A recent study by Adobe has revealed that the majority of businesses (53%) are spending less than 5% of their overall marketing budgets on conversion optimization – this is despite the fact that even a small uplift in conversion rates can often translate into much more extra revenue.
The report received responses from over 1,800 digital marketing strategists spanning Europe, North America and Asia, and explores key areas in which consultants can improve upon in order to ensure reasonable success rates, including social media, mobile, customer experience and personalisation.
It has previously been suggested that 2013 could be the year of conversion optimization, given the huge potential from a small uplift in rates of conversion – although judging by the level of investment indicated by the Adobe report, it’s certain that the tipping point is yet to be reached.
This 5% of marketing budgets extends to include professional services, technology and agency fees – accounting for very little overall. 86% of the businesses surveyed revealed that less than 15% of their marketing budget was allocated to optimization activities.
At the opposite end of the spectrum, just 3% of respondents to the survey allocated upwards of 50% of their budget on optimization.
With this in mind, it’s easy to understand why over a third of companies reported conversion rates of less than 1%.
Interestingly, the data also reveals that the businesses spending more on optimization are reaping the rewards – those who invested upwards of a quarter of their marketing budget in this area were twice as likely to witness higher conversion rates. 16% of those allocating less than 25% of their budget were witnessing web conversion rates of 5% or above, in comparison to 39% of those allocating more than a quarter of their marketing budget in these areas.