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ofSTATE
INBOUND
2014
THE DATA YOU NEED TO BUDGET, PLAN, EXECUTE
AND MEASURE INBOUND MARKETING AND SELLING.
HUBSPOT • State of Inbound • 2014 2
Introduction
TABLE OF CONTENTS
CH. 1
Budgeting for InboundCH. 2
Planning for InboundCH. 3
Executing for Inbound
Measuring for Inbound
Survey Methodology
CH. 4
CH. 5
CH. 6
Introduction
CHAPTER ONE
1
HUBSPOT • State of Inbound • 2014 4
For the past five years, HubSpot has published
the findings from its annual survey, which probes
marketers on their challenges, priorities, tactics
and results, in a popular report branded “The
State of Inbound Marketing.” The series tracks
the practice of inbound marketing – the art and
science of drawing visitors to your company on
their own terms versus obtrusively pushing your
messages onto them – from its humble “two guys
in a garage” (or, in this case, two guys in business
school) beginning up through last year’s 164-
page leviathan.
For this year’s report, we followed many
of the same processes as in the past. We
surveyed thousands of marketers (see “Audience
Composition” graphic) and asked a blend of
repeat questions (for trending data) and new ones
(to keep pace with emerging marketing trends).
We produced nearly a hundred graphs, which
we winnowed down to 40 or so compelling “data
narratives” that we believe will help readers
improve top-line performance.
Yet as similar as our objectives and methodology
were, there are two significant differences in this
year’s report – beginning with the title itself.
We’ve dropped “marketing” from the title to
reflect a sea change. “Inbound” is no longer limited
to marketing. Businesses now turn to inbound
methodologies to power sales (25%) and even
customer service (10%). Certainly the marketing
use-case remains foremost, but make no mistake:
Inbound has become an interdepartmental
phenomenon. The report also straddles calendar
years, 2014 to 2015. It is comprised of data from
INTRODUCTION
About “State of Inbound”
a mid-year survey that posed questions about
full-year programs. As such, the findings and
guidance remain current well into 2015.
As much as we hope you enjoy reading this report,
it’s even more important that you use it. It’s meant
to be a functional document. Print it and mark it
up. Share it with your boss, your head of sales, the
rep who always beats her numbers (or, better still,
the rep who is struggling to hit quota), maybe even
your customer support team. Please remember
that the data is based on self-reported survey
responses. Consider the findings to be directional.
We’ve organized the data into four self-contained
sections: budgeting, planning, execution and
measurement. There’s no need to read the report
linearly. Dive into whichever section corresponds
to your greatest needs, and save the rest for later.
You want to understand how to maximize your
budget? Read the Budgeting chapter. Looking
to report to your leadership the same metrics
top performers report to theirs? The Execution
chapter has you covered.
Audience Composition
If there exists a modern marketing report that’s
based on survey data from a larger, more diverse
audience, then we’d like to know about it. We
believe State of Inbound is the definitive report
on inbound business in large part because of the
audience composition, which we’ve visualized in
the graphic below.
HUBSPOT • State of Inbound • 2014 5
Executive and above
Manager and below
State of Inbound – Audience Composition
68% B2B
21% B2C
5% NONPROFIT
$250,001 - $1M
$1M - $10M
$10M - $500M
$500M - $1B
Prefer not to say
Less than $250,000
COMPANY SIZE BY
ANNUAL REVENUE
COMPANY SIZE BY NUMBER
OF EMPLOYEES
TYPES OF ORGANIZATIONS
RESPONDENTS BY CAREER
Marketers
Sales
Professionals
VERTICAL MARKETS
RESPONDENT JOB LEVEL
11 to 25
26 to 200
201 to 1000
More than 1000
Less than 10
Information
Technology & Services
Marketing Agencies
Education
Healthcare & Medical
Remaining 11 Industries
Represented
Software
1,723
631
69%
31%
Less than $250,000
$250,001 - $1M
$1M - $10M
$10M - $500M
$500M - $1B
Prefer not to say
Less than 10
11 to 25
26 to 200
201 to 1000
More than 1000
HubSpot
Partner
HubSpot
Customer
Not a HubSpot
Partner
Not a HubSpot
Customer
Software
Information
Technology & Services
Marketing Agencies
Education
Healthcare & Medical
Remaining 11
Industries
Represented
Executive and above
Manager and below
5% NONPROFIT
21% B2C
68% B2B
78%
15%
1%
6%
3,570
RESPONDENTS
5%
44%
4%
34%
HUBSPOT • State of Inbound • 2014 6
The Six Most Important Takeaways
If you are pressed for time, here’s the TL;DR-style executive summary: We
noticed six clear and consistent trends when analyzing the data. They are:
Inbound unlocks ROI; ROI unlocks budget. If you are running an
inbound marketing program and not tracking ROI, you are doing your
company – and your career – a disservice because inbound marketers who
measure ROI are more than 12 times more likely to be generating a greater
as opposed to lower year-over-year return.
1.)
INBOUND ROI IMPACT YEAR OVER YEAR
Inbound marketers that measure ROI are enjoying major impact
Inbound Marketing ROI
%ofRespondents
Greater ROI than
the previous year
Lower ROI than
the previous year
About the same as
the previous year
0
5
10
15
20
25
30
35
40
Proving that you are increasing return is important for several reasons,
most notably the positive impact it has on budget. No single factor had a
greater impact on budget – positive or negative – than did “past success
with inbound.” Improving ROI may even safeguard your budget against
factors beyond your control, like the economy itself.
HUBSPOT • State of Inbound • 2014 7
FACTORS INFLUENCING INBOUND BUDGET CHANGE
Proving success is key to securing more budget
Reasons for Change
%ofRespondents
Lower Inbound
Marketing Budget
Higher Inbound
Marketing Budget
Economy Change in management Past success with
inbound marketing
Past failure with
inbound marketing
0
10
20
30
40
50
60
“Getting found” is priority #1 (and #2 and #3) for high performers.
We zoomed in on the segment of inbound marketers who are generating
positive ROI (“high performers”) to see if they prioritized different types of
projects than low performers. As you will see in the “Measurement” chapter,
high performers are emphasizing programs designed to get their content,
and by extension their company, found. In order, blogging, organic search,
and content amplification top the list. Blogging appears to have the most
substantial impact on performance.
Given that marketers who blog are 13x more likely to drive positive ROI,
it shouldn’t be a surprise that the tactic tops high performers’ lists of most
important inbound projects.
2.)
THE IMPACT
OF BLOGGING
ON INBOUND ROI
Marketers who have prioritized
blogging are 13x more likely to
enjoy positive ROI
13x
HUBSPOT • State of Inbound • 2014 8
Data facilitates alignment. If inbound marketing were a sports
team, data would be the coach. The chart below depicts remarkably tight
alignment between marketing practitioners and their leaders (director and
above title). Data is objective. It’s immune to the feelings and instincts that
drove the previous era of “arts and crafts” marketing.
3.)
TOP MARKETING PRIORITIES BY ROLE
Strong alignment exists between marketing practitioners and leaders
MarketingPriorities
% of Respondents
Reducing the cost of contacts/
leads/customer acquisition
Increasing revenue derived
from existing customers
Reaching the
relevant audience
Converting contacts/
leads to customers
Increasing number
of contacts/leads
Proving the ROI of our
marketing activities
0 5 10 15 20 25
Leadership Practitioner
HUBSPOT • State of Inbound • 2014 9
Agencies are leading the pack. Inbound marketing performance is up
across the board. More companies are running inbound than ever before.
More are measuring ROI and more are enjoying improved ROI. Inbound
is expanding into other lines of business, and those departments are
experiencing positive results. It’s even driving revenue globally. But the
group that’s setting the standard is marketing agencies, who are outpacing
vendorsbysourcingnearlyhalf(47%)ofallleadsthroughinboundchannels.
The era of “inbound selling” has arrived. Inbound is no longer limited
to “just” marketing. More than 25% of respondents reported that their
organizations’ sales teams practice inbound, and it’s not just lip service.
Contrast the two charts below, and you’ll see that sales professionals are far
more “inbound” than are marketers who favor outbound practices.
4.)
5.)
AGENCIES VS. VENDORS
Marketing agencies are most effective at driving leads through inbound channels
% of Respondents
Industry
Vendors
Agencies
0 10 20 30 40 50 60 70 80
Primary Lead
Source = Outbound
Primary Lead
Source = Inbound
WHICH LEAD SOURCES HAVE BECOME
MORE IMPORTANT (OVER LAST 6 MONTHS)
Outbound marketers are placing minimal importance on core inbound channels
Lead Source
%ofRespondents
Social
Media
Blogs SEO Email
Marketing
PPC Trade
Shows
Traditional
Advertising
Direct
Mail
Telemarketing
0
20
40
60
80
100
Outbound Marketers
Inbound Marketers
HUBSPOT • State of Inbound • 2014 10
The belief that European marketers trail their North American
counterparts is unfounded. Many marketers believe that the U.S. leads
the world in terms of marketing innovation. Prior to analyzing the data,
even the author of this report may have made a statement or two to
that effect. As it turns out, this statement doesn’t hold water. Data from
respondents in North America and Europe, Middle East, and Africa
(EMEA) showed minimal variance.
6.)
WHICH LEAD SOURCES HAVE BECOME
MORE IMPORTANT (OVER LAST 6 MONTHS)
Sales gravitates toward outbound channels whereas marketers lean inbound
Lead Source
%ofRespondents
Social
Media
Blogs SEO Email
Marketing
PPC Trade
Shows
Traditional
Advertising
Direct
Mail
Telemarketing
0
20
40
60
80
100
Sales Professionals
Marketing Professionals
HUBSPOT • State of Inbound • 2014 11
North America Europe, the Middle East,
and Africa (EMEA)
Do you do
inbound
marketing?
YES NO
North America Europe, the Middle East,
and Africa (EMEA)
ROI of
inbound
marketing:
GREATER THAN
PREVIOUS YEAR
LOWER THAN
PREVIOUS YEAR
5
10
15
20
25
30
5
10
15
20
25
TOP MARKETING PRIORITIES BY GEOGRAPHY
TOP INBOUND MARKETING PROJECTS BY GEOGRAPHY
Increasing
number of
contacts/leads
Converting
contacts/leads
to customers
Reaching
the relevant
audience
Increased
revenue derived
from existing
customers
Reducing the
cost of contacts
leads/ customer
acquisition
Proving the
ROI of our
marketing
activities
Blog content
creation
Growing
SEO/organic
presence
Content
distribution/
amplification
Longform/
visual content
creation
Product
how-to
videos
Webinars Online tools Fremium
trials
Interactive
content
creation
COMPANIES THAT PRACTICE
INBOUND MARKETING BY GEOGRAPHY INBOUND ROI BY GEOGRAPHY
North America Europe, the Middle East, and Africa (EMEA)
North America Europe, the Middle East, and Africa (EMEA)
INBOUND MARKETING TRENDS BY GEOGRAPHY
The claim that Europe trails North America is a myth
North America Europe, the Middle East,
and Africa (EMEA)
Do you do
inbound
marketing?
YES NO
North America Europe, the Middle East,
and Africa (EMEA)
ROI of
inbound
marketing:
GREATER THAN
PREVIOUS YEAR
LOWER THAN
PREVIOUS YEAR
5
10
15
20
25
30
5
10
15
20
25
TOP MARKETING PRIORITIES BY GEOGRAPHY
TOP INBOUND MARKETING PROJECTS BY GEOGRAPHY
Increasing
number of
contacts/leads
Converting
contacts/leads
to customers
Reaching
the relevant
audience
Increased
revenue derived
from existing
customers
Reducing the
cost of contacts
leads/ customer
acquisition
Proving the
ROI of our
marketing
activities
Blog content
creation
Growing
SEO/organic
presence
Content
distribution/
amplification
Longform/
visual content
creation
Product
how-to
videos
Webinars Online tools Fremium
trials
Interactive
content
creation
COMPANIES THAT PRACTICE
INBOUND MARKETING BY GEOGRAPHY INBOUND ROI BY GEOGRAPHY
North America Europe, the Middle East, and Africa (EMEA)
North America Europe, the Middle East, and Africa (EMEA)
INBOUND MARKETING TRENDS BY GEOGRAPHY
The claim that Europe trails North America is a myth
North America Europe, the Middle East,
and Africa (EMEA)
Do you do
inbound
marketing?
YES NO
North America Europe, the Middle East,
and Africa (EMEA)
ROI of
inbound
marketing:
GREATER THAN
PREVIOUS YEAR
LOWER THAN
PREVIOUS YEAR
5
10
15
20
25
30
5
10
15
20
25
TOP MARKETING PRIORITIES BY GEOGRAPHY
TOP INBOUND MARKETING PROJECTS BY GEOGRAPHY
Increasing
number of
contacts/leads
Converting
contacts/leads
to customers
Reaching
the relevant
audience
Increased
revenue derived
from existing
customers
Reducing the
cost of contacts
leads/ customer
acquisition
Proving the
ROI of our
marketing
activities
Blog content
creation
Growing
SEO/organic
presence
Content
distribution/
amplification
Longform/
visual content
creation
Product
how-to
videos
Webinars Online tools Fremium
trials
Interactive
content
creation
COMPANIES THAT PRACTICE
INBOUND MARKETING BY GEOGRAPHY INBOUND ROI BY GEOGRAPHY
North America Europe, the Middle East, and Africa (EMEA)
North America Europe, the Middle East, and Africa (EMEA)
INBOUND MARKETING TRENDS BY GEOGRAPHY
The claim that Europe trails North America is a myth
HUBSPOT • State of Inbound • 2014 12
What Do We Mean By “Inbound” Anyway?
When HubSpot coined the term “inbound marketing” back in 2006, the
company had loosely defined it as meaning: “a methodology that focuses
on creating quality content that pulls people toward your company and
product.” In other words, inbound is the superset of quality content and
other “magnetic” tactics.
