What Works Where in B2B Digital Marketing [2011]

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The 2011 edition of our annual 'What Works Where' research. The 2012 edition will be released shortly, but until then the statistics and insights here are still very useful.

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What Works Where in B2B Digital Marketing [2011]

  1. 1. DIGITAL BRAND ENGAGEMENTWhat works wherein B2B?Digital benchmarking researchApril 2011In association with The Marketing Society and Circle Research. #wwwb2b
  2. 2. What works where in B2B? 15 April 2011 Page 2 of 35IntroductionWhile case studies abound for consumer- We hope it will be of value to marketers in 3 So whilst the survey reflects the establishedcentric digital marketing, a constant cry specific ways: practice – is that enough in a day and agefrom the business to business marketing when audience engagement is all important?community is how difficult it is to findout what others are doing. Perhapsunsurprisingly, as so much B2B activity 1 F irst it allows you to benchmark your own activities against the norm. Select your own marketing priorities from the list and Marketers are following established lines but perhaps it’s time to challenge the received wisdom and think about things differently.is select in its targeting. As a result, it’s compare your own expenditure in timehard to know whether you are doing and money against what others are doing. We look forward to continuing the debate andthe right thing, or whether there is Are you underspending in key areas? Are knowledge share during 2011. Later in the yearsomething else that might work better. your activities far more time consuming an online version will go live which will allow or costly than others find them? you to input your own data to gainWith this in mind, Omobono has partnered a comparative benchmark.with The Marketing Society and Circle Reseachto develop a collective understanding of whatB2B marketers really think of digital – how 2 S econd, it highlights the areas which B2B marketers are finding the most cost effective and some which aren’t. It’s an opportunity To share your views in the meantime please join us on #wwwb2b.are they using it and how well is it working? to reflect and reconsider whether some activities should be scaled up – or down – toResults are based on responses from senior level really maximise the impact of your budget.marketers with budget and strategic responsibilityfor some £33 million. With over 60% of therespondents coming from large organisations,including some of the UK’s largest energy, 3 T hird, it opens up a debate. Despite the increasing use of social media and the presence of other methods of audiencetelecoms, IT and financial services companies engagement, marketers are primarily usingthis is an authoritative view of what works where. digital to push their messages, regardless of whether this is what people want from them. In short, it would seem that although channels have changed, behaviours haven’t.
  3. 3. Survey objectivesThe research set out with three specific objectives:• hich marketing goals are the highest priority for W B2B marketers?• ow are the time and money dedicated to B2B H digital marketing allocated amongst digital marketing channels?• Which digital marketing channels are the best means to achieve marketing goals?
  4. 4. What works where in B2B? 15 April 2011 Page 4 of 35Q: What matters in B2B marketing? Q: What is the highest B2B marketing priority for your organisation over the next 12 months? Ensure organisation is living the brand (0%) Raise brand awareness Deepen customer (26%) Other (4%) relationships Strengthen ‘thought (36%) leadership’ position (7%) Deepen understanding Launch a of target market new product Develop or service (10%) brand positioning (9%) (9%)A: Making sure you have a deep relationship with your customers and increasing the profile of your company. Highest priority
  5. 5. What works where in B2B? 15 April 2011 Page 5 of 35Thought leadership and brand positioning are Q: What are the three highest B2B marketing priorities forimportant secondary priorities your organisation over the next 12 months? Highest priority Second highest priority Third highest priority 4% 36% 26% 10% 9% 9% 7% 0% 1% 29% 6% 14% 16% 7% 23% 3% 0% 13% 16% 6% 23% 11% 19% 10% Other Deepen customer Raise brand Deepen Develop brand Launch a new Strengthen Ensure relationships awareness understanding positioning product or ‘thought leadership’ organisation of target market service position is living the brandIt may be no surprise that companies are notprioritising product launches in the present marketers are struggling with budget and resource issues, one of the impacts is that Are marketers strugglingeconomic climate - but given the importanceof building customer relationships and they simply cannot cover all the bases. But the upshot is that the marketing effort does to deliver joined upbuilding brand awareness it seems surprisingthat such low importance was given to living not join up the external and the internal. marketing which links Given the size of the organisations involvedthe brand. This highlights one of the first‘disconnects’ which we have identified as a we also found it interesting that brand top line objectives with awareness was so high on the list of priorities.result of the research. Perhaps, given that corporate behaviour?
