CMOs Say Social Media Spending Will Rise 89% By 2022

Hal Conick
Marketing News
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Key Takeaways

​What? CMOs expect social media spending to rise 89% in the next five years. 

So what? Currently, social media spending is on average 9.8% of the budget; in five years, CMOs expect it to be 18.5% of the budget.

Now what? While CMOs have high expectations, 45% say they still cannot prove the impact of social media. 

​Oct. 5, 2017

Social media spending is predicted by CMOs to rise 89% in the next five years, but their predictions have been off before 

Social media spending is predicted to rise 89% over the next five years, according to The CMO Survey

Currently, social media takes up 9.8% of a marketing budget on average, CMOs say, with their social spending expected to rise to 13% of the budget in a year. In five years, the CMOs surveyed expect social media to be 18.5% of the budget.

Leading the way in the charge to spend more on social media will be B-to-C products, which the CMO Survey says will consume 31.9 % of the budget on social media by 2022. 

On the other side, the most conservative social media spender will be B-to-B brands, which are predicted to spend 13.7% of their budget on social media in five years. This product category is currently well below the average, as B-to-B product companies currently spend 6.8% of their marketing budget on social media. 

Social Misses Projections, Impact Remains Unproven

This predicted wave of spending comes after years of CMOs over-​predicting social spending. For example, CMOs predicted in 2012 that they’d be spending 19.5% of their budget on social media by August 2017. The actual spending was 9.8%.

Integration of social media may be an issue. Asked to rate how effectively social media is linked to a firm’s marketing strategy on a scale from 1 to 7, CMOs responded with a 4. This is down 0.1 from February 2017.

 

 The CMO Survey - August 2017

 

Perhaps even worse is how few CMOs can prove that social media contributes to their company. When asked to rate the question “To what degree does the use of social media contribute to your company's performance?” from 1 (lowest) to 7 (highest), CMOs gave a 3.3. 

Marketers also have difficulty proving the value of social media, as 45% say they have been unable to show the value of social media, and 38.6% say they have a “good qualitative sense of the impact, but not a quantitative impact.” 

The survey, sponsored by Deloitte and Duke’s Fuqua School of Business, had a response rate of 349 marketers. The next survey will take place in January 2018 and be released a month later. 


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Author Bio:

https://auth.ama.org/PublishingImages/hal-staff-photo.jpg
Hal Conick
Hal Conick is a staff writer for the AMA’s magazines and e-newsletters. He can be reached at hconick@ama.org or on Twitter at @HalConick.
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