Since that time, a similar methodology called “content marketing” has taken
root. Perhaps because content marketing wasn’t championed by a single
organization, it tends to have a less “ratified” definition. Nevertheless, it’s
become a popular term of art. In fact, Google Trends data shows search
volume is considerably higher for “content marketing” (blue line) than for
“inbound marketing” (orange line).
So are we even using the proper terminology when we refer to inbound
marketing? Do the thousands who completed the survey and the tens of
thousands who will read this report perceive inbound marketing in the
same way that HubSpot does? It turns out, yes.
Average 2005 2007 2009 2011 2013
Inbound Marketing Content Marketing
GOOGLE SEARCH TRENDS: INBOUND MARKETING VS. CONTENT MARKETING
HUBSPOT • State of Inbound • 2014 13
Marketers concluded that content marketing is a subset of inbound at
nearly twice the rate (59% to 33%) as all other options combined. While
the data showed less variance for sales and services professionals, “content
marketing is a subset of inbound” was still clearly the most popular answer
even for groups newer to inbound.
RELATIONSHIP BETWEEN CONTENT MARKETING
AND INBOUND MARKETING BY DEPARTMENT
Front-office professionals, particularly marketers,
see content marketing as a subset of inbound marketing
Department
%ofRespondents
Marketing Sales Services
0
10
20
30
40
50
60
Content marketing
is a subset of
inbound marketing
They are synonyms
Inbound marketing
is a subset of
content marketing
The two are
fundamentally
different
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Budgeting for Inbound
CHAPTER TWO
2
HUBSPOT • State of Inbound • 2014 15
This fact may cause your CFO to groan, but spending money is one of
marketing’s most important jobs. Whether it’s licensing technology,
sourcing and distributing content, procuring development resources, or
commissioning specialty skills like SEO and video production, spending
wisely is a prerequisite for marketing success. But for many marketers,
securing funds can feel like a Catch-22: If budget contributes to results,
then how do you get budget before you are able to demonstrate success?
We asked several budget-related questions in hopes of collecting data that
would help marketers better understand how to secure the resources they
need. Fortunately, it appears most of the means are within marketers’ span
of influence and, in some cases, are even within their immediate control.
Here are some of the patterns that emerged:
BUDGETING FOR INBOUND
INBOUND MARKETING ROI BY COMPANY TYPE
Companies of all types enjoying greater ROI from inbound
Inbound Marketing ROI
%ofRespondents
Greater ROI than the previous year Lower ROI than the previous year
0
10
20
30
40
50
B2C
Nonprofit
B2B
Inbound marketing budgets are up for all types of companies (chart above).
In fact, more than 5 times as many marketers reported higher
budgets than claimed budgets had been cut this year. The majority of B2B
companies surveyed are enjoying a lift in budget, with 74% reporting the
same or increased budget in this year (the 27% “unchanged” segment is not
reflected in the above chart). If your budget is down from last year, then
odds are the cause is as simple as a lack of demonstrated success.
HUBSPOT • State of Inbound • 2014 16
The chart above reveals that no single factor has a greater impact
on budget than previous success with inbound marketing.
Remarkably, the financial upside of prior inbound success exceeds even
the downside of adverse economic conditions. Simply put, success – best
expressed in terms of return on investment (ROI) – unlocks budget
and insulates marketers against economic vagaries. Proving marketing
effectiveness can also be valuable during leadership changes. Executive
turnover often has an adverse impact on budget. Quantifying inbound
success can steel marketers against the whims of new management.
FACTORS INFLUENCING INBOUND BUDGET CHANGE
Proving success is key to securing more budget
Reasons for Change
%ofRespondents Lower Inbound
Marketing Budget
Higher Inbound
Marketing Budget
Economy Change in management Past success with
inbound marketing
Past failure with
inbound marketing
0
10
20
30
40
50
60
HUBSPOT • State of Inbound • 2014 17
But what about marketers who are new to inbound? How can they secure
ample budgets before they’ve collected enough data to prove success? The
chart below shows an encouraging trend. Inbound budgets positively
correlate to the presence of a Service Level Agreement (SLA)
between marketing and sales.
ANNUAL MARKETING BUDGET BY SLA
Marketing budget size positively correlates to having an SLA
No, we don’t have an SLA
Yes, we have an SLA
Annual Marketing Budget
Less than $25,000 $25,001 -
$100,000
$100,001 -
$500,000
$500,001 -
$1M
$1M - $5M More than $5M
0
10
20
30
40
50
60
70
80
%ofRespondents
Ratifying an SLA with sales demonstrates credibility. For example, if
marketing commits to delivering a certain number of leads that meet a
measurable quality score, and sales is accountable for following up on those
leads in a documented amount of time, then the two groups are signaling
to leadership that they are focused on driving business results, not just
intradepartmental metrics. Establishing an SLA also doubles as a forcing
function – it requires marketers to measure consistently, which, as we will
see in subsequent chapters, is a prerequisite to becoming a high performer.
HUBSPOT • State of Inbound • 2014 18
INBOUND MARKETING BUDGET BY SLA
SLA positively correlates to higher year over year inbound budget
SLA
%ofRespondents
0
10
20
30
40
50
Lower Inbound
Marketing Budget
Higher Inbound
Marketing Budget
It appears the “magic number” for an SLA is $500,000. That is, if your
marketing budget exceeds a half-million dollars, then you are
expected to have an SLA with sales. Surprisingly, 29% of marketers
with a budget greater than $500,000 don’t have a sales SLA. If the patterns
detected in this report continue, metrics-centric high performers will likely
replace those marketers.
The chart below suggests that the presence of an SLA has a positive impact on
even the inbound portion of the total marketing budget.
HUBSPOT • State of Inbound • 2014 19
Because an SLA applies to large and small companies alike, doesn’t
require a track-record of success, and is “free” to create, holding oneself
accountable to an SLA is a prudent move for any marketer. It even
holds true for marketers who need to loosen finance’s grip on purse strings,
despite not yet having demonstrated ROI.
For marketers at mid-sized companies, another straightforward way to earn
a bump in budget is simply to run an inbound-driven marketing program
(chart below).
MID-SIZED COMPANIES MARKETING BUDGET
BY INBOUND VS. OUTBOUND
Running inbound correlates to larger budget
0
5
10
15
20
25
30
35
Less than $25,000 $25,001 -
$100,000
$100,001 -
$500,000
$500,001 -
$1M
$1M - $5M More than $5M
Doing Outbound Marketing
Doing Inbound Marketing
Annual Marketing Budget
%ofRespondents
HUBSPOT • State of Inbound • 2014 20
Running inbound positively correlates to higher marketing
budgets for mid-sized companies. As annual marketing budgets
approach $100,000, the balance of attention begins to flip from outbound
to inbound practices. The larger the budget, and by extension the company,
the more budget tilts in the favor of inbound marketers.
But what should your budget be? The answers to this question varied greatly,
and were influenced by many factors, several of which we discussed in this
report. The benchmarking graphic below visualizes the most commonly
cited budgets for companies of various sizes. If you are well below the
band for your size company, presenting this chart to leadership may be an
effective way to initiate budgetary discussions, but remember that the keys
to funding can be found in demonstrating success, establishing an SLA, and
running the inbound playbook.
MARKETING BUDGET
Budgets are most variable for mid-size companies
More than 1000
201 to 1000
26 to 200
11 to 25
Less than 10
20%
40%
60%
80%
100%
Less than
$25,000
$25,001 -
$100,000
$100,001 -
$500,000
$1M - $5M More than $5M$500,001 - $1M
# OF EMPLOYEES
BUDGET
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Planning for Inbound
CHAPTER THREE
3
HUBSPOT • State of Inbound • 2014 22
Because “Planning for Inbound” is the longest chapter in the report,
we’ve broken it into an introduction, followed by four sub-sections, each
corresponding to a frequently asked question. Specifically, the chapter
provides practical guidance to marketers who are (1) struggling to strike the
right balance between inbound and outbound, (2) peeking around corners
to see what unexpected challenges might be coming their way, (3) trying to
identify the highest return projects, and (4) thinking about the best way to
partner with their sales counterparts. If you are wrestling with any of these
questions, there’s a good chance you’ll find your answer in this chapter.
The planning chapter is the most comprehensive by design, because
planning is the first building block of any effective marketing program –
and that includes inbound programs. A smart plan is more than a collection
of tactics neatly organized in outline form. A smart plan is actionable – it
reflects both what should be done and what should be avoided, drawing from
the successes and failures of others to accelerate progress and avoid pitfalls.
A smart plan isn’t cobbled together on January 1st, archived on January 2nd,
and dusted off again on December 31st. No, a smart plan is bedrock.
Before we apply data to popular planning questions, let’s begin by debunking
a couple of myths. The first has to do with perceptions of marketing
sophistication and geography.
PLANNING FOR INBOUND
HUBSPOT • State of Inbound • 2014 23
The takeaway is clear: The next time someone says, “Europe trails
North America in inbound marketing by about a year,” don’t nod
in agreement. Instead present them with the above four-chart image,
because by virtually all measures, Europe (specifically Europe, Middle
East, and Africa, though our data set skewed Western European) and North
America parallel one another’s inbound programs. An identical number
(86%) of marketers in EMEA and North America say they run inbound
marketing programs, and of those that do, both share similar priorities,
emphasize similar projects, and enjoy similar results.
North America Europe, the Middle East,
and Africa (EMEA)
Do you do
inbound
marketing?
YES NO
North America Europe, the Middle East,
and Africa (EMEA)
ROI of
inbound
marketing:
GREATER THAN
PREVIOUS YEAR
LOWER THAN
PREVIOUS YEAR
5
10
15
20
25
30
5
10
15
20
25
TOP MARKETING PRIORITIES BY GEOGRAPHY
TOP INBOUND MARKETING PROJECTS BY GEOGRAPHY
Increasing
number of
contacts/leads
Converting
contacts/leads
to customers
Reaching
the relevant
audience
Increased
revenue derived
from existing
customers
Reducing the
cost of contacts
leads/ customer
acquisition
Proving the
ROI of our
marketing
activities
Blog content
creation
Growing
SEO/organic
presence
Content
distribution/
amplification
Longform/
visual content
creation
Product
how-to
videos
Webinars Online tools Fremium
trials
Interactive
content
creation
COMPANIES THAT PRACTICE
INBOUND MARKETING BY GEOGRAPHY INBOUND ROI BY GEOGRAPHY
North America Europe, the Middle East, and Africa (EMEA)
North America Europe, the Middle East, and Africa (EMEA)
INBOUND MARKETING TRENDS BY GEOGRAPHY
The claim that Europe trails North America is a myth
HUBSPOT • State of Inbound • 2014 24
The world is getting smaller. Social media and the rise in corporate
transparency have combined to nullify the geographic boundaries that once
divided marketers. Thanks to Twitter, Facebook, webinars, and blogs, what
works for one company is instantly accessible to others. It’s merely a matter
of listening to the right people, and there are influencer identification tools
to ease that process as well.
The second myth has to do with terminology. Some argue that inbound
and content marketing are at odds. They are opposite pressures, or, at
the very least, one movement is inferior to the other. The terminology
vendors, agencies, and consultants use matters only if it resonates with and is
perpetuated by the practitioners who listen to them. So we included a question
about terminology in the survey, and the response (below) was unambiguous.
TOP MARKETING PROJECTS
FOR AGENCIES BY GEOGRAPHY
International marketing agencies are going "all in" on producing discoverable content
0 5 10 15 20 25
Blog content
creation
Growing SEO/
organic presence
Content distribution/
amplification
Longform / visual
content creation
Interactive
content creation
Product
how-to videos
Online tools
Freemium trials
Webinars
% of Respondents
InboundMarketingProjects
International
Marketing Agencies
North American
Marketing Agencies
In fact, according to the following chart, European marketing agencies are
outpacing their North American counterparts when it comes to producing
top-of-the-funnel (TOFU) content. Why does this trend merit highlighting?
Because as you will see in later chapters, these types of TOFU content
positively correlate to ROI.
HUBSPOT • State of Inbound • 2014 25
RELATIONSHIP BETWEEN CONTENT MARKETING
AND INBOUND MARKETING BY DEPARTMENT
Front-office professionals, particularly marketers,
see content marketing as a subset of inbound marketing
Department
%ofRespondents
Marketing Sales Services
0
10
20
30
40
50
60
Content marketing
is a subset of
inbound marketing
They are synonyms
Inbound marketing
is a subset of
content marketing
The two are
fundamentally
different
Front-office professionals perceive “content marketing” and “inbound
marketing” as co-existing, with the former being a subset of the latter.
Predictably, the greatest variance is seen with marketers, where the roots for
both concepts run deepest. Nearly six of ten marketing professionals
consider content marketing to be a subset of inbound marketing,
whereas only 10% consider the reciprocal to be true. Reassuringly,
85% of marketers believe the two concepts are related, whereas only 7%
conclude the terms are fundamentally different.
As a practical matter, what does it mean that content marketing is a subset
of inbound marketing? There are a few considerations. First, marketers
should think in terms of “and” not “or” when it comes to content
and inbound. Success relies on both. Second, content – from a blog to
webinars, from email nurturing to customer videos – is one of the levers
marketers can pull to drive their inbound engine. Inbound marketers
produce greater results and enjoy larger budgets, yet without quality content,
the inbound machinery stalls.
HUBSPOT • State of Inbound • 2014 26
HowShouldIThinkAbouttheInbound/OutboundBalance?
Unlike the harmonious relationship between content and inbound
marketing, there is discord between outbound and inbound. This conflict is
reflected in many of the graphics to follow.
Before you can determine what the ideal inbound/outbound balance is for
your organization, let’s begin by zooming out to spot patterns in inbound
adoption.
Most notably, an increasing number of marketers are practicing inbound
(below). The number of marketers who state they are practicing inbound
rose from 60% last year to 85% this year, while the percentage of marketers
who concede they don’t run inbound was nearly halved to 13%.
% OF MARKETERS THAT PRACTICE INBOUND MARKETING
Growth of inbound marketing spiking year over year
Year
%ofRespondents
2013 2014
0
20
40
60
80
100
No, we don't do
inbound marketing
Yes, we do
inbound marketing
HUBSPOT • State of Inbound • 2014 27
Now let’s zoom in a little closer and look at the relationship between
budget and inbound marketing practices (chart below).
Most organizations are practicing inbound – including more than 80%
of companies with an annual marketing budget below $25,000. The
concentration of inbound marketers peaks (93%) at companies
with a marketing budget between $1M and $5M annually, before
dipping moderately (7%) at enterprises with the largest budgets.
Taken together the above charts support the notion that failing to practice
inbound puts marketers at an unfair disadvantage. Most obviously,
it prevents them from realizing the benefits of inbound, but it also leads to them
losing ground to competitors that are running inbound programs.
While the above charts are useful in understanding how to not lose ground
to competition, it’s equally important to identify ways to gain advantage.
The secret may reside with your colleagues in sales and services.
% OF COMPANIES THAT PRACTICE
INBOUND MARKETING BY MARKETING BUDGET
Majority of companies practice inbound marketing, particularly large companies
Less than
$25,000
$25,001 -
$100,000
$100,001 -
$500,000
$501,001 -
$1M
$1M - $5M More than $5M
80
100
Annual Marketing Budget
%ofRespondents
HUBSPOT • State of Inbound • 2014 28
The graph above presents encouraging data for companies that are
consideringdoublingdownoninbound.Itrevealsthatsales(25%)and,toa
lesser extent, services (10%) professionals have begun to employ
inbound practices. These colleagues should be seen as extensions of the
marketing team – both in terms of championing the inbound philosophy
throughout the organization as well as contributing content to the engine
that drives the program’s success. Being first to capitalize on willing talent
outside of your marketing department could be a major competitive
advantage for your company.
R&D
IT
PRODUCT
DEVELOPMENT
RECRUITING
SERVICES
SALES
MARKETING
WHICH DEPARTMENTS
IN YOUR COMPANY
PRACTICE INBOUND?
Inbound is not limited to marketing
HUBSPOT • State of Inbound • 2014 29
For the first time in the past four years, outbound as a primary lead source
has dropped, and sharply – from 34% to 22%. Meanwhile, inbound has
remained relatively stable, off just 1% from its previous three year average. As a
result, in 2014, more than twice as many respondents cited inbound
(45%) as their primary source of leads versus outbound (22%).
Outbound Inbound
PRIMARY LEAD SOURCE BY INBOUND/OUTBOUND
Outbound’s loss is inbound’s gain
Year
%ofRespondents
2011 2012 2013 2014
20
30
40
50
Ultimately, all marketing – whether for a B2B software vendor, a consumer
products manufacturer, a nonprofit organization, or a consultancy – comes
down to the team’s ability to grow revenue. For this reason, attributing
new business leads to inbound or outbound practices is one of the most
important considerations when determining the balance of inbound vs.
outbound activities in your marketing plan. Let’s take a look at the data our
survey produced in the area of “lead source.”
HUBSPOT • State of Inbound • 2014 30
Half of marketers across B2B, B2C, and nonprofit sectors
ranked inbound as their primary lead source, exceeding the
average (42%) of all other channels combined. (See above chart.)
The disproportionate impact of inbound is enjoyed most by nonprofits,
where inbound (58%) is responsible for procuring nearly twice as many
leads as the roll-up of all other channels (31%). Given that nonprofits often
face budget constraints, necessity is proving to be the mother of inbound.
PRIMARY LEAD SOURCE BY COMPANY TYPE
Inbound lead sourcing advantage is greatest for nonprofits
Company Type
%ofRespondents
B2B B2C Nonprofit
0
10
20
30
40
50
60
Self-sourced leads
from sales team
Paid media (e.g., PPC,
Social Media Ads)
Outbound practices (e.g.,
Cold Calling, TV/Outdoor Ads,
Trade Shows, Purchased Lists)
Inbound practices (e.g.,
SEO, Referrals, Social
Media, Content/Blog)
HUBSPOT • State of Inbound • 2014 31
What Challenges Should I Anticipate?
Regardless of the size of your team or budget, few marketers can afford to be
inefficient. Spending time and money implementing flawed programs is the
very definition of inefficiency. What are some of the challenges marketers
should anticipate as they think through their inbound plans? Here are a few
items to consider.
With the significant exception of ROI, marketers are overcoming all major
challenges (chart above). In fact, ROI is the only challenge cited by more
marketers this year than last. The pressure to prove ROI may be mounting
– management is likely expecting to see proof of marketing impact now
that many pieces are in place.
As you will see in the following subsection, although proving ROI is
the top challenge, it’s incongruously ranked as a relatively low
priority.Thatunthinkabledisconnectneedstobereconciled–ifleadership
is expecting ROI, marketers need to prioritize its delivery.
The below graph, which looks at top marketing challenges by company
size, reinforces the universality of the ROI challenge. In fact, the larger the
company, the more likely ROI is to be the organization’s top hurdle.
TOP MARKETING CHALLENGES BY YEAR
Marketers are overcoming many challenges, but ROI remains a hill to climb
2014
2013
%ofRespondents
Marketing Challenges
Training
my team
Finding an
executive
sponsor
Hiring
top talent
Targeting
content for an
international
audience
Managing
my website
Securing
enough
budget
Proving the
ROI of our
marketing
activities
0
5
10
15
20
25
30
HUBSPOT • State of Inbound • 2014 32
There are some nuanced differences between small and large companies’
perceptions of marketing challenges. Small companies are more
challenged by fundamental needs, like managing their website,
whereas larger companies are hampered by more strategic
issues, such as hiring and internationalization.
Curiously, very large companies – those with more than 1,000 employees –
appear to be struggling with issues that can, at least theoretically, be solved
with money. For example, enterprises can hire consultants to help them
select the right technology or pay a premium for talent, yet they lead all
others in ranking technology selection and hiring as their top challenge.
Despite the disconnect between marketing challenges and priorities (see
next subsection), there is tight alignment between marketing practitioners
(manager and below) and marketing leadership (director and above) as
illustrated in the next chart. A similar alignment can also be seen in a
forthcoming graph on marketing priorities by role.
More than 1000
201 to 1000
26 to 200
11 to 25
Less than 10
TOP MARKETING PRIORITIES BY COMPANY SIZE
Smaller companies tend to prioritize lead gen, whereas larger companies
prioritize ROI. Few focus on reducing cost per lead/customer
Reducing the
cost of contacts/
leads/customer
acquisition
Increasing
revenue
derived from
existing
customers
Proving the
ROI of our
marketing
activities
Converting
contacts
/leads to
customers
Reaching
the relevant
audience
Increasing
number of
contacts/leads
0
5
10
15
20
25
30
%ofRespondents
Marketing Priorities
HUBSPOT • State of Inbound • 2014 33
This survey question provided an open-text option, allowing respondents to
submit their own top challenge. Most centered on the difficulty of producing
enough content, which is consistent with anecdotal feedback we hear in
the market. Sophisticated funnel-related challenges began to establish a
pattern this year. For example, targeted lead acquisition, lead management,
lead-to-customer conversion, and even post-sale advocacy peppered the
300+ written responses. Interestingly, the word “mobile” appeared
only once.
TOP MARKETING CHALLENGES BY ROLE
Strong alignment exists between marketing practitioners and leaders
Practioner
Leadership
%ofRespondents
Marketing Challenges
Hiring
top talent
Training
my team
Finding
an executive
sponsor
Targeting
content
for an
international
audience
Identifying
the right
technologies
for my needs
Managing
my website
Securing
enough
budget
Proving the
ROI of our
marketing
activities
0
5
10
15
20
25
30
OPEN TEXT
RESPONSES TO
“WHAT ARE YOUR
TOP MARKETING
CHALLENGES”
Unaided emphasis on ‘mobile
marketing’ is incredibly low
1 319
MOBILE CHALLENGES OTHER
THAN MOBILE
HUBSPOT • State of Inbound • 2014 34
Although the ROI challenge/priority may be asynchronous, some patterns
established in the previous challenges charts reappear in the above priorities
graph. Specifically, smaller companies tend to focus on immediate, tactical
objectives (e.g., generating leads); while larger companies have the resources
to tackle more complex initiatives like calculating lead value.
Where Should I Spend My Time & Budget?
You would think marketing’s challenges would parallel marketing’s
priorities, but, according to the below graph, that doesn’t appear to be the
case. While ROI tops marketing challenges, the number one marketing
priority (according to the below chart) is lead generation (24%) followed by
lead conversion (21%). A modest 15% of marketers (across all company size
categories) ranked ROI as their top priority.
More than 1000
201 to 1000
26 to 200
11 to 25
Less than 10
TOP MARKETING PRIORITIES BY COMPANY SIZE
Smaller companies tend to prioritize lead gen, whereas larger companies
prioritize ROI. Few focus on reducing cost per lead/customer
Reducing the
cost of contacts/
leads/customer
acquisition
Increasing
revenue
derived from
existing
customers
Proving the
ROI of our
marketing
activities
Converting
contacts
/leads to
customers
Reaching
the relevant
audience
Increasing
number of
contacts/leads
0
5
10
15
20
25
30
%ofRespondents
Marketing Priorities
Either marketers feel they’ve solved mobile or, more likely, mobile hasn’t
risen to the level of consideration (at least, not without aided consideration).
In either case, marketers need to be thinking more about mobile – to keep
pace with those who are, or leave behind those who aren’t.
HUBSPOT • State of Inbound • 2014 35
It’s intuitive that smaller companies would over-index for lead generation.
After all, the company’s very livelihood may rest on getting a sufficient
numberofleadstosales.Largecompanies,havingmovedbeyondthevolatile
startup phase, likely consider total lead volume as a lower priority because
they’ve already procured enough leads to grow the business. Instead, at this
stage on the maturity curve, politics begin to emerge. As a result, we see the
rise in importance of prove-your-worth metrics like conversion rates and
lead unit economics.
Similar to the “Top Marketing Challenges by Company Size” graph, the above
graph depicts tight alignment between marketing practitioners (manager
and below) and leaders (director and above). The rise of data-driven
marketing provides a likely explanation for the extremely low variance in
this chart. Unlike marketing that relies on “gut” and instinct, inbound is
rooted in data. Unbiased, objective data facilitates alignment by
providing marketing leaders and practitioners with a common
pool of information upon which to base decision-making and
prioritization. Data should be invited to every marketing meeting. After
all, art may be subjective; science isn’t.
TOP MARKETING PRIORITIES BY ROLE
Strong alignment exists between marketing practitioners and leaders
MarketingPriorities
% of Respondents
Reducing the cost of contacts/
leads/customer acquisition
Increasing revenue derived
from existing customers
Reaching the
relevant audience
Converting contacts/
leads to customers
Increasing number
of contacts/leads
Proving the ROI of our
marketing activities
0 5 10 15 20 25
Leadership Practitioner
HUBSPOT • State of Inbound • 2014 36
Inbound warms leads (chart above). Inbound-sourced leads are
consistently more knowledgeable about the company prior to
speakingwitharepthanleadssourcedthroughoutboundmeans.
Because the number of leads can be counted and the quality of leads can
be scored, marketers understandably focus on these two dimensions of
lead generation. Yet the familiarity a lead has with your company is also an
important consideration when readying your marketing plan.
In addition to making sure SLA metrics are factored prominently into
the marketing plan, there are additional ways marketing can support its
primary stakeholder. For example, marketing should make sure prospects
are as informed as possible prior to their first interaction with a rep.
HOW KNOWLEDGEABLE ARE PROSPECTS ABOUT
YOUR COMPANY PRIOR TO SPEAKING WITH SALES?
Inbound marketers create more knowledgeable prospects
Prospects' Knowledge about Company
%ofRespondents
Very knowledgeable Moderately
knowledgeable
Somewhat
knowledgeable
Not at all
knowledgeable
0
10
20
30
40
50
60
Primary Lead
Source = Outbound
Primary Lead
Source = Inbound
How Should the Sales Team Factor Into My Plans?
It is becoming imperative for marketing to factor sales into its plans.
After all, sales is the primary beneficiary of marketing’s effort. If sales and
marketing are aligned, then many performance metrics – like lead quality,
lead volume, even marketing ROI – fall into place much more naturally. In
other words, the sales/marketing SLA that opens the door to credibility and
the budget that comes with it (see “Budgets” chapter) is only achievable if
sales is a forethought, not an afterthought, in the planning process.
HUBSPOT • State of Inbound • 2014 37
The below graph suggests that “good things happen” when marketing
partners with sales.
The presence of an SLA correlates to greater involvement by marketing
in sales software selection. Forty nine percent is a key figure: 49% of
companies with an SLA involve marketing in sales tech selection
process; 49% of companies without an SLA do not involve
marketing in this process. Why is it advantageous for marketing to play
a role in sales software selection? Because marketers need to make certain
the technology sales selects facilitates its ability to process the data required
to demonstrate results.
Thenotionofintegration–specifically,theintegrationofsalesandmarketing
software – was a prominent theme in the open-text feedback to a question
about technology selection. The solution is refreshingly simple: Having a
say in sales starts with an SLA.
DOES MARKETING INFLUENCE
SALES SOFTWARE SELECTION?
Companies with a sales/marketing SLA are more likely to
involve both groups in sales software selection
SLA
%ofRespondents
SLA No SLA
0
10
20
30
40
50
No, no Marketing
influence
Yes, Marketing
influence
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Executing for Inbound
CHAPTER FOUR
4
HUBSPOT • State of Inbound • 2014 39
Where Do the Best Leads Hide?
Inbound marketers are finding leads where outbound marketers aren’t.
According to the below graph, 84% of inbound marketers – compared
to only 9% of outbound marketers – cite organic, top of funnel
sources (social media, blogs, SEO) as rising in importance.
Implementing inbound is like skiing: It’s the perpetual state of gaining,
losing, and regaining your balance – often in rapid succession. Inbound isn’t
riding a bike; coasting isn’t an option. The “set and forget” mentality is rarely
rewarded in inbound, because inbound is about constantly reallocating your
resources based on performance.