  6. 6. What works where in B2B? 15 April 2011 Page 6 of 35Marketing priorities for larger companies % choosing as 1st priority % choosing as 1st - 3rd priority Significant increase on overall response 80% Significant decrease on overall response 43% 39% 43% 20% 14% Deepen customer Raising brand Deepen understanding relationships awareness of target marketQ: What are the three highest B2B marketing priorities for yourorganisation over the next 12 months?A breakdown of responses by company this was more important than the norm. set store by – perhaps because they knowsize revealed, as might be expected, that for that this in turn leads to success in the morelarger companies, brand awareness was less Perhaps there is a need for them to get their important objective to develop their clientof a priority than for smaller companies. particular light out from under the B2C bushel. relationships and thought leadership position.There was an interesting sub grouping of Finally, deepening understanding of the target Perhaps also it is only larger companies, withcompanies whose B2B operations were part market, remains a secondary (or tertiary) larger resources, who have the luxury ofof a B2C organisation however, for whom consideration which only the larger companies prioritising this objective.
  7. 7. What works where interms of channels?We looked first at what marketers were spending theirtime and money on.Overall, 3 channels take up more than half the time and money allocated todigital marketing – corporate website development, email marketing andsocial media – with 56% of the budget spent between them and 58% ofmarketing time.Search marketing (SEO and PPC combined) is responsible for 14% ofbudget allocated to digital, and 13% of time allocated to digital.Mobile marketing (site optimisation, SMS/MMS and apps) takes 4% of thebudget, and 5% of time.
  8. 8. What works where in B2B? 15 April 2011 Page 8 of 35Digital allocation by channel - budget Q: In the next 12 months, how do you expect to allocate your B2B digital marketing budget? Time Budget Website development (31.3%) Social Email media marketing (10.4%) (14.3%) Display PPC advertising (6.7%) (7.1%) Online SEO video/podcasts (7.1%) Extranet (7.3%) (3%) Affiliate SMS/MMS Microsite (2.5%) development (0.6%) (5.5%) Mobile optimisation Apps (1.8%) (1.5%) Other (0.9%)
  9. 9. What works where in B2B? 15 April 2011 Page 9 of 35Digital allocation by channel - time Q: In the next 12 months, how do you expect to allocate the time your organisation dedicates to digital? Other (1.6%) PPC Apps (3.9%) (2.1%) Extranet (2.3%) SMS/MMS (0.7%) Online SEO video/podcasts (8.8%) Affiliate Mobile optimisation (7.8%) (2.3%) (2.2%) Microsite development (6.3%) Display advertising (4.4%) Email marketing Social (15.8%) media (14%) Website development (27.9%) Time Budget
  10. 10. What works where in B2B? 15 April 2011 Page 10 of 35Digital allocation by channel - budget vs. time Time intensive Cost intensive Time Budget Affiliate (2.5% - 2.3%) Social media Microsite (10.4% - 14%) development (5.5% - 6.3%) Display advertising Mobile Online video/ (7.1% - 4.4%) optimisation podcasts (1.8% - 2.2%) (7.3% - 7.8%) SMS/MMS Website development Extranets (0.6% - 0.7%) (3% - 2.3%) Apps Email (31.3% - 29.7%)(1.5% - 2.1%) marketing (14.3% - 15.8%) PPC (6.7% - 3.9%) SEO (7.1% - 8.8%)Four channels are particularly time intensive in Three channels take a significantly larger share of The figures in this chart have been calculated using data accurate to 1dp. This approach has been adopted to establish the nuances inthat they take a greater share of time than of budget than time: PPC, display advertising and the data for comparison.budget: mobile apps, social media, SEO and development of extranets (possibly this is due tomobile optimisation. the costs involved in setting up sites which are often more complex from an IT perspective).
