New media is a growing challenge to ad agencies
The latest Marketing Trends Survey from The Chartered Institute of Marketing (CIM) shows advertising’s dominance is being challenged by other media as technology drives change in the sector.
The Marketing Trends Survey reveals that most marketers say advances in technology are accelerating the pace of change. Of those questioned, 90% think marketing is a “dynamic and constantly evolving profession” and 86% say marketing has unquestionably changed over the past three decades.
Technology was seen as the main reason for this transformation (97%); change in consumer attitudes was listed by 63% as a key driver; 45% cited global competition; and 36% named the development of customer relationship management.
The survey also shows that advertising will account for just under 15% of marketing spend on average. While it still accounts for the largest share of marketing budget, lead generation and customer relationship management (both 12%) are not far behind. Direct mail accounts for 11%, field marketing 11% and internal marcoms 7%.
Marketers plan to increase spending on online marketing by an average of 3.6%, while the average spent on advertising will fall by 0.2%. This is a smaller reduction than predicted in spring last year, when budgets were cut by 1.5% (MW April 13, 2006).
Trends Insight, page 28
