Marketing Spend Trends for 2023: Where are Marketers Investing their Money

Marketing Spend Trends for 2023: Where are Marketers Investing their Money

Global Marketing Trends and Strategies for 2023

In the current economic climate, marketing budgets are under intense scrutiny, and businesses are increasingly cautious about how they allocate their resources. At Traffic Radius, we wanted to get a sense of how marketers worldwide are navigating these uncertain times; we conducted a survey to understand the strategies they are employing in 2023.

Our survey covered businesses of all sizes and industries, including B2B and B2C companies. We were particularly interested in understanding how marketers are allocating their budgets between different channels, such as SEO, social media, email marketing, and paid advertising.

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Here are some key takeaways from our survey:

1. SEO continues to be a top priority for marketers in 2023, with 58%of respondents increasing their SEO budget this year.
2. Paid advertising is still a popular marketing channel, with 47%of respondents increasing their budget in this area.
3. Social media marketing remains a critical component of many marketing strategies, with 40%of respondents planning to increase their social media marketing spend.
4. Email marketing continues to be a valuable tool for many marketers, with 34%of respondents increasing their email marketing budget.
5. In terms of marketing trends, personalization is a hot topic, with 61%of respondents stating that they plan to invest in personalization technologies in 2023.

Overall, our survey suggests that while businesses are being cautious with their marketing budgets, they’re still investing in a range of channels to reach their audiences. By understanding the trends and strategies that other marketers are employing, businesses can better position themselves for success in 2023.

Learn More: Top 5 Digital Marketing Strategies 2023

How to Boost Your Brand with Earned Media

Are you wondering where businesses are investing their marketing budgets? Look no further than earned media channels. We dug into the data and found some fascinating insights:

• 68%of companies are increasing their SEO budgets for 2023, citing higher ROI than paid advertising.
• 11%are maintaining their SEO budgets, but primarily due to a lack of flexibility in their overall marketing spend.
• The remaining 21% are decreasing their SEO budgets, with the top reasons being a lack of results or budget cuts.

But why the shift towards SEO? It’s simple, SEO is a long-term investment that can yield significant returns over time. By focusing on optimizing their website for search engines, businesses can attract more organic traffic and ultimately drive conversions.

So, if you’re looking to get the most bang for your marketing buck, consider investing in your SEO strategy. It may not provide instant gratification, but the long-term benefits outweigh this.

Learn More: Top 10 SEO Strategies 2023

The Power of Organic social media: Building Relationships and Driving Engagement

Social media is like a box of chocolates – you never know what you’re going to get! But despite the unpredictable nature of organic social media, 32% of companies plan to increase their budget for it. Why? It’s all because of those pesky Apple IOS changes that are making paid social media more challenging.

If you’re not on social media, do you even exist? That’s what 26% of companies seem to think, as they plan to keep their organic social media budget the same. The reason? You need to be where your customers are, and social media is where they’re at.

Unfortunately, it’s not all sunshine and rainbows for organic social media. A whopping 42% of companies plan to decrease their budget for it, citing declining organic reach and a lower ROI than in the past. Ouch!

Learn More: Top 8 Social Media Marketing Strategy

Content Creation and Strategy: How to Create Compelling Content that Resonates with Your Audience

“Content is King: Why Marketers are Investing More in Content Creation than Ever Before”

Here are the top findings from our survey on content production budgets for 2023:

• 83% of companies are ramping up their content production budget, with the top reason being the need to create content in various formats, especially video.
• 8% of respondents are keeping their budget the same due to financial limitations caused by the current economic climate.
• 9% are reducing their content creation budget, citing the affordability of AI-powered tools for creating content.

Looks like the saying “Content is King” is still holding true in the marketing world, and companies are investing more in content creation than ever before!

Learn More: Building a Content Marketing Strategy

AI-Powered Content Creation: How it’s Changing Marketing Budgets in 2023

The future of marketing lies in Artificial Intelligence (AI) tools, and it’s no surprise that companies are jumping on board with this trend. With APIs such as GTP-3, Dall-E, and ChatGPT, the possibilities are endless. In fact, a whopping 98% of companies surveyed plan to invest in AI tools in 2023.

Here’s why:

• Automating content creation saves money
• Reducing time spent on creating content increases efficiency
• Reducing headcount in the content department streamlines operations

Only 2% of companies are hesitant to test AI tools due to concerns about their quality. But those who embrace this technology will undoubtedly have a competitive edge in the ever-evolving landscape of marketing.

Email Marketing in 2023: What Marketers Need to Know

More Email Budget: 56% of companies are raising their email marketing budget, driven by:

• Growing email list size that increases costs for housing email addresses
• Need to comply with personal data privacy regulations
• Increasing investment in marketing automation for better email campaigns

Steady Email Budget: 38% of companies are maintaining their email marketing efforts, as they consider email to be a crucial channel for communicating with customers and prospects.

Less Email Budget: 6% of companies are decreasing their email marketing budget, with reasons including:

• Pruning inactive subscribers to save costs
• Switching email marketing software providers to reduce expenses

Fewer job cuts: Email marketing teams are not expected to see significant headcount reductions.

