the b2b digital marketing shift

The B2B Digital Marketing Shift

(Presentation of results for a commissioned study conducted by Forrester Consulting on behalf of American Business Media)

2Entire contents © 2005 Forrester Research, Inc. All rights reserved.

Agenda

• What do B2B marketers believe are the most effective marketing vehicles?

• How effective are online marketing vehicles?

• How is the B2B marketing mix changing?


Survey Background

• American Business Media commissioned Forrester Consulting to conduct a survey of B2B marketers

• Survey fielded July – August 2005 to a screened subset of members of eRewards panel

• 867 responses across a wide range of industries and titles

Click here for more on the survey methodology


DefinitionsWhen the respondents completed the survey, they used the following definitions:

• Business-to-business / trade marketing efforts: targeting large, small, or medium-sizedcompanies, small offices or home offices, retailers, wholesalers, or distributors

• General business magazines and newspapers: publications that cover broad business issues and economic topics (e.g., Wall Street Journal, Business Week, Forbes, etc)

• Industry-specific / trade magazines (business-to-business/trade): publications that focus on news and trends affecting a specific industry (e.g., Progressive Grocer, Medical Economics)

• Web-based events: product demonstrations, briefings, or presentations on clients, product/services, and/or industry topics conducted for customers and/or prospects on the Internet using services like Webex, etc.

• In-person events: trade shows, conferences, product demonstrations, or presentations on industry topics conducted for customers and/or prospects held in-person at a hotel or other meeting facility.

• Online marketing: e.g., ads, search, email, directories, and sponsored Web content.

In the course of this presentation, we use these additional terms:

» Online advertising: e.g., search, ads, and content sponsorship on Web sites.

» Other online marketing: e.g., Web-based events, email lists, and online directories.

» Marketing communications: e.g., public relations, custom publications, printed newsletters


Key findings – B2B Marketing Mix

• Industry-specific marketing opportunities of all kinds (trade shows, magazines, web sites) are viewed as more effective than general business magazines or web sites.

» The most effective branding vehicles include in-person events and industry specific magazines. Online is as effective at branding as general business magazines and TV.

» The most effective lead generation vehicles include in-person events, industry specific magazines, and online marketing.

• Fewer marketers will use general business magazines, direct mail, and newspapers, and those using these media will only minimally increase spending, implying a shift of marketing budget allocation toward digital media.

• 48% of B2B marketers use online marketing today, and spend 24% of their budget online


29.9%

31.8%

37.4%

37.9%

39.0%

39.7%

39.8%

42.9%

44.6%

50.2%

51.7%

60.9%

Printed directories

Radio

Newspapers

General business magazines

Printed newsletters

Direct mail

Online marketing

TV

Custom publications

Industry-specific / trade magazines

Public relations

In-person events

Industry-Specific Vehicles Are Most Effective For Branding

“How effective are the following marketing tactics at building brand image?”

(Base: 867 US B2B marketers; Source: Forrester Consulting Survey for ABM)

(On a scale of 1 to 6, 1 being “very ineffective” and 6 being “very effective,” the chart reflects the percentage selecting 5 or 6)

Online is as effective asTV, general

business magazines,

and newspapers

Confidence interval: + / – 3.3 percentage points


30.7%

31.7%

33.3%

34.6%

35.3%

36.3%

41.3%

42.0%

42.1%

45.4%

47.4%

62.6%

Radio

Printed directories

Newspapers


Printed newsletters

TV

Custom publications

Direct mail

Online marketing

Public relations


In-person events

Industry-Specific Vehicles Are Most Effective For Lead Generation

“How effective are the following marketing tactics at generating qualified leads?”


(On a scale of 1 to 6, 1 being “very ineffective” and 6 being “very effective,” the answers reflect a combination of 5 and 6)

Online is more effective thanTV, general

business magazines, and

newspapers

Confidence interval: + / – 3.3 percentage points


2005 B2B Marketing Spending


Industry-specific/trade magazines are viewed as more effective than general publications, but receive a smaller share of budget.

Events15%

Direct Mail9%

General publications

12%Marketing

communications 16%

TV and radio15%

Directories3%

Other2%

Online12%

Company web site9%

Trade magazines

7%


2005 B2B Online Marketing Spending

Web Events9%

Email lists8%

Industry specific sites37%

General sites40%

Online Directories6%

(Base: 406 US B2B marketers using online in 2005; Source: Forrester Consulting Survey for ABM)

Percent of 2005 Online Marketing budget by tactic

General sites includes portals such as Yahoo!, search sites such as Google, and general business sites such as Forbes.com

Industry-specific/trade sites are viewed as more effective than general sites, but receive a smaller share of budget.