Because the best inbound programs are nimble, there’s no magic formula for
success. Or, more accurately, today’s magic formula might not be so “magic”
tomorrow. There’s no inbound-equivalent of the popular 4-1-1 Twitter “rule.”
When executing your inbound program, it’s best to start with what’s worked
for others, and then recalibrate based on performance feedback.
EXECUTING FOR INBOUND
WHICH LEAD SOURCES HAVE BECOME
MORE IMPORTANT (OVER LAST 6 MONTHS)
Outbound marketers are placing minimal importance on core inbound channels
Lead Source
%ofRespondents
Social
Media
Blogs SEO Email
Marketing
PPC Trade
Shows
Traditional
Advertising
Direct
Mail
Telemarketing
0
20
40
60
80
100
Outbound Marketers
Inbound Marketers
HUBSPOT • State of Inbound • 2014 40
In fact, it appears the only lead source valued equally by inbound and
outbound marketers is email.
The graph below compares how marketing and sales professionals view the
importance of different sources of leads. Notably, sales professionals
(61%) are nearly seven times more likely to value organic, top
of funnel sources than outbound marketers (9%). (Note: The
“outbound marketer” segment is not called out in the chart below.)
WHICH LEAD SOURCES HAVE BECOME
MORE IMPORTANT (OVER LAST 6 MONTHS)
Sales gravitates toward outbound channels whereas marketers lean inbound
Lead Source
%ofRespondents
Social
Media
Blogs SEO Email
Marketing
PPC Trade
Shows
Traditional
Advertising
Direct
Mail
Telemarketing
0
20
40
60
80
100
Sales Professionals
Marketing Professionals
As you might expect, the chart above shows that sales professionals still
index higher than marketers when it comes to outbound lead sourcing
techniques like tradeshows, direct mail, and telemarketing. But next to
email, the three most important lead sources for reps are all decidedly
inbound – social media, SEO, and blogs. Salespeople “get” inbound
(often better than outbound marketers do), and as the inbound
methodology becomes more deeply entrenched in sales, there’s
likely to be even less variance between the two groups.
HUBSPOT • State of Inbound • 2014 41
WHICH LEAD SOURCES HAVE BECOME
MORE IMPORTANT (OVER LAST 6 MONTHS)
Small companies had a head start at inbound; large companies are closing the gap
0
10
20
30
40
50
60
70
80
Lead Source
%ofRespondents
Social
Media
Blogs SEO Email
Marketing
PPC Trade
Shows
Traditional
Advertising
Direct
Mail
Telemarketing
More than 200 Employees
Less than 200 Employees
Pivoting the same question [“Which lead sources have become more
important (over last 6 months)?”] by company size (chart above) reveals
something noteworthy: There’s minimal variance between smaller
companies and larger ones, suggesting inbound isn’t a “big company” or
“smallcompany”priority.It’snotthesizeofthecompanythatshapesinbound
priorities, but rather the outlook of the marketing team. It’s universal.
HUBSPOT • State of Inbound • 2014 42
What Projects Promise the Greatest Return?
When venture capitalist Byron Deeter wrote, “If your sales and marketing
teams are rational, quantitative, and have metrics in place, then on average
the next dollar they spend will go to something that performs slightly worse
than the dollar they spent before it – or their existing budgets are poorly
allocated,” he was cheering the hyper-efficiency made possible by data-
driven marketing.
So what are the “first dollar” projects that deliver peak value? Certainly they
vary by industry, but below is a snapshot of the projects high performers
(vendors and agencies that drove greater year-over-year inbound ROI)
prioritize.
TOP INBOUND MARKETING PROJECTS
High performing agencies and vendors doubled down on projects with the greatest ROI
Blog content
creation
Growing SEO/
organic presence
Content distribution/
amplification
Longform/visual
content creation
Interactive content
creation Product how-to
videosOnline tools
Freemium
trialsWebinars
0
5
10
15
20
25
Inbound Marketing Projects
%ofRespondents
High Performers
Vendors
Agencies
High performers prioritize projects designed to help get the company and its
content discovered. This pattern holds for both agencies and vendors. When
considering which tactics to employ to establish or accelerate
your inbound program, data would suggest blogging, SEO, and
content distribution.
HUBSPOT • State of Inbound • 2014 43
B2B and B2C companies tend to prioritize the same inbound tactics (see
above), but with a few minor exceptions. B2B companies appear to
place a higher value on educational formats (like webinars),
whereas consumer businesses are slightly more willing to
experiment with advanced digital formats (interactive content,
online tools). The below graph, which visualizes Top Marketing Projects
by Role, shows even tighter alignment. Similar to the earlier charts that
segmented inbound challenges and priorities by role, marketing leaders
and practitioners are closely aligned around which tactics to
prioritize. Again, data-centricity is likely at the heart of this alignment.
TOP INBOUND MARKETING PROJECTS BY COMPANY TYPE
B2B companies prefer educational formats, whereas B2C companies prioritize engaging digital formats
B2C
B2B
% of Respondents
InboundMarketingProjects
Blog content
creation
Longform/visual
content creation
Interactive
content creation
Content distribution
/amplification
Webinars
Online tools
Freemium trials
Product how-to
videos
Growing SEO/
organic presence
0 5 10 15 20 25
TOP INBOUND MARKETING PROJECTS BY ROLE
Strong alignment exists between marketing practitioners and leaders
% of Respondents
InboundMarketingProjects
Blog content
creation
Longform/visual
content creation
Interactive
content creation
Content distribution
/amplification
Webinars
Online tools
Freemium trials
Product how-to
videos
Growing SEO/
organic presence
0 5 10 15 20 25
Practioner
Leadership
HUBSPOT • State of Inbound • 2014 44
Who Should Create My Content?
Content–blogposts,distributedbroadly,andwrittentodriveorganicsearch
results – tops the inbound projects lists for all segments (high performers,
large/small companies, leaders/practitioners). Content is the lifeblood of
inbound. Given its importance, the next logical question is, “Who should
create our content?” Again, let’s begin at the end – with a look at how high
performers address the issue.
While internal authors – namely staff and executives – correlate to the
highest ROI, they also happen to correlate to the lowest ROI. Why? Because
every company that publishes content creates at least some of it internally.
Few if any companies outsource all of their content creation. So instead of
looking for guidance in the size of the bars for each segment, let’s instead
zoom in on areas of change, specifically who created content for companies
that enjoyed a lift in year over year ROI: guests and freelancers.
WHO CREATES CONTENT BY ROI
Guests, freelancers key to ROI improvement
0
10
20
30
40
50
Staff Executives Guests Freelancers Agency
partner
Writing
panels
Curation
Content Creators
%ofRespondents
Lower ROI than
the previous year
Greater ROI than
the previous year
HUBSPOT • State of Inbound • 2014 45
It’s likely that guests and freelancers correlate to increased ROI because
inbound success relies as much on content volume as it does on quality.
Unless a company is producing a steady stream of (quality) content, the
audience it earns will begin to decay. Guests and freelancers are relatively
inexpensive sources of content. Procuring content from these groups
allows companies to scale output while simultaneously increasing
the marketing team’s capacity for measurement and optimization.
The above chart is intuitive. Given resource constraints, smaller
companies tend to produce more of their own content, whereas
larger budgets allow enterprises to source content from
specialists and agencies. Given that small company executives (19%)
are more likely to produce content than large company leadership (12%), it’s
possible for smaller companies to win the quality battle.
Writer panels, like NewsCred, Contently and others, barely registered any
responses.Again,asqualityrisesinimportance,thesetypesoforganizations
could emerge as a desirable option given that they combine the benefits of
freelancers with a layer of vetting and management.
WHO CREATES CONTENT BY EMPLOYEE COUNT
Smaller companies are more likely to create content internally
Content Creators
%ofRespondents
More than 1000
Less than 200
Staff Executives Guests Freelancers Agency
partner
Writing
panels
Curation
0
10
20
30
40
50
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Measuring Inbound
CHAPTER FIVE
5
HUBSPOT • State of Inbound • 2014 47
When it comes to inbound, measurement is the alpha and omega. It’s the
first step in developing a plan and the last step in determining results. This
is why data is such a central component of the inbound machine.
As you can see in the below chart, that you measure your marketing is nearly
as important as what you measure.
Incredibly, marketers that measure inbound ROI are 17 times
more likely to see the same or greater ROI over the previous
year (chart above). It’s likely that selection bias is impacting the data. After
all, higher performing marketers are more likely to measure results, thus
they are also more likely to drive growth. Nevertheless, there’s a strong
correlation between simply measuring ROI and achieving it. Marketers
that are not currently measuring ROI should begin immediately, because
eventually they will need a baseline against which to establish year-over-
year performance.
MEASURING INBOUND
INBOUND ROI IMPACT YEAR OVER YEAR
Inbound marketers that measure ROI are enjoying major impact
Inbound Marketing ROI
%ofRespondents
Greater ROI than
the previous year
Lower ROI than
the previous year
About the same as
the previous year
0
5
10
15
20
25
30
35
40
HUBSPOT • State of Inbound • 2014 48
Given the relationship between measurement and performance, it’s
encouraging to note the rise in marketers tracking ROI (see chart above).
The percentage of marketers measuring ROI rose by a modest 3% over
2013; however, the percentage of marketers admitting they don’t measure
ROI is down by 12%.
Before we get too excited about this pattern, it’s worth noting that the
image isn’t quite as rosy as it might seem. Marketers are still struggling to
calculate return. Only slightly more than half (53%) are measuring
ROI, which means that simply measuring ROI – regardless
of your results – automatically puts you in the upper half of
the profession.
Now let’s raise the bar back to where it belongs: results. Which sectors are
improving ROI?
INBOUND ROI MEASUREMENT YEAR OVER YEAR
Slightly more inbound marketers tracking ROI
Do you measure inbound ROI?
%ofRespondents
We measure ROI We don't measure ROI
0
10
20
30
40
50
60
2014
2013
HUBSPOT • State of Inbound • 2014 49
INBOUND MARKETING ROI BY COMPANY TYPE
Companies of all types enjoying greater ROI from inbound
Inbound Marketing ROI
%ofRespondents
Greater ROI than the previous year Lower ROI than the previous year
0
10
20
30
40
50
B2C
Nonprofit
B2B
According to the chart above, inbound ROI is up for everyone, in particular
nonprofits. This data reinforces an earlier graph (see “Primary Lead Source
by Company Type” in the Planning for Inbound chapter) that revealed
nonprofits source nearly twice as many leads via inbound channels as all
other channels combined. Given nonprofits’ success at inbound lead
generation, it’s natural that they would also outperform B2B and
B2C companies in ROI growth.
In the introduction to this report, we established that inbound is 20% more
likely to be the primary lead source for agencies than it is for the aggregate
of all vendors. Therefore, agencies should outperform vendors in terms of
inbound ROI just as nonprofits eclipse B2B and B2C organizations. Let’s look
at the chart below, which compares the inbound ROI of agencies to vendors.
HUBSPOT • State of Inbound • 2014 50
Indeed the pattern is consistent: Organizations that source more
leads through inbound tend to enjoy an ROI advantage.
AGENCIES VS. VENDORS
Marketing agencies are generating greater inbound ROI than all others
% of Respondents
Industry Vendors
Agencies
0 10 20 30 40 50
Greater ROI than
the previous year
HUBSPOT • State of Inbound • 2014 51
But what is driving inbound ROI? What single activity is most commonly
associated with success? We looked at each inbound practice to find the
one that had the strongest correlation to positive ROI and found that
marketers who emphasize blogging are 13 times more likely to
have increased ROI year over year.
Clearly ROI is marketing’s ultimate goal. But to increase return, marketers
need to improve performance of all initiatives that contribute to ROI.
Although there are no universal funnel (e.g., how much should leads at
different funnel stages cost) or budget (e.g., what size budget is appropriate
for companies of different sizes) benchmarks, readers of previous “State of
Inbound Marketing” reports have asked for deeper insights into how their
fellow marketers perform at each buying stage.
We asked a series of questions to help readers compare their funnel metrics
to others’. We collected data on cost per lead and cost per customer, as
well as website, blog, email, and landing page conversion rates. This effort,
however, led to a single, unambiguous conclusion: Too few marketers can
reportreliablyontheuniteconomicsoftheirfunneltojustifyincludingmuch
of the data in this report. For example, there’s simply no way marketers, on
average, are converting 9% of their blog visitors into prospects.
THE IMPACT
OF BLOGGING
ON INBOUND ROI
Marketers who have prioritized
blogging are 13x more likely to
enjoy positive ROI
13x
We did find that leads sourced through inbound practices are
consistently less expensive than outbound leads, regardless of
company size. Below is a graph that looks at cost per lead for North American
B2B companies. The absolute costs are less important than the relative cost
between inbound and outbound leads.
HUBSPOT • State of Inbound • 2014 52
The information gathered on budgets is more reliable. The graphic below
illustrates the most popular budget range for companies of various sizes.
If your budget is a below-norm outlier, this data may be a useful catalyst
for discussion with your executive team. (Conversely, if your budget is an
above-norm outlier, you may wish to discard this page, immediately.)
AVERAGE COST
PER LEAD BY
COMPANY SIZE
Inbound leads are more
cost-effective for North
American B2B companies
of all sizes
1-25 51-200 1,000+
$37
$102
$70
$220
$27
$45
Inbound
Outbound
TYPE OF COMPANY
COMPANY SIZE
MARKETING BUDGET
Budgets are most variable for mid-size companies
More than 1000
201 to 1000
26 to 200
11 to 25
Less than 10
20%
40%
60%
80%
100%
Less than
$25,000
$25,001 -
$100,000
$100,001 -
$500,000
$1M - $5M More than $5M$500,001 - $1M
# OF EMPLOYEES
BUDGET
DOWNLOAD ALL OF THE GRAPHS HERE
WANT TO USE A STATE OF INBOUND
CHART IN YOUR NEXT PRESENTATION?
