As companies put final touches on 2010 marketing communications budgets, the big question is, where are those shrinking marketing budgets being directed next year?

I read an article in The Wall Street Journal titled Pepsi Benches Its Drinks. The article says that Pepsi, ending a 23-year streak, won’t advertise in Super Bowl XLIV. It also explains that in 2010 Pepsi will spend 60% more on online ads, rely on PR to market its brand, and will direct $20 million of its ad dollars to grants for its new Pepsi Refresh Project, a program that will support community projects proposed and selected by consumers.

This reinforces my opinion that traditional advertising might not always be the best way to reach a target audience. More and more companies are turning to social media, PR and online advertising to spread the word about their brands.

It’s time for B2C and B2B companies alike to reevaluate marketing strategies. Companies need to do research, find out where their audience is getting their information and reach them there. Make sure the money you spend on marketing is reaching your audience.

What do you think? Do you think 2010 will bring more social media, PR and online advertising to the forefront of marketing budgets?