Tech Marketing Budgets to Increase by 7% in 2006: IDC
Global marketing budgets of IT vendors will increase by an average of 7% in 2006, the greatest year-on-year increase in spending in five years. The average marketing budget increase for a tech vendor now outpaces the average revenue increase, indicating that every dollar of vendor revenue is becoming more expensive to garner, according to a new IDC CMO Advisory Practice projection.
“Marketing leaders and their C-level counterparts need to accept the new realities and complexities of the tech marketing function," said Rich Vancil, vice president of the CMO Advisory Practice at IDC. “And they need to recognize that marketing is going to get more complex, and therefore more costly, over the next several years."
"Tech marketing is, in general, an under-funded area," Vancil noted. "The irony is that IDC's research shows that the companies achieving the best gains in revenues and profits are those investing in marketing at a higher than average pace.“
IDC surveyed over 95 of the largest and most influential tech vendors, representing approximately billion in total revenue and over USD 9 billion in marketing spend.
