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1 A 2012 Company

2 2 These are the results of the 2nd annual Webmarketing123 State of Digital Marketing Survey. Over 500 U.S. marketing professionals two-thirds, one-third answered questions about their objectives, results and budgeting for three channels of digital marketing: Search Engine Optimization (SEO), Pay Per Click Advertising (PPC), and Social Media Marketing (SMM). The results show that generating leads and sales, as well as increasing brand awareness, are the top objectives for digital marketers. Across company size and industry, digital marketers are adopting more sophisticated systems for measurement and attribution, boosting confidence to increase or maintain budgets. For, lead generation is the top objective, and SEO is twice as effective as PPC or SMM for this purpose. For, boosting awareness and reputation of their brands and products has doubled in importance since 2011, overtaking online sales as the top objective for digital marketing. Budgets: 90% of marketers will increase or maintain spending on SEO, PPC, and SMM. Each year, brands increase their level of engagement with social media. leads the way, with 42% very or fully engaged with social media, compared to 27% for. By a more broad measure, a full two-thirds of marketers now describe themselves as moderately to fully engaged with social media. That said, 1 in 10 marketers still have no social media presence at all. Follow the Money: 9 out of 10 digital marketers are spending money on Social Media, and 8 out of 10 have reported leads or sales from their efforts. Marketers Discover LinkedIn: The number of marketers generating leads or sales via LinkedIn has increased 75% since last year, while the number reporting sales from Facebook has declined nearly 20%. As more sophisticated attribution tools become available, the number of marketers able to attribute leads and sales to particular social channels more than doubled (leads from 15 to 31%, sales from 23% to 60%). But 4 in 10 s and 2 in 10 s continue to find attribution completely out of reach. TOP OBJECTIVES FOR DIGITAL MARKETING PROGRAMS Still doing SEO in-house? Marketers using an agency are twice as likely to be highly satisfied with their campaign performance. PPC: Only a quarter of marketers surveyed are highly satisfied with the performance of Increase Awareness 28% Generate Leads 54% #1 objective Increase Sales 10% campaigns managed internally, compared to one-third who work with agencies. Increase Sales 26% Increase Awareness 33% #1 objective Generate Leads 22%

3 3 Industry Demographics SURVEY PARTICIPANTS Is your company primarily or? 35% 65% COMPANY SIZE How many employees does your company have? <50 23% % 201-1,000 23% >1,000 32% Companies responding to the survey include: Sony, Olympus, Phillips, IBM, Hitatchi, Cisco, Agilent, Microsoft, Citrix, Medtronic, Merck, Novo Nordisk, Blue Shield, ADP, Pitney Bowes, Monster.com, Angie s List, GE, John Deere, Aramark, Thomson Reuters, Federal Express, Bose, and Nestlé.

4 4 LEAD GENERATION IS THE #1 OBJECTIVE Top objectives for digital marketing programs GENERATE LEADS INCREASE SALES 10% 54% #1 objective INCREASE AWARENESS 28% GENERATE SITE TRAFFIC BUILD ONLINE COMMUNITY OTHER 6% 0.3% 0.7% While lead generation is by far the most common objective for digital marketing campaigns, brand and product awareness has nearly doubled in importance since last year. As budgets continue to grow, marketers are expanding their focus to include earlier stages in the sales cycle. INCREASING BRAND AND PRODUCT AWARENESS IS THE #1 OBJECTIVE Top objectives for digital marketing programs GENERATE LEADS 22% INCREASE SALES INCREASE AWARENESS GENERATE SITE TRAFFIC 11% 26% 33% #1 objective BUILD ONLINE COMMUNITY OTHER 6% 3% Increasing brand and product awareness has become the #1 objective for s online. This is a marked change from last year, when online sales were the top priority.

