The report suggests that the worsening ecenomic crisis will force brand managers and decision makers to place greater investment in digital as they turn away from more traditional, less-effective and more costly platforms like TV, radio and print.
The predicted rise in social media investment comes as around 51% of companies say that the economic crisis has caused them to place greater focus on customer engagement.
However, the research found that only 45% of companies have a defined customer engagement strategy in place.
Those that do are looking to invest in areas associated with Web 2.0 and social media in 2009 with 41% saying they are looking at user ratings and feedback; 37% looking at user-generated content and a similar number (36%) examining blogging.
Brand presence on social networks is also expected to attract significant sums of investment with 36% of firms prioritising this.
The use of Twitter and other micro-blogging tools is also on the increase with 7% of companies saying that they have improved their customer engagement through this channel.
Linus Gregoriadis, head of research at E-consultancy, said: "More companies are viewing tactics such as blogging, user reviews and on-site video in the context of a broader customer engagement strategy and pulling only those levers which are most appropriate for their business model and customers."