Press Releases

Survey Reveals Disconnect in Social Media Marketing Programs

Research highlights trend toward social marketing tools,
though budget allocation does not correlate with objectives

SAN MATEO, Calif., – October 30, 2007 – Coremetrics, the leading provider of digital marketing optimization solutions, today announced the results of its Second Annual ‘Face of the New Marketer’ survey. This poll of marketing professionals, drawn from the country’s top eCommerce and online media/content companies, found that social media marketing is quickly gaining popularity as a way to gain competitive edge. However, the survey also revealed that time and budget allocations are not yet reflective of this trend.

The study found that the use of Web 2.0 or social media marketing tools, defined as user generated content (including reviews), RSS feeds, podcasts and wikis are becoming more important parts of a complete online marketing program. While most marketers recognize this trend, and are eager to participate, very few have budgets that are in line with that objective.

The findings included the following:

A clear disconnect between the desirability of social marketing and the budget allocated to it:

However, progress is being made in the field:

The findings showed that most marketers have concrete plans to implement a social media marketing program at some point, even if not within the next twelve months. Of those marketers, the majority recognize the need to implement or improve their social marketing programs, but cite a lack of tools and expertise as their biggest challenges.

“This study echoes many of the qualitative findings that we hear from our customers on a day to day basis—marketers are aware of the impact that social media marketing can have on their overall program, but view it as uncharted territory, not worthy of their budget,” said John Squire, SVP product strategy, GM marketing services at Coremetrics. “As more and more marketing tools become available, we’ll continue to see a greater divide between perceived importance and resource allocation. The ability to accurately monitor the ROI achieved by new marketing tools will help marketers take that first step toward incorporating new digital marketing programs, as well as rethink the effectiveness of current campaigns.”

The survey of 116 senior marketing professionals was conducted during the third quarter of 2007. Coremetrics asked marketers which social marketing tools and activities they were using or intended to use, and how much of their time and budget is spent on social media as opposed to traditional marketing activities.

For a copy of the Second Annual ‘Face of the New Marketer Survey’ research results, please email: coremetrics@lewispr.com.

About Coremetrics
Coremetrics is the leading provider of digital marketing optimization solutions. Its solutions generate high return on online marketing investment and continue to pay daily dividends in improved marketing performance. Over 1,000 online business sites, transacting over $15 billion this year, are now using Coremetrics’ Software as a Service (SaaS) solution to optimize online marketing efforts. Coremetrics’ solutions encompass advanced online analytics and precision marketing applications, including search engine bid management, email marketing and cross sell applications to acquire customers more cost effectively, increase conversion rates, and increase lifetime customer value. Clients have recognized over $300M in documented ROI and 87% of clients recognize ROI in 12 weeks or less. The company is privately held with funding from Accel Partners, FTVentures, and Highland Capital Partners and is headquartered in San Mateo, California. To learn more about Coremetrics, visit http://www.coremetrics.com or call 877-721-CORE (2673).

Coremetrics has strongly supported online privacy since its inception. To learn more, visit www.coremetrics.com/privacy.

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