Email marketing remains a powerful tool, with marketers making strategic shifts to stay relevant and compliant in the face of changing regulations and technology advancements

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Maximizing Results: How Companies are Investing in UX and Conversion Rate Optimization (CRO) in 2023

Over half of the companies surveyed – 61% – said they’re increasing their budget for UX/CRO in 2023.

Why? Well, it’s a toss-up between two key reasons:

• Rising ad costs are pushing them to invest in CRO for a better ROI
• They see the importance of UX in the overall marketing experience

Meanwhile, 26% of companies plan to keep their budget the same for similar reasons as above. On the other hand, 13% plan to reduce their budget, citing economic reasons as the primary driver. Don’t let your website fall behind the competition – invest in UX/CRO today!

Learn More: CRO Test Ideas for Your Business

Podcasting: The Rising Star in Digital Marketing Budgets

According to recent survey results, marketers are turning to podcasting as a powerful tool to connect with their audience. In fact, a staggering 92% of companies are planning to increase their podcasting budget in 2023.

Here’s why:

• Many companies currently don’t have a podcast and are planning on creating one to tap into this growing audience.
• For those who already have a podcast, 5% plan on maintaining their existing budget. While they haven’t figured out how to drive meaningful revenue from their podcast yet, they recognize the importance of having a presence in this space.
• Unfortunately, not everyone is on board with the podcasting trend. A small percentage (3%) plan on decreasing their podcasting spend due to economic factors requiring marketing to make cuts. However, they may be missing out on a valuable opportunity to connect with their audience in a unique way.

With the rise of audio content and the potential for increased engagement and brand awareness, it’s clear that podcasting has become a force to be reckoned with in the marketing world.

Building a community: The Future of Marketing

According to recent surveys, 84% of companies are ramping up their investments in community building efforts. The primary reason for this shift is to foster a more direct connection with their audience, free from the unpredictable algorithms of social media platforms.

For the 12% of companies maintaining their current budget, they understand the importance of community building, but economic limitations prevent them from increasing their efforts currently.

Only 4% of companies plan on decreasing their community-building budget, citing economic factors as the main driver.

In a world where human connection is more important than ever, it’s clear that community building is becoming an essential part of modern marketing strategies.

Learn More: Effective Social Media Marketing for Your Business

Revving Up the Paid Ads

Paid ads have become an integral part of the digital marketing landscape, with businesses utilizing different channels to boost their visibility and drive conversions. Among the top performers are search ads, which continue to draw attention and investment from companies.

In fact, a whopping 76% of businesses are planning to increase their search ads budget in 2023. The primary reason cited for this growth is the effectiveness of search ads in reaching targeted audiences and driving relevant traffic to websites.

Meanwhile, 18% of businesses plan to maintain their current search ads budget, citing the importance of this channel in their overall marketing strategy.

Only 6% of businesses plan to decrease their search ads spend, with the majority citing economic factors as the main reason for the cutback.

Overall, the outlook for search ads remains positive, as businesses continue to recognize the value and potential of this paid ad channel.

Learn More: Google Ads

Unveiling the Power of Search Ads

• Paid search advertising on Google and Bing is a popular marketing channel, with 59% and 47% of companies respectively looking to increase their budgets.
• The primary reason for increasing budgets was the clear ROI compared to other channels, according to almost all respondents.
• For maintaining budgets, 18% of companies using Google Ads and 19% of companies using Bing Ads reported that they had not figured out how to scale while maintaining profit margins.
• Decreases in budget were reported by 23% of companies using Google Ads and 34% of companies using Bing Ads.

The main reasons for decreasing budgets were the decreasing average cost per click in their industry and fewer people searching for the keywords they were bidding on.

Social Ads: What Marketers are Planning in 2023

Marketers’ responses to ad spend on various social media platforms are consistent with the trend of Apple IOS privacy changes. Companies on Facebook, Instagram, and Snap are struggling to generate the same ROI as before due to the changes. Some maintain their spend, while others decrease it to keep ads profitable.

A smaller percentage can increase their budgets, mainly because their campaigns are profitable. For YouTube and Pinterest, most companies plan to increase their ad spend due to profitability and scaling opportunities.

With TikTok, 84% of marketers plan to increase their spend, citing untapped potential. On LinkedIn, 57% of B2B companies plan to increase their budget to target ideal customers. The majority maintain their LinkedIn ad spend, citing effectiveness but a lack of inventory for the target demographic.

For Twitter, 28% of companies plan to increase ad spend, citing an opportunity to acquire customers at a lower cost due to companies pulling out after Elon Musk’s involvement. On the other hand, 34% plan to decrease ad spend, disagreeing with how Musk is running the platform and the changes he’s making.

