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Two-thirds of Asian businesses (66%) plan to increase their digital marketing budgets over the next 12 months, according to new research from Econsultancy and Campaign Asia-Pacific.

In comparison, just 19% of companies plan to increase their offline budgets in the same time period.

Furthermore, companies surveyed as part of the State of Digital Marketing in Asia 2013 Report are spending an average of 29% of their total marketing budgets on digital, a slight increase from 26% in the 2012 survey.

However, agency respondents included in the report paint a different picture, estimating that their clients spend just less than a quarter (23%) of their total budget on digital.

The proportion of agencies saying their clients are investing less than 10% of their budgets in digital marketing has decreased by 10% in the last 12 months, while the proportion of those saying clients invest between 10% and 50% has increased from 50% in 2012 to 64% this year.

What percentage of your overall marketing budget is spent on digital marketing? (Client-side respondents)

The report is based on a survey of around 400 company and agency marketers, carried out in June and July 2013 and promoted by Econsultancy and Campaign Asia-Pacific.

It looks at relative levels of planned spending this year across a range of marketing disciplines or channels, comparing online and offline budgets while also looking at investment in different types of marketing technology and level of digital knowledge.

Revenue derived from digital spend

The State of Digital Marketing in Asia 2013 Report also asked respondents what proportion of their revenue is derived from digital marketing spend.

Though it’s a difficult number to put an exact figure on, two-thirds (66%) of companies surveyed said that up to 50% of their total revenues come from digital marketing, while just under a fifth (16%) indicated that they derive more than 70% of their earnings from their investment in digital channels.

Based on this data, companies are deriving, on average, 31% of their revenues from their digital marketing spend.

Agency respondents gave a slightly more negative outlook, estimating that their clients achieve 25% of their revenue through digital channels.

Approximately what percentage of your overall revenue derives from your digital marketing spend? (Client-side respondents)

David Moth

Published 3 September, 2013 by David Moth @ Econsultancy

David Moth is Editor and Head of Social at Econsultancy. You can follow him on Twitter or connect via Google+ and LinkedIn

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Comments (2)

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Visakan Veerasamy, Marketing at ReferralCandy

It's interesting that agencies give a more negative outlook than companies- I'd have expected it to be the other way around. Anybody have any good ideas as to why this might be the case? Maybe the agencies work with larger companies that have more established offline presence? No idea.

almost 3 years ago

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Sandra Jones

Investment on digital marketing is inevitable today. Most companies are promoting their good and services through online channels and mobile. So, it is good that you have a strong online marketing strategy for your business. If you want more information on this you can attend digital marketing events at least a few times which are organized in various parts of the world.

almost 3 years ago

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