CMO Magazine Survey Reveals Marketing Budgets, Spending on Rise Cross-Industry New CMO RealityCheck(TM) Survey From IDG’s CMO Magazine Takes the Pulse of Marketing Executives

FRAMINGHAM, MA – APRIL 4, 2005 – The first quarterly CMO RealityCheck(TM) survey of leading marketing chiefs across all industries shows increased vitality for marketing spending and budgets, with an average marketing budget of more than $35 million ($35,099,178) and overall marketing budgets estimated to rise 10% during the next 12 months. While nearly half (45%) of marketing executives consider driving revenue growth the top priority this year, only 22% consider return on investment (ROI) measurement of marketing programs a priority.

The survey, which measures 13 marketing areas, asks marketing executives from hundreds of the nation'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.

SPENDING INCREASES ACROSS THE MARKETING MIX

Seventy-four percent (74%) of marketing executives at the nation's largest organizations — those charged with branding, revenue generation and customer relationship management — predict an increase in marketing budgets during the next 12 months. More than 53% of respondents expect to increase marketing expenditures in the direct marketing category, followed by 50% planning to increase advertising spending and another 47% reporting increased investing in interactive marketing. Email marketing is named as the most popular marketing technique with more than 70% of respondents currently using or planning to use it during the next six months, followed by 42% of respondents who plan to utilize word-of-mouth marketing and 36% of respondents planning paid-placement search marketing.

Advertising budgets will increase an average of 9% in the next 12 months with 62% of respondents reporting increased advertising spending in the online advertising category and 44% of respondents planning to increase print advertising investments.

According to CMO magazine Editor in Chief Rob O'Regan, "This type of detailed spending data, covering so many spending categories, is unique to the CMO RealityCheck(TM) survey and it comes straight from the source: senior marketing executives. Our readers look for this kind of information to stay competitive, and surveys that include advertising spending trends help our readers make informed choices." Adds CMO magazine Publisher Stephen Twombly, "The survey reveals the strong health of marketing overall, as evidenced by the increases in spending across the entire marketing mix, particularly in direct marketing and advertising, which is balanced by strong growth in both the traditional print and the rapidly growing on-line advertising categories."

MARKETING PRIORITIES AND MEASUREMENT

The top three priorities for marketing chiefs are to drive revenue growth (45%); acquire, satisfy, and retain customers (36%), and align the marketing function with business strategy (35%). While 26% do not have a formal measurement system for tracking ROI, the top three metrics used by respondents are customer satisfaction (51%), market share relative to key competitors (44%), and monitoring web site traffic (43%).

JOB SATISFACTION AND RELATIONS WITH EXECUTIVE STAFF

Job satisfaction among marketing executives ranks high — more than 69% of respondents plan to stay in their current role for the next 12 months with 75% putting in more than 50 hours a week. The survey reveals a majority of executives believe they have the ear of their CEO, with more than 66% of respondents considering the CEO their ally. While respondents are satisfied with revenue generation and the articulation of the corporate vision (52%), the majority are unsatisfied with marketing's influence over competitive intelligence and budgeting priorities (46%).

TIME MANAGEMENT AND PLANNING

Respondents report the bulk of their time is consumed by aligning marketing with business strategy (58%), followed by meetings and administrative tasks (39%), and managing staff (37%). The majority of respondents plan annually (72%), with the minority planning three years and beyond (14%).

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 February 15, 2005 an email invitation was sent to 7,956 qualified CMO subscribers with a link to the online survey. The survey closed March 1, 2005 with 534 responses, a response rate of 6.7% and a margin of error of +/-4.3% at the 95% confidence level.

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/ .

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