ITSMA 2016 Services Marketing Budget Allocations and Trends Study

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ITSMA’s latest annual budget and trends study documents the continuing transformation of marketing across the world’s leading B2B technology and services firms.
Modest growth in overall budgets and staffing conceal more dramatic changes below the surface. Even with near-flat budgets, the scope of marketing responsibilities is growing, digital first is finally becoming a reality, aggressive recruitment for new skills is pervasive, and top performers are putting customer insight, data analytics, and marketing performance measurement at the top of their lists.
From an investment perspective, services marketing budgets will grow slightly in 2016, to about 1.5% of total services revenue. The increases will lag expected growth in services revenue, however, putting yet more pressure on marketers to expand scope and performance with only minimally additional resources.
Specific areas of increased investment include staffing, content development, digital, account-based marketing, and analytics.
One clear sign of alarm: Amid expanding scope and the search for new marketing skills, companies are allocating a mere three days to staff training and development.
More broadly, marketing leaders seem committed to increasing organizational agility – adopting the principals of agile to programs and planning – but few believe they have yet achieved this to any meaningful degree.
In all, this year’s survey points to seven key areas of focus for marketing leaders in 2016:
• Continue to prioritize the development of new roles, skills, and talent
• Continue to invest in and optimize the digital marketing infrastructure
• Accelerate the development of agile processes
• Expand investment in deep customer insight
• Continue to expand the focus on account-based marketing precision
• Increase the emphasis on sales and SME enablement
• Accelerate the focus on data-driven decision making
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Overview
Services Marketing Budgets and Benchmarks: 2015 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 2016. It provides data on services marketing budgets, budget allocations, and marketing priorities from a range of companies across the technology and professional services industries.
Topics covered in the report include:
• Size of the Marketing Budget
• Marketing Staffing
• Agency Relationships
• Services Marketing Budget Allocation
• Marketing Programs and Campaigns
• Online/Digital Marketing Spending
• Account-Based Marketing Budget and Spending Plans
• Marketing Tools Budget Allocation
• Marketing Priorities and Challenges
• Marketing Organization Perception and Scope

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ITSMA 2016 Services Marketing Budget Allocations and Trends Study

  1. 1. 2016 Services Marketing Budget Allocations and Trends Julie SchwartzSeniorVice President,Research and ThoughtLeadership,ITSMA Abbreviated Summary|January2016
  2. 2. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 2 Abbreviated summary The 2016 Services Marketing Budget Allocations and Trends survey documents the continuing transformation of technology services marketing—with essential data on services marketing budgets,allocations,and priorities. Topics covered in the report include: • Size of the Marketing Budget • Marketing Staffing • Services Marketing Budget Allocation • Marketing Programs and Campaigns • Online/Digital Marketing Spending • Account-Based Marketing • Marketing Tools Budget Allocation • Marketing Priorities and Challenges • Marketing Organization services budget allocations
  3. 3. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 3 Modest spending growth in 2016 conceals more dramatic changes under the surface: • The scope of marketing responsibilities is growing • Aggressive recruitment for new skills is pervasive • Digital first is finally becoming a reality • Top performers prioritize customer insight,analytics, and measurement © 2016 ITSMA. All rights reserved. Reproduction of this document is prohibited.
  4. 4. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 4 50% 12% 38% Increase Decrease Stay the Same 43% 17% 40% Marketing budgets and staff continue to grow, although many still struggle with resource constraints In FY2016, do you expect your marketing budget to increase, decrease, or stay the same when compared to FY2015? Increase Decrease Stay the Same % of Respondents (N=42) Source: ITSMA, 2016 Services Marketing Budget Allocations and Trends 2016 B2B Services Marketing Budget Growth: 3.8% What changes do you anticipate in your marketing staff in FY2016? 2016 B2B Services Marketing Staff Growth: 6.1% New roles, skills, and talent
  5. 5. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 5 Changes in buyer behavior and technology are forcing marketers to adapt • Marketing’s mission is evolving from its original focus on reputation and brand communications to encompass driving revenue growth,and now, customer engagement • Marketing is increasing its precision with new marketing tools and approaches such as marketing automation (MA) and account-based marketing (ABM) • And marketing is taking on more roles and strategic responsibilities: customer experts, storytellers,data miners,technologists, omnichannel conductors,and revenue growth drivers Marketing is becoming the central nervous system of the company
  6. 6. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 6 Online marketing Offline marketing Online marketing has reached the tipping point,now accounting for more than half the programs budget Source: ITSMA, 2016 Services Marketing Budget Allocations and Trends How do you anticipate the components of your Marketing Programs and Campaigns spend changing in FY2016? % of Respondents (N=38) How was/will your Marketing Programs and Campaigns spend be allocated across the following categories? Mean % (N=32) Online marketing Offline marketing 47% 53% FY2016 (est.) 82 18 0 -29 Increasing Spend Decreasing Spend Digital infrastructure
  7. 7. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 7 For high growth companies, customer insight is the #1 marketing priority in 2016. For all others, it ranked 20th. One-third of the companies in the study are growing faster than their closest competitors Customer insight Source: ITSMA, 2016 Services Marketing Budget Allocations and Trends
  8. 8. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 8 In Services Revenue 7% 5% 7% 10% 26% 45% Less than $100M $100– 249M $250– 499M $500– 999M $1–5B Greater than $5B Study Methodology From December 2015 through January 2016,ITSMA conducted an invitation-only,web-based survey with 42 responses from 41 leading B2B technology and services companies. Industry Subsector Which of these categories best describes your industry subsector? % of respondents (N=42) How large is your services business? % of respondents (N=42) Organization Size Type of Company 55% 45% We sell both products and services We primarily sell services Which of the following best describes your company? % of respondents (N=42) 36% 21% 14% 12% 5% 5% 7% Professional services firm (consulting, outsourcing, systems integration, managed services) Software solutions provider Computer systems and solutions provider Telecommunications services provider Other Network systems and solutions provider Other hardware systems and solutions Source: ITSMA, 2016 Services Marketing Budget Allocations and Trends
  9. 9. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 9 ITSMA analyzed the survey data set as a whole and in three additional ways: • By performance: High Growth compared to Average or Below Growth • By size of company: Less than $1B comparedto equal or more than $1B annual services revenue • Type of company: Product and Services Company comparedtop primarily a Services Company
  10. 10. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 10 Study participants Enterprise Solutions
  11. 11. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 11 Slide Executive summary 3 Survey methodology and demographics 21 Size of the marketing budget 31 Marketing staffing 39 Services marketing budget allocation 47 Marketing programs and campaigns budget allocation 50 Online/digital marketing budget allocation 55 Account based marketing budget and spending plans 58 Marketing tools budget allocation 61 Marketing priorities and challenges 64 Marketing organization perception and scope 69 Crosstabs By performance 75 By size of company 113 By type of company 152 Appendix: ITSMA budget taxonomy and definitions used in this report 191 Table of contents for 2016 Services Marketing Budget Allocations and Trends For More Information Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Email: jschwartz@itsma.com Phone: +1-781-862-8500, Ext. 112 Buy the study

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