2013 Services Marketing Budget Allocations and Trends
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1 2013 Services Marketing Budget Allocations and Trends Abbreviated Summary Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Dianne Kim Research Associate ITSMA Note: This Abbreviated Summary highlights some of the significant findings from 2013 Services Marketing Budget Allocations and Trends. A more in-depth analysis can be found in the full report.
2 Abbreviated Summary The 2013 Services Marketing Budget Allocations and Trends survey provides data on services marketing budgets, budget allocations, and marketing priorities from a range of companies across the technology and consulting industries. Topics covered in the report include: services marketing budget size and growth rates revenue growth rates marketing budget allocations marketing staff growth rates marketing staff allocations marketing mix budget allocations marketing operations and automation marketing priorities relationship management digital marketing sales enablement Account Based Marketing b u d g e t allocations B024AS 2
3 Key trends highlighted in the report include: Marketers are optimistic; nearly half of B2B services marketers plan to increase their budgets in 2013 In response to changing buyer behavior, marketers are shifting their spending in 2013 to reflect new priorities Developing thought leadership content that drives business Enabling the sales force Building a more effective lead management/nurturing model Increasing use of Account Based Marketing 76% of marketers are increasing their digital marketing budgets Technology budgets are also on the rise with lead management systems and social media topping the list Advancing marketing skills is critical to staying ahead To that end, agencies have becomes essential partners B024AS 3
4 Nearly half of B2B services marketers plan to increase their budgets in 2013 In FY2013, do you expect your marketing budget to increase, decrease, or stay the same when compared to FY2012? % of Respondents (N=42) Stay the same 38% Decrease 17% Average decrease: 9.7% What was the size of your annual marketing budget as a percentage of revenue? Mean % of Revenue Increase 45% Average increase: 17.3% FY2012 FY2013 (est.) Worldwide (N=32) North America (N=23) EMEA (N=20) Asia/Pacific (N=17) B024AS 4
5 However, in response to changing buyer behavior, marketers are shifting their spending in 2013 to reflect new priorities Overall Marketing Budget Marketing Mix Budget is flowing into: Demand generation and lead management Brand and communications Content development Sales (channel) enablement and support Budget is flowing into: Digital marketing Direct marketing Private events, seminars, and conferences Budget is flowing away from: Public trade shows Sponsorships Traditional advertising B024AS 5
6 Spending on Digital/Online/ Social Marketing continues to grow Budget is flowing into: Corporate website Search engine optimization (SEO) Public online communities , newsletters Online video B024AS 6
7 Marketers are also increasing investment in technology with lead management, social media, and web analytics topping the list What are your spending plans in FY2013 for the following Marketing Technology/ Automation software, tools, and processes? % of Respondents Increasing Spending (N~30) % Currently Using (N=165) NA 75 Lead nurturing and management Social media monitoring/ measurement Web analytics and optimization Content management/ delivery Campaign management Customer/ contact management Marketing performance management marketing, ITSMA/VEM Marketing Performance Management Survey, July B024AS 7
8 Advancing marketing skills is critical to staying ahead Which of the following skills do you believe are essential to your marketing organization s future success? % of Respondents (N=42) Thought leadership development 48 Marketing automation/marketing technology Client engagement/relationship program management Leadership (e.g., leading teams, motivating, creating a vision) Social media participation/management Writing/editing (content creation) Market intelligence/competitive intelligence Strategic planning Vertical market/industry expertise Account Based Marketing (ABM) Data management/mining/analytics 21 Note: Up to five responses allowed. Source: ITSMA, Budget and Trends Survey, B024AS 8
9 Agencies consume a substantial portion of the marketing budget, providing more execution rather than strategic work What percentage of the marketing budget was used to purchase services from or through agencies? Mean % of Marketing Budget (N=39) 25% FY2012 How would you describe the work that agencies do for your marketing organization? % of Respondents (N=40) Mostly strategic: approximately 25% execution and 75% strategic Primarily execution Mostly execution: approximately 75% execution and 25% strategic About a balance: 50% execution and 50% strategic B024AS 9
10 B2B solution providers earn the lion s share of their business from existing accounts, making client engagement programs essential Advance client engagement Revenue from New and Existing Clients % of Professional Services Revenue (N=23) Follow-on Business % of Professional Services Revenue (N=17) New Clients 14% New Business 29% Existing Clients 86% Follow-on Business 71% B024AS 10
11 Account Based Marketing Programs (aka Key Account Marketing) have been so successful that marketers are doubling their spending in 2013! Advance client engagement Approximately what percentage of your marketing budget was/will be dedicated to Account Based Marketing? Mean % (N~24) 6.4% FY % FY2013 (est.) B024AS 11
12 Study Participants B024AS 12
13 Study Methodology From November 2012 through January 2013, ITSMA used a web-based survey to gather data from its members and select non-members about services marketing budgets, services growth, and top marketing priorities. ITSMA received 42 responses from 38 unique companies. Industry Subsector % of Respondents (N=42) 12% Other 10% 14% 19% Countries Represented % of Respondents (N=42) Sales Model % of Respondents (N=42) Network systems and solution provider Computer systems and solutions provider Software solutions provider Europe 17% We sell services through a mix of direct sales and channel partners 40% Asia 14% South or Central America 2% North America 67% We sell services primarily through a direct sales force 60% 45% Professional services firm (consulting, outsourcing, and systems integration) B024AS 13
14 ITSMA analyzed the survey data in three ways: The data set as a whole Company type primarily services or product and services Respondent Titles From which perspective will you be answering this survey? % of Respondents (N=42) Company size less than $1 billion or $1 billion or more in annual services revenue Organization Size How large is your services business? % of Respondents (N=42) Entire company 45% A specific business unit or division 55% 17 7 Less than $100M 2 $ M $ M 12 $ M In Services Revenue $1 5B Greater than $5B Type of Company % of Respondents (N=42) We primarily sell services (10% or less revenue from products) 50% We sell both products and services 50% B024AS 14
15 Table of Contents for 2013 Services Marketing Budget Allocations and Trends Slide Survey Highlights 3 Survey Methodology and Demographics 25 Size of the Marketing Budget 36 Services Revenue 42 Marketing Staffing 53 Agency Relationships 62 Services Marketing Budget Allocation 67 The Marketing Mix 75 Marketing Operations and Automation 81 Market and Competitive Intelligence 85 Relationship Management 90 Sales Enablement 93 Marketing Priorities 100 Crosstabs 104 By Size of Company 104 By Type of Company 168 Appendix: Definitions Used in This Report 232 For More Information Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA jschwartz@itsma.com Phone: , Ext B024AS 15
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