Post on 18-Nov-2014
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2013 Services Marketing Budget
Allocations and Trends
Julie Schwartz
Senior Vice President
Research and
Thought Leadership
ITSMA
Dianne Kim
Research Associate
ITSMA
Abbreviated Summary
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.
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
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:
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
services
b u d g e t allocations
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
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
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
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
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
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)
Average increase:
17.3%
Average decrease: 9.7%
Increase 45%
Stay the same 38%
Decrease 17%
1.5
0.8 0.8 1.0
1.5
0.9 0.8
1.0
FY2012 FY2013 (est.)
What was the size of your annual marketing budget as a percentage of revenue? Mean % of Revenue
EMEA (N=20)
Worldwide (N=32)
North America (N=23)
Asia/Pacific (N=17)
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
However, in response to changing buyer
behavior, marketers are shifting their
spending in 2013 to reflect new priorities
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends
Marketing Mix Overall Marketing Budget
Budget is flowing into:
Digital marketing
Direct marketing
Private events, seminars, and conferences
Budget is flowing into:
Demand generation and lead management
Brand and communications
Content development
Sales (channel) enablement and support Budget is flowing away from:
Public trade shows
Sponsorships
Traditional advertising
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
Spending on Digital/Online/
Social Marketing
continues to grow
Budget is flowing into: Corporate website
Search engine optimization (SEO)
Public online communities
Email, email newsletters
Online video
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
50 48 45
42 38 37
33
25
% Currently Using (N=165)
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)
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends, ITSMA/VEM Marketing Performance Management Survey, July 2012
NA
Lead nurturing and management
Social media monitoring/
measurement
Web analytics
and optimization
Content management/
delivery
Campaign management
Customer/ contact
management
Marketing performance management
Email marketing
38 35 16
54
75
19
54
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
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)
Note: Up to five responses allowed. Source: ITSMA, Budget and Trends Survey, 2013
48
41
41
41
36
33
31
26
26
26
21
Thought leadership development
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
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
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%
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends
How would you describe the work that agencies do for your marketing organization?
% of Respondents (N=40)
FY2012
30 45 20 5
Primarily execution
Mostly execution: approximately 75% execution
and 25% strategic
About a balance: 50% execution and
50% strategic
Mostly strategic: approximately 25% execution
and 75% strategic
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
B2B solution providers earn the lion’s share of
their business from existing accounts, making
client engagement programs essential
Advance client engagement
Follow-on Business % of Professional Services Revenue (N=17)
Follow-on Business
71%
New Business
29%
Revenue from New and Existing Clients % of Professional Services Revenue (N=23)
Existing Clients
86%
New Clients
14%
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
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%
FY2012
12.0%
FY2013 (est.)
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
Study Participants
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
We sell services primarily
through a direct sales force
60%
We sell services through a mix of direct sales and
channel partners 40%
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.
Countries Represented % of Respondents (N=42)
Sales Model % of Respondents (N=42)
North America
67%
Europe 17%
Asia 14%
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends
South or Central America 2%
Industry
Subsector % of Respondents (N=42)
45%
19%
14%
10%
12% Other
Network systems and solution provider
Computer systems and solutions provider
Software solutions provider
Professional services firm (consulting,outsourcing, and systems integration)
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
7
2
17
12
29
33
Less than$100M
$100– 249M
$250– 499M
$500– 999M
$1–5B Greaterthan $5B
ITSMA analyzed the survey data in three ways:
The data set as a whole
Company type—primarily services or product and services
Company size—less than $1 billion or $1 billion or more in annual services revenue
Respondent Titles From which perspective will you be answering this survey? % of Respondents (N=42)
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends
Organization Size How large is your services business? % of Respondents (N=42)
In Services Revenue
A specific business unit or
division 55%
Entire company
45%
We sell both products and
services 50%
We primarily sell services (10% or
less revenue from products)
50%
Type of Company % of Respondents (N=42)
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ITSMA Benchmarking Study | 2013 Budget Allocations and Trends
© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
Table of Contents for 2013 Services Marketing Budget Allocations and Trends
For More Information Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Email: jschwartz@itsma.com Phone: +1-781-862-8500, Ext. 112
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