The recently released results show spending is up 234% over the last seven years. In 2009, social media spending accounted for 3.5% of marketing budgets, while in 2016 that number rose to 11.7%, according to information from the survey. However, five years ago marketing professionals were asked to estimate what portion of their budget they expected to allocate to social media, and current levels fall below the 17.5% marketing professionals predicted. There are several possible explanations for the shortfall.

The "most compelling reason is that companies fail to effectively utilize their social media investments," according to the survey's report. "When this happens, acceptable [return-on-investment] is not achieved and budgets are reduced below past expectations.”

“Success in the social world of marketing requires a deep connection to the customer and the ability to drive a transformation of the company to embrace a whole new type of customer engagement. Many companies lack the knowledge and skills to make this happen.”

Nearly half the firms surveyed admitted they cannot show the impact social media spending has had, and a measly 4.6% said social media contributes “very highly” to performance.

Another possible reason for the suppressed spending, according to CMO Survey, is a “bandwagon effect” in which high media attention, hype and expectations led companies to perceive their spending needs would be greater than reality dictates. Or, some companies may have been turned off to the idea of bombarding consumers with social media and saturating them with social media marketing.

Alternatively, another explanation may be that social media marketing is, in fact, being funded at the anticipated elevated levels; however, the spending may not be coming directly from the actual marketing budget line. “As social media gains acceptability as a strategic tool, funding may be coming from other areas of the company," the survey report reads. "In other words, actual spending may be as high as the marketers’ earlier expectations, but it may be sourced from other budgets."

While some forms of social media marketing have fallen out of favor with companies, others have flourished since August of 2009. Video/ photo-sharing and blogging are now being utilized by less than half the companies surveyed, compared to 52.3% and 50.9%, respectively, seven years ago.

However, social networking platforms, like Facebook and LinkedIn, and microblogging platforms, like Twitter, have increased to 72.5% and 55.3% utilization, respectively. As 2017 approaches, Ken Gaebler of Gaebler.com, an entrepreneur resource site, offered some insights for those already thinking about crafting their future marketing budget.

Gaebler recommends both a subjective assessment of past spending, as well as an objective and analytical evaluation. Also, he said it’s important to get an early jump on planning for next year. It takes time to implement new strategies, so putting a final plan in place well before the new year begins will ensure a smooth transition.

“You'll want to be done with the marketing budgeting exercise by November,” he said. “That gives you a month, all of December, to start reaching out to new agencies and other vendors who will help you execute on your Q1 marketing initiatives.”