Almost Half Of B2B Marketers Are Using Online Marketing


“Which of the following B2B / trade marketing tactics has your company used in 2004 and/or 2005? Which will you use in 2008?”

26.8

35.3

43.5

46.9

41.3

37.7

41.4

45.8

45.4

56.2

48.7

60.2

24.8

33.0

35.1

35.6

38.6

41.6

44.1

44.1

48.3

48.7

54.6

60.8

Printed directories

Radio

Printed newsletters

Newspapers


Public relations

TV

Custom publications

Industry-specific/trade magazines

Direct mail

Online marketing

In-person events

20082004/5


Online Marketers Have Already Shifted 24% of the Budget to Online

6.18

18.17

1.83

2.18

5.70

4.20

3.31

3.37

4.52

10.09

5.82

5.06

7.42

7.77

14.37

0.00

0.17

1.83

2.81

4.25

5.80

6.44

6.75

7.73

8.22

8.58

8.98

9.90

12.20

16.34

Other Online Marketing

Online Advertising

Other*

Printed directories

Public relations

Radio

Printed newsletters


Custom publications

Your company’s Web site*


Newspapers

Direct mail

Television

In-person events

Offline marketersOnline marketers

“Using your best estimate, what percent of your business-to-business/trademarketing budget was spent on each of the following marketing tactics in 2005?”


Note: Offline marketers are defined as those who indicated they are not using any online marketing vehicles in 2004 or 2005.*Adjusted for offline marketers.


3.46

3.49

3.79

3.80

4.02

4.10

4.14

4.16

4.39

4.50

4.60

5.18

1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00

Newspapers


Direct mail

Custom publications

Printed newsletters


Online advertising

Other online marketing

Public relations

In-person events

TV

Your company’s Web site

Online Marketing Will Be More Important Than Direct Mail and General Business Magazines

“How much of a role will the following marketing tactics play in your B2B/trade marketing budget in 2008?”


(Mean rating on a scale of 1 to 6, 1 being “experimental role” and 6 being “major role”)

Experimental role Major role


Discussion Points

• What is your mix of industry-specific vs general business marketing vehicles?

• How important is online marketing in your plans? What role does it play currently?


Appendix

1. Study Objective and Methodology

2. Marketing Goals

3. Online Marketing Data by BIN


Appendix 1 – Study Objectives And Methodology


ObjectivesAs digital marketing becomes more mainstream, ABM members wonder how

it will impact their business. But most research on digital marketing only addresses consumer marketing, not B2B. ABM engaged Forrester Consulting for an independent analysis of the trends in B2B digital marketing spend across 21 categories of B2B marketers.

Specifically, the project addressed the following questions:

• What percent of marketing spend do B2B marketers allocate to digital media?

• What is the value proposition of digital marketing and how big a role will it play in the future?

• What are the perceived strengths and weaknesses of each element of the B2B marketing mix?

• How will spending on digital marketing change in the next three years and where will the money come from?

• For each of the 21 categories of B2B marketers, what percentage of the budget is currently being spent on digital media and how important will digital media become in the next three years?


Methodology

• Forrester developed research and screener questions for an online survey jointly with the American Business Media to address the current and future state of business-to-business digital marketing.

• Forrester fielded screener questions to a predetermined portion of the eRewards panel to identify qualified respondents.

• Membership into the eRewards panel is by invitation only. Potential panelists can request an invitation through an eRewards sponsor (i.e., American Airlines, Hilton, Hertz, etc.). Once the potential panelist completes an online profile and the request is accepted, panelist will then receive a notification via email.

• Members can earn up to $1 in e-Rewards for each e-mail they receive, and much more for providing their opinions on periodic research surveys. Once sufficient currency has been accumulated, members can then redeem their e-Rewards for rewards from companies like American Airlines, BLOCKBUSTER, Hertz, Hilton, IBM, Omaha Steaks, and e-Bags.

• There are over a half million active business panelists.

• Forrester fielded the entire survey (including screeners) to qualified eRewards panelists and received a total of 867 respondents within 21 various industry areas.