  11. 11. What works where in B2B? 15 April 2011 Page 11 of 35Digital allocation by channel - overall effectivenessQ: How effective are the following channels in achieving the marketing priorities? Website development Email Online video/ marketing Social media podcasts Microsites SEO Extranets Display PPC advertising Apps Affiliate Mobile optimisation SMS/MMS 29% 28% 20% 17% 24% 13% 53% 43% 29% 70% 64% 63% 68% 5% 12% 9% 11% 11% 19% 38% 47% 24% 26% 32% 37% 29%Effective Neutral Not effectiveFive channels are seen by more than half of Seven channels are seen as effective in achieving These low scores however reflect the niche naturemarketers as an effective channel for achieving marketing priorities by less than a third of B2B of these channels - they are seen as more effectivetheir marketing priorities: website development marketers: SMS/MMS; mobile optimisation; apps; for certain marketing goals than they(70%); email marketing (68%); social media (64%); PPC; development of extranets; display are for others.online video/podcasts (63%); development of advertising.microsites (53%).
  12. 12. What works wherewhen it comes to specificmarketing prioritiesAs might be expected, the perceived effectiveness of digitalchannels throws up some differences when they are assessedagainst individual marketing priorities.The same 3 channels take the lead in overall effectiveness as in budget and timeallocation, with online video, microsites and SEO also punching above their weight.For example, when the priority is deepening customer relationships, thedevelopment of extranets is seen as a more effective channel than it would be onaverage. Conversely SEO, PPC and display advertising are seen as significantlyless effective in achieving this goal. On the other hand, when the priority is raisingbrand awareness, SEO, PPC and display advertising are seen as more effectivechannels than they would be in general.In contrast, the development of microsites is seen as less successful in raising brandawareness than it is in general.
  13. 13. What works where in B2B? 15 April 2011 Page 13 of 35What works where for - specific marketing priorities advertising (17%) (65 %) On podc line ) Display 6% vid sts g (7 eo/ a tin ma ail advertising (18%) rke (24 Em %) (85 A pp %) s (15% On po ) ) SMS 9% Display lin dc /MM e v ast S g (7 ide s(20%) Mobile opti tin Deepening ma ail misati o/ on rke Em Social (59%) ffiliate customer media (24% (19%) A relationships ) Ap (3%) ps C (3%) Mo SMS % ) PP bile o /MM ptimisat S (19 ion Strengthening W (12%) Affiliate ) SE O de ebsi ‘Thought Social (82%) % ve te (12%) PPC media (30 lop m en Leadership’ ets t (6 3% position tran Microsites (61 SEO ) %) (42 Ex %) (37 ts ne W velo ra %) eb pm de xt )E sit sites e ent 0% (3 Micro (7 6% (64%) ) % of respondents selecting ‘effective’
  14. 14. What works where in B2B? 15 April 2011 Page 14 of 35What works where for - specific marketing priorities ) (72 ising (53% %) On podc line y Displa advert vid sts ) eo/ 6% a (28 %) (6 (67 ) tising (45% (13% A pp ail ting %) ) SM s Em arke On podc (16%) S/M m line Mob MS y ile op Displa timisa ) vid sts adver tion % 3 eo/ (21 (7 a (28%) Affiliate %) l ai etin g (12 Raising brand Social media (78%) %) SM A pp s Em ark m awareness (24% ) Mob S/M MS C ile op timisa % ) PP tion (53 W (18%) Affiliate Developing de ebs ve ite lo brand Social media (64%) positioning O pm PC 7%) P SE en (2 Micro t (7 (25%) Extranets %) 5% (75 ) sites ( O ) SE 38 % 55 W velo %) ( eb p de ets sit me e tran Microsites (52% Ex nt (8 %) 8% (24 ) ) % of respondents selecting ‘effective’
  15. 15. What works where in B2B? 15 April 2011 Page 15 of 35What works where for - specific marketing priorities ) (58 ising (37% %) On podc line y Displa advert vid sts ) (24%) % eo/ (26 9 a (7 g 4%) %) g ail etin Online vid A pp Em ark rtisin (1 (26% s ) SM m podcasts (19 S/M (14 adve y MS % ) la %) % eo/ )S Disp 3 (4 A (21%) M pp Mobile S/ (19 M l ai etin g s optimisation Launching a Social %) Mo bile M S Em ark (11%) Affili ate new product media (47%) opt imi sati m on C %) PP Deepen (42 (19%) Affiliate understanding of target W vel Social eb op EO de media (52%) sit m S market e en ets C %) PP 9%) Microsites (53%) tran (37 (1 t (8 ) Ex 4% O SE ) (11% ) % W velo (19 eb p de ets sit me e tran Microsites Ex nt (2 %) 9% (29 ) (33%) % of respondents selecting ‘effective’
  16. 16. What works where in B2B? 15 April 2011 Page 16 of 35What works where for - perceived effectiveness vs. budget Website development Email 75% marketing Social Online video/ media podcasts MicrositesEffectiveness Perceived 50% SEO Display advertising PPC Extranets Apps 25% Affiliate Mobile optimisation SMS/ MMS 0% Budget 25%Unsurprisingly, the three most effective Contrast this with PPC and display advertising, As the above chart demonstrates, therechannels are also the ones that receive channels which both receive 7% of marketing are some ‘niche’ channels that performthe most time and money. Interestingly, budgets, but are seen as effective in achieving extremely well, particularly given theironline video and development of microsites marketing priorities by less than a third of relative cost. These activities provide aare also seen as effective, but this is not B2B marketers (28% and 29% respectively). useful reminder to marketers to considerreflected in their share of digital marketing additional activities in addition to the big 3.budgets (7% and 6% respectively).
