A new survey shows that digital ad spending is on the rise, even in a weakened financial market. Not to say we told you so, but traditional media is feeling the pinch. Looking at the stats actually, it could be more like a punch in the face. Epsilon CMO reports 65% of Chief Marketing Officers admit their “ad budgets will decrease because of the troubled economy, but more of their money will go toward digital/interactive marketing than before.”
The study acknowledges that marketing budgets always tighten in difficult economic times–even as it goes against the age-old wisdom that this is precisely the time to augment advertising spending. But despite reduced cash flow, marketers increasingly feel they can get more bang for their buck in digital channels. As a result, reasons Epsilon, “This means a shift away from traditional marketing and to interactive and digital marketing that is data-driven and targeted; an approach that is already generating demonstrable returns.” Check out the graph after the jump.
Here’s what the budget trending looks like for marketing channels, according to senior marketing executives in the Epsilon report:
The proof is in the pudding: 63% of marketers say their budgets are moving toward interactive or digital marketing, while 59% say their investment in traditional marketing has decreased.
Traditional advertising won’t go away overnight, but the current downturn could finally bring more brands into the digital fold. Is that why these people are celebrating? Or is emerging media also going into a world of hurt?