Click here to return to the presentation


Appendix 2: Respondent data


23.4%

31.1%

18.7%

5.3%

4.7%

16.7%

Less than $500,000

$500,000 to less than $5 million

$5 million to less than $15million



$30 million or more

Respondents By 2005 Marketing Budget

(Base: 867 B2B US marketers; Source: Forrester Consulting Survey for ABM)


Respondents By Company Revenue

38.2%

19.8%

9.0%

16.3%

16.7%

Less than $100 million

$100 million to less than$500 million

$500 million to less than$1 billion

$1 billion to less than $10billion

$10 billion or more



Respondents By Title

6.6%

9.6%

15.9%

8.1%

17.6%

7.0%

11.3%

6.9%

17.0%

Individual contributor to Marketing orAdvertising

Manager of Sales

Manager of Marketing, OnlineMarketing, or Advertising

Director of Sales

Director of Marketing, OnlineMarketing, or Advertising

VP of Sales

VP of Marketing or Advertising

CMO or direct report to CMO

President or CEO



Appendix 3 – Marketing Goals

• One survey question presented respondents with a list of 12 specific marketing goals and asked them to pick the best medium from each from the following list of advertising choices:

» General business publications

» Industry-specific publications

» General business Web sites

» Industry-specific Web sites

» Your company’s Web site

» None of the above

• The following page lists the 12 marketing goals


• The best medium to reach decision makers

• The best medium to reach senior executives that approve purchases

• The best medium to reach other purchase influencers

• The best medium to reach the highest percentage of prospects for my company’s products/services

• The best medium to raise awareness of my company’s products and services

• The best medium to enhance the credibility of my company’s products/services

• The best medium to reach highly involved users/readers

• The best medium in terms of the frequency the audience reads/uses it

• The best medium in terms of users’/readers’ level of trust in the content

• The best medium to generate the most qualified leads

• The best medium to generate the highest number of leads

• The best medium for ROI

Review the statements below and indicate which advertising option, if any, in your opinion best matches the statement


