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ITSMA Services Marketing Budgets and Benchmarks: 2014 Budget Allocations and Trends
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ITSMA Services Marketing Budgets and Benchmarks: 2014 Budget Allocations and Trends

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The perception of marketing is improving, marketing roles are expanding, and marketing budgets, staff, and agency spend are increasing. Investments in content development, marketing technology, and ...

The perception of marketing is improving, marketing roles are expanding, and marketing budgets, staff, and agency spend are increasing. Investments in content development, marketing technology, and sales enablement are keeping pace with changing buyer behavior.

However as percentage of revenue, marketing budgets are declining. Senior executives still do not see marketing contributing enough to strategy development, revenue growth, and shareholder value. They are asking marketers to stretch their budgets and do more with less.

Based on the results of the study, ITSMA outlines five priorities for marketers in 2014:

Measure and communicate metrics that matter
Become a data and technology frontrunner
Improve relevance and personalization
Enable thought leadership selling
Develop a proactive and adaptive marketing culture
Overview

Services Marketing Budgets and Benchmarks: 2014 Budget Allocations and Trends, a PowerPoint-style report, delivers a detailed look at the state of the services marketing profession as it exists in early 2014. It 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:

Services marketing budget size and growth rates
Services growth rates
Services marketing budget allocations
Services marketing staff growth rates
Services marketing staff allocations
Marketing mix budget allocations
Digital marketing budget allocations
Marketing operations and automation
Marketing priorities

Study Methodology

During December 2013 through January 2014, ITSMA used a Web-based survey to gather data from its members about services marketing budgets, services growth, and top marketing priorities. ITSMA received 45 responses from 44 unique companies and analyzed the collected data five 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
Growth Rate—less than 10% or 10% or higher
Geographic location—North America, Europe, or Asia

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    ITSMA Services Marketing Budgets and Benchmarks: 2014 Budget Allocations and Trends ITSMA Services Marketing Budgets and Benchmarks: 2014 Budget Allocations and Trends Presentation Transcript

