The Advertiser-Agency Gap in Digital Spending Priorities

Advertising AgenciesThere’s no question that the vast majority of marketers are shifting more spending to digital, and a combination of tried-and-true tactics with newer online options will benefit from increasing budgets. But advertisers and their agencies are not yet on the same page when it comes to the details of many of those changes.

According to a report on 2011 marketing budgets from Econsultancyand SAS, agencies worldwide are more eager than their clients to increase spending on newer digital marketing tactics, while advertisers show a greater interest in upping budgets for the time-tested. For example, agencies were 13 percentage points more likely than advertisers to say their clients would be increasing mobile marketing spending. Advertisers were out in front of their agencies with reports of spending increases for email marketing, corporate websites, paid search and display ads.

Change in Select Digital Marketing Budgets for 2011 According to Advertisers and Agencies Worldwide (% of respondents)

US-based research from the Direct Marketing Association (DMA)found similar patterns. Marketers were more likely than agencies to say they always or often used online tactics like emails, paid search, SEO and display. Agencies, as in the Econsultancy data, placed a significantly greater emphasis on mobile; they were 7 percentage points more likely than marketers to be familiar with it, and more than twice as likely to use it frequently.

Familiarity with and Usage of Digital Marketing Tactics According to US Marketers and Agencies, Sep 2010 (% of respondents)

The Econsultancy study also found agencies and their clients disagreed about their ability to measure the return on investment from many digital channels. Advertisers were more optimistic than agencies about how well they could assess the success of their efforts with paid search, email, corporate websites, display and mobile.

Ability to Measure ROI from Select Digital Marketing Channels According to Advertisers and Agencies Worldwide, Jan 2011 (% of respondents)

Whether advertisers are overconfident or agencies too tough on their clients’ capabilities, the perceptual gap could be significant in determining which channels see more of clients’ dollars.

Post from emarketer.com

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