Posted by: gavinstokes | May 26, 2011

Who’s spending what on Social media

Wondering what companies are spending on social media. A report by Hubspot looks at spending habits of American small and large companies and identifies there spend on social media (inbound marketing) compared to traditional media (outbound marketing). The report looks at f 644 professionals familiar with their business‘marketing strategy. The key points drawn from the survey where.

  1. Inbound marketing channels are maintaining their low-cost advantage, at a cost per lead 62% lower than out bound marketing-dominated organizations.
  2. The gap between spending on inbound vs. outbound continues to widen: In 2009,inbound marketing had a 9% greater share of the lead generation budget; in 2011 its share was 17% greater
  3. Blogs and social media channels are generating real customers: 57% of companies reported that they acquired customers directly from blogs.
  4. More and more business are blogging: 2009 to 2011 the percentage of businesses with a blog grew from 48% to 65%

Respondents who spend more than 50% of their lead generation budget on inbound marketing channels report a significantly lower cost per sales lead than those who spend 50% or more of their budgets on outbound marketing channels. The average cost per lead for outbound-dominated businesses was $373, while inbound businesses reported their leads cost on average $143.
Companies surveyed consistently ranked inbound marketing channels as having costs lower than outbound channel. With leads generated from blogs being rated the cheapest by 55% of survey participants.

Inbound on the rise

It would appear judging by this survey that companies intend to increase their spend on inbound marketing in the coming year, which is not surprising considering the amount of media attention social media marketing is getting at the moment even to the extent that some claim it to be a repeat of the dot com bubble ( and it will be if companies just try to cash in).
54% of surveyed companies intend to increase their inbound spend by as much as 54% and among these the reason cited for the increase was past success.
The average portion of budget dedicated to inbound increased from 38% to 41% from 2009 to 2011. The net effect is that the gap continues to widen – inbound marketing had a 9% greater share of the lead generation budget in 2009 in comparison to a 17% greater share in 2011.
It would appear from the survey that it’s small companies which are increasing their spend on inbound marketing, which isnt surprising as social media as a means of reaching your customers can be a great leveler and can at times prove disastrous for large companies due to the amount of levels of noise between the message and the customers.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: