U.S. Telecommunications Marketing Budgets Grow by 2% in 2004, According to IDC

FRAMINGHAM, MA – December 15, 2004 – The IDC CMO Advisory Service finds that U.S.- based Telecommunications Services Providers have increased their marketing investment for business wireline services by just under 2% in 2004. Although the U.S. business wireline services sector is projected to decline in 2005 by 2.4%, marketing investment, particularly for brand awareness, should continue to track upwards as providers attempt to differentiate their solution-oriented services as well as introduce new voice and data IP services in a highly competitive market.

IDC has also found that the average telecom services provider spends about 1.4% of revenue for its business wireline services sector marketing, a rate which is slightly above the rate seen for all IT Services companies (1.2%) but well below the rate for the average IT vendor (3.0%).

The IDC CMO Advisory Research area is expanding its research to the telecom sector to assist marketing executives with effective marketing investment, marketing-mix allocation, and marketing organization models. In the new research report, U.S. Telecommunications Marketing Barometer 2005, IDC reports its initial findings for the business wireline services sector marketing efforts of the major telecom service providers. IDC also compares and contrasts these findings to marketing trends seen in the overall IT sector. Noted Richard Vancil, vice president of IDC's CMO Advisory research practice, "IDC's methodology for tracking marketing investment and allocations has helped many senior IT marketers with effective marketing resource management decisions. We will now offer the same services for telecom sector executives, and IDC is committed to make considerable investments in building out a very deep and comprehensive research database for telecom marketing."

In the study, U.S. Telecommunications Marketing Barometer 2005 (IDC #32284), IDC analyzes the marketing resource management issues for major U.S.-based telecommunications providers. Data from this study has been obtained from executive level interviews with major U.S. based telecommunications service providers. The information has been used to update IDC's Technology Marketing Database, representing over $400 billion in total revenue and over $12 billion in marketing spend. The tech marketing benchmarks are the cornerstone of the IDC CMO Advisory – a research service that provides analysis and insight to help IT marketers improve the productivity and efficiency of their marketing practice.

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