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New IDC Study Finds that Tech Marketing Budgets Will Rebound in 2014 with Average Increase of 3.5% for the Largest IT Vendors

IDC PMS4colorversion 1 New IDC Study Finds that Tech Marketing Budgets Will Rebound in 2014 with Average Increase of 3.5% for the Largest IT Vendors

This in spite of tech marketing turmoil and transformation, as half of tech companies replaced CMO in last 24 months

FRAMINGHAM, Mass. – The 12th Annual Tech Marketing Benchmark Study from the International Data Corporation (IDCCMO Advisory Service finds that marketing budgets among the 101 technology companies surveyed will increase by an average of 3.5% in 2014. Those same companies expect a revenue increase of 3.7% for the same period. Despite this momentum, the CMO role remains very fluid as marketing organizations attempt to reinvent their capabilities and effectiveness in a new era of marketing. In a related study, IDC finds that 51% of tech CMO’s have been in their position for fewer than two years.

Two-thirds of the companies surveyed by IDC will increase their marketing budgets in 2014 while only 20% of the companies will decrease their marketing budgets with the remainder indicating no change in budget levels. Notably, companies with a high percentage of 3rd Platform products (cloud, social, mobile and Big Data and analytics) will receive marketing budget increases upwards of five times that of the average tech company, increasing their budgets 10-20% year over year.

“For the first time in eight years, IDC is seeing that marketing budgets are increasing at about the same rate as revenues. This is positive news for tech marketers and also a clear indication that the C-suite is ready to put additional marketing investment up against more promising business prospects,” saidSam Melnick, Senior Research Analyst, IDC CMO Advisory Service. “However, both the CMO and CEO must understand that momentum is being driven by success in 3rd Platform solution areas. To continue this growth, executives must continue to invest to be competitive in these high-upside segments.”

“We examined 152 tech companies with a current CMO in place and found that 77, just over half, have replaced their CMO in the last 24 months – an astonishing rate of change. CMOs must own the digital disruption of buyer experience for their companies. Those CMOs able to rise to the challenge will be provided more resources and given more power. The unprepared will be replaced,” said Kathleen Schaub, Vice President, IDC CMO Advisory Service. “However, tech CEOs must also wake up to the impact marketing now wields over revenue and reputation. It’s their job to pick the right person for today’s challenges. To get CMO selection right means the CEO needs to understand and get closer to marketing.”

The 12th annual 2014 Tech Marketing Benchmark Study was recently completed by IDC’s CMO Advisory Service and seeks to capture the full marketing spend and marketing headcount allocations of global companies within the technology sector. The research effort surveyed 101 companies, with the average company’s revenue surpassing $7 billion. IDC’s 2015 Marketing Investment Planner containing study details will be published in November and will be available on IDC.com. In a parallel study, the CMO Advisory Service studied 152 tech companies ranging from $50 million to $100 billion in revenue to observe their CMO tenure.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com. Follow IDC on Twitter at @IDC.

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U.S. Federal Cloud Forecast Shows Sustained Growth Through 2018, According to IDC Government Insights

IDC PMS4colorversion 1  U.S. Federal Cloud Forecast Shows Sustained Growth Through 2018, According to IDC Government Insights

FRAMINGHAM, Mass., September 16, 2014IDC Government Insights today announced the availability of a new report, Perspective: Looking Up – U.S. Federal Cloud Forecast Shows Sustain Growth Through 2018 (Doc #GI250735). The detailed report, a follow-up to IDC Government Insights’ inaugural cloud spending forecast in July 2013, evaluates how the U.S. Federal Government is spending part of its IT budget on cloud-based solutions. According to the new forecast, cloud spending now represents about 5% of all IT spending by the federal government. IDC Government Insights expects that the growth will continue into FY2015.

  • ClicktoTweet:  IDC U.S. Federal Cloud Forecast Shows Sustained Growth Through 2018, According to IDC Government Insights

For five years, both the U.S. Federal CIO Council and the Office of Management and Budget (OMB) have been pushing government agencies to move some types of IT systems to the cloud, particularly new systems, stored data, and mobile solutions. The ongoing level of spending on cloud solutions indicates that this effort is finally having a significant long-term effect. Total cloud spending is going up and the nature of cloud spending itself is changing.

Key highlights from the forecast include:

  • Federal cloud spending for FY2014 will come in higher that originally predicted. A year ago, OMB stated that agencies are slated to spend a little over $2.2 billion on cloud solutions for 2014. By the end of this fiscal year, that number will grow to more than $3.0 billion.
  • As in the previous two years, OMB has predicted a slight pull-back on cloud spending for upcoming FY2015. The current estimate is just under $2.9 billion for next year, however, IDC Government Insights believes that cloud spending will actually increase, not decrease, for FY2015, rising to perhaps to as much as $3.4 billion.
  • Software as a Service (SaaS) is passing Infrastructure as a Service (IaaS) as the largest type of cloud spending. Last year, OMB estimated that agencies would spend $1.2 billion on IaaS and $724 million on SaaS for FY 2014. This meant that government was different than other industries, since most spend more of their cloud dollars on SaaS. But by the time FY2014 ends on September 30th, the federal government will have spent just $986 million on IaaS, and over $1.3 billion on SaaS.

