Web 2.0 Plays Matchmaker with Direct, Brand Marketing

In a new study by the Direct Marketing Association, survey respondents say that Web 2.0 is an excellent way to both increase brand awareness and generate sales, which "paves the way for integrating direct and brand marketing," writes MarketingVox.

80 percent or more of respondents use Web 2.0 to raise brand awareness, increase brand preference, generate sales , and generate leads. But what's really interesting:

* 85 percent of respondents use Web 2.0 to engage their customers and rate it as a highly effective mechanism for customer engagement
* 84 percent of our respondents use Web 2.0 to create a community of loyal customers, and they find it very effective for doing so

Still, only:

* 82 percent of respondents allocated a quarter or less of their marketing budget toward Web 2.0
* 70 percent of those who report that they are experts in interactive marketing also allocate about a quarter of their budget to Web 2.0

So why, if it's so effective, are marketers only spending 25% of budgets on it? Maybe it's the relative cost of online to offline? Maybe it's still widely considered a rogue strategy in the eyes of CMOs accountable for budgets? Maybe people like Web 2.0, but just don't know how to spend money on it, what to do exactly, etc.? Lots of questions. Fortunately though, people agree Web 2.0 works, and overall spending on it is steadily increasing.