Digital marketing industry in Asia is blossoming; thanks for high-speed Internet penetration and emergence of local social networks across the region. Considering the growth and influence of social media in the region, 66% Asian businesses have planned to increased their spending on digital marketing over the period of next 12 months, according to the report from econsultancy and Campaign Asia-Pacific. The report also highlights that companies are adopting slow approach with traditional offline marketing tactics and just 19% of companies are planning to increase their offline marketing budget, in comparison.
The survey report addresses the comparative surge in digital media spending too; and, on an average companies are spending 29% of their total overall marketing funds on digital, a 3% higher in 2012.
To make the findings more factual, survey also included the inputs from agency respondents who are actually executing marketing strategies on behalf of their clients. Surprisingly, agencies have portrayed slightly different picture as they claim clients spend 23% of their marketing budget on digital.
According to the survey report, there is steep decline in number of companies that are spending less than 10% of their total marketing budget on digital. But, at the same time number of clients, spend 10% to 50%, have increased from 50% in 2012 to 64% in 2013.
ROI From Digital Spending
It’s really difficult to account the exact number of such dollars but the study tried to capture that commendably; around 66% of companies surveyed said that up to 50% of their total revenues could be considered as ROI against digital dollars spend. Interestingly, there are companies (16%) that have claimed to generate 70% of their revenue from digital marketing.
On an average, companies are deriving 31% of their revenue from dollars spend on digital marketing.
Scenario is no different, again, when study analyzed the numbers recorded from agencies. Based upon agencies inputs, their clients are generating 25% of total revenue from digital marketing.
The report is based upon a survey of around 400 company and agency marketers. The survey was conducted in June – July 2013.