Appendix 4 – Online Marketing Data by BIN


B2B Marketing Profile -- Architecture


46.7%

56.7% 13.3%

26.7%

30.0%

23.3%2004

2005

B2B Marketing Profile -- ArchitectureRespondent Profile - Annual Revenues

$100 million to less than $1 billion

30%

$1 billion to $10 billion or more

17%

Less than $100 million53%

Less than $1 million $1 million to $10 million More than $10 million

Marketing Spend

Base: N= 30 Source: Forrester Consulting Survey for ABM


B2B Marketing Profile – Architecture

Base: N=30 Source: Forrester Consulting Survey for ABM

2005 Budget Allocation

General business magazines 10.8%

Custom publications7.4%

Industry-specific/trade magazines 6.7%

Direct mail6.3%

Online marketing 11.3%

In-person events10.5%

Other7.3%

Radio6.3%

P rinted newsletters6.4%

P ublic relations4.6%

TV11.5%

P rinted directories0.8%

Newspapers10.1%


B2B Marketing Profile -- Architecture

Marketing tactics% of 2005

budget

% of respondents increasingmarketing spend by more

than 5% in 2008

% using this marketing tactic

2008

2004/5Base: N= 30

Source: Forrester Consulting Survey for ABM


B2B Marketing Profile -- Automotive


43.80%

37.50% 25.00%

34.40%

37.50%

18.80%2004

2005

B2B Marketing Profile -- AutomotiveRespondent Profile - Annual Revenues


25%


34%



Marketing Spend



B2B Marketing Profile – Automotive

Base: N=32Source: Forrester Consulting Survey for ABM



4.0%

Custom publications

6.4%


7.6%

Direct mail

6.1%

Online marketing

17.2%

In-person events

9.2%

Other

4.5%

Radio

12.7%

Printed newsletters

1.9%

Public relations

3.9%

TV

16.8%

Printed directories

1.2%

Newspapers

8.6%


B2B Marketing Profile –Automotive


budget


than 5% in 2008


2008

2004/5Base: N= 32



B2B Marketing Profile – Aviation



35.90%

28.20% 35.90%

23.10%

35.90%

38.50%2004

2005

B2B Marketing Profile -- AviationRespondent Profile - Annual Revenues


28%


39%



Marketing Spend

Base: N= 39Source: Forrester Consulting Survey for ABM


B2B Marketing Profile -- Aviation





Direct mail4.9%



Other10.5%

Radio3.0%



TV5.0%


Newspapers2.5%


B2B Marketing Profile -- Aviation


budget


than 5% in 2008


2008

2004/5Base: N= 39



B2B Marketing Profile – Banking, Finance & Insurance


36.20%

27.70% 44.70%

19.10%

27.70%

42.60%2004

2005


Respondent Profile - Annual Revenues


32%


34%



Marketing Spend









Direct mail10.5%



Other10.4%

Radio3.8%

Printed newsletters6.9%

Public relations3.0%

TV11.1%

Printed directories1.8%

Newspapers16.7%


B2B Marketing Profile -- Banking, Finance & Insurance


budget


than 5% in 2008


2008

2004/5Base: N= 47



B2B Marketing Profile – Building, Design & Construction


40.00%

37.80% 40.00%

20.00%

22.20%

40.00%2004

2005




47%


18% Less than $100 million36%


Marketing Spend








Direct mail9.6%



Other9.3%


Radio2.8%



TV10.2%


Newspapers6.2%


B2B Marketing Profile –Building, Design & Construction


budget


than 5% in 2008


2008

2004/5Base: N=45



B2B Marketing Profile – Business, Advertising and Marketing


43.60%

41.80% 40.00%

10.90%

18.20%

45.50%2004

2005

B2B Marketing Profile – Business, Advertising and Marketing



24%


22%



Marketing Spend



B2B Marketing Profile – Business, Advertising & Marketing






Direct mail11.1%



Other4.8%

Radio5.2%



TV9.9%


Newspapers7.7%


B2B Marketing Profile -- Business, Advertising & Marketing


budget


than 5% in 2008


2008

2004/5Base: N= 55 Source: Forrester Consulting Survey for ABM


B2B Marketing Profile -- Computing


35.00%

16.70% 43.30%

31.70%

40.00%

30.00%2004

2005

B2B Marketing Profile -- ComputingRespondent Profile - Annual Revenues


18%


47%



Marketing Spend



B2B Marketing Profile – Computing






Direct mail7.5%



Other6.7%

Radio4.8%



TV9.5%


Newspapers8.4%


B2B Marketing Profile -- Computing


budget


than 5% in 2008


2008

2004/5Base: N= 69



B2B Marketing Profile – Electric Engineering


24.20%

30.30% 36.40%

30.30%

33.30%

45.50%2004

2005

B2B Marketing Profile – Electric EngineeringRespondent Profile - Annual Revenues


42%


30%



Marketing Spend



B2B Marketing Profile – Electric Engineering



Custom publications1.6%Industry-specific/trade magazines

8.1%

Direct mail4.5%



Other12.1%


Radio3.2%



TV17.7%


Newspapers6.3%


B2B Marketing Profile -- Electric Engineering


budget


than 5% in 2008


2008

2004/5Base: N= 33



B2B Marketing Profile -- Government


25.70%

25.70% 37.10%

22.90%

37.10%

51.40%2004

2005

B2B Marketing Profile -- GovernmentRespondent Profile - Annual Revenues


31%


34%



Marketing Spend



B2B Marketing Profile – Government






Direct mail6.7%



Other4.5%

