Why marketers outsource traditional marketing first?

IBM’s Australian Business process outsourcing research 2012 reported that traditional outsourcing businesses are likely to grow from 9% to 21% over the next 12 to 24 months.

The research was done by surveying 216 business entities. The respondents rated traditional outsourcing as most sought out outsourcing business than online marketing. The report indicated a mere 6% anticipated to outsource online marketing. Only 17% of the respondents are anticipating outsourcing of digital marketing for the next two years.

The trend showed that traditional outsourcing business has got is considerable share from telecom and transportation industries. 33% was contributed by telecom and 31% by transportation industry. These two sectors outsource at least one of their marketing processes. The report suggests the service providers to target government and educational institutions as they hold potential for outsourcing their marketing functions as well in future.

While considering online marketing, again telecommunication and transport sectors were in the forefront when it comes to spending. The analysts’ forecasts telecom, banking and financial services (BSFI) to contribute the maximum to the digital marketing outsourcing in the coming two years.

Further the BPO report has also given the outsourcing growth by each BPO sub process. The report has ranked market research as the most outsourced process under traditional marketing. The process accounted about 74% of the outsourcing activities. This is going to be the most outsourced process in the future too. Customer services were accounted only 11% of the business. However, it is expected to rise to 21% in next two years. Content management comprised 32% of outsourcing and where as campaign management accounted for 16% of total outsourcing business.

Social media marketing has picked up significant growth when it comes to digital marketing outsourcing space. According to the sources from companies who participated in the survey online marketing outsourcing is an area where businesses would like support, especially when it comes to data management.

Online marketing sub processes outsourced mostly include multi-channel management at 50% followed by analytics and content management with 29% each. Content management and reporting are likely to be outsourced in the future.

The reason for the trend of outsourcing traditional marketing processes to online marketing processes can be attributed to the lack of clarity in adopting appropriate digital marketing strategies by the firms. This can be concluded from the report stating that only 7% percent of firms outsourcing online marketing have a defined engagement strategy. With the increase in number of digital application users and the emergence of social media as the biggest communication platform, companies need to review their marketing policies. They are required to carry out online marketing at the same pace as with traditional marketing.

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