B2B Marketing Outlook Australia 2013




B2B Marketing Outlook
Australia 2013
A research report exploring B2B marketing practice,
intentions and directions




                                                                                   In association with




                                                      measurable b2b marketing
Our Research Partners                                                                                                                                  B2B Marketing Outlook Australia 2013




This study was conducted by Green Hat in association with ADMA and Marketing Magazine.




measurable b2b marketing


Green Hat is an Australian marketing consulting agency         The Association for data-driven marketing and advertising (ADMA)    Marketing magazine has been exploring the strategic
working exclusively for the B2B sector. Our services include   is the principal industry body for information based marketing      challenges facing businesses large and small every month
market research, strategic planning and execution of           and advertising and is the largest marketing and advertising body   for over 25 years, and it continues to be a trusted resource
programs that require lead nurturing and progression, lead     in Australia with over 500 member organisations.                    for marketers and media professionals in Australia. Each
generation, marketing automation, digital marketing and                                                                            issue is packed with in-depth reports, commentary and sage
                                                               ADMA represents the new era of marketing and advertising
content development. We assist clients that have medium                                                                            advice from leading industry specialists, and Marketing is
                                                               – a 3600 view from end to end.
to long consideration times – especially in the high-tech,                                                                         still Australia’s number one resource for information on
professional services, financial services and industrial       •	   From marketing to advertising                                  implementing strategies, maximising campaigns and gaining
sectors. Our client list includes global blue-chip brands      •	   From effective to creative                                     competitive advantage in the marketplace.
such as IBM, EMC, SingTel Optus, Hitachi, Chep and Nokia       •	   From above to below
                                                                                                                                   www.marketingmag.com.au
Siemens, as well as many local organisations.                  •	   From measurable to engaging

www.green-hat.com.au                                           ADMA is the ultimate authority and go-to resource for creative
                                                               and effective data-driven marketing across all channels
                                                               and platforms, providing knowledge, advocacy, insight and
                                                               innovation to advance responsive and enlightened marketing.
                                                               www.adma.com.au
Contents                                                                                                                                                                                                                         B2B Marketing Outlook Australia 2013




Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4                                 	       2.4	 Marketing Channels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
                                                                                                                                                         			                      Traditional Marketing Tactics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Section 1: Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
                                                                                                                                                         			                      Digital Marketing Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
	     1.1	 Key Findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
                                                                                                                                                         			                      Digital versus Traditional Marketing Trends. . . . . . . . . . . . . . . . . 18
	     1.2	 Observations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7                                   			                      Inbound versus Outbound Marketing. . . . . . . . . . . . . . . . . . . . . . 19

Section 2: Research Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9                                           	       2.5	 Marketing Metrics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

	     2.1	 Market Offering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9                                    			                      Cost per Marketing Lead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

			                 Type of Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9                                   			                      Marketing and Sales Alignment: ‘Closing the Loop’ . . . . . . . . . . 20

			                 Lead Times . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9                                 	       2.6	 Social Media Marketing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

			                 Typical Order Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10                                      			                      Social Media Platforms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

	     2.2	 Marketing Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10                                          			                      Social Media Engagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

			                 Size of Marketing Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10                                          			                      Satisfaction with Social Media. . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

			                 Size of Marketing Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11                                           			                      Social Media Return on Investment . . . . . . . . . . . . . . . . . . . . . . . 24

			                 Change in Marketing Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11                                               Section 3: Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
			                 Budget Justification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
			                 Budget Allocation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
	     2.3	 Marketing Challenges and Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . 14
			                 Marketing Challenges in 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
			                 Marketing Objectives in 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . 15




                          ©2013 Green Hat Marketing Pty Ltd ABN 30 099 016 752. All rights reserved.
                          No part of this document may be reproduced or transmitted in any form without the prior approval of Green Hat Marketing Pty Ltd. Any quotation from this document must be attributed to the author.
2.0	Research Results                                                                                                                                                                                                                  B2B Marketing Outlook Australia 2013


2.2	 Marketing                   Resources


Budget Allocation                                                                                      How did/will you spend your marketing budget?


Over the past three years we have asked respondents to tell us
how they spent their previous year’s marketing budget and how                                                       Traditional demand generation                                                                                 28%
                                                                                                             (inc events, trade shows, telemarketing, DM)
they plan to spend it in the coming year (to an enforced total of                                                                                                                                                                           33%

100%). In 2012, we added the option lead nurturing and lead                                                                            Digital marketing                                                                  24%
                                                                                                                            (inc website, online ads, SEO,
management program (including marketing automation) and,                                                         search marketing, social media, webinars)                                                          21%
in this year’s questionnaire, we added content development.
                                                                                                                                Content development                                                 15%
In interpreting this graph, bear in mind that these new categories                                                       (inc white papers, videos, articles,
                                                                                                                                       web/social content)                                  12%
may have been represented amongst other categories in previous                                                                                                                                                                                            2013 (planned)
years. For example, spend on content development may have                                                                  Advertising & sponsorship                                        12%

been allocated to PR or digital marketing in earlier years.
                                                                                                                                           (excluding online)                                     14%                                                     2012 (actual)

The gap between spend on digital marketing and traditional                                              Lead nurturing & management program                                          9%
                                                                                                                                (inc marketing automation)
demand generation activity is expected to further close. In 2012,                                                                                                               7%
the differential was 12% but in 2013 it is expected to narrow
                                                                                                                                                                                7%
to 4%. This is on track to fulfil our prediction last year that                                                                          Public Relations
                                                                                                                                                                                7%
expenditure on digital marketing will overtake traditional tactics
in 2014.                                                                                                                                                                   5%
                                                                                                                                                      Other
                                                                                                                                                                             6%
And to fuel this digital direction, marketers are planning to invest
about $1 in $7 on developing content for their target audience.                                                                                                 0%           5%           10%           15%         20%         25%      30%      35%
We expect this will include thought leadership papers, videos,
sales collateral, social media content and well as website content.


    Key Finding
    Spend on digital marketing is closing in on traditional
    demand generation and – as predicted last year – is on
    track to exceed it in 2014.




                    ©2013 Green Hat Marketing Pty Ltd ABN 30 099 016 752. All rights reserved.
                    No part of this document may be reproduced or transmitted in any form without the prior approval of Green Hat Marketing Pty Ltd. Any quotation from this document must be attributed to the author.
                                                                                                                                                                                                                                                                PAGE 13
2.0	Research Results                                                                                                                                                                                                            B2B Marketing Outlook Australia 2013


2.4	 Marketing                 Channels


Inbound versus Outbound Marketing                                                                    In comparing Inbound (pull marketing) versus Outbound (push marketing) tactics,
                                                                                                     how did/will you spend your marketing budget?
In 2012, expenditure on outbound marketing exceeded that on
inbound marketing. However, companies plan to spend more on
inbound in 2013 – indicating that an important turning point has
being reached.                                                                                                                  35%
This finding is supported by growth trends in content                                                                                                                                                                                    34%
development, social media and arguably Public Relations.

                                                                                                                                 Spent in                          22%                                35%               Will spend in
                                                                                                                                  2012                                                                                      2013


                                                                                                                        43%
                                                                                                                                                                                                                                   31%




                                                                                                                    Similar expenditure on both                        More expenditure on Inbound                          More expenditure on Outbound




    Key Finding
    