IDC forecasts 8% increase in tech marketing spending

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Framingham, Mass.—Technology companies will increase their marketing budgets by an average of 8% this year over last, according to research agency IDC’s 2007 CMO Tech Marketing Barometer.

The budget increase is the largest in five years, according to IDC.

It is also the third consecutive year that tech marketing spending will outpace global IT spending, which IDC projects will increase by 6.6% this year over 2006.

“Every dollar of revenue is getting more expensive for vendors to earn,” said Rich Vancil, VP-executive advisory group at IDC. “We are advising our clients to continue to scrutinize their costs and to be more rigorous on which costs need to grow and which costs are candidates for reduction.”

The report found that 65% of the average marketing budget is allocated to marketing program spending and 35% to spending on people.

The report was based on telephone, in-person and online interviews in January and February with senior marketing executives at 40 technology companies.

—Kate Maddox

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