Radio5.1%



TV13.7%


Newspapers11.9%


B2B Marketing Profile -- Government


budget


than 5% in 2008


2008

2004/5Base: N= 35



B2B Marketing Profile -- Healthcare


42.90%

39.30% 33.90%

23.20%

26.80%

32.10%2004

2005

B2B Marketing Profile -- HealthcareRespondent Profile - Annual Revenues


34%


32%



Marketing Spend



B2B Marketing Profile – Healthcare






Direct mail12.2%



Other5.3%

Radio9.3%



TV18.7%


Newspapers10.1%


B2B Marketing Profile -- Healthcare


budget


than 5% in 2008


2008

2004/5Base: N= 56



B2B Marketing Profile – Manufacturing & Processing


42.10%

31.60% 22.80%

42.10%

45.60%

15.80%2004

2005




23%


56%



Marketing Spend









Direct mail8.3%



Other2.6%

Radio1.8%



TV9.2%


Newspapers6.4%


B2B Marketing Profile -- Manufacturing & Processing


budget


than 5% in 2008


2008

2004/5Base: N=57



B2B Marketing Profile – Movies, Radio & TV


20.00%

23.30% 43.30%

20.00%

33.30%

46.70%2004

2005

B2B Marketing Profile – Movies, Radio & TVRespondent Profile - Annual Revenues


33%


30%



Marketing Spend



B2B Marketing Profile – Movies, Radio & TV






Direct mail4.3%



Other2.4%

Radio6.9%



TV18.6%


Newspapers9.3%


B2B Marketing Profile -- Movies, Radio & TV


budget


than 5% in 2008


2008

2004/5Base: N= 30



B2B Marketing Profile – Pharmaceuticals


35.50%

29.00% 29.00%

48.40%

41.90%

16.10%2004

2005

B2B Marketing Profile – PharmaceuticalsRespondent Profile - Annual Revenues


26%


45%



Marketing Spend



B2B Marketing Profile – Pharmaceuticals






Direct mail13.0%



Other4.6%

Radio1.3%



TV8.5%


Newspapers2.4%


B2B Marketing Profile -- Pharmaceuticals


budget


than 5% in 2008


2008

2004/5Base: N=31



B2B Marketing Profile – Professional Services


46.40%

42.90% 26.80%

19.60%

30.40%

32.10%2004

2005

B2B Marketing Profile – Professional ServicesRespondent Profile - Annual Revenues


29%


23%



Marketing Spend



B2B Marketing Profile – Professional Services





Direct mail7.9%



Other4.4%


Radio2.8%



TV3.2%


Newspapers3.8%


B2B Marketing Profile -- Professional Services


budget


than 5% in 2008


2008

2004/5Base: N=56



B2B Marketing Profile – Resources


20.00%

23.30% 43.30%

40.00%

33.30%

40.00%2004

2005

B2B Marketing Profile – ResourcesRespondent Profile - Annual Revenues


43%


40%



Marketing Spend



B2B Marketing Profile – Resources






Direct mail6.2%



Other5.4%

Radio3.2%



TV9.5%


Newspapers5.2%


B2B Marketing Profile -- Resources


budget


than 5% in 2008


2008



B2B Marketing Profile – Restaurant


53.30%

50.00% 26.70%

23.30%

23.30%

20.00%2004

2005

B2B Marketing Profile – RestaurantRespondent Profile - Annual Revenues


30%


20%



Marketing Spend



B2B Marketing Profile – Restaurant






Direct mail11.2%



Other4.8%

Radio6.8%



TV8.1%


Newspapers5.5%


B2B Marketing Profile -- Restaurant


budget


than 5% in 2008


2008

2004/5Base: N= 30



B2B Marketing Profile – Retail Services


15.80%

24.60% 29.80%

45.60%

45.60%

38.60%2004

2005

B2B Marketing Profile – Retail ServicesRespondent Profile - Annual Revenues


18%


44%



Marketing Spend









Direct mail14.0%



Other5.3%

Radio6.4%

Printed newsletters6.7%Public relations

4.2%

TV6.4%


Newspapers2.9%




budget


than 5% in 2008


2008

2004/5Base: N= 57



B2B Marketing Profile – Science and R&D


34.30%

31.40% 45.70%

14.30%

22.90%

51.40%2004

2005

B2B Marketing Profile – Science and R&DRespondent Profile - Annual Revenues


31%


26% Less than $100 million43%


Marketing Spend



B2B Marketing Profile – Science and R&D






Direct mail8.2%



Other1.9%

Radio4.2%



TV4.7%


Newspapers4.8%


B2B Marketing Profile -- Science and R&D


budget


than 5% in 2008


2008

2004/5Base: N=35



B2B Marketing Profile – Transportation


44.90%

40.80% 28.60%

28.60%

30.60%

26.50%2004

2005

B2B Marketing Profile – TransportationRespondent Profile - Annual Revenues


25%


33%



Marketing Spend



B2B Marketing Profile – Transportation





Direct mail10.8%



Other3.1%

Radio5.9%



TV8.9%


Newspapers6.3%Industry-specific/trade magazines

9.6%


B2B Marketing Profile -- Transportation


budget


than 5% in 2008


2008



B2B Marketing Profile -- Travel


43.30%

26.70% 40.00%

30.00%

33.30%

23.30%2004

2005

B2B Marketing Profile -- TravelRespondent Profile - Annual Revenues


37%



30%


Marketing Spend



B2B Marketing Profile – Travel






Direct mail4.6%



Other4.2%

Radio6.8%



TV7.6%


Newspapers5.4%


B2B Marketing Profile -- Travel


budget


than 5% in 2008


2008

2004/5Base: N= 30


the b2b digital marketing shift

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