B2B Marketing Outlook Australia 2013

measurable b2b marketing

B2B Marketing Outlook Australia 2013

A research report exploring B2B marketing practice, intentions and directions

In association with

B2B Marketing Outlook Australia 2013 Our research Partners

measurable b2b marketing

This study was conducted by Green Hat in association with ADMA and Marketing Magazine.

Green Hat is an Australian marketing consulting agency working exclusively for the B2B sector. Our services include market research, strategic planning and execution of programs that require lead nurturing and progression, lead generation, marketing automation, digital marketing and content development. We assist clients that have medium to long consideration times – especially in the high-tech, professional services, financial services and industrial sectors. Our client list includes global blue-chip brands such as IBM, EMC, SingTel Optus, Hitachi, Chep and Nokia Siemens, as well as many local organisations.

www.green-hat.com.au

The Association for data-driven marketing and advertising (ADMA) is the principal industry body for information based marketing and advertising and is the largest marketing and advertising body in Australia with over 500 member organisations.

ADMA represents the new era of marketing and advertising – a 3600 view from end to end.

• From marketing to advertising• From effective to creative• From above to below• From measurable to engaging

ADMA is the ultimate authority and go-to resource for creative and effective data-driven marketing across all channels and platforms, providing knowledge, advocacy, insight and innovation to advance responsive and enlightened marketing.

www.adma.com.au

Marketing magazine has been exploring the strategic challenges facing businesses large and small every month for over 25 years, and it continues to be a trusted resource for marketers and media professionals in Australia. Each issue is packed with in-depth reports, commentary and sage advice from leading industry specialists, and Marketing is still Australia’s number one resource for information on implementing strategies, maximising campaigns and gaining competitive advantage in the marketplace.

www.marketingmag.com.au

©2013 Green Hat Marketing Pty Ltd ABN 30 099 016 752. All rights reserved. No part of this document may be reproduced or transmitted in any form without the prior approval of Green Hat Marketing Pty Ltd. Any quotation from this document must be attributed to the author.

B2B Marketing Outlook Australia 2013

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Section 1: Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1.1 Key Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1.2 Observations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Section 2: Research Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.1 Market Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Type of Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Lead Times . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Typical Order Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2.2 Marketing Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Size of Marketing Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Size of Marketing Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Change in Marketing Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Budget Justification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Budget Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2.3 Marketing Challenges and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . 14

Marketing Challenges in 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Marketing Objectives in 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.4 Marketing Channels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Traditional Marketing Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Digital Marketing Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Digital versus Traditional Marketing Trends . . . . . . . . . . . . . . . . 18

Inbound versus Outbound Marketing . . . . . . . . . . . . . . . . . . . . . 19

2.5 Marketing Metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Cost per Marketing Lead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Marketing and Sales Alignment: ‘Closing the Loop’ . . . . . . . . . 20

2.6 Social Media Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Social Media Platforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Social Media Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Satisfaction with Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Social Media Return on Investment . . . . . . . . . . . . . . . . . . . . . . 24

Section 3: Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

cOntents

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B2B Marketing Outlook Australia 2013

2013 (planned)

2012 (actual)

Traditional demand generation(inc events, trade shows, telemarketing, DM)

Digital marketing(inc website, online ads, SEO,

search marketing, social media, webinars)

Advertising & sponsorship(excluding online)

Content development(inc white papers, videos, articles,

web/social content)

Lead nurturing & management program(inc marketing automation)

28%

24%

15%

12%

9%

7%

5%

33%

21%

12%

14%

7%

7%

6%

0% 5% 10% 15% 20% 25% 30% 35%

Public Relations

Other

2.0 research results

2.2 MARKETING RESOuRCES

How did/will you spend your marketing budget?Budget Allocation

Over the past three years we have asked respondents to tell us how they spent their previous year’s marketing budget and how they plan to spend it in the coming year (to an enforced total of 100%). In 2012, we added the option lead nurturing and lead management program (including marketing automation) and, in this year’s questionnaire, we added content development.

In interpreting this graph, bear in mind that these new categories may have been represented amongst other categories in previous years. For example, spend on content development may have been allocated to PR or digital marketing in earlier years.

The gap between spend on digital marketing and traditional demand generation activity is expected to further close. In 2012, the differential was 12% but in 2013 it is expected to narrow to 4%. This is on track to fulfil our prediction last year that expenditure on digital marketing will overtake traditional tactics in 2014.

And to fuel this digital direction, marketers are planning to invest about $1 in $7 on developing content for their target audience. We expect this will include thought leadership papers, videos, sales collateral, social media content and well as website content.

Key FindingSpend on digital marketing is closing in on traditional demand generation and – as predicted last year – is on track to exceed it in 2014.

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B2B Marketing Outlook Australia 2013

More expenditure on OutboundSimilar expenditure on both More expenditure on Inbound

22%

43%

35%

35%

31%

34%

Spent in2012

Will spend in2013

2.0 research results

2.4 MARKETING CHANNELS

In comparing Inbound (pull marketing) versus Outbound (push marketing) tactics, how did/will you spend your marketing budget?

Inbound versus Outbound Marketing

In 2012, expenditure on outbound marketing exceeded that on inbound marketing. However, companies plan to spend more on inbound in 2013 – indicating that an important turning point has being reached.

This finding is supported by growth trends in content development, social media and arguably Public Relations.

Key FindingInbound marketing ‘breaks the line’ with a higher proportion of B2B marketers expecting to spend more on inbound than outbound marketing in 2013.

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B2B Marketing Outlook Australia 2013

0% 10% 20% 30% 40% 50% 60%

Other

2013

20112012

Creator/publisher of blogs and online content

Commentator/participator in discussions but generally do not create

Joiner/member of groups but generally do not participate

Monitor/consumer of content but generally do not become member

Inactive

2.0 research results

2.6 SOCIAL MEDIA MARKETING

Which of the following best describes your organisation’s involvement in social media?Social Media Engagement

Participation in social media is increasing – only 15% are now inactive, compared with 23% in both 2012 and 2011, although the number ‘watching from the fence’ has stayed much the same at around one in ten. Over half (52%) of companies are now actively creating/publishing of blogs, tweets and online content – with Information companies being the most active industry sector (65%).

Key FindingThe majority of B2B marketers (52%) now say their organisations are engaged in social media as publishers or creators of social media content.

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B2B Marketing Outlook Australia 2013

For further information on this research, please contact the report authors: Melbourne Level 1, 39 Burwood Road, Hawthorn, VIC 3122 Phone +61 3 9290 9777

Sydney: Level 7, 33 Chandos Street, St Leonards, NSW 2065 Phone +61 2 9947 1220

www.green-hat.com.auemail: enquiries@green-hat.com.au LinkedIn: linkedin.com/company/green-hatTwitter: @greenhatmktg

Andrew HausseggerManaging Directorandrewh@green-hat.com.au linkedin.com/in/andrewhaussegger +61 3 9290 9777

Caroline LeslieHead of Content & Communicationscarolinel@green-hat.com.au linkedin.com/in/carolineleslie+61 3 9290 9777