A report out this month from the Forrester Analyst firm shows how CMOs are shifting funds dramatically away from traditional marketing methods to online methods, such as Google Adwords PPC campaigns.
They surveyed CMOs and learned that 71% had their marketing budgets reduced. 51% of those saw a reduction of at least 20%.
So, what are these CMOs going to cut back? The CMOs with reduced budgets (way more than 2/3′s surveyed) will slash traditional avenues, such as TV, radio and print advertising (magazines) by 67%!
Direct mail will be slashed by 52%.
But, these cuts are drastic so they can find extra money to increase their spending in two key areas: SEO and PPC. In fact, a whopping 60% of marketers plan to take money away from traditional marketing and spend it on interactive ads instead. As much as 59% of that interactive spend will go towards SEO and PPC, with both niches likely to double in size over the next 5 years!