ITSMA Budget Study 2017 Abbreviated Summary

2017 Services Marketing Budget Allocations and TrendsJulie Schwartz Senior Vice President, Research and Thought Leadership, ITSMA

ABBREVIATED SUMMARY

This abbreviated summary highlights some of the most significant findings of ITSMA’s 2017 Services Marketing Budget Allocations and Trends. A more in-depth analysis can be found in the full report:http://www.itsma.com/research/2017-services-marketing-budget-allocations-trends-study/.

http://www.itsma.com/research/2017-services-marketing-budget-allocations-trends-study/

22017 Services Marketing Budget Allocations and Trends Abbreviated Summary | January 2017 | B028A © 2017 ITSMA. All rights reserved. www.itsma.com

Changing technology and buyer behavior continue to put pressure on marketing to transform.

Customer acquisition

The total customer

experienceAdoption

Retention

Expansion

Marketing transformation is progressing

Report an expansion in marketing’s scope Source: ITSMA, 2017 Services Marketing

Budget Allocations and Trends (N=46)

80%

2017 Services Marketing Budget Allocations and Trends delivers a detailed look at the changing state of the services marketing profession. It provides data on services marketing budgets, budget allocations, and marketing priorities from 46 companies across a range of technology and professional services industries.

Marketers today overemphasize customer acquisition.

Marketers must expand their role to address the entire customer engagement lifecycle.



32017 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2017 | B028A © 2017 ITSMA. All rights reserved. www.itsma.com

Services marketing budgets are reaching new heights in 2017 as companies continue to invest in new areas of growth and the ongoing transformation of marketing itself. Growth in marketing spending will lag projected growth in services revenue, however.

What is the size of your annual worldwide services marketing budget as a percentage of services revenue? % of services revenue spent on marketing

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017

1.51.3

1.5

0.8

1.41.2 1.2

1.01.2

1.41.6

1.7

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(est)

2017 B2B Services Marketing Budget Growth:

4.4%

2017 B2B Services Marketing Revenue Growth:

10.8%




Digging deeper into the data reveals the Great Marketing Divide between growth leaders and laggards. Among the growth leaders, a majority of organizations are increasing marketing spending and staff, while only about one third of the laggards are similarly increasing marketing spending and staff.

Higher 41

Significantly higher 4

Lower 28

About the same 26

FY2016 Revenue Growth %

1.8%*

14.6%*

* Indicates a statistically significant difference.Source: ITSMA, 2017 Services Marketing Budget Allocations and Trends

Growth leaders

Laggards

How would you characterize revenue growth compared to your closest competitors?% of respondents(N=46)

FY2017 % decreasingmarketing budget

32%

5%

FY2017 % increasingstaff

36%*

62%*




The growth leaders provide a comprehensive roadmap for marketing transformation.Strategic growth driver• Contribute market and customer

insight to fuel business strategy and innovation

• Shape new offerings and positioning

Relationship builder• Emphasize customer experience,

success, and advocacy• Accelerate sales with executive

engagement• Optimize investments in ABM

Agile executor• Invest in new skills, organizational

models, and ways of working• Build an integrated digital

marketing infrastructure• Use data and analytics to improve

marketing agility and business impact

* Indicates a statistically significant difference.Source: ITSMA, 2017 Services Marketing Budget Allocations and Trends (N=46)

Marketing brings insight and innovation to the business% of respondents agree

67%*

Laggards

Growth leaders

36%*

Account-based marketing (ABM) is a top 5 priority for 2017% of respondents

48%*

20%*

% of FY2016 marketing budget allocated to Marketing Technology & Tools

11% 4%

Growth leaders

Laggards

Laggards

Growth leaders



62017 Services Marketing Budget Allocations and Trends Abbreviated Summary | January 2017 | B028A © 2017 ITSMA. All rights reserved. www.itsma.com

How to bridge the great marketing divide

• Use data and insight to change the perception of marketing

• Grow marketing’s strategic position

• Break down silos; create cross-functional teams

• Build a marketing operations competency

And if you are a marketing growth leader, how to take your marketing to the next level• Lead customer success/customer experience• Orchestrate a true omnichannel approach• Focus on the “new” art of marketing