    • 2014 Services Marketing Budget Allocations and Trends Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Abbreviated Summary | January 2014 2014 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B025AS | © 2014 ITSMA. All Rights Reserved.
    • ITSMA Benchmarking Study | 2014 Budget Allocations and Trends Abbreviated Summary The 2014 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: services 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 digital marketing Account Based Marketing © 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited. budget allocations www.itsma.com | B025AS | 2
    • ITSMA Benchmarking Study | 2014 Budget Allocations and Trends As we look ahead to 2014, we see both good news and some concerns Good News The perception of marketing is improving Marketing roles are expanding Marketing budgets, staff, and agency spend are increasing Note: This Abbreviated Summary highlights some of the significant findings from 2014 Services Marketing Budget Allocations and Trends. A more in-depth analysis can be found in the full report. © 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited. Concerns • Senior executives still do not see marketing contributing enough to – Strategy development – Revenue growth – Shareholder value • Marketing budgets are declining as a percentage of revenue www.itsma.com | B025AS | 3
    • ITSMA Benchmarking Study | 2014 Budget Allocations and Trends Despite an improving economic picture, the era of doing with less more is not yet over © 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited. www.itsma.com | B025AS | 4
    • ITSMA Benchmarking Study | 2014 Budget Allocations and Trends More companies are increasing marketing spend in 2014… In FY2014, do you expect your marketing budget to increase, decrease, or stay the same when compared to FY2013? Overall 2014 % of Respondents (N=45) B2B Services Marketing Budget Growth: 4.8% … but as a percentage of revenue, marketing budgets are trending lower What is the size of your annual services marketing budget as a percentage of services revenue? % of Services Revenue Spent on Marketing 1.5 1.5 1.4 1.3 1.2 1.0 Stay the Same 36% 1.2 1.0 0.8 Increase 51% Decrease 13% Average decrease: 15.3% Average increase: 10.0% Source: ITSMA, 2014 Services Marketing Budget Allocations and Trends © 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited. 2006 2007 2008 2009 2010 2011 2012 2013 2014 (est) Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014 www.itsma.com | B025AS | 5
    • ITSMA Benchmarking Study | 2014 Budget Allocations and Trends In response to changing buyer behavior and economic pressures, marketers are shifting their spending in 2014 to reflect new priorities Marketing Budget Trends Increasing spending • Content development Decreasing spending • Sponsorships • Sales (channel) enablement and support • Public trade shows, events, conferences • Brand and communications • Advertising (traditional) • Digital marketing • Direct marketing (email/mail/telemarketing) • Private events, seminars, and conferences • Marketing technology • Marketing performance management Source: ITSMA, 2014 Services Marketing Budget Allocations and Trends © 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited. www.itsma.com | B025AS | 6
    • ITSMA Benchmarking Study | 2014 Budget Allocations and Trends The digital marketing budget composition is shifting with the old mainstays—email and webinars—declining Digital Marketing Budget Trends Increasing spending • Online video • Blogs Decreasing spending • Email, email newsletters • Client extranets or microsites • Search engine optimization (SEO) • Virtual tradeshows, conferences, and events • Public online communities • Webinars • Podcasts Source: ITSMA, 2014 Services Marketing Budget Allocations and Trends © 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited. www.itsma.com | B025AS | 7
    • ITSMA Benchmarking Study | 2014 Budget Allocations and Trends Content development, leadership, and data/analytical skills are in highest demand Which of the following skills do you believe are essential to your marketing organization’s future success? % of Respondents (N=45) Note: Up to three responses allowed. Source: ITSMA, 2014 Services Marketing Budget Allocations and Trends Writing/storytelling/editing/publishing Leadership Data and analytics Critical thinking Business acumen Strategic planning Vertical market/industry expertise Influence and negotiation Technology Project management Social media Design/creativity Sales/business development 4 Primary research 4 Other 4 © 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited. 53 51 36 22 22 22 20 18 11 11 11 9 www.itsma.com | B025AS | 8
    • ITSMA Benchmarking Study | 2014 Budget Allocations and Trends Five mandates for marketers in 2014 1. Measure and communicate metrics that matter 2. Become a data and technology frontrunner 3. Improve relevance and personalization 4. Enable thought leadership selling 5. Develop a proactive and adaptive marketing culture © 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited. www.itsma.com | B025AS | 9
    • ITSMA Benchmarking Study | 2014 Budget Allocations and Trends Study Participants © 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited. www.itsma.com | B025AS | 10
    • ITSMA Benchmarking Study | 2014 Budget Allocations and Trends Organization Size Study Methodology From December 2013 through January 2014, 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 45 responses from 44 unique companies. How large is your services business? % of Respondents (N=45) 7% 7% Less than $100M $100– 249M Industry Subsector Which of Other Network these 9% systems and categories best describes solutions 13% provider your industry subsector? Software 16% % of solutions Respondents provider (N=45) 22% 11% $500– 999M 31% $1–5B Greater than $5B 11% $250– 499M 33% In Services Revenue Type of Company 40% Professional services firm (consulting, outsourcing, and systems integration) Computer systems and solutions provider © 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited. Which of the following We best primarily describes sell 40% your services company? % of Respondents (N=45) 60% We sell both products and services Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends www.itsma.com | B025AS | 11
    • ITSMA Benchmarking Study | 2014 Budget Allocations and Trends Services Revenue Growth Rate ITSMA analyzed the survey data in four ways:  The data set as a whole  Company type: primarily services or product and services  Company size: less than $1B or $1B or more in annual services revenue  Revenue growth rate: less than 10% or 10% or more  Geographic location: North America, Europe, or Asia Respondents’ Perspective From which perspective will you be answering A specific this survey? business unit % of or division Respondents (N=45) 47% 53% Entire company What was/will be the percentage growth rate of your company or division revenue? % of Lower Respondents Growth (N=35) (<10%) 37% Higher Growth (>=10%) 63% Note: Includes only those companies that provided services revenue growth rates. Higher Growth = annual services revenue growth rate >=10%; Lower Growth = annual service revenue growth rate <10% Geographic Location In which geography are you based? % of Respondents (N=45) Europe Asia 13% 69% North America 18% Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends © 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited. www.itsma.com | B025AS | 12
    • ITSMA Benchmarking Study | 2014 Budget Allocations and Trends Table of Contents for 2014 Services Marketing Budget Allocations and Trends Slide Survey Highlights 3 Survey Methodology and Demographics 26 Size of the Marketing Budget 36 Services Revenue 42 Marketing Staffing 45 Agency Relationships 54 Services Marketing Budget Allocation 59 The Marketing Mix 67 Marketing Operations 73 Account Based Marketing 76 Marketing Priorities 79 Marketing Organization Perception and Scope 82 Crosstabs 87 By Size of Company 87 By Type of Company 130 Select Crosstabs by Growth 171 Select Crosstabs by Geographic Location 185 Appendix: Definitions Used in This Report 193 © 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited. For More Information Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Email: jschwartz@itsma.com Phone: +1-781-862-8500, Ext. 112 www.itsma.com | B025AS | 13