Services Marketing Budgets and Benchmarks: 2008 Budget Allocations and Trends delivers a detailed look at the state of the services marketing profession as it exists in early 2008. It provides data on services marketing budgets, budget allocations, and marketing priorities from a range of companies across the technology and consulting industries.

1. Services Marketing Budgets and Benchmarks
2008 Budget Allocations and Trends
ABBREVIATED SUMMARY
Data from ITSMA Key Metrics Survey
May 2008
Julie Schwartz
Senior Vice President
Thought Leadership and Research
ITSMA
Abbreviated Summary | B018AS

2. Introduction
In this report, ITSMA shares the results of 46 responses from 44
unique companies that provided data on and insights into:
 Services marketing budget size, allocations, and growth rates
 Marcom budget allocation
 Services revenue and profitability
 Services marketing staffing and operations
 Solutions marketing
 Gross margin trends
 Top services marketing initiatives and priorities
Note: This abbreviated summary highlights some of the significant findings from
ITSMA’s IT Professional Services and Solutions, 2008 Brand Tracking Study.
A more in-depth discussion of the study findings can be found in the full report.
Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks © 2008 ITSMA. All Rights Reserved. 2

3. Marketers are Optimistic Amid a Slowing
Economy
2008 Growth Forecasts Are Optimistic
Projected Growth in Services Revenue
38
26
21 19
18 18
14 15
11
-2
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
(est.)
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008
Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks © 2008 ITSMA. All Rights Reserved. 3

4. Heading into 2008, marketers are predicting both
marketing budget and staff increases
What changes do you anticipate Stay the same
in your services marketing (24%)
budget in 2008? Increase (61%)
% of Respondents (N=46) Amount of
Decrease (15%) increase: 18.9%
Amount of decrease: 9.9% (N=28)
(N=8)
What changes do you
anticipate in your services Increase (40%)
marketing staff in 2008? Amount of
Stay the same (48%) increase: 6.4%
% of Respondents (N=25)
(N=10)
Decrease (12%)
Amount of decrease:
1.7% (N=3)
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008
Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks © 2008 ITSMA. All Rights Reserved. 4

5. ITSMA data shows a steady trend toward allocating more
marketing budget for programs, rather than personnel
What percentage of the services marketing budget was personnel costs (direct
employees and benefits) vs. marketing program expenses?
Mean % of Services Marketing Budget
49 53 56 57
Nonpersonnel
Personnel
51 47 44 43
2005 (N=22) 2006 (N=44) 2007 (N=44) 2008 (N=44)
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2005, 2006, 2007, 2008
Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks © 2008 ITSMA. All Rights Reserved. 5

6. There are two drivers reducing marketing
personnel expense
 Increasing prominence of Indian services providers with lower
personnel costs
What percentage of the services 51
marketing budget was personnel costs 85 Nonpersonnel
(direct employees and benefits) vs. 49 Personnel
marketing program expenses? 15
2008 Mean % of Services Marketing NA/EMEA Indian
Budget Companies Companies
Note: Differences by region are statistically significant. (N=36) (N=8)
 Growing penchant for outsourcing marketing
In FY2008, do you expect outsourcing
of marketing initiatives and programs
Stay the Increase
to increase, decrease, or stay the same same
when compared to FY2007? (51%)
(44%)
% of Respondents (N=43)
Decrease (5%)
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008
Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks © 2008 ITSMA. All Rights Reserved. 6

7. The biggest news this year is that 67% of
respondents plan to increase their spending on
sales enablement activities
What are your spending plans in 2008 for the following budget categories?
% of Respondents (N=27)
Sales (channel) enablement and support 67 15 19
Strategy and market planning 52 19 30
Offering management 48 4 48
Marcom 48 7 44
Marketing operations 44 11 44
Market intelligence/market research 37 11 52
Business partners/alliances 31 19 50
Customer satisfaction/relationship
26 11 63
management and monitoring
Other 11 41 48
Increase Decrease Stay the Same
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008
Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks © 2008 ITSMA. All Rights Reserved. 7

8. The marcom emphasis is on highly targeted campaigns using
face-to-face events, digital media, and thought leadership
Marcom Budget Allocation FY2008 Mean % (N=21)
Other
Sponsorships of Sports/Cultural Events
 Public/Press/Media/Community Relations
 Advertising
 Industry Analyst Relations/Events
 Thought Leadership Development and Dissemination
 Direct Marketing/Database Marketing
 Private Events, Seminars, and Conferences
 Public Trade Shows
 Interactive/Online/Digital Marketing
 Collateral (brochures, datasheets, etc.)
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008
Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks © 2008 ITSMA. All Rights Reserved. 8

9. Services marketers are shifting more of the
marcom budget online
Approximately what percentage of your services marcom budget is online vs.
offline?
Mean % of Marcom Budget
2007 (N=25) 2008 (N=23)
Online Online
(29%) (34%)
Offline
Offline
(71%)
(66%)
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2007, 2008
Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks © 2008 ITSMA. All Rights Reserved. 9

10. Search engine marketing is poised for growth, however,
the most effective marketers are also expanding their
use of new social media
% of Respondents Increasing Investment
(N=23)
70%  Search engine marketing/advertising
 Extranets or Microsites
 Online communities
50-60%  Podcasts
 Intranets/internal collaboration
 Webinars
 Blogs
 Email, electronic newsletters
 Wikis
<=30%  Corporate Website
 Virtual worlds (e.g., Second Life,
Universe, Forterra, There.com)
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008
Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks © 2008 ITSMA. All Rights Reserved. 10

11. Account-Based Marketing continues to gain
momentum
Approximately what percentage of your services marketing budget is
dedicated to Account-Based Marketing?
FY2006 (N=28) FY2007 (N=18)
% Spent on
% Spent on
Account-Based
7.6% 13.7% Account-Based
Marketing
Marketing
FY2008 (est.) (N=19)
% To Be Spent on
Account-Based
20.1% Marketing
Note: Only includes companies that have implemented Account-Based Marketing programs.
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2006, 2007, 2008
Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks © 2008 ITSMA. All Rights Reserved. 11

12. Marketing shakes things up
Rank
2008 2007
1 1 Differentiating the company or offerings
2 3 Enabling the sales force
3 7 Generating demand
4 8 Improving customer satisfaction and loyalty
5 — Developing thought leadership
6 — Refining value propositions
7 16 Increasing use of digital tools and online marketing channels
8 6 Leveraging Account-Based Marketing
9 9 Developing and launching new offerings
10 10 Increasing focused marketing programs for vertical/industry markets
Note: Top priorities that did not make the list in 2008 but were in the Top 10 of 2007 include developing and refining the
marketing strategy (#2 in 2007), deepening customer insight (#4), and enhancing the company's reputation (#5).
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2007, 2008
Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks © 2008 ITSMA. All Rights Reserved. 12

13. Contact
Julie Schwartz
Senior Vice President
Thought Leadership and Research
ITSMA
jschwartz@itsma.com
+1-781-862-8500, Ext. 112
Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks © 2008 ITSMA. All Rights Reserved. 13