Spending on social media and “conversational marketing” – albeit still in their nascent stage – will surpass traditional marketing spend by the end of 2012, according to a study conducted by TWI Surveys, Inc., the New Communications Review writes.
Although social-media adoption has just begun – 70% of respondents are spending 2.5% or less of their communications budgets on conversational marketing – those surveyed foresee significant adoption and spending within five years:Â Some 81% of survey respondents said they will spend at least as much on conversational marketing as traditional marketing by 2012.
Among other findings of the study:
- Two-thirds of respondents plan to increase their spending on coversational marketing in the next 12 months.
- 57% say they think that in five years they will be spending more on conversational marketing than traditional marketing
- Nearly 24% say they think conversational marketing spend will equal traditional marketing spend in five years
The top obstacles to increased spending on conversational marketing, according to survey respondents:
- Manpower restraints: 51.1%
- Fear of loss of control: 46.9%
- Inadequate metrics: 45.4%
- Culture of their organizations: 43.5%
“The results of this research indicate that the industry is currently in a state of cautious experimentation with regard to social media and conversational marketing,” Jen McClure, SNCR executive director, is quoted as saying. “But most organizations seem to be preparing themselves for a significant shift in strategies and resource allocation.”