  17. 17. What works where in B2B? 15 April 2011 Page 17 of 35 What works where for - deepening customer relationships Q: How effective are the following channels in deepening customer relationships? Email marketing Online video/ Website podcasts development Microsites Social media Effective Extranets SEO Apps Mobile PPC optimisation Display Affiliate advertising SMS/MMS 30% 24% 19% 37% 20% 19% 17% 15% 63% 61% 59% 65% Neutral 76% 9% 13% 6% 9% 9% 22% 30% 37% 37% 43% 44% 22% 30% Not effective
  18. 18. What works where in B2B? 15 April 2011 Page 18 of 35What works where for - deepening customer relationshipsQ: In the next 12 months, how do you expect to allocate your B2B digital marketing budget?Q: How effective are the following channels in deepening customer relationships? Email marketing 75% Online video/ Website podcasts development Social media MicrositesEffectiveness 50% Perceived Extranets SEO Mobile Apps 25% Display PPC Affiliate optimisation advertising SMS/ MMS 0% Budget 25% When it comes to the things that work for to be less effective. It’s interesting however that deepening customer relationships, online email marketing – a push technique – is felt to be video, microsites and extranets are the best the most effective channel against this priority 50% in class. Social media also performs well. As and yet not for some of the more traditionally push might be expected, the traditional promotional objectives such as raising brand awareness. mechanisms (PPC, display and affiliate) are felt
  19. 19. What works where in B2B? 15 April 2011 Page 19 of 35 What works where for - raising brand awareness Q: How effective are the following channels in raising brand awareness? Social media Website SEO development Online video/ podcasts Email marketing Display PPC advertising Effective Microsites Affiliate Apps Extranets Mobile optimisation SMS/MMS 16% 38% 28% 25% 13% 28% 53% 53% 78% 75% 75% 72% 66% Neutral 3% 6% 3% 9% 9% 6% 9% 13% 19% 25% 22% 38% 22% Not effective
  20. 20. What works where in B2B? 15 April 2011 Page 20 of 35What works where for - raising brand awarenessQ: In the next 12 months, how do you expect to allocate your B2B digital marketing budget?Q: How effective are the following channels in raising brand awareness? Social Website media development Online video/ SEO podcasts 75% Email marketing Display advertising PPCEffectiveness 50% Perceived Microsites Affiliate Apps Extranets 25% Mobile optimisation SMS/ MMS 0% Budget 25% Social media tops the poll against this marketing Thereafter the more expected activities perform priority, reflecting how the world has changed in well, with the surprising finding that only half of recent years. It also confirms how far social media respondents felt that display advertising, the most 50% has established its role in B2B, an area which has obviously broadcast medium, was an effective traditionally lagged behind BC2 behaviours. channel for raising brand awareness.
