I’m sitting across the street from the SXSW convention center, yesterday the organizer Hugh Forrest told me that attendees to the Interactive portion (a great deal with a focus on social) was up aprox 20% (just an approximation). I’ve seen many social media strategists (see list) here at the conference that are here to network with the influencers, get educated at the sessions, and to soak in what community really means.
During a recession, marketers are often forced to reduce budgets, in fact, it’s often one of the first buckets to get trimmed. In our latest research: Social Media Playtime is Over, we found that 53% of marketers are determined to increase their social media budget during a recession, and 42% will keep it the same, a total of 95% of marketers bullish on social media marketing. Why? The reasons are obvious to some, it’s inexpensive and the opportunity to benefit from cost-effective word-of-mouth, are promising.
Now this doesn’t mean that budgets are expanding immensely, since this is a ‘new’ media, these are small budgets. How small? I say minuscule. Three-quarters of marketers have $100,000 of less budgeted for social media marketing.
Even though the budgets are small and growing, we recommend to our clients, in order to be successful, not to approach social media marketing as experimental, but to put the right roles, process, and measurement capabilities in place to be effective. Remember, the most expensive cost isn’t the tools, the most expensive part is the soft costs: strategy, education, process, roles, measurement).
Key Takeaway? Social media budgets are small, but are growing during a recession, yet brands shouldn’t approach this as an experiment, and should have a proper strategy complete with objectives, roles, processes, and measurement.
I’d like to thank Tom Cummings who lead the survey effort and data cleansing, Emily Bowen who kept us on track, and Josh Bernoff for his insight and editing for the collaborative effort on this report –without them, this report would not have published, it’s great to work with a top-notch research team.
Adweek’s Brian Morrissey: Notes that the budgets are quite small, in his piece Social Media Outlay Still Small Read Write Web: Despite Recession, More Than 50% of Marketers Increase Spending on Social Media Marketing Pilgrim: Forrester Report Suggests Marketers Still Spend Peanuts on Social Media, But Increases Planned BL suggests there are still going to be internal challenges to strategy, objective, and roles. Colleague Josh Bernoff reinforces: Recession resistant: 95% of social media marketers will maintain or increase social media spending