Throughout the brief history of the Internet, expectations have run high for it to “change everything.” A McKinsey survey of marketing executives from around the world shows that in marketing, things are starting to change: companies are moving online across the spectrum of marketing activities, from building awareness to after-sales service, and they see online tools as an important and effective component of their marketing strategies.¹ Executives also indicate, however, that they are making less frequent use of digital tools—from familiar ones such as e-mail and informational Web sites to new possibilities such as wikis and virtual worlds—than their importance would suggest. A lack of capabilities at companies and their marketing agencies is a critical reason, respondents say, along with often-cited concerns such as an absence of meaningful metrics.

Companies use the Web to reach customers throughout the decision-making process. In 2010 respondents expect a majority of their customers to discover new products or services online and a third to purchase goods there. A majority of the respondents also expect their companies to be getting 10 percent or more of their sales from online channels in 2010—twice as many companies as have hit that mark today. These expectations appear to be driving plans for future spending, at least in some areas.

In addition to established online tools such as e-mail, information-rich Web sites, and display advertising, survey respondents show a lot of interest in the interactive and collaborative technologies collectively known as Web 2.0² for advertising, product development, and customer service (see sidebar, “What are emerging vehicles?”).