• Visual storytelling• Transmedia• Virtual reality/experiential marketing

• Explore artificial intelligence (AI) and machine learning


52

46

41

33

30

26

24

24

24

22

Brand/reputation management/differentiation

Lead generation, management, and nurturing

Marketing performance management

Account-based marketing (ABM)

Digital and social media marketing

Thought leadership development and disseminationMarketing organization restructuringMarketing technology and automation systemsSales and marketing alignmentCross-divisional/centralized mkt programs and messaging

Digitalmarketing

Offlinemarketing

Additional research highlights

Source: ITSMA, 2017 Services Marketing Budget Allocations and Trends

People and program marketing budget allocationWhat percentage of the marketing budget was people spend vs. marketing program spend?Mean % of services marketing budget

FY2016 (N=39)

Program spend

Peoplespend

FY2017 (est.) (N=38)

50% 50% 48% 52%

How do you anticipate your Digital and Offline Marketing spend changing in FY2017?% of respondents(N=44)

71

23

-2

-32 Increasing spendDecreasing spend

Changes in the digital and offline marketing budgets

Status of account-based marketing

46%

26%

26%

Yes

No, but we are planning to implement in the next 1 to 2 years

No

2% | Don’t know

How do you anticipate your account-based marketing spend changing in FY2017 compared to FY2016?% of respondents (N=21)

Are you currently doing account-based marketing (ABM) as defined by ITSMA?% of respondents (N=46)

57 10 33

Increase Decrease Stay the same

As you look ahead to 2017, which of the following would you say are your top five marketing priorities?% of respondents(N=46)

2017 top 10 marketing priorities

Note: Up to five responses allowed.



41%

28%

9%

7%

4%4%

7% Professional services firm

Software solutions provider

Network systems and solutions provider

Other hardware systems and solutions

Computer systems and solutions provider

Telecommunications services provider

Other

How large is your services business?

11 13 117

20

39

Less than$100M

in servicesrevenue

$100–249Min services

revenue


revenue


revenue

$1–5Bin services

revenue

Greater than$5B

in servicesrevenue

Methodology and demographicsWeb-Based Survey

December 2016 through January 2017

Survey respondents46

Company’s sales model

Respondents’ perspective

46 companies represented

54%46%

A specific business unitor division

Entire company

Three types of data analysis: • By performance• By size of company• By type of company

Which of these categories best describes your industry subsector?

Source: ITSMA, 2017 Services Marketing Budget Allocations and Trends | % of respondents (N=46)

82017 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2017 B028A © 2017 ITSMA. All rights reserved. www.itsma.com

63%

33%

4%

Sell services primarily through a direct sales force

Sell services through a mix of direct sales and channel partners

Sell services primarily through channel partners



Want to learn more?

For more information

Here’s what is included in the full study:

Julie SchwartzSenior Vice President Research and Thought [email protected] +1 781 862 8500, x112

The full report is available at no additional fee to ITSMA member companies that participated in the study. Non-member companies that participated in the study are eligible to receive an Executive Summary. For non-participating companies, this report is available for sale at member and non-member prices. http://www.itsma.com/research/2017-services-marketing-budget-allocations-trends-study/

SlideExecutive summary 3Survey methodology and demographics 22Size of the marketing budget 32Marketing staffing 40Services marketing budget allocation 49Content & communications budget allocation 54Digital and offline marketing budget allocation 57Event marketing budget allocation 60Marketing technology & tools budget allocation 65Account-based marketing budget and spending plans 70Marketing tactics 75Marketing priorities and challenges 79Marketing organization perception and scope 84Crosstabs

By performance 89By size of company 134By type of company 179

Appendix: ITSMA budget taxonomy and definitions used in this report 224

http://www.itsma.com/research/changing-landscape-customer-engagement-buyers-consume-information-2016/



ITSMA Budget Study 2017 Abbreviated Summary

Marketing

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