Digiday+ Research: Manufacturers, retailers spend a lot more on online marketing than agencies

August 25, 2023  •  3 min learn  •  By Julia Tabisz

This is in line with a Digiday+ Research survey of 99 company, model and retailer professionals.

Digiday’s survey discovered that just about all entrepreneurs elevated their marketing spend within the final 12 months. Forty-five % of company execs mentioned their corporations elevated marketing spending considerably or considerably within the final 12 months, and 46% of name and retailer execs mentioned the identical. In comparability, simply 19% of agencies mentioned their marketing spend decreased over the identical interval, whereas 30% of manufacturers and retailers mentioned their marketing spend decreased.

Looking more carefully on the knowledge, it’s vital to notice that a lot of the rise in marketing spend wasn’t essentially vital. About a third of entrepreneurs (35% of agencies and 30% of manufacturers and retailers) mentioned their corporations elevated their marketing spending simply considerably. Meanwhile, 10% of agencies and 16% of manufacturers and retailers mentioned they elevated marketing spend considerably.

Digiday’s survey additionally discovered that, when it got here to allocating their elevated marketing spending during the last 12 months, just about all entrepreneurs put the emphasis on online marketing over offline marketing — though the overwhelming majority of agencies, manufacturers and retailers did spend money on each online and offline techniques. A full three-quarters of company execs mentioned their corporations invested no less than a small quantity in online marketing within the final 12 months, and 95% of name and retailer execs mentioned the identical. Meanwhile, 67% of agencies and 89% of manufacturers and retailers invested no less than a little in offline marketing.

A notable distinction that emerged between agencies and their model and retailer counterparts concerned precisely how a lot went towards online marketing spend — particularly that manufacturers and retailers spent a lot more on online marketing than agencies within the final 12 months. The largest proportion of company respondents to Digiday’s survey mentioned their corporations invested simply a small quantity on online marketing within the final 12 months (40% mentioned this). Those who mentioned their corporations invested a great amount in online marketing got here in a distant second at just below a quarter (24%).

Meanwhile, the biggest proportion of name and retailer respondents mentioned their corporations invested a great amount in online marketing within the final 12 months (43% of manufacturers and retailers mentioned this). And those that mentioned their corporations invested a medium quantity in online marketing got here in a shut second at 39%. Only 14% of manufacturers and retailers mentioned their corporations invested simply a small quantity in online marketing final 12 months.

When it got here to offline marketing spend, agencies, manufacturers and retailers have been pretty aligned in that the biggest proportion of each teams mentioned their corporations invested a small quantity in offline marketing within the final 12 months. Thirty-seven % of company execs mentioned they invested a small quantity in offline marketing within the final 12 months, and precisely half of name and retailer execs mentioned the identical.

Looking ahead to the approaching 12 months, Digiday’s survey discovered that about half of all entrepreneurs anticipate to develop their marketing spend even additional. Forty-nine % of company respondents mentioned they anticipate marketing spending to extend essentially the most within the subsequent 12 months, and 46% of name and retailer respondents mentioned the identical.

And the emphasis will proceed to be on online marketing techniques over offline ones. Two-thirds of company execs (66%) and more than three-quarters of name and retailer execs (77%) mentioned they anticipate their corporations to spend money on online marketing essentially the most within the subsequent 12 months. In comparability, simply 27% of agencies and a fair smaller 16% of manufacturers and retailers mentioned they anticipate their corporations to spend money on offline marketing essentially the most within the coming 12 months.

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