Survey Methodology
CHAPTER SIX
6
HUBSPOT • State of Inbound • 2014 54
HubSpot fielded our 2014 State of Inbound Survey between 10:00 AM
EST on June 25, 2014 and 5:00 PM EST on July 15, 2014. The survey was
administered online, where 6,432 respondents started the survey and 3,570
completed it. To see the exact demographic breakdown of the completed
survey respondents, please reference the Audience Composition graphic in
the first chapter.
The sampling method was a voluntary sample with the incentive being
a chance to win one of ten available Beats Solo2 On-Ear Headphones.
The audience was solicited through the following promotional channels:
Facebook, Twitter, LinkedIn, Paid & Email.
Participation in the State of Inbound Survey Giveaway was subject to ‘HubSpot’s
“State of Inbound 2014” Survey Sweepstakes - Official Rules’ available here -
http://hubspot.com/state-of-inbound-survey-sweepstakes-terms-conditions.
Executive Sponsor: Mike Volpe
Author: Joe Chernov
Survey Creation: Abhinav Arora / Joe Chernov / Sara Davidson
Survey Implementation: Abhinav Arora
Data Analysis: Joe Chernov / Sara Davidson
Chart Design: Doug Stone
Report Design: Tyler Littwin
Site Design: Anna Faber-Hammond
SURVEY METHODOLOGY
About the Team
DOWNLOAD ALL OF THE GRAPHS HERE
WANT TO USE A STATE OF INBOUND
CHART IN YOUR NEXT PRESENTATION?

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The 6 Key Takeaways from the State of Inbound Report

  • 1. ofSTATE INBOUND 2014 THE DATA YOU NEED TO BUDGET, PLAN, EXECUTE AND MEASURE INBOUND MARKETING AND SELLING.
  • 2. HUBSPOT • State of Inbound • 2014 2 Introduction TABLE OF CONTENTS CH. 1 Budgeting for InboundCH. 2 Planning for InboundCH. 3 Executing for Inbound Measuring for Inbound Survey Methodology CH. 4 CH. 5 CH. 6
  • 4. HUBSPOT • State of Inbound • 2014 4 For the past five years, HubSpot has published the findings from its annual survey, which probes marketers on their challenges, priorities, tactics and results, in a popular report branded “The State of Inbound Marketing.” The series tracks the practice of inbound marketing – the art and science of drawing visitors to your company on their own terms versus obtrusively pushing your messages onto them – from its humble “two guys in a garage” (or, in this case, two guys in business school) beginning up through last year’s 164- page leviathan. For this year’s report, we followed many of the same processes as in the past. We surveyed thousands of marketers (see “Audience Composition” graphic) and asked a blend of repeat questions (for trending data) and new ones (to keep pace with emerging marketing trends). We produced nearly a hundred graphs, which we winnowed down to 40 or so compelling “data narratives” that we believe will help readers improve top-line performance. Yet as similar as our objectives and methodology were, there are two significant differences in this year’s report – beginning with the title itself. We’ve dropped “marketing” from the title to reflect a sea change. “Inbound” is no longer limited to marketing. Businesses now turn to inbound methodologies to power sales (25%) and even customer service (10%). Certainly the marketing use-case remains foremost, but make no mistake: Inbound has become an interdepartmental phenomenon. The report also straddles calendar years, 2014 to 2015. It is comprised of data from INTRODUCTION About “State of Inbound” a mid-year survey that posed questions about full-year programs. As such, the findings and guidance remain current well into 2015. As much as we hope you enjoy reading this report, it’s even more important that you use it. It’s meant to be a functional document. Print it and mark it up. Share it with your boss, your head of sales, the rep who always beats her numbers (or, better still, the rep who is struggling to hit quota), maybe even your customer support team. Please remember that the data is based on self-reported survey responses. Consider the findings to be directional. We’ve organized the data into four self-contained sections: budgeting, planning, execution and measurement. There’s no need to read the report linearly. Dive into whichever section corresponds to your greatest needs, and save the rest for later. You want to understand how to maximize your budget? Read the Budgeting chapter. Looking to report to your leadership the same metrics top performers report to theirs? The Execution chapter has you covered. Audience Composition If there exists a modern marketing report that’s based on survey data from a larger, more diverse audience, then we’d like to know about it. We believe State of Inbound is the definitive report on inbound business in large part because of the audience composition, which we’ve visualized in the graphic below.
  • 5. HUBSPOT • State of Inbound • 2014 5 Executive and above Manager and below State of Inbound – Audience Composition 68% B2B 21% B2C 5% NONPROFIT $250,001 - $1M $1M - $10M $10M - $500M $500M - $1B Prefer not to say Less than $250,000 COMPANY SIZE BY ANNUAL REVENUE COMPANY SIZE BY NUMBER OF EMPLOYEES TYPES OF ORGANIZATIONS RESPONDENTS BY CAREER Marketers Sales Professionals VERTICAL MARKETS RESPONDENT JOB LEVEL 11 to 25 26 to 200 201 to 1000 More than 1000 Less than 10 Information Technology & Services Marketing Agencies Education Healthcare & Medical Remaining 11 Industries Represented Software 1,723 631 69% 31% Less than $250,000 $250,001 - $1M $1M - $10M $10M - $500M $500M - $1B Prefer not to say Less than 10 11 to 25 26 to 200 201 to 1000 More than 1000 HubSpot Partner HubSpot Customer Not a HubSpot Partner Not a HubSpot Customer Software Information Technology & Services Marketing Agencies Education Healthcare & Medical Remaining 11 Industries Represented Executive and above Manager and below 5% NONPROFIT 21% B2C 68% B2B 78% 15% 1% 6% 3,570 RESPONDENTS 5% 44% 4% 34%
  • 6. HUBSPOT • State of Inbound • 2014 6 The Six Most Important Takeaways If you are pressed for time, here’s the TL;DR-style executive summary: We noticed six clear and consistent trends when analyzing the data. They are: Inbound unlocks ROI; ROI unlocks budget. If you are running an inbound marketing program and not tracking ROI, you are doing your company – and your career – a disservice because inbound marketers who measure ROI are more than 12 times more likely to be generating a greater as opposed to lower year-over-year return. 1.) INBOUND ROI IMPACT YEAR OVER YEAR Inbound marketers that measure ROI are enjoying major impact Inbound Marketing ROI %ofRespondents Greater ROI than the previous year Lower ROI than the previous year About the same as the previous year 0 5 10 15 20 25 30 35 40 Proving that you are increasing return is important for several reasons, most notably the positive impact it has on budget. No single factor had a greater impact on budget – positive or negative – than did “past success with inbound.” Improving ROI may even safeguard your budget against factors beyond your control, like the economy itself.
  • 7. HUBSPOT • State of Inbound • 2014 7 FACTORS INFLUENCING INBOUND BUDGET CHANGE Proving success is key to securing more budget Reasons for Change %ofRespondents Lower Inbound Marketing Budget Higher Inbound Marketing Budget Economy Change in management Past success with inbound marketing Past failure with inbound marketing 0 10 20 30 40 50 60 “Getting found” is priority #1 (and #2 and #3) for high performers. We zoomed in on the segment of inbound marketers who are generating positive ROI (“high performers”) to see if they prioritized different types of projects than low performers. As you will see in the “Measurement” chapter, high performers are emphasizing programs designed to get their content, and by extension their company, found. In order, blogging, organic search, and content amplification top the list. Blogging appears to have the most substantial impact on performance. Given that marketers who blog are 13x more likely to drive positive ROI, it shouldn’t be a surprise that the tactic tops high performers’ lists of most important inbound projects. 2.) THE IMPACT OF BLOGGING ON INBOUND ROI Marketers who have prioritized blogging are 13x more likely to enjoy positive ROI 13x
  • 8. HUBSPOT • State of Inbound • 2014 8 Data facilitates alignment. If inbound marketing were a sports team, data would be the coach. The chart below depicts remarkably tight alignment between marketing practitioners and their leaders (director and above title). Data is objective. It’s immune to the feelings and instincts that drove the previous era of “arts and crafts” marketing. 3.) TOP MARKETING PRIORITIES BY ROLE Strong alignment exists between marketing practitioners and leaders MarketingPriorities % of Respondents Reducing the cost of contacts/ leads/customer acquisition Increasing revenue derived from existing customers Reaching the relevant audience Converting contacts/ leads to customers Increasing number of contacts/leads Proving the ROI of our marketing activities 0 5 10 15 20 25 Leadership Practitioner
  • 9. HUBSPOT • State of Inbound • 2014 9 Agencies are leading the pack. Inbound marketing performance is up across the board. More companies are running inbound than ever before. More are measuring ROI and more are enjoying improved ROI. Inbound is expanding into other lines of business, and those departments are experiencing positive results. It’s even driving revenue globally. But the group that’s setting the standard is marketing agencies, who are outpacing vendorsbysourcingnearlyhalf(47%)ofallleadsthroughinboundchannels. The era of “inbound selling” has arrived. Inbound is no longer limited to “just” marketing. More than 25% of respondents reported that their organizations’ sales teams practice inbound, and it’s not just lip service. Contrast the two charts below, and you’ll see that sales professionals are far more “inbound” than are marketers who favor outbound practices. 4.) 5.) AGENCIES VS. VENDORS Marketing agencies are most effective at driving leads through inbound channels % of Respondents Industry Vendors Agencies 0 10 20 30 40 50 60 70 80 Primary Lead Source = Outbound Primary Lead Source = Inbound WHICH LEAD SOURCES HAVE BECOME MORE IMPORTANT (OVER LAST 6 MONTHS) Outbound marketers are placing minimal importance on core inbound channels Lead Source %ofRespondents Social Media Blogs SEO Email Marketing PPC Trade Shows Traditional Advertising Direct Mail Telemarketing 0 20 40 60 80 100 Outbound Marketers Inbound Marketers
  • 10. HUBSPOT • State of Inbound • 2014 10 The belief that European marketers trail their North American counterparts is unfounded. Many marketers believe that the U.S. leads the world in terms of marketing innovation. Prior to analyzing the data, even the author of this report may have made a statement or two to that effect. As it turns out, this statement doesn’t hold water. Data from respondents in North America and Europe, Middle East, and Africa (EMEA) showed minimal variance. 6.) WHICH LEAD SOURCES HAVE BECOME MORE IMPORTANT (OVER LAST 6 MONTHS) Sales gravitates toward outbound channels whereas marketers lean inbound Lead Source %ofRespondents Social Media Blogs SEO Email Marketing PPC Trade Shows Traditional Advertising Direct Mail Telemarketing 0 20 40 60 80 100 Sales Professionals Marketing Professionals
  • 11. HUBSPOT • State of Inbound • 2014 11 North America Europe, the Middle East, and Africa (EMEA) Do you do inbound marketing? YES NO North America Europe, the Middle East, and Africa (EMEA) ROI of inbound marketing: GREATER THAN PREVIOUS YEAR LOWER THAN PREVIOUS YEAR 5 10 15 20 25 30 5 10 15 20 25 TOP MARKETING PRIORITIES BY GEOGRAPHY TOP INBOUND MARKETING PROJECTS BY GEOGRAPHY Increasing number of contacts/leads Converting contacts/leads to customers Reaching the relevant audience Increased revenue derived from existing customers Reducing the cost of contacts leads/ customer acquisition Proving the ROI of our marketing activities Blog content creation Growing SEO/organic presence Content distribution/ amplification Longform/ visual content creation Product how-to videos Webinars Online tools Fremium trials Interactive content creation COMPANIES THAT PRACTICE INBOUND MARKETING BY GEOGRAPHY INBOUND ROI BY GEOGRAPHY North America Europe, the Middle East, and Africa (EMEA) North America Europe, the Middle East, and Africa (EMEA) INBOUND MARKETING TRENDS BY GEOGRAPHY The claim that Europe trails North America is a myth North America Europe, the Middle East, and Africa (EMEA) Do you do inbound marketing? YES NO North America Europe, the Middle East, and Africa (EMEA) ROI of inbound marketing: GREATER THAN PREVIOUS YEAR LOWER THAN PREVIOUS YEAR 5 10 15 20 25 30 5 10 15 20 25 TOP MARKETING PRIORITIES BY GEOGRAPHY TOP INBOUND MARKETING PROJECTS BY GEOGRAPHY Increasing number of contacts/leads Converting contacts/leads to customers Reaching the relevant audience Increased revenue derived from existing customers Reducing the cost of contacts leads/ customer acquisition Proving the ROI of our marketing activities Blog content creation Growing SEO/organic presence Content distribution/ amplification Longform/ visual content creation Product how-to videos Webinars Online tools Fremium trials Interactive content creation COMPANIES THAT PRACTICE INBOUND MARKETING BY GEOGRAPHY INBOUND ROI BY GEOGRAPHY North America Europe, the Middle East, and Africa (EMEA) North America Europe, the Middle East, and Africa (EMEA) INBOUND MARKETING TRENDS BY GEOGRAPHY The claim that Europe trails North America is a myth North America Europe, the Middle East, and Africa (EMEA) Do you do inbound marketing? YES NO North America Europe, the Middle East, and Africa (EMEA) ROI of inbound marketing: GREATER THAN PREVIOUS YEAR LOWER THAN PREVIOUS YEAR 5 10 15 20 25 30 5 10 15 20 25 TOP MARKETING PRIORITIES BY GEOGRAPHY TOP INBOUND MARKETING PROJECTS BY GEOGRAPHY Increasing number of contacts/leads Converting contacts/leads to customers Reaching the relevant audience Increased revenue derived from existing customers Reducing the cost of contacts leads/ customer acquisition Proving the ROI of our marketing activities Blog content creation Growing SEO/organic presence Content distribution/ amplification Longform/ visual content creation Product how-to videos Webinars Online tools Fremium trials Interactive content creation COMPANIES THAT PRACTICE INBOUND MARKETING BY GEOGRAPHY INBOUND ROI BY GEOGRAPHY North America Europe, the Middle East, and Africa (EMEA) North America Europe, the Middle East, and Africa (EMEA) INBOUND MARKETING TRENDS BY GEOGRAPHY The claim that Europe trails North America is a myth
  • 12. HUBSPOT • State of Inbound • 2014 12 What Do We Mean By “Inbound” Anyway? When HubSpot coined the term “inbound marketing” back in 2006, the company had loosely defined it as meaning: “a methodology that focuses on creating quality content that pulls people toward your company and product.” In other words, inbound is the superset of quality content and other “magnetic” tactics. Since that time, a similar methodology called “content marketing” has taken root. Perhaps because content marketing wasn’t championed by a single organization, it tends to have a less “ratified” definition. Nevertheless, it’s become a popular term of art. In fact, Google Trends data shows search volume is considerably higher for “content marketing” (blue line) than for “inbound marketing” (orange line). So are we even using the proper terminology when we refer to inbound marketing? Do the thousands who completed the survey and the tens of thousands who will read this report perceive inbound marketing in the same way that HubSpot does? It turns out, yes. Average 2005 2007 2009 2011 2013 Inbound Marketing Content Marketing GOOGLE SEARCH TRENDS: INBOUND MARKETING VS. CONTENT MARKETING
  • 13. HUBSPOT • State of Inbound • 2014 13 Marketers concluded that content marketing is a subset of inbound at nearly twice the rate (59% to 33%) as all other options combined. While the data showed less variance for sales and services professionals, “content marketing is a subset of inbound” was still clearly the most popular answer even for groups newer to inbound. RELATIONSHIP BETWEEN CONTENT MARKETING AND INBOUND MARKETING BY DEPARTMENT Front-office professionals, particularly marketers, see content marketing as a subset of inbound marketing Department %ofRespondents Marketing Sales Services 0 10 20 30 40 50 60 Content marketing is a subset of inbound marketing They are synonyms Inbound marketing is a subset of content marketing The two are fundamentally different DOWNLOAD ALL OF THE GRAPHS HERE WANT TO USE A STATE OF INBOUND CHART IN YOUR NEXT PRESENTATION?
