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Sydney, 31 January 2012

Digital marketing is rapidly becoming a priority for Australian businesses who are increasing budgets by an average of 26% in 2012, according to an Econsultancy report.

Econsultancy’s State of Digital Marketing in Australia survey, carried out in association with Marketing Magazine, has found that nearly three-quarters (70%) of companies will increase digital budgets during 2012.

On average, 31% of overall marketing budgets is currently being invested in online channels, but the proportion is set to increase.

The 50-page report, which is based on a survey of more than 50o marketers all based in Australia, looks in detail at the relative levels of spending across different online and traditional marketing channels, as well as planned marketing technology investment, barriers to e-commerce and the levels of skills and knowledge within the digital industry.

Email is a particularly strong marketing communications channel in Australia, with 87% of client-side marketers using this discipline. However, social media and online video are the areas where marketers are most likely to be increasing investment during the coming year.

Econsultancy’s Senior Research Analyst, Jake Hird, said: “Digital marketing appears to have reached a tipping point, with brands, publishers and agencies preparing themselves for continued investment and evolution.
“Digital marketing is rapidly becoming a priority for marketers, as demonstrated by increasing financial investment and it’s exciting to see the industry gearing up to place an emphasis on developing complex channel engagement, including a focus on social media and mobile."

The report reflects a buoyant digital sector, but also highlights numerous challenges which may restrict its development. A lack of skilled digital professionals, restricted internal resources, limited senior buy-in and sub-standard e-commerce capabilities are all highlighted as significant issues by those taking part in the research.

Hird added: “Research for this report shows that there is confusion and denial within some businesses around the relevance of online consumer behaviour and adoption of digital channels. This is a major concern, especially as research consistently proves that the opposite is true, with Australia experiencing a rapid rate of growth in online penetration and engagement."

The history of the digital economy in other markets has shown that any lack of investment now will almost certainly lead to greater expense and challenges in the future, increasing the risk of losing business to competitors.

There are six key findings apparent from this research:
 Marketers are shifting their focus towards digital
 Established disciplines are being complemented by emerging channels
 Barriers to increasing digital activity go beyond the financial
 There is a clear knowledge gap when it comes to digital knowledge and related skills
 Senior managers are failing to lead from the top
 Consumer online behaviour is widely underestimated and misinterpreted

About this report

The 50-page report focuses on how companies in Australia are currently using online marketing and allocating digital spend and includes sections on:

 Marketing budgets
 Use of marketing channels
 Use of marketing technology
 Barriers to digital marketing and e-commerce
 Measuring marketing effectiveness
 Industry skills, knowledge and support benchmarking

Download the State of Digital Marketing in Australia report today.

Report URL

A free report is available to journalists and bloggers.

Please email for details.
Media contacts:
Jake Hird, Senior Research Analyst, Econsultancy
(e: jake.hird[at] econsultancy.com)

About Econsultancy
Econsultancy is a global independent community-based publisher, focused on best practice digital marketing and e-commerce, and used by over 300,000 internet professionals every month.

Our hub has 110,000+ members worldwide from clients, agencies and suppliers alike with over 90% member retention rate. We help our members build their internal capabilities via a combination of research reports and how-to guides, training and development, consultancy, face-to-face conferences, forums and professional networking.

For the last ten years, our resources have helped members learn, make better decisions, build business cases, find the best suppliers, accelerate their careers and lead the way in best practice and innovation.

Econsultancy has offices in London, New York and Dubai and we are a leading provider of digital marketing training and consultancy.
For more information, visit http://econsultancy.com or follow @econsultancy on Twitter.

Published on: 5:57PM on 30th January 2012