Of the $368 billion marketers plan to spend this year, 32.5% will go toward digital; 30.3% to print. Digital spending includes e-mail, video advertising, display ads and search marketing. “It’s a watershed moment,” says the study’s lead author, Outsell vice president Chuck Richard.

This is great news for digital agencies, and firms like Google who are the recipients of these online ad spending dollars. Keep in mind, however, that the majority of this revenue goes to the large ad vendor. Agencies keep only from 5-10% of the total spend.

Let me set-up the situation, we have been discussing some of the problems with Social Network Marketing here internally and wanted to start doing some data gathering, independent of big research firms. We wanted anecdotal evidence for our clients. We didn’t have a big budget to run ads, send email solicitations, etc. What we did have, however, is a good survey tool (provided by Survs.com), and the social networks themselves. We built a quick survey, (to get some initial findings, more short surveys will follow), and then posted to Twitter, LinkedIn, our Facebook page, and a couple of local business sites (like OCMetro). Within five minutes of posting about the survey we were beginning to get results.

This illustrates the point that when you’re talking to people that are engaged in your subject matter, and don’t ask them too many questions, you’ll get good results. The same thing can be done with product owners, VIP club members, etc. Even without an incentive to take the survey we got a 97% completion rate!

Not only did we get a successful survey, but, overall site traffic and awareness went up as shown by these stats:
Unique Site Visits (vs. prior week): +107%
Absolute Unique Visitors (vs. prior week): +92%
Pageviews (vs. prior week): +86%
Increase in Twitter followers (vs. prior week): +350%

In addition, traffic came from completely different sources than normal:
Search (organic & paid): -70.46% (vs. prior week))
Referral: +141.67% (vs. prior week)

If the referral traffic it came from the expected sources based on our efforts:
Facebook: 16.67%
Our Blog: 13.33%
Twitter: 8.33%
LinkedIn: 1.67%
Other: 1.67%

Now, enough about the positive effect of the survey, let’s look at the survey results:

How Many Social Networks Are You Using?

Most respondents (>80%) are using between 1 and 6 social networks. There were no respondents that were unaware of social networking, or un-connected; this isn’t surprising, however, given our solicitation methods.

Do You Read All Of Your “Friends” Updates?

In an unsurprising outcome, more than 60% of our respondents do not read all of their friend’s updates, stay tuned for our next survey where we ask the question, “Why Not?”

Tell Us About Those Updates

The last question was interesting, it asked what people thought of the updates from their friends. Over half (>54%) of those surveyed said that the updates kept them perfectly informed, or, lead to interesting places or information online. Only 18% said that they were too much information, and another 27% replied with “Other.” Of those “other” responses, here is one that was intriguing, “Updates can be interesting but many are worthless attempts at attention.” Most of the “other” responses were a combination of the other answers.

We would like to thank you for your participation in the survey, and remind you to stay tuned for more.

Ad dollars are leaving print… and fast!

Their Q1 losses for 2009 were worse than expected, around a 27% loss in advertising revenue. This outpaced their efforts to cut costs (not surprising, good journalism is expensive).

Seth Godin, on his blog, is predicting that by 2012 there will be, “no significant newspapers printed on newsprint in the US.”

WOW! and entire vertical market will be gone, or almost gone in less than three years!

These are both interesting reads and worth the effort to see what’s coming for online advertising.

We have seen with with our clients, and in our past, efforts to cut “traditional” media spending and emphasize online strategies. We’re helping our client get better results through email and PPC marketing; things that are measurable and quickly executable.

What are local advertisers to do, though? They don’t have the large budgets to go to a “big agency,” they don’t have the technical knowledge (in many cases) to prevent being taken advantage of by small agencies, there are too many options for free or almost free web based services, etc…
They have to do research and they have to trust their network. What do successful small agencies have to do, then?

They have to be good at working with small businesses, they have to treat each of their customers well, they have to be successful, because small businesses can’t afford the expense of a failed marketing effort, no matter how small.
Email campaigns and PPC campaigns are the best entry into online marketing for most small businesses, after getting themselves a quality web site. However, they should definitely use a someone to help them, they do not want to upset their targets with violations of CAN-SPAM, or just over communication.

Read the whole article Small Businesses Seek Solutions Online – eMarketer.

Well, this is scary.  The Second Circuit Court of Appeals has ruled against Google in a lawsuit (Rescuecom Corp. v. Google Inc.).  The summary of the suit is that if a user searches for a trademarked word (or phrase) then results imply sponsorship:

According to Rescuecom’s allegations, when a Google user launches a search for the term ‘Rescuecom’ because the searcher wishes to purchase Rescuecom’s services, links to websites of its competitors will appear on the searcher’s screen in a manner likely to cause the searcher to believe mistakenly that a competitor’s advertisement (and website link) is sponsored by, endorsed by, approved by, or affiliated with Rescuecom.

MarketingVOX also is linking to more lawsuits that are on the same topic over at SearchEngineLand.

This is what happens when courts, judges, and lawyers who are out of touch with reality decide cases that involve technology that they have never seen or used or understand.  This is patently absurd and the courts need to move into the current century.

A new story out from eMarketer is showing how search marketing dollars are being spent by clients. The data, from Search Engine Marketing Professional Organization (SEMPO) used research from a Radar Research study.

The short version of the article is that of the $13.5 Billion spent in 2008, 88% went to Search Marketing and 11% to SEO. The assertion, however, is that more money will be flowing into SEO programs in 2009 because it delivers longer term results.

DMIdeas caveat… SEO works as long as you spend the big $$ on an infrastructure that eliminates human error.

The other takeaway from the article is that Search Engine Marketing spending will grow rapidly over the next 5 years as shown in this chart:

• Write A Killer Profile
• Focus on a Quality Network Rather than Quantity Network
• Establish a Time-Saving Routine
• Respect Your Friends
• Start to SHARE

read more

And then, from us, some advice:

It’s important that your Social Networking profile/site be as professional as your business. Make sure that your copy is well written, that your page is free of typos, that you friends list reflects your potential customers and employees, and, perhaps most importantly, make sure that your profile provides potential customers with a method to contact you, either email or phone or physical address.

Whether you do it yourself, or use an agency to help you, Social Networks are here to stay and having a presence, no matter how small your business, is important.

On a larger scale, the folks at Procter & Gamble (P&G), just held a little “summit” to figure out how to use Social Media to help their business…read more at Cincinatti.com.

And here’s some anecdotal evidence that Facebook has overtaken Google as a source for referrals to some sites…