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Internet marketing will represent a bigger chunk of marketing budgets next year for more than half of chief marketing officers.  This is likely to result in a decline in expenditures on more traditional channels of marketing, according to recent research.

Internet marketing will represent a bigger chunk of marketing budgets next year for more than half of chief marketing officers, according to new research.  A survey conducted by Rackspace found that of 130 marketing chiefs, 61% will make the online medium their biggest outlet in 2009.  This is likely to result in a decline in expenditures on more traditional channels of marketing, according to the Rackspace survey.

Additionally, four in ten CMOs reported problems with technology when undertaking marketing campaigns, while more than half indicated they did not optimize websites to cope with the extra demand a new campaign would be likely to generate ahead of launch. 

According to New Media Age, 40% of marketing chiefs indicated they have had difficulties due to technical problems and more than nine in ten respondents indicated they believed social media marketing was not as effective as other forms of internet marketing.

TNS Media Intelligence research recently found that US advertising spending was on the decline, with a 1.6 per cent drop during the first half of 2008.  However, online advertising was one of the few growth sectors with an increase in spend by 8%.

"It appears marketers are placing an emphasis upon enhanced efficiencies for their brands and the ability to engage with well-defined audiences to ensure ever greater return on investment," noted Dean DeBiase of TNS.

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