  21. 21. What works where in B2B? 15 April 2011 Page 21 of 35 What works where for - strengthening ‘thought leadership’ position Q: How effective are the following channels in strengthening your thought leadership position? Online video/ podcasts Social media Email Website marketing development Microsites Effective SEO Extranets Apps Affiliate PPC Display Mobile advertising optimisation SMS/MMS 12% 12% 3% 30% 24% 42% 3% 76% 64% 18% 82% 79% Neutral 85% 3% 3% 3% 3% 3% 3% 3% 3% 3% Not effective
  22. 22. What works where in B2B? 15 April 2011 Page 22 of 35What works where for - strengthening ‘thought leadership’ positionQ: In the next 12 months, how do you expect to allocate your B2B digital marketing budget?Q: How effective are the following channels in strengthening your thought leadership position? Online video/ Social podcasts Email media Website marketing development 75% MicrositesEffectiveness 50% Perceived SEO Extranets Apps 25% Display advertising PPC Affiliate Mobile SMS/ optimisation MMS 0% Budget 25% Thought leadership was the mantra of 2010, and it podcasts and social media overall performed looks as if it will continue to be a key marketing particularly well in this respect. Email marketing objective for B2B marketers for the next 12 makes its habitual appearance, perhaps because it 50% months as well, as companies jockey for position is the mechanism which carries the deeper to be seen as expert in their respective fields. As content to the end user. might be expected, the use of online video and
  23. 23. What works where in B2B? 15 April 2011 Page 23 of 35 What works where for - developing the brand positioning Q: How effective are the following channels in developing your brand positioning? Website development Email Online video/ marketing podcasts Social media SEO Microsites Effective Display advertising PPC Extranets Mobile Affiliate optimisation Apps SMS/MMS 18% 24% 27% 18% 52% 24% 21% 64% 55% 67% 45% 73% Neutral 88% 6% 9% 6% 30% 3% 12% 9% 33% 36% 24% 39% 21% 21% Not effective
  24. 24. What works where in B2B? 15 April 2011 Page 24 of 35What works where for - developing the brand positioningQ: In the next 12 months, how do you expect to allocate your B2B digital marketing budget?Q: How effective are the following channels in developing your brand positioning? Website development Email marketing 75% Online video/ Social podcasts media SEO MicrositesEffectiveness Display 50% advertising Perceived PPC Mobile Extranets optimisation 25% Apps Affiliate SMS/ MMS 0% Budget 25% The final significant objective, developing the service. Whilst social media was not in the top 3 brand positioning, was the first time that for once, it also gained the lowest score for not corporate websites took the lead role, despite effective, whilst display advertising is seen as least 50% being perceived as the most effective digital effective by the most people with the exception of channel overall. Correspondingly websites mobile activities. Online video scores well again. performed best at launching a new product or
  25. 25. A word on mobile To our surprise, mobile (whether optimisation, apps or messaging) performed consistently badly in the survey. Some of this is understandable – the spend on the medium is low and so correspondingly is the time spent on it. Perceptions of effectiveness for something that isn’t a priority medium are understandable, but despite that, other niche activities have their moments of glory – or at least of effectiveness. Extranets perform well in terms of relationship building, online video waves the flag in terms of raising brand awareness and strengthening thought leadership. The mobile picture looks consistently underwhelming. And yet, the word on the street is that Smartphone adoption, 3G penetration and unlimited data plans have driven a surge of mobile media consumption across geographies and deepened the integration of mobile devices into everyday life1. We believe that in a year’s time the picture may be different, particularly given the predictions that by 2014 mobile internet will have taken over desktop internet usage2. Give us your view #wwwb2bSources: 1 - Gigacom - Mary Meeker: Mobile Internet Will Soon Overtake Fixed Internet 2 - The comScore 2010 Mobile Year in Review
  26. 26. What works where in B2B? 15 April 2011 Page 26 of 35Digital is seen by almostall as important in achievingtheir priorities... Critical! Important (51%) (44%) Less important (3%) Not relevant! (1%)26 26
  27. 27. What works where in B2B? 15 April 2011 Page 27 of 35Yet three fifths of marketersspend less than 40% of budgeton digital 25% 18% 17% 17%percentageof marketersthat spend... 11% 11% 8% 8% 6% 5% 2% 0% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-100% 0-10% percentage of budget
  28. 28. What works where in B2B? 15 April 2011 Page 28 of 35Time and money are holding digital back95% of respondents This is reflected in some of the issues raised by respondents in terms of the Financial constaints are closely linked with resource issues - money is needed,believe digital most significant challenges they faced but so is the resource to do it properly. in relation to B2B digital marketing.marketing is criticalor important inachieving their Cost Physicalmarketing goals... people Adequate resource Lack of resources funds to find...but only one third of Budgets experts torespondents give the and lack of them implement (strategy)lion’s share of budget to Lack of The cost and time thatdigital, and only 15% budget needs to bespend significant allocated to doing it properlyproportions. Internal Budget resources constraints

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