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Facebook Announces Facebook Media — A Resource For Media Organizations

Marketing Land

Facebook today rolled out Facebook Media, a new resource to help media organizations and public figures with their Facebook efforts. Facebook Media is modeled after Facebook for Business, a hub for advertisers on the social network.

Facebook director of media partnerships Nick Grudin explained the purpose of the effort in a blog post:

Every day, content creators around the world — from digital publishers, to public figures, to video producers — use Facebook to connect with their audiences in innovative ways. They reach new fans, start conversations and drive discovery of new stories. In the process, they make Facebook more vibrant.

At Facebook, we are committed to building a platform to make these connections broader, richer and more dynamic. That’s why today we are introducing Facebook Media — to highlight great examples and new trends illustrating how public figures, organizations and media are using Facebook to connect with their audiences.

Facebook Media is filled with best-practice advice, much of which applies to anyone using Facebook as a marketing tool. For instance, there’s a good list of tips for driving referrals to digital properties that should be required reading.

 

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World Tech Update: 9/19/14

IDG News Service

On this week’s World Tech Update,  Microsoft buys Minecraft developer Mojang, Apple readies its iPhone 6 for sale and we take a look at a high tech stadium.

Media Advertising Sees Largest Growth in Over a Decade

IDG Connect 0811 300x141  Media Advertising Sees Largest Growth in Over a Decade

Media Advertising

Media advertising spending will see its largest growth in over a decade, according to Neustar’s Media Intelligence Report for Q2 2014. Companies are focusing more and more on the data that they can collect, and they are trying to use that data for their marketing. However, half of marketers reported that they’re still having trouble linking the data to actionable insights.  Some of the other areas of interest in the study were social, video, and mobile. Social is the only channel that performed above the indexed average for reach efficiency, and video and mobile are becoming a more normal buy. The three areas that Neustar advises marketers to work on for the upcoming year are mobile, video, and attribution.

Inbound Marketing

Ascend2’s Inbound Marketing Research Summary Report takes a look at what’s next for inbound marketing. Currently, 90% of companies are integrating social, search, and content for inbound marketing purposes, and most of them are doing it successfully. For the next year, the most important objectives for inbound are to increase conversion rates and improve lead quality. One of the challenges of inbound is the lack of an effective strategy, which will begin to change as more companies adopt inbound as a top marketing priority.

 

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EMEA mobile ad spend to quintuple by 2017, can publishers take advantage?

Media Briefing

Triple-digit growth percentages are guaranteed to get industry leaders grinning, so the latest figures predicting predicted mobile ad revenue will rise 543 percent per year to 2017 across the EMEA region will have many salivating. It’s should also come as at least some reassurance for publishers in EMEA (Europe, Middle East & Africa) who are seeing their audiences shift from desktop to mobile.

Most of the growth is set to come from Western Europe. where smartphone penetration is already at 42 percent. However, the Middle East and Africa are set to grow faster – if from a much smaller base – as those populations also snap up smartphones.

This tallies with predictions from earlier this weekwhich said mobile ad revenue – and especially that of location targeted ads – was set to rise to $15

This tallies with predictions from earlier this weekwhich said mobile ad revenue – and especially that of location targeted ads – was set to rise to $15 billion in the same time period. The simple fact that a quarter of the population of the EMEA already owns a smartphone, with that figure set to rise, certainly goes a long way to back up that claim.

And while at the moment countries like Western Europe makes up the vast majority of measurable ad impressions, as the smartphone saturation of the other EMEA regions increases, that should start to shift.

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Why most people aren’t downloading apps anymore

Quartz

In August, a widely reported report from comScore, a measurement firm, concluded that the majority of smartphone users in the United States download precisely zero apps in any given month.

 Why most people aren’t downloading apps anymore

“One possible explanation is that people just don’t need that many apps, and the apps people already have are more than suitable for most functions,” speculated Quartz’s Dan Frommer at the time. New datafrom Localytics, an app analytics firm which tracks 28,000 apps across 1.5 billion global devices, lends some evidence to this theory.

According to Localytics, the amount of time people spend within apps has shot up by a fifth over the past year, helping app use alone outpace all desktop computer use. Moreover, people are launching apps more often, up from 9.4 times to 11.5 times a month.

Driving this increase in use is the stickiness, to use a Silicon Valley term, of the apps people already use. It will surprise nobody that the categories with the most significant uptick in time used fall into categories of music, health and fitness, and social networking.

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