Lack of money holding business back as it treads carefully, says industry report

Executives in China expect digital marketing will boost their businesses as advertising costs on television and radio surge. Companies are set to spend more in the sector in 2013, an industry report shows.

The Sina Corp logo on an advertising board during an Internet conference. As a leading Chinese Internet portal, Sina saw its revenue from online advertisements increase significantly over the past few years. [Photo/China Daily]

As many as 81 percent of marketers in China believe digital marketing could create a competitive advantage for their company and 52 percent feel digital marketing is crucial in helping to create a customer-centric, responsive organization, said a report released by Adobe Systems Inc and the Chief Marketing Officer Council, an industry organization.

Digital marketing includes website development and content, email marketing, search engine optimization, online advertising, social media community management and advertising.

"The majority of Asia-Pacific's marketers are in exploring and testing mode, taking their first steps forward," said Liz Miller, vice-president of Global Programs and Operations at the CMO Council.

An aggregate 67 percent of Chinese marketers said they had a supportive leadership team and the team was receptive to piloting and testing new marketing channels and programs, said the report.

However, the boardroom views failed to lead to more investment in the sector. Miller acknowledged that digital marketing tools are yet to be fully accepted by Chinese advertisers.

More than 75 percent of Chinese marketers surveyed said they are spending less than a quarter of their total marketing budget on digital marketing initiatives. Of that group, nearly half are spending less than 10 percent, according to the report.

The report did not specify which industries were the biggest spenders in digital marketing in the country.

"The greatest obstacle facing Chinese marketers as they make the transition from traditional to digital marketing appears to be low budgets, with 65 percent citing budget limitations as a significant factor preventing them from undertaking critical activities such as testing and analysis," the report stated.