STATE OF DIGITAL MARKETING REPORT

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1 2011 STATE OF DIGITAL REPORT

2 Executive Summary This report contains results of the first annual Webmarketing123 State of Digital Marketing Survey, which spans across the areas of Search Engine Optimization (), Pay-Per-Click (), and Social Media Marketing. Over 500 marketing professionals two thirds, and the rest completed the survey. The results show that while lead generation and sales are the top two most important objectives of digital marketing, makes the biggest impact on lead generation across the board. : 46.4% of participants say the most important objective is to generate leads. Not surprisingly, more companies outsource than, and a whopping 84.8% keep Social Media Marketing in-house. And speaking of Social Media, Facebook is the leading social network by far, with Twitter slightly surpassing LinkedIn: 75.3% of companies are the most active on Facebook, followed by 8.4% on Twitter and 6.2% on LinkedIn. companies are active more evenly across all three leading networks: 34.6% Facebook, 25.6% Twitter, and 25.3% LinkedIn. 68.4% of marketers surveyed say they have generated leads from social media sites, with over 55% of them having closed deals from social media leads. Because of this success, 60% of respondents plan to increase social media marketing budget in 2012, compared to 53.1% for and 40.2% for. For more information, please continue with the pages that follow. : 39.9% of participants say the most important objective is to generate sales. makes the biggest impact on lead generation for both and, followed by, and Social Media. WHICH MAKES THE BIGGEST IMPACT ON YOUR LEAD GENERATION GOALS? 17.9% 24.8% 57.4% 24.8% 34.2% 41.0%

3 Respondent Demographics: Industry and Company Size WHO PARTICIPATED IN THIS SURVEY? HOW MANY EMPLOYEES WORK AT YOUR COMPANY? % 21.5% MARKETERS 33.1% % 22.7% 27.1% MARKETERS 66.9% 201 1, % 22.6% 21.0% Over 1, % 20.5% 500+ U.S. RESPONDENTS 0% 5% 10% 15% 20% 25% 30%

4 Q1 WHAT IS THE MOST IMPORTANT OBJECTIVE OF YOUR DIGITAL PROGRAMS? GENERATE LEADS 46.4% GENERATE SALES 39.9% GENERATE SALES 22.2% GENERATE LEADS 23.0% BUILD BRAND AWARENESS 15.3% GENERATE SITE TRAFFIC 17.4% GENERATE SITE TRAFFIC 11.1% BUILD BRAND AWARENESS 16.9% BUILD ONLINE COMMUNITY 5.0% BUILD ONLINE COMMUNITY 2.8% 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50% Lead and sales generation activities dominate as the most important objectives for digital marketing campaigns

5 Q2 HOW DO YOU MEASURE THE SUCCESS OF YOUR DIGITAL PROGRAMS? WEBSITE TRAFFIC 73.9% WEBSITE TRAFFIC 79.8% LEAD GENERATION 69.2% SALES 68.5% WEBSITE CLICK- THROUGH RATE 64.7% WEBSITE CLICK- THROUGH RATE 68.0% SALES 62.5% CALL-TO-ACTION CONVERSIONS 47.8% CALL-TO-ACTION CONVERSIONS 47.2% LEAD GENERATION 46.1% BRAND AWARENESS 25.0% BRAND AWARENESS 37.1% 0% 20% 40% 60% 80% 0% 20% 40% 60% 80% Website traffic is the common denominator of success across both and digital media campaigns

6 Q3 WHICH MAKES THE BIGGEST IMPACT ON YOUR LEAD GENERATION GOALS? 17.9% 24.8% 24.8% 57.4% 41.0% 34.2% Over 75% of digital marketing impact is derived from and activities

7 Q4 IN WHICH SOCIAL NETWORK IS YOUR BRAND MOST ACTIVE? WE DO NOT USE SOCIAL NETWORKS 11.7% LINKEDIN 25.3% OTHER 2.8% TWITTER 25.6% FACEBOOK 34.6% LINKEDIN 6.2% TWITTER WE DO NOT USE SOCIAL NETWORKS 7.9% 8.4% OTHER 2.2% FACEBOOK 75.3% companies are active evenly across the three leading social media networks (35% Facebook, 26% Twitter, and 25% LinkedIn), while 75% of companies are the most active on Facebook

