Lithuanian Marketing Association and the “Business News” marketing specialists carried out a survey in December. The results showed that even 65.7 percent of companies are about to increase marketing costs for advertising on the Internet this year. Overall, in 2012, 53.4 percent of companies are about to rise marketing budget. It is almost 6 percent more than previous year. 8.6 percent of all questioned are going to increase the budget for more than 50 percent. Meanwhile, only 18.6 percent of questioned are going to reduce marketing costs.
Majority of the companies intend to increase marketing budget by 10 percent. “The main factors that increase investment are: expected higher sales and desire to gain a bigger market share during the growth of the company”,-notes Lithuanian Marketing Association chairman Simonas Bartkus. In order to achieve the objectives, 41.4 percent of companies will increase the costs for advertising panels, 60 percent for paid search (“Google Adwords”), 51.4 percents for communication in social networks.
Specialist survey indicates that 45 percent of companies questioned increase marketing costs, which annual turnover is more than 50 million Ltl.
Increasing the costs is usually associated with sales promotion (even 61.4 percent of surveyed aim at such result) and image formation (44.3 percent). Meanwhile, market research costs are increased more carefully, only about 12.86 percent of companies. In 2012, companies are about to reduce 11.4 percent of costs for sales promotion, 18.6 percent will be saved for image formation and market research budget will be lessened by 14.3 percent of companies surveyed.
In addition to the expected high cost of Internet communication growth, next year companies are going to increase funding for non-traditional marketing solutions as well. Even 60 percent of companies surveyed are about to push up costs by such measures. In total, non-traditional means of advertising will receive about 17 percent of all marketing budgets. 20 percent will obtain press advertising, 11 percent – television advertising, 7 percent – outdoor advertising, 6 percent- radio advertising, and most-35 percent – Internet advertising.
Last year, 83.3 percent of enterprises that reduced their marketing budget, admitted to having cut the costs on advertising, 83.3 percent of enterprises opted for cheaper marketing tools, 58.3 percent – refused to external service operators, 50 percent of enterprises negotiated with creative and advertising planning agencies, 16.7 percent – gave up a part of marketing department employee service, 8.3 percent – reduced marketing department staff’s salary.