Copyright © 2010 by G. David DoddAll rights reserved.
By 2015, spending on social media marketing will account for almost 18% of totalmarketing budgets, up from about 6% in 2010, according to
The CMO Survey
co-sponsored by The Fuqua School of Business at Duke University and theAmerican Marketing Association.
Forrester Research has estimated that spending on social media marketing willgrow at a 34% compound annual growth rate between 2009 and 2014 and thatspending on search marketing will grow at a 15% annual rate over the sameperiod. (
US Interactive Marketing Forecast, 2009 To 2014
, Forrester Research,2009)Inbound marketing is growing because itcompliments the way today’s buyers makepurchasing decisions. Proponents of inboundmarketing contend that the Internet hasfundamentally changed how both consumers andbusiness buyers seek and gather information aboutproducts and services. Because of the Internet,potential buyers have easy access to a wealth ofinformation about almost every conceivable productand service, and they’ve become convinced they can find whatever information theyneed, whenever they need it, on their terms. These empowered buyers pay littleattention to unsolicited marketing messages, and therefore all forms of outbound or“interruption” marketing are losing effectiveness. Inbound marketing, on the other hand,is a highly effective way to communicate with these “self-directed” buyers.Companies are also turning to inbound marketing because it’s more cost effectivethan most forms of traditional outbound marketing.
The State of Inbound Marketing 2010
survey conducted by HubSpot found that businesses spending 50% or more oftheir total marketing budget on inbound marketing activities spent 60% less per saleslead than businesses spending more than half of their marketing budget on outboundmarketing activities and channels.
If inbound marketing is more effective and less costly than outbound marketing, you may be asking yourself: Do we still need outbound marketing? Should we eliminate or significantly reduce our outbound marketing activities and shift most or all of our marketing resources to inbound marketing tactics and channels?
Inbound marketing is growing because it compliments the way today’s empowered, self- directed buyers make purchasing decisions.