8 Q5 HAVE YOU EVER GENERATED LEADS FROM SITES ( and )? 47.0% 34.8% 33.8% 31.6% FACEBOOK LINKEDIN TWITTER NEVER! 68% of marketers have generated leads from at least one of the three major social media platforms

9 Q6 HAVE YOU EVER GENERATED LEADS FROM SITES ( vs. )? YES, FACEBOOK 35.1% 73.0% YES, LINKEDIN 12.0% 44.6% YES, TWITTER 31.6% 40.0% NONE OF THE ABOVE 23.0% 35.3% 0% 20% 40% 60% 80% On social media channels, marketers consider Facebook the most likely source for sales generation, while marketers rely on LinkedIn for producing lead flow

10 Q7 HAVE YOU EVER CLOSED DEALS FROM THE LEADS YOU GENERATED? 40.7% 21.1% 20.1% FACEBOOK LINKEDIN TWITTER While 68% of marketers surveyed say they have generated from social media sites, 55% have closed deals from social media leads

11 Q8 WHERE DO YOU CURRENTLY ALLOCATE THE MAJORITY OF YOUR DIGITAL BUDGET? WE DO NOT INVEST IN ANY OF THESE CHANNELS WE DO NOT INVEST IN ANY OF THESE CHANNELS EQUALLY ACROSS ALL CHANNELS 16.3% 13.0% 9.5% 27.8% 33.3% EQUALLY ACROSS ALL CHANNELS 15.0% 15.0% 8.0% 21.5% 42.5% As expected, marketers invest 1/3 of their digital budgets on activities, while marketers invest most heavily in

12 Q9 HOW DO YOU CURRENTLY ALLOCATE YOUR DIGITAL BUDGET? EQUALLY AMONGST ALL CHANNELS WE DO NOT INVEST IN ANY OF THESE CHANNELS 14.4% 13.9% 11.5% 7.7% 9.4% 9.3% 13.9% 12.2% 11.0% 15.6% 13.9% 8.8% 12.1% 14.8% 18.6% 18.6% 31.3% 29.1% 24.2% 25.8% 27.0% 34.4% 39.2% 38.5% 45.1% 0% 10% 20% 30% 40% 50% ,000 OVER 1,000 Broken down by company size, and continue to lead the way in digital marketing budget allocation

13 Q10 HOW WILL YOU ADJUST YOUR DIGITAL BUDGET IN 2012? 3.6% 9.3% 4.1% 43.4% 53.1% 50.5% 40.2% 36.0% 60.0% INCREASE STAY THE SAME DECREASE Marketers are planning on increasing their budgets across the board moving into 2012, with Social Media expected to see the biggest increase in investment

14 Q11 WHICH TOPIC DO YOU WISH TO LEARN MORE ABOUT? 38.1% 29.1% 45.9% OVERALL CROSS- PROMOTIONAL DIGITAL STRATEGY 62.1% 0% 20% 40% 60% 80% As marketers continue to see the effectiveness of digital media, they are curious to learn how all digital channels can be leveraged to produce an integrated, cross-channel strategy

15 About This Survey The first annual Webmarketing123 State of Digital Marketing Survey was conducted online between August and September Over 500 U.S. participants completed the survey all individuals who responded to an invitation sent to a registered list of marketing professionals. Participants answered questions using an online survey tool and the response data is available only in aggregate form. For more information about the survey, please contact ABOUT Webmarketing123 Webmarketing123 is a digital marketing agency that helps clients convert online visibility into measurable results. Webmarketing123 s proven digital marketing methodology is designed to drive your company s online success. We start by understanding what winning means to your business and where your current challenges lie. Our approach is customized to bring together the power of Search Engine Optimization (), Pay Per Click () advertising, and Social Media Marketing (SMM) to create remarkable, results-driven marketing programs. CONNECT WITH US Webmarketing123.com Twitter.com/webmarketing123 Facebook.com/webmarketing123 Linkedin.com/company/webmarketing123 Sign Up for the Weekly Webinars Register Now > Request A Free, Customized Site Analysis Request Now >

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