IT services companies shifting marketing dollars out of advertising

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Lexington, Mass.—Information technology services companies have reduced advertising budgets this year and are focused on integrated marketing communications, according to research conducted by the Information Technology Services Marketing Association. The organization’s members include Cisco Systems, IBM Corp. and Microsoft Corp. The research indicates that while marketing budgets have remained steady at 2004 levels, advertising dollars have diminished and are being shifted into other disciplines.

This year's research showed that IT services marketers earmarked a mere 3% of their marketing communications budgets for advertising, down from 17% in 2003 and 12% in 2004.

"We're seeing many companies abandoning expensive mass-marketing broadcast campaigns in favor of smaller and more targeted approaches—community-building, if you will," Julie Schwartz, ITSMA’s senior VP-chief research officer, said in a statement.

—Sean Callahan

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