Marketer’s Online Ad Spending Plans Revealed

Here’s a breakdown of the responses for different online ad channels:

• Podcast Ads: 78% of companies plan to increase their ad spend, with the main reason being promoting their own podcast. 18% plan to maintain their spending due to positive ROI and cost-effectiveness, while 4% plan to decrease their spending because of a decrease in ROI.
• Banner Ads: 34% of companies plan to increase their ad spending as it’s profitable, while 52% plan to maintain their spending due to profitability. 14% plan to decrease their spending because it’s not as profitable as desired.
• Remarketing Ads: 94% of companies plan to increase their ad budget as it’s one of the most profitable channels. 5% plan to maintain their spending as it’s profitable, while 1% plan to decrease their spend due to a lack of conversions.
• OTT/CTV Ads: 52% of companies plan to increase their spending as it provides more transparency and trackability than traditional TV ads. 35% plan to maintain their spending due to great branding and profitability. 13% plan to decrease their spending and shift the budget to more profitable channels like Google Ads.
• Influencer Marketing:41% of companies plan to increase their spend as it provides better ROI than other marketing channels. 17% plan to maintain their spending as it’s profitable, while 42% plan to decrease their spending as they are unable to produce a positive ROI.

Overall, companies seem to increase their spending on ad channels that provide a positive ROI and profitability, while decreasing spending on channels that aren’t as profitable.

Traditional Advertising Spend

The traditional advertising landscape has undergone a significant transformation, as companies are rethinking their strategies to optimize their marketing budget. A growing number of firms are reducing their traditional ad spend, citing reasons such as the inability to track ROI, budgetary constraints due to economic downturns, and the emergence of more effective performance marketing techniques.

However, despite this trend, many companies remain steadfast in their commitment to traditional advertising channels, recognizing their importance in reaching and engaging their target audience. In fact, upon closer examination of the data, it appears that most firms are merely trimming their budgets rather than completely abandoning traditional advertising, reflecting a nuanced and pragmatic approach to marketing in today’s rapidly evolving business landscape.

Optimizing Your Marketing Budget: Balancing Traditional and Performance Advertising

In these ever-changing times, businesses are constantly reassessing their marketing budgets to adapt to the current economic climate. Surprisingly, despite the uncertain landscape, more companies are increasing their marketing spend than decreasing it, according to recent data.

Here are some key takeaways from the survey:

• For B2C companies, 26% are planning to increase their marketing budget, 51% are maintaining their current budget, and 23% are decreasing their budget.
• B2C companies that are increasing or maintaining their budget cited profitable marketing campaigns as their primary reason, while those decreasing their budget pointed to the negative impact of the economy on their business.
• For B2B companies, 34% are planning to increase their marketing budget, 45% are maintaining their budget, and 21% are decreasing their budget.
• B2B companies that are increasing or maintaining their budget are doing so because their marketing efforts are profitable or have a positive lifetime value, while those decreasing their budget are being impacted by the overall economic health of the company.

Despite the challenges, businesses are finding ways to prioritize their marketing efforts, recognizing that a strong marketing strategy is critical for survival and success in today’s competitive landscape.

Winding Up: What’s Ahead?

In these uncertain times, marketers are feeling the pressure to adapt their strategies to the ever-changing economic climate. While most express concern about the economy, the majority are choosing to maintain or even increase their marketing budgets, rather than reduce them.

Looking at earned media, companies are eager to allocate more resources to this channel, as it offers a higher return on investment compared to other options. However, the decline in organic reach on social media platforms is leading many companies to revaluate their approach to organic social media.

As the latest craze in the marketing world, AI tools are receiving plenty of attention, with many marketers eager to test their capabilities and explore new possibilities.

When it comes to paid advertising, search ads are top of mind for most companies, with plans to maintain or increase their budgets. However, social ads are facing some challenges, with IOS privacy changes impacting their performance and making it difficult for companies to scale their social media advertising profitably.

Interestingly, Twitter seems to be a polarizing platform for marketers, with some planning to increase their ad spend and others planning to decrease or stop altogether, citing their views on Elon Musk and his decisions.

Finally, traditional ad buys are taking a backseat, with most companies planning to decrease their spending and shift towards more trackable performance channels like Google Ads or SEO. This marks a major shift in marketing strategies, as companies focus more on results and measurable success metrics than traditional methods of advertising.

Frequently Asked Questions

What are the top areas where marketers are investing their money in 2023?

According to the latest trends, marketers are investing heavily in performance marketing channels like Google Ads, SEO, and paid social media advertising. Earned media channels, such as influencer marketing and PR, are also gaining traction.

Are companies decreasing their overall marketing budget for 2023?

While some companies are decreasing their overall marketing budget due to economic concerns, the majority are either maintaining or increasing their budget to stay competitive in the market.

What impact are IOS privacy changes having on social media advertising?

IOS privacy changes are making it difficult for companies to track and measure the performance of their social media advertising, leading to a decrease in ad spend on platforms like Facebook and Instagram.

Are traditional ad buys becoming less popular in 2023?

Yes, traditional ad buys are becoming less popular in 2023 as more companies shift their focus towards performance marketing channels like Google Ads and SEO, which offer better trackability and ROI. However, some companies are still investing in traditional ads as they believe it is an important channel to reach their target audience.