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Online Marketing Growing but Challenged: Study

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PALO ALTO, Calif. -- A new study finds marketers will invest more money in digital marketing, including email marketing campaigns and newsletters, despite email challenges and their own doubts about their abilities.

The Digital Marketing Dialogue, commissioned by Responsys, Inc., an email services provider, and sponsored by the CMO Council, BtoB Magazine and USA TODAY, found more than 75 percent of respondents planned to spend a larger share of their 2004 marketing budgets on digital efforts.

Among the findings:

  1. Lead generation and increasing branding awareness are the top two uses for digital marketing. Business marketers use digital marketing mainly to generate new customer leads (87 percent), drive Web traffic (58 percent) and educate customers (54 percent), while consumer marketers use digital methods first for customer relations (74 percent) and up-selling or cross-selling to current customers (63 percent) as well as product sales.
  2. Although marketers appreciate digital methods, nearly 40 percent graded themselves "C" or lower on their own ability and said they needed better analytics and multi-channel integration to use digital marketing more effectively.
  3. Email filters, cluttered inboxes and development of qualified email addresses were the three barriers to effective digital marketing results respondents reported most often, as well as new anti-spam legislation and privacy issues. Nearly half of respondents said they would emphasize list quality more, and 40 percent said they would use only permission-based email.

The survey collected answers from 400 respondents, of whom 70 percent were marketing directors or held higher executive positions, with 30 percent listed as CEOs.

For more on the survey, visit the Responsys Web Site.