5 5 engages more with Social, discovers SEO Compared to last year, nearly 50% more s now identify Social Media as having the most impact on lead generation (2011 vs 2012). In a similar vein, 20% more s now identify SEO as most impactful for lead generation (2011 vs 2012). Which makes the biggest impact on lead generation? 20% PPC 59% SEO 49% SEO SOCIAL MEDIA 21% PPC SOCIAL MEDIA 26% 25%

6 SEARCH ENGINE OPTIMIZATION 6 GOT SEO? 84% 80% YES NO NO YES AGENCY OR IN-HOUSE? 16% AGENCY IN-HOUSE NO SEO PROGRAM 20% 21% 63% 53% 27% ING FOR % INCREASE MAINTAIN DECREASE 5% 43% 50% 45% 55%

7 7 SEO Campaign Measurement Are marketers measuring the right things? The most common measures of SEO performance are the volume of traffic, organic traffic, and the number of keywords appearing on page 1, which give no insight into financial impact. Fewer marketers are employing more sophisticated measures of SEO performance, such as number of qualified leads or sales attributable to organic search. NOT ALL MEASUREMENT IS CREATED EQUAL How does your company measure the effectiveness of your SEO program? Check all that apply. Basic: Easy to implement but no measure of financial impact OVERALL VOLUME OF TRAFFIC VOLUME OF ORGANIC TRAFFIC NUMBER OF KEYWORDS ON PAGE 1 47% 51% 49% Advanced: More indicative of financial impact, more challenging to implement NUMBER OF QUALIFIED LEADS LEADS OR SALES ATTRIBUTABLE TO ORGANIC SEARCH 36% 34% NOT SURE WHAT TO MEASURE 10%

8 8 MEASURING THE SUCCESS OF SEO PROGRAMS Remains A CHALLENGE More than 3 in 10 respondents indicate that difficulty in measuring SEO results was their top frustration with SEO. 7 in 10 companies are unable to accurately attribute leads or sales to organic search. 1 in 10 companies have no measurement system in place. THREE STAGES OF MEASUREMENT SOPHISTICATION 40% 40% STAGE 1: MEASURES SEO BY MEANS OF 1-3 BASIC METRICS 20% STAGE 2: MEASURES SEO BY 1-3 METRICS, INCLUDING 1 ADVANCED METRIC STAGE 3: MEASURES SEO BY 3-5 METRICS, INCLUDING 1 OR MORE ADVANCED METRICS While there are many ways to measure SEO performance, they can be broadly categorized as basic or advanced (see previous table, p.7). The survey results suggest that marketers are likely to be at one of three stages, with a measurement gap between the least and most sophisticated. This gap holds true regardless of company size, industry, and whether SEO is managed internally or through an agency. We believe this reflects a growing gap between companies with competence in analytics and attribution and those without. Without Sophisticated Measurement, Satisfaction and Investment are Lacking 5 in 10 measurement-challenged marketers feel neutral to negative about their SEO performance. Marketers who said that they don t know how to measure SEO performance are significantly less satisfied with their results, and less likely to increase their SEO investment.

9 PAY PER CLICK ADVERTISING 9 GOT PPC? 64% 73% YES NO NO YES 36% AGENCY OR IN-HOUSE? AGENCY IN-HOUSE NO PPC PROGRAM 27% 44% 20% 42% 31% ING FOR % INCREASE MAINTAIN DECREASE 8% 31% 40% 58% 52%

10 10 Satisfaction levels consistently higher when working with agencies AGENCY IN-HOUSE 21% highly satisfied with SEO program performance 11% SEO PPC 20% highly satisfied with PPC program performance 15% SOCIAL MEDIA 21% highly satisfied with Social Media program performance 10% Marketers working with an agency (as opposed to in-house) are twice as likely to be highly satisfied with SEO and Social Media, and significantly more likely to be highly satisfied with PPC.

11 Social media 11 GOT SOCIAL MEDIA? 90% 91% YES YES NO NO AGENCY OR IN-HOUSE? 10% 5% AGENCY IN-HOUSE NO SOCIAL MEDIA PROGRAM 14% 13% 85% 83% ING FOR % INCREASE MAINTAIN DECREASE 2% 41% 52% 56% 46%

12 12 SOCIAL MEDIA ENGAGEMENT marketers are ahead with 70% moderately to highly engaged (40% highly engaged), but is catching up, with 63% at those levels of engagement (27% highly engaged), Overall, only 1 in 10 have no social media program. VS. How would you describe your company s engagement with Social Media? 27% 36% 30% 31% 20% 19% 10% 9% 8% 10% NO INVOLVEMENT SOMEWHAT INVOLVED MODERATELY INVOLVED VERY INVOLVED FULLY INTEGRATED PERCEPTION marketers are far less engaged than in Social Media REALITY s are closing the gap. 63% of s are engaged with social media, vs. 70% of s. 63% 70% % marketers who are moderately to highly engaged with social media

13 13 Spending Money on Social Media 40% 65% 39% 23% 30% 39% 14% 17% 6% 14% MAKING MONEY from Social Media % of Marketers who Generated Leads from Social Media % of Marketers who Generated Sales from Social Media 39% 19% 39% 67% 44% 23% 9% 21% 30% 14% 19% 43% 7% 3% 3% 1% 15% 7% 6% 13% Across the board, marketers social media expenditures are producing revenue opportunities.

14 14 SOCIAL MEDIA: INVESTMENT CONTINUES, ATTRIBUTION STILL A CHALLENGE 9 out of 10 digital marketers are spending money on Social Media, and 8 out of 10 have reported leads or sales from their efforts. As expectations rise, marketers are staffing up and 95% of Social Media engagers now manage their own Social Media campaigns (up from 85% last year). Attribution challenges continue: 4 in 10 of marketers in our survey are unable to attribute sales or deals specifically to Social Media marketing. Despite the inability to directly attribute revenue to Social Media, 95% of companies intend to increase or maintain their spending on Social Media next year. marketers are increasing their spending on Social Media faster than, but no one is taking their foot off the gas (5 in 10 marketers and 4 in 10 marketers will increase budgets). Social Media Analysis Social Media Analysis 90% of s have some level of Social Media engagement, with 63% describing themselves as moderately to fully engaged, and 25% very to fully engaged. The majority of this group are seeing a return on their investment. Top areas of investment (for the 60% that spend) are Facebook & LinkedIn (where 40% are active), and Twitter (30%). On these platforms, nearly all advertisers are generating leads, and roughly half have closed deals. It s notable that 20% of the marketers active on Social Media aren t sure if they re generating leads, and a full 40% aren t sure if they ve closed sales attributable to Social Media. Clearly, marketers are still struggling to measure and attribute the value of their investment. Despite the lack of consistent results and attribution challenges, 41% of marketers plan to increase their Social Media budgets, and another 56% will maintain their budgets. 90% of s have some level of Social Media engagement, with 70% describing themselves as moderately to fully engaged, and 40% very to fully engaged. Like their counterparts, the vast majority of s (90%) are managing their Social Media in-house, and 70% are spending money on it. Two-thirds of s are active on Facebook and generate leads this way, and more than half of them see closed deals. Across the board, roughly half of Social Media efforts see measurable results (for example, 14% of marketers are active on Pinterest and 6% get sales or deals from it.) The number of s generating leads via LinkedIn has increased 75% since last year, while the number reporting Facebook as a source of sales declined nearly 20% (from 48% to 39%). 50% of marketers will increase their investment in Social Media and 47% will maintain spending.

15 15 The second annual Webmarketing123 State of Digital Marketing Survey was conducted online in July of Over 500 U.S. participants completed the survey all individuals who responded to an invitation sent to marketing professionals. Participants answered questions using an online survey tool. For more information about the survey, please contact ABOUT Webmarketing123 Webmarketing123 is a digital marketing agency that helps clients convert online visibility into measurable business results. In 2012, Webmarketing123 was named by Inc. Magazine as one of the fastest growing private companies in the U.S. Our distinctive approach is to pair our metrics-rich methodology with an understanding of our clients unique business goals and challenges. We combine a deep expertise across industry verticals, smart use of automation, and efficient use of analytics to inform data-driven decisionmaking. At Webmarketing123, each client has a dedicated team employing Search Engine Optimization, Pay Per Click advertising, and/or Social Media Marketing to create remarkable, results-driven marketing programs. CONNECT WITH US Webmarketing123.com Twitter.com/webmarketing123 Facebook.com/webmarketing123 Linkedin.com/company/ Plus.google.com A 2012 Company Talk to us about how we can accelerate your digital marketing programs >>

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