Chief Marketing Officers Indicate Continued Increase in Marketing Spending in CMO Magazine Survey

FRAMINGHAM, MA – June 27, 2005 – The second quarterly CMO RealityCheck(TM) survey of marketing chiefs at the North America's largest organizations indicates a continued increase in marketing spending. Eighty- four percent (84%) of marketing executives — those charged with branding, revenue generation and customer relationship management — predict an increase in marketing budgets during the next 12 months. More than seventy percent (71%) of respondents expect to increase marketing expenditures in the interactive marketing category (a 24% increase from the 1st quarterly survey).

According to CMO magazine Editor in Chief Rob O'Regan, "The survey tells us that chief marketers, focused on driving revenue, are spending more of their corporate dollars on the interactive category. Reading the tea leaves, this data signals that interactive marketing has not only gained marketplace acceptance, it has arrived as the leading marketing tool."

"Marketing executives are aiming their budgets at online concepts targeted to their customers like website development, email marketing, short message services (SMS) and interactive digital TV," continues Steve Twombly, CMO magazine publisher. "As new technology and information forces lure consumers, marketers across all industries follow in a frenzy to stay connected to, and in front of, their customers and prospects."

The CMO RealityCheck(TM) survey, which measures 13 marketing focuses, asks marketing executives from hundreds of the North America's largest and well- branded organizations to weigh-in on spending priorities, best marketing practices, strategic marketing planning, measurement, professional development, interaction with top executive management, job satisfaction, and use of emerging marketing techniques.

MARKETING MIX:

The top five marketing spending categories in Q2 are interactive marketing (71%), direct marketing (66%), market/customer/competitive research (50%), advertising (49%), and internal staff compensation (48%).

MARKETING PRIORITIES AND MEASUREMENT

The top three priorities for marketing chiefs in 2005 are to drive revenue growth (46%); acquire, satisfy, and retain customers (36%), and align the marketing function with business strategy (35%). None (0%) of the marketing executives polled cite security as one of their top three priorities. O'Regan warns, "Recent corporate database thefts in the financial and other industries are proof that marketers need to pay more attention to their company's policies for protecting customer data." CMO magazine addresses the growing importance of security in its July issue (http://www.cmomagazine.com/read/060105/no_place_to_hide.html).

Of note in this quarter's survey: respondents' forward-looking 2006 marketing priorities: drive revenue growth (48%); acquire, satisfy, and retain customers (36%), and drive innovation (27%).

MARKETING HIRING

Marketing chiefs' 12-month hiring plans focus on beefing up the sales force (34%), creative/graphic design (33%), data analysis (31%), product management (31%), and market research (29%).

METHODOLOGY:

The CMO RealityCheck(TM) survey is a quarterly poll conducted among marketing executives by CMO magazine to assess the outlook for marketing spending, profile the CMO audience, and to investigate hot areas affecting the marketing function across multiple industries. On May 20, 2005 an email invitation was sent to 7,500 qualified CMO subscribers with a link to an online survey. The survey closed May 27, 2005 with 311 responses, a response rate of 4.1% and a margin of error of +/-5.6% at the 95% confidence level.

RESPONDENT PROFILE:

In the June 2005 survey, there were 311 respondents with large-size firms (over 1,000+ employees) representing 48% of the results. A broad cross-section of industries is represented including non-computer related manufacturing (17%), computer-related manufacturing (10%), finance (10%), medical/dental/healthcare (8%), retailer/wholesaler/distributor (7%), publishing (print/electronic) 6%, and insurance/real estate/legal (4%).

About CMO

Launched in 2004, CMO magazine and its companion website (http://www.cmomagazine.com/) provide chief marketing officers (CMOs) with high-level, strategic information to better manage and integrate the marketing profession's diverse portfolio of disciplines. In today's ultra-competitive, real-time marketing economy, the magazine offers its executive readership a mix of practitioner-focused features, horizon thinking, useful tools and practical advice. Through CMO magazine, 25,000 CMOs and other marketing executives gain a better understanding of the role information technology plays in managing customer relationships, increasing market share, and measuring and justifying return on investment. The magazine and its online resource cater exclusively to the unique needs of executive marketers in medium- to large-size organizations, across all industries. CMO magazine and CMOmagazine.com are produced by International Data Group's award-winning business unit: CXO Media Inc.

About CXO Media Inc.

CXO Media Inc. produces award-winning media properties and executive programs for corporate officers who use technology to thrive and prosper in this new era of business, including CIO, CMO, CSO magazines and websites, Darwinmag.com and the CIO Executive Council. CXO Media is a subsidiary of International Data Group (IDG), the world's leading technology media, research and event company. A privately-held company, IDG publishes more than 300 magazines and newspapers including Bio-IT World, CIO, CSO, Computerworld, GamePro, InfoWorld, Network World, and PC World. The company features the largest network of technology-specific websites with more than 400 around the world. IDG is also a leading producer of more than 170 computer-related events worldwide including LinuxWorld Conference & Expo(R), Macworld Conference & Expo(R), DEMO(R), and IDC Directions. IDC provides global market research and advice through offices in 50 countries. Company information is available at http://www.idg.com/.

NOTE TO EDITOR: Additional results from this survey are available upon request. Results from this survey must be sourced as follows: CMO RealityCheck(TM), March 2005. Due to rounding, percentages may not add up to 100 percent.

Web sites:

http://www.cmomagazine.com/read/060105/no_place_to_hide.html

http://www.cmomagazine.com/

http://www.cxo.com/

Home

# # #