media contributes very highly to firm performance; 40 percent report a below average contribution (see insert).
These are among the latest findings from The CMO Survey. Conducted biannually since August 2008, the latest edition received responses from 289 top marketing executives.
- Social media is often going solo: When asked to rate how effectively social media is linked to their firms’ marketing strategies on a 1-7 scale where 1=not at all integrated and 7=very integrated, marketing leaders report an average score of 4.2. Although higher than 3.8 from 4 years ago, this number is still too low to get the best returns on social media investments.
- Customer social media information is not integrated with other customer information: Companies are not integrating customer information from purchasing, social media, and other communication channels. On a 1-7 scale where 1=not at all effectively and 7=very effectively, the average customer integration rating across these three sources is 3.4, which is a poor showing and lower than last year. This means companies do not yet have the critical 360 that could help them increase customer acquisition and retention. (more…)