  • 15. HUBSPOT • State of Inbound • 2014 15 This fact may cause your CFO to groan, but spending money is one of marketing’s most important jobs. Whether it’s licensing technology, sourcing and distributing content, procuring development resources, or commissioning specialty skills like SEO and video production, spending wisely is a prerequisite for marketing success. But for many marketers, securing funds can feel like a Catch-22: If budget contributes to results, then how do you get budget before you are able to demonstrate success? We asked several budget-related questions in hopes of collecting data that would help marketers better understand how to secure the resources they need. Fortunately, it appears most of the means are within marketers’ span of influence and, in some cases, are even within their immediate control. Here are some of the patterns that emerged: BUDGETING FOR INBOUND INBOUND MARKETING ROI BY COMPANY TYPE Companies of all types enjoying greater ROI from inbound Inbound Marketing ROI %ofRespondents Greater ROI than the previous year Lower ROI than the previous year 0 10 20 30 40 50 B2C Nonprofit B2B Inbound marketing budgets are up for all types of companies (chart above). In fact, more than 5 times as many marketers reported higher budgets than claimed budgets had been cut this year. The majority of B2B companies surveyed are enjoying a lift in budget, with 74% reporting the same or increased budget in this year (the 27% “unchanged” segment is not reflected in the above chart). If your budget is down from last year, then odds are the cause is as simple as a lack of demonstrated success.
  • 16. HUBSPOT • State of Inbound • 2014 16 The chart above reveals that no single factor has a greater impact on budget than previous success with inbound marketing. Remarkably, the financial upside of prior inbound success exceeds even the downside of adverse economic conditions. Simply put, success – best expressed in terms of return on investment (ROI) – unlocks budget and insulates marketers against economic vagaries. Proving marketing effectiveness can also be valuable during leadership changes. Executive turnover often has an adverse impact on budget. Quantifying inbound success can steel marketers against the whims of new management. FACTORS INFLUENCING INBOUND BUDGET CHANGE Proving success is key to securing more budget Reasons for Change %ofRespondents Lower Inbound Marketing Budget Higher Inbound Marketing Budget Economy Change in management Past success with inbound marketing Past failure with inbound marketing 0 10 20 30 40 50 60
  • 17. HUBSPOT • State of Inbound • 2014 17 But what about marketers who are new to inbound? How can they secure ample budgets before they’ve collected enough data to prove success? The chart below shows an encouraging trend. Inbound budgets positively correlate to the presence of a Service Level Agreement (SLA) between marketing and sales. ANNUAL MARKETING BUDGET BY SLA Marketing budget size positively correlates to having an SLA No, we don’t have an SLA Yes, we have an SLA Annual Marketing Budget Less than $25,000 $25,001 - $100,000 $100,001 - $500,000 $500,001 - $1M $1M - $5M More than $5M 0 10 20 30 40 50 60 70 80 %ofRespondents Ratifying an SLA with sales demonstrates credibility. For example, if marketing commits to delivering a certain number of leads that meet a measurable quality score, and sales is accountable for following up on those leads in a documented amount of time, then the two groups are signaling to leadership that they are focused on driving business results, not just intradepartmental metrics. Establishing an SLA also doubles as a forcing function – it requires marketers to measure consistently, which, as we will see in subsequent chapters, is a prerequisite to becoming a high performer.
  • 18. HUBSPOT • State of Inbound • 2014 18 INBOUND MARKETING BUDGET BY SLA SLA positively correlates to higher year over year inbound budget SLA %ofRespondents 0 10 20 30 40 50 Lower Inbound Marketing Budget Higher Inbound Marketing Budget It appears the “magic number” for an SLA is $500,000. That is, if your marketing budget exceeds a half-million dollars, then you are expected to have an SLA with sales. Surprisingly, 29% of marketers with a budget greater than $500,000 don’t have a sales SLA. If the patterns detected in this report continue, metrics-centric high performers will likely replace those marketers. The chart below suggests that the presence of an SLA has a positive impact on even the inbound portion of the total marketing budget.
  • 19. HUBSPOT • State of Inbound • 2014 19 Because an SLA applies to large and small companies alike, doesn’t require a track-record of success, and is “free” to create, holding oneself accountable to an SLA is a prudent move for any marketer. It even holds true for marketers who need to loosen finance’s grip on purse strings, despite not yet having demonstrated ROI. For marketers at mid-sized companies, another straightforward way to earn a bump in budget is simply to run an inbound-driven marketing program (chart below). MID-SIZED COMPANIES MARKETING BUDGET BY INBOUND VS. OUTBOUND Running inbound correlates to larger budget 0 5 10 15 20 25 30 35 Less than $25,000 $25,001 - $100,000 $100,001 - $500,000 $500,001 - $1M $1M - $5M More than $5M Doing Outbound Marketing Doing Inbound Marketing Annual Marketing Budget %ofRespondents
  • 20. HUBSPOT • State of Inbound • 2014 20 Running inbound positively correlates to higher marketing budgets for mid-sized companies. As annual marketing budgets approach $100,000, the balance of attention begins to flip from outbound to inbound practices. The larger the budget, and by extension the company, the more budget tilts in the favor of inbound marketers. But what should your budget be? The answers to this question varied greatly, and were influenced by many factors, several of which we discussed in this report. The benchmarking graphic below visualizes the most commonly cited budgets for companies of various sizes. If you are well below the band for your size company, presenting this chart to leadership may be an effective way to initiate budgetary discussions, but remember that the keys to funding can be found in demonstrating success, establishing an SLA, and running the inbound playbook. MARKETING BUDGET Budgets are most variable for mid-size companies More than 1000 201 to 1000 26 to 200 11 to 25 Less than 10 20% 40% 60% 80% 100% Less than $25,000 $25,001 - $100,000 $100,001 - $500,000 $1M - $5M More than $5M$500,001 - $1M # OF EMPLOYEES BUDGET DOWNLOAD ALL OF THE GRAPHS HERE WANT TO USE A STATE OF INBOUND CHART IN YOUR NEXT PRESENTATION?
  • 22. HUBSPOT • State of Inbound • 2014 22 Because “Planning for Inbound” is the longest chapter in the report, we’ve broken it into an introduction, followed by four sub-sections, each corresponding to a frequently asked question. Specifically, the chapter provides practical guidance to marketers who are (1) struggling to strike the right balance between inbound and outbound, (2) peeking around corners to see what unexpected challenges might be coming their way, (3) trying to identify the highest return projects, and (4) thinking about the best way to partner with their sales counterparts. If you are wrestling with any of these questions, there’s a good chance you’ll find your answer in this chapter. The planning chapter is the most comprehensive by design, because planning is the first building block of any effective marketing program – and that includes inbound programs. A smart plan is more than a collection of tactics neatly organized in outline form. A smart plan is actionable – it reflects both what should be done and what should be avoided, drawing from the successes and failures of others to accelerate progress and avoid pitfalls. A smart plan isn’t cobbled together on January 1st, archived on January 2nd, and dusted off again on December 31st. No, a smart plan is bedrock. Before we apply data to popular planning questions, let’s begin by debunking a couple of myths. The first has to do with perceptions of marketing sophistication and geography. PLANNING FOR INBOUND
  • 23. HUBSPOT • State of Inbound • 2014 23 The takeaway is clear: The next time someone says, “Europe trails North America in inbound marketing by about a year,” don’t nod in agreement. Instead present them with the above four-chart image, because by virtually all measures, Europe (specifically Europe, Middle East, and Africa, though our data set skewed Western European) and North America parallel one another’s inbound programs. An identical number (86%) of marketers in EMEA and North America say they run inbound marketing programs, and of those that do, both share similar priorities, emphasize similar projects, and enjoy similar results. North America Europe, the Middle East, and Africa (EMEA) Do you do inbound marketing? YES NO North America Europe, the Middle East, and Africa (EMEA) ROI of inbound marketing: GREATER THAN PREVIOUS YEAR LOWER THAN PREVIOUS YEAR 5 10 15 20 25 30 5 10 15 20 25 TOP MARKETING PRIORITIES BY GEOGRAPHY TOP INBOUND MARKETING PROJECTS BY GEOGRAPHY Increasing number of contacts/leads Converting contacts/leads to customers Reaching the relevant audience Increased revenue derived from existing customers Reducing the cost of contacts leads/ customer acquisition Proving the ROI of our marketing activities Blog content creation Growing SEO/organic presence Content distribution/ amplification Longform/ visual content creation Product how-to videos Webinars Online tools Fremium trials Interactive content creation COMPANIES THAT PRACTICE INBOUND MARKETING BY GEOGRAPHY INBOUND ROI BY GEOGRAPHY North America Europe, the Middle East, and Africa (EMEA) North America Europe, the Middle East, and Africa (EMEA) INBOUND MARKETING TRENDS BY GEOGRAPHY The claim that Europe trails North America is a myth
  • 24. HUBSPOT • State of Inbound • 2014 24 The world is getting smaller. Social media and the rise in corporate transparency have combined to nullify the geographic boundaries that once divided marketers. Thanks to Twitter, Facebook, webinars, and blogs, what works for one company is instantly accessible to others. It’s merely a matter of listening to the right people, and there are influencer identification tools to ease that process as well. The second myth has to do with terminology. Some argue that inbound and content marketing are at odds. They are opposite pressures, or, at the very least, one movement is inferior to the other. The terminology vendors, agencies, and consultants use matters only if it resonates with and is perpetuated by the practitioners who listen to them. So we included a question about terminology in the survey, and the response (below) was unambiguous. TOP MARKETING PROJECTS FOR AGENCIES BY GEOGRAPHY International marketing agencies are going "all in" on producing discoverable content 0 5 10 15 20 25 Blog content creation Growing SEO/ organic presence Content distribution/ amplification Longform / visual content creation Interactive content creation Product how-to videos Online tools Freemium trials Webinars % of Respondents InboundMarketingProjects International Marketing Agencies North American Marketing Agencies In fact, according to the following chart, European marketing agencies are outpacing their North American counterparts when it comes to producing top-of-the-funnel (TOFU) content. Why does this trend merit highlighting? Because as you will see in later chapters, these types of TOFU content positively correlate to ROI.
  • 25. HUBSPOT • State of Inbound • 2014 25 RELATIONSHIP BETWEEN CONTENT MARKETING AND INBOUND MARKETING BY DEPARTMENT Front-office professionals, particularly marketers, see content marketing as a subset of inbound marketing Department %ofRespondents Marketing Sales Services 0 10 20 30 40 50 60 Content marketing is a subset of inbound marketing They are synonyms Inbound marketing is a subset of content marketing The two are fundamentally different Front-office professionals perceive “content marketing” and “inbound marketing” as co-existing, with the former being a subset of the latter. Predictably, the greatest variance is seen with marketers, where the roots for both concepts run deepest. Nearly six of ten marketing professionals consider content marketing to be a subset of inbound marketing, whereas only 10% consider the reciprocal to be true. Reassuringly, 85% of marketers believe the two concepts are related, whereas only 7% conclude the terms are fundamentally different. As a practical matter, what does it mean that content marketing is a subset of inbound marketing? There are a few considerations. First, marketers should think in terms of “and” not “or” when it comes to content and inbound. Success relies on both. Second, content – from a blog to webinars, from email nurturing to customer videos – is one of the levers marketers can pull to drive their inbound engine. Inbound marketers produce greater results and enjoy larger budgets, yet without quality content, the inbound machinery stalls.
  • 26. HUBSPOT • State of Inbound • 2014 26 HowShouldIThinkAbouttheInbound/OutboundBalance? Unlike the harmonious relationship between content and inbound marketing, there is discord between outbound and inbound. This conflict is reflected in many of the graphics to follow. Before you can determine what the ideal inbound/outbound balance is for your organization, let’s begin by zooming out to spot patterns in inbound adoption. Most notably, an increasing number of marketers are practicing inbound (below). The number of marketers who state they are practicing inbound rose from 60% last year to 85% this year, while the percentage of marketers who concede they don’t run inbound was nearly halved to 13%. % OF MARKETERS THAT PRACTICE INBOUND MARKETING Growth of inbound marketing spiking year over year Year %ofRespondents 2013 2014 0 20 40 60 80 100 No, we don't do inbound marketing Yes, we do inbound marketing
  • 27. HUBSPOT • State of Inbound • 2014 27 Now let’s zoom in a little closer and look at the relationship between budget and inbound marketing practices (chart below). Most organizations are practicing inbound – including more than 80% of companies with an annual marketing budget below $25,000. The concentration of inbound marketers peaks (93%) at companies with a marketing budget between $1M and $5M annually, before dipping moderately (7%) at enterprises with the largest budgets. Taken together the above charts support the notion that failing to practice inbound puts marketers at an unfair disadvantage. Most obviously, it prevents them from realizing the benefits of inbound, but it also leads to them losing ground to competitors that are running inbound programs. While the above charts are useful in understanding how to not lose ground to competition, it’s equally important to identify ways to gain advantage. The secret may reside with your colleagues in sales and services. % OF COMPANIES THAT PRACTICE INBOUND MARKETING BY MARKETING BUDGET Majority of companies practice inbound marketing, particularly large companies Less than $25,000 $25,001 - $100,000 $100,001 - $500,000 $501,001 - $1M $1M - $5M More than $5M 80 100 Annual Marketing Budget %ofRespondents
  • 28. HUBSPOT • State of Inbound • 2014 28 The graph above presents encouraging data for companies that are consideringdoublingdownoninbound.Itrevealsthatsales(25%)and,toa lesser extent, services (10%) professionals have begun to employ inbound practices. These colleagues should be seen as extensions of the marketing team – both in terms of championing the inbound philosophy throughout the organization as well as contributing content to the engine that drives the program’s success. Being first to capitalize on willing talent outside of your marketing department could be a major competitive advantage for your company. R&D IT PRODUCT DEVELOPMENT RECRUITING SERVICES SALES MARKETING WHICH DEPARTMENTS IN YOUR COMPANY PRACTICE INBOUND? Inbound is not limited to marketing
  • 29. HUBSPOT • State of Inbound • 2014 29 For the first time in the past four years, outbound as a primary lead source has dropped, and sharply – from 34% to 22%. Meanwhile, inbound has remained relatively stable, off just 1% from its previous three year average. As a result, in 2014, more than twice as many respondents cited inbound (45%) as their primary source of leads versus outbound (22%). Outbound Inbound PRIMARY LEAD SOURCE BY INBOUND/OUTBOUND Outbound’s loss is inbound’s gain Year %ofRespondents 2011 2012 2013 2014 20 30 40 50 Ultimately, all marketing – whether for a B2B software vendor, a consumer products manufacturer, a nonprofit organization, or a consultancy – comes down to the team’s ability to grow revenue. For this reason, attributing new business leads to inbound or outbound practices is one of the most important considerations when determining the balance of inbound vs. outbound activities in your marketing plan. Let’s take a look at the data our survey produced in the area of “lead source.”
  • 30. HUBSPOT • State of Inbound • 2014 30 Half of marketers across B2B, B2C, and nonprofit sectors ranked inbound as their primary lead source, exceeding the average (42%) of all other channels combined. (See above chart.) The disproportionate impact of inbound is enjoyed most by nonprofits, where inbound (58%) is responsible for procuring nearly twice as many leads as the roll-up of all other channels (31%). Given that nonprofits often face budget constraints, necessity is proving to be the mother of inbound. PRIMARY LEAD SOURCE BY COMPANY TYPE Inbound lead sourcing advantage is greatest for nonprofits Company Type %ofRespondents B2B B2C Nonprofit 0 10 20 30 40 50 60 Self-sourced leads from sales team Paid media (e.g., PPC, Social Media Ads) Outbound practices (e.g., Cold Calling, TV/Outdoor Ads, Trade Shows, Purchased Lists) Inbound practices (e.g., SEO, Referrals, Social Media, Content/Blog)
  • 31. HUBSPOT • State of Inbound • 2014 31 What Challenges Should I Anticipate? Regardless of the size of your team or budget, few marketers can afford to be inefficient. Spending time and money implementing flawed programs is the very definition of inefficiency. What are some of the challenges marketers should anticipate as they think through their inbound plans? Here are a few items to consider. With the significant exception of ROI, marketers are overcoming all major challenges (chart above). In fact, ROI is the only challenge cited by more marketers this year than last. The pressure to prove ROI may be mounting – management is likely expecting to see proof of marketing impact now that many pieces are in place. As you will see in the following subsection, although proving ROI is the top challenge, it’s incongruously ranked as a relatively low priority.Thatunthinkabledisconnectneedstobereconciled–ifleadership is expecting ROI, marketers need to prioritize its delivery. The below graph, which looks at top marketing challenges by company size, reinforces the universality of the ROI challenge. In fact, the larger the company, the more likely ROI is to be the organization’s top hurdle. TOP MARKETING CHALLENGES BY YEAR Marketers are overcoming many challenges, but ROI remains a hill to climb 2014 2013 %ofRespondents Marketing Challenges Training my team Finding an executive sponsor Hiring top talent Targeting content for an international audience Managing my website Securing enough budget Proving the ROI of our marketing activities 0 5 10 15 20 25 30
  • 32. HUBSPOT • State of Inbound • 2014 32 There are some nuanced differences between small and large companies’ perceptions of marketing challenges. Small companies are more challenged by fundamental needs, like managing their website, whereas larger companies are hampered by more strategic issues, such as hiring and internationalization. Curiously, very large companies – those with more than 1,000 employees – appear to be struggling with issues that can, at least theoretically, be solved with money. For example, enterprises can hire consultants to help them select the right technology or pay a premium for talent, yet they lead all others in ranking technology selection and hiring as their top challenge. Despite the disconnect between marketing challenges and priorities (see next subsection), there is tight alignment between marketing practitioners (manager and below) and marketing leadership (director and above) as illustrated in the next chart. A similar alignment can also be seen in a forthcoming graph on marketing priorities by role. More than 1000 201 to 1000 26 to 200 11 to 25 Less than 10 TOP MARKETING PRIORITIES BY COMPANY SIZE Smaller companies tend to prioritize lead gen, whereas larger companies prioritize ROI. Few focus on reducing cost per lead/customer Reducing the cost of contacts/ leads/customer acquisition Increasing revenue derived from existing customers Proving the ROI of our marketing activities Converting contacts /leads to customers Reaching the relevant audience Increasing number of contacts/leads 0 5 10 15 20 25 30 %ofRespondents Marketing Priorities
  • 33. HUBSPOT • State of Inbound • 2014 33 This survey question provided an open-text option, allowing respondents to submit their own top challenge. Most centered on the difficulty of producing enough content, which is consistent with anecdotal feedback we hear in the market. Sophisticated funnel-related challenges began to establish a pattern this year. For example, targeted lead acquisition, lead management, lead-to-customer conversion, and even post-sale advocacy peppered the 300+ written responses. Interestingly, the word “mobile” appeared only once. TOP MARKETING CHALLENGES BY ROLE Strong alignment exists between marketing practitioners and leaders Practioner Leadership %ofRespondents Marketing Challenges Hiring top talent Training my team Finding an executive sponsor Targeting content for an international audience Identifying the right technologies for my needs Managing my website Securing enough budget Proving the ROI of our marketing activities 0 5 10 15 20 25 30 OPEN TEXT RESPONSES TO “WHAT ARE YOUR TOP MARKETING CHALLENGES” Unaided emphasis on ‘mobile marketing’ is incredibly low 1 319 MOBILE CHALLENGES OTHER THAN MOBILE
  • 34. HUBSPOT • State of Inbound • 2014 34 Although the ROI challenge/priority may be asynchronous, some patterns established in the previous challenges charts reappear in the above priorities graph. Specifically, smaller companies tend to focus on immediate, tactical objectives (e.g., generating leads); while larger companies have the resources to tackle more complex initiatives like calculating lead value. Where Should I Spend My Time & Budget? You would think marketing’s challenges would parallel marketing’s priorities, but, according to the below graph, that doesn’t appear to be the case. While ROI tops marketing challenges, the number one marketing priority (according to the below chart) is lead generation (24%) followed by lead conversion (21%). A modest 15% of marketers (across all company size categories) ranked ROI as their top priority. More than 1000 201 to 1000 26 to 200 11 to 25 Less than 10 TOP MARKETING PRIORITIES BY COMPANY SIZE Smaller companies tend to prioritize lead gen, whereas larger companies prioritize ROI. Few focus on reducing cost per lead/customer Reducing the cost of contacts/ leads/customer acquisition Increasing revenue derived from existing customers Proving the ROI of our marketing activities Converting contacts /leads to customers Reaching the relevant audience Increasing number of contacts/leads 0 5 10 15 20 25 30 %ofRespondents Marketing Priorities Either marketers feel they’ve solved mobile or, more likely, mobile hasn’t risen to the level of consideration (at least, not without aided consideration). In either case, marketers need to be thinking more about mobile – to keep pace with those who are, or leave behind those who aren’t.
  • 35. HUBSPOT • State of Inbound • 2014 35 It’s intuitive that smaller companies would over-index for lead generation. After all, the company’s very livelihood may rest on getting a sufficient numberofleadstosales.Largecompanies,havingmovedbeyondthevolatile startup phase, likely consider total lead volume as a lower priority because they’ve already procured enough leads to grow the business. Instead, at this stage on the maturity curve, politics begin to emerge. As a result, we see the rise in importance of prove-your-worth metrics like conversion rates and lead unit economics. Similar to the “Top Marketing Challenges by Company Size” graph, the above graph depicts tight alignment between marketing practitioners (manager and below) and leaders (director and above). The rise of data-driven marketing provides a likely explanation for the extremely low variance in this chart. Unlike marketing that relies on “gut” and instinct, inbound is rooted in data. Unbiased, objective data facilitates alignment by providing marketing leaders and practitioners with a common pool of information upon which to base decision-making and prioritization. Data should be invited to every marketing meeting. After all, art may be subjective; science isn’t. TOP MARKETING PRIORITIES BY ROLE Strong alignment exists between marketing practitioners and leaders MarketingPriorities % of Respondents Reducing the cost of contacts/ leads/customer acquisition Increasing revenue derived from existing customers Reaching the relevant audience Converting contacts/ leads to customers Increasing number of contacts/leads Proving the ROI of our marketing activities 0 5 10 15 20 25 Leadership Practitioner
  • 36. HUBSPOT • State of Inbound • 2014 36 Inbound warms leads (chart above). Inbound-sourced leads are consistently more knowledgeable about the company prior to speakingwitharepthanleadssourcedthroughoutboundmeans. Because the number of leads can be counted and the quality of leads can be scored, marketers understandably focus on these two dimensions of lead generation. Yet the familiarity a lead has with your company is also an important consideration when readying your marketing plan. In addition to making sure SLA metrics are factored prominently into the marketing plan, there are additional ways marketing can support its primary stakeholder. For example, marketing should make sure prospects are as informed as possible prior to their first interaction with a rep. HOW KNOWLEDGEABLE ARE PROSPECTS ABOUT YOUR COMPANY PRIOR TO SPEAKING WITH SALES? Inbound marketers create more knowledgeable prospects Prospects' Knowledge about Company %ofRespondents Very knowledgeable Moderately knowledgeable Somewhat knowledgeable Not at all knowledgeable 0 10 20 30 40 50 60 Primary Lead Source = Outbound Primary Lead Source = Inbound How Should the Sales Team Factor Into My Plans? It is becoming imperative for marketing to factor sales into its plans. After all, sales is the primary beneficiary of marketing’s effort. If sales and marketing are aligned, then many performance metrics – like lead quality, lead volume, even marketing ROI – fall into place much more naturally. In other words, the sales/marketing SLA that opens the door to credibility and the budget that comes with it (see “Budgets” chapter) is only achievable if sales is a forethought, not an afterthought, in the planning process.
  • 37. HUBSPOT • State of Inbound • 2014 37 The below graph suggests that “good things happen” when marketing partners with sales. The presence of an SLA correlates to greater involvement by marketing in sales software selection. Forty nine percent is a key figure: 49% of companies with an SLA involve marketing in sales tech selection process; 49% of companies without an SLA do not involve marketing in this process. Why is it advantageous for marketing to play a role in sales software selection? Because marketers need to make certain the technology sales selects facilitates its ability to process the data required to demonstrate results. Thenotionofintegration–specifically,theintegrationofsalesandmarketing software – was a prominent theme in the open-text feedback to a question about technology selection. The solution is refreshingly simple: Having a say in sales starts with an SLA. DOES MARKETING INFLUENCE SALES SOFTWARE SELECTION? Companies with a sales/marketing SLA are more likely to involve both groups in sales software selection SLA %ofRespondents SLA No SLA 0 10 20 30 40 50 No, no Marketing influence Yes, Marketing influence DOWNLOAD ALL OF THE GRAPHS HERE WANT TO USE A STATE OF INBOUND CHART IN YOUR NEXT PRESENTATION?
  • 39. HUBSPOT • State of Inbound • 2014 39 Where Do the Best Leads Hide? Inbound marketers are finding leads where outbound marketers aren’t. According to the below graph, 84% of inbound marketers – compared to only 9% of outbound marketers – cite organic, top of funnel sources (social media, blogs, SEO) as rising in importance. Implementing inbound is like skiing: It’s the perpetual state of gaining, losing, and regaining your balance – often in rapid succession. Inbound isn’t riding a bike; coasting isn’t an option. The “set and forget” mentality is rarely rewarded in inbound, because inbound is about constantly reallocating your resources based on performance. Because the best inbound programs are nimble, there’s no magic formula for success. Or, more accurately, today’s magic formula might not be so “magic” tomorrow. There’s no inbound-equivalent of the popular 4-1-1 Twitter “rule.” When executing your inbound program, it’s best to start with what’s worked for others, and then recalibrate based on performance feedback. EXECUTING FOR INBOUND WHICH LEAD SOURCES HAVE BECOME MORE IMPORTANT (OVER LAST 6 MONTHS) Outbound marketers are placing minimal importance on core inbound channels Lead Source %ofRespondents Social Media Blogs SEO Email Marketing PPC Trade Shows Traditional Advertising Direct Mail Telemarketing 0 20 40 60 80 100 Outbound Marketers Inbound Marketers
  • 40. HUBSPOT • State of Inbound • 2014 40 In fact, it appears the only lead source valued equally by inbound and outbound marketers is email. The graph below compares how marketing and sales professionals view the importance of different sources of leads. Notably, sales professionals (61%) are nearly seven times more likely to value organic, top of funnel sources than outbound marketers (9%). (Note: The “outbound marketer” segment is not called out in the chart below.) WHICH LEAD SOURCES HAVE BECOME MORE IMPORTANT (OVER LAST 6 MONTHS) Sales gravitates toward outbound channels whereas marketers lean inbound Lead Source %ofRespondents Social Media Blogs SEO Email Marketing PPC Trade Shows Traditional Advertising Direct Mail Telemarketing 0 20 40 60 80 100 Sales Professionals Marketing Professionals As you might expect, the chart above shows that sales professionals still index higher than marketers when it comes to outbound lead sourcing techniques like tradeshows, direct mail, and telemarketing. But next to email, the three most important lead sources for reps are all decidedly inbound – social media, SEO, and blogs. Salespeople “get” inbound (often better than outbound marketers do), and as the inbound methodology becomes more deeply entrenched in sales, there’s likely to be even less variance between the two groups.
  • 41. HUBSPOT • State of Inbound • 2014 41 WHICH LEAD SOURCES HAVE BECOME MORE IMPORTANT (OVER LAST 6 MONTHS) Small companies had a head start at inbound; large companies are closing the gap 0 10 20 30 40 50 60 70 80 Lead Source %ofRespondents Social Media Blogs SEO Email Marketing PPC Trade Shows Traditional Advertising Direct Mail Telemarketing More than 200 Employees Less than 200 Employees Pivoting the same question [“Which lead sources have become more important (over last 6 months)?”] by company size (chart above) reveals something noteworthy: There’s minimal variance between smaller companies and larger ones, suggesting inbound isn’t a “big company” or “smallcompany”priority.It’snotthesizeofthecompanythatshapesinbound priorities, but rather the outlook of the marketing team. It’s universal.
  • 42. HUBSPOT • State of Inbound • 2014 42 What Projects Promise the Greatest Return? When venture capitalist Byron Deeter wrote, “If your sales and marketing teams are rational, quantitative, and have metrics in place, then on average the next dollar they spend will go to something that performs slightly worse than the dollar they spent before it – or their existing budgets are poorly allocated,” he was cheering the hyper-efficiency made possible by data- driven marketing. So what are the “first dollar” projects that deliver peak value? Certainly they vary by industry, but below is a snapshot of the projects high performers (vendors and agencies that drove greater year-over-year inbound ROI) prioritize. TOP INBOUND MARKETING PROJECTS High performing agencies and vendors doubled down on projects with the greatest ROI Blog content creation Growing SEO/ organic presence Content distribution/ amplification Longform/visual content creation Interactive content creation Product how-to videosOnline tools Freemium trialsWebinars 0 5 10 15 20 25 Inbound Marketing Projects %ofRespondents High Performers Vendors Agencies High performers prioritize projects designed to help get the company and its content discovered. This pattern holds for both agencies and vendors. When considering which tactics to employ to establish or accelerate your inbound program, data would suggest blogging, SEO, and content distribution.
  • 43. HUBSPOT • State of Inbound • 2014 43 B2B and B2C companies tend to prioritize the same inbound tactics (see above), but with a few minor exceptions. B2B companies appear to place a higher value on educational formats (like webinars), whereas consumer businesses are slightly more willing to experiment with advanced digital formats (interactive content, online tools). The below graph, which visualizes Top Marketing Projects by Role, shows even tighter alignment. Similar to the earlier charts that segmented inbound challenges and priorities by role, marketing leaders and practitioners are closely aligned around which tactics to prioritize. Again, data-centricity is likely at the heart of this alignment. TOP INBOUND MARKETING PROJECTS BY COMPANY TYPE B2B companies prefer educational formats, whereas B2C companies prioritize engaging digital formats B2C B2B % of Respondents InboundMarketingProjects Blog content creation Longform/visual content creation Interactive content creation Content distribution /amplification Webinars Online tools Freemium trials Product how-to videos Growing SEO/ organic presence 0 5 10 15 20 25 TOP INBOUND MARKETING PROJECTS BY ROLE Strong alignment exists between marketing practitioners and leaders % of Respondents InboundMarketingProjects Blog content creation Longform/visual content creation Interactive content creation Content distribution /amplification Webinars Online tools Freemium trials Product how-to videos Growing SEO/ organic presence 0 5 10 15 20 25 Practioner Leadership
  • 44. HUBSPOT • State of Inbound • 2014 44 Who Should Create My Content? Content–blogposts,distributedbroadly,andwrittentodriveorganicsearch results – tops the inbound projects lists for all segments (high performers, large/small companies, leaders/practitioners). Content is the lifeblood of inbound. Given its importance, the next logical question is, “Who should create our content?” Again, let’s begin at the end – with a look at how high performers address the issue. While internal authors – namely staff and executives – correlate to the highest ROI, they also happen to correlate to the lowest ROI. Why? Because every company that publishes content creates at least some of it internally. Few if any companies outsource all of their content creation. So instead of looking for guidance in the size of the bars for each segment, let’s instead zoom in on areas of change, specifically who created content for companies that enjoyed a lift in year over year ROI: guests and freelancers. WHO CREATES CONTENT BY ROI Guests, freelancers key to ROI improvement 0 10 20 30 40 50 Staff Executives Guests Freelancers Agency partner Writing panels Curation Content Creators %ofRespondents Lower ROI than the previous year Greater ROI than the previous year
  • 45. HUBSPOT • State of Inbound • 2014 45 It’s likely that guests and freelancers correlate to increased ROI because inbound success relies as much on content volume as it does on quality. Unless a company is producing a steady stream of (quality) content, the audience it earns will begin to decay. Guests and freelancers are relatively inexpensive sources of content. Procuring content from these groups allows companies to scale output while simultaneously increasing the marketing team’s capacity for measurement and optimization. The above chart is intuitive. Given resource constraints, smaller companies tend to produce more of their own content, whereas larger budgets allow enterprises to source content from specialists and agencies. Given that small company executives (19%) are more likely to produce content than large company leadership (12%), it’s possible for smaller companies to win the quality battle. Writer panels, like NewsCred, Contently and others, barely registered any responses.Again,asqualityrisesinimportance,thesetypesoforganizations could emerge as a desirable option given that they combine the benefits of freelancers with a layer of vetting and management. WHO CREATES CONTENT BY EMPLOYEE COUNT Smaller companies are more likely to create content internally Content Creators %ofRespondents More than 1000 Less than 200 Staff Executives Guests Freelancers Agency partner Writing panels Curation 0 10 20 30 40 50 DOWNLOAD ALL OF THE GRAPHS HERE WANT TO USE A STATE OF INBOUND CHART IN YOUR NEXT PRESENTATION?
  • 47. HUBSPOT • State of Inbound • 2014 47 When it comes to inbound, measurement is the alpha and omega. It’s the first step in developing a plan and the last step in determining results. This is why data is such a central component of the inbound machine. As you can see in the below chart, that you measure your marketing is nearly as important as what you measure. Incredibly, marketers that measure inbound ROI are 17 times more likely to see the same or greater ROI over the previous year (chart above). It’s likely that selection bias is impacting the data. After all, higher performing marketers are more likely to measure results, thus they are also more likely to drive growth. Nevertheless, there’s a strong correlation between simply measuring ROI and achieving it. Marketers that are not currently measuring ROI should begin immediately, because eventually they will need a baseline against which to establish year-over- year performance. MEASURING INBOUND INBOUND ROI IMPACT YEAR OVER YEAR Inbound marketers that measure ROI are enjoying major impact Inbound Marketing ROI %ofRespondents Greater ROI than the previous year Lower ROI than the previous year About the same as the previous year 0 5 10 15 20 25 30 35 40
  • 48. HUBSPOT • State of Inbound • 2014 48 Given the relationship between measurement and performance, it’s encouraging to note the rise in marketers tracking ROI (see chart above). The percentage of marketers measuring ROI rose by a modest 3% over 2013; however, the percentage of marketers admitting they don’t measure ROI is down by 12%. Before we get too excited about this pattern, it’s worth noting that the image isn’t quite as rosy as it might seem. Marketers are still struggling to calculate return. Only slightly more than half (53%) are measuring ROI, which means that simply measuring ROI – regardless of your results – automatically puts you in the upper half of the profession. Now let’s raise the bar back to where it belongs: results. Which sectors are improving ROI? INBOUND ROI MEASUREMENT YEAR OVER YEAR Slightly more inbound marketers tracking ROI Do you measure inbound ROI? %ofRespondents We measure ROI We don't measure ROI 0 10 20 30 40 50 60 2014 2013
  • 49. HUBSPOT • State of Inbound • 2014 49 INBOUND MARKETING ROI BY COMPANY TYPE Companies of all types enjoying greater ROI from inbound Inbound Marketing ROI %ofRespondents Greater ROI than the previous year Lower ROI than the previous year 0 10 20 30 40 50 B2C Nonprofit B2B According to the chart above, inbound ROI is up for everyone, in particular nonprofits. This data reinforces an earlier graph (see “Primary Lead Source by Company Type” in the Planning for Inbound chapter) that revealed nonprofits source nearly twice as many leads via inbound channels as all other channels combined. Given nonprofits’ success at inbound lead generation, it’s natural that they would also outperform B2B and B2C companies in ROI growth. In the introduction to this report, we established that inbound is 20% more likely to be the primary lead source for agencies than it is for the aggregate of all vendors. Therefore, agencies should outperform vendors in terms of inbound ROI just as nonprofits eclipse B2B and B2C organizations. Let’s look at the chart below, which compares the inbound ROI of agencies to vendors.
  • 50. HUBSPOT • State of Inbound • 2014 50 Indeed the pattern is consistent: Organizations that source more leads through inbound tend to enjoy an ROI advantage. AGENCIES VS. VENDORS Marketing agencies are generating greater inbound ROI than all others % of Respondents Industry Vendors Agencies 0 10 20 30 40 50 Greater ROI than the previous year
  • 51. HUBSPOT • State of Inbound • 2014 51 But what is driving inbound ROI? What single activity is most commonly associated with success? We looked at each inbound practice to find the one that had the strongest correlation to positive ROI and found that marketers who emphasize blogging are 13 times more likely to have increased ROI year over year. Clearly ROI is marketing’s ultimate goal. But to increase return, marketers need to improve performance of all initiatives that contribute to ROI. Although there are no universal funnel (e.g., how much should leads at different funnel stages cost) or budget (e.g., what size budget is appropriate for companies of different sizes) benchmarks, readers of previous “State of Inbound Marketing” reports have asked for deeper insights into how their fellow marketers perform at each buying stage. We asked a series of questions to help readers compare their funnel metrics to others’. We collected data on cost per lead and cost per customer, as well as website, blog, email, and landing page conversion rates. This effort, however, led to a single, unambiguous conclusion: Too few marketers can reportreliablyontheuniteconomicsoftheirfunneltojustifyincludingmuch of the data in this report. For example, there’s simply no way marketers, on average, are converting 9% of their blog visitors into prospects. THE IMPACT OF BLOGGING ON INBOUND ROI Marketers who have prioritized blogging are 13x more likely to enjoy positive ROI 13x We did find that leads sourced through inbound practices are consistently less expensive than outbound leads, regardless of company size. Below is a graph that looks at cost per lead for North American B2B companies. The absolute costs are less important than the relative cost between inbound and outbound leads.
  • 52. HUBSPOT • State of Inbound • 2014 52 The information gathered on budgets is more reliable. The graphic below illustrates the most popular budget range for companies of various sizes. If your budget is a below-norm outlier, this data may be a useful catalyst for discussion with your executive team. (Conversely, if your budget is an above-norm outlier, you may wish to discard this page, immediately.) AVERAGE COST PER LEAD BY COMPANY SIZE Inbound leads are more cost-effective for North American B2B companies of all sizes 1-25 51-200 1,000+ $37 $102 $70 $220 $27 $45 Inbound Outbound TYPE OF COMPANY COMPANY SIZE MARKETING BUDGET Budgets are most variable for mid-size companies More than 1000 201 to 1000 26 to 200 11 to 25 Less than 10 20% 40% 60% 80% 100% Less than $25,000 $25,001 - $100,000 $100,001 - $500,000 $1M - $5M More than $5M$500,001 - $1M # OF EMPLOYEES BUDGET DOWNLOAD ALL OF THE GRAPHS HERE WANT TO USE A STATE OF INBOUND CHART IN YOUR NEXT PRESENTATION?
  • 54. HUBSPOT • State of Inbound • 2014 54 HubSpot fielded our 2014 State of Inbound Survey between 10:00 AM EST on June 25, 2014 and 5:00 PM EST on July 15, 2014. The survey was administered online, where 6,432 respondents started the survey and 3,570 completed it. To see the exact demographic breakdown of the completed survey respondents, please reference the Audience Composition graphic in the first chapter. The sampling method was a voluntary sample with the incentive being a chance to win one of ten available Beats Solo2 On-Ear Headphones. The audience was solicited through the following promotional channels: Facebook, Twitter, LinkedIn, Paid & Email. Participation in the State of Inbound Survey Giveaway was subject to ‘HubSpot’s “State of Inbound 2014” Survey Sweepstakes - Official Rules’ available here - http://hubspot.com/state-of-inbound-survey-sweepstakes-terms-conditions. Executive Sponsor: Mike Volpe Author: Joe Chernov Survey Creation: Abhinav Arora / Joe Chernov / Sara Davidson Survey Implementation: Abhinav Arora Data Analysis: Joe Chernov / Sara Davidson Chart Design: Doug Stone Report Design: Tyler Littwin Site Design: Anna Faber-Hammond SURVEY METHODOLOGY About the Team DOWNLOAD ALL OF THE GRAPHS HERE WANT TO USE A STATE OF INBOUND CHART IN YOUR NEXT PRESENTATION?