It wasn’t long ago that people thought the Internet, email or social media were fads and wouldn’t merit much use beyond being a toy for the well-to-do population that could afford to have these at their disposal. But we’ve seen how wrong these types of predictions were and that digital marketing has grown exponentially in recent years with more businesses investing larger portions of their marketing budgets in digital.
AdAge recently reported that Target is dedicating 61% of its media spending to digital, a 10% increase over the previous year while maintaining the same total marketing budget. The company will be spending less on print and traditional advertising and will invest more heavily in social media and mobile.
Target isn’t the only one. According to CMO Council, 28% of marketers have reduced their advertising budget to fund more digital marketing. Additionally, it is expected that by 2016, the average firm will allocate 30% of their marketing budget towards online initiatives (webstrategies).
Companies are shifting their focus and budgets to where their customers are as part of a customer-centric marketing strategy and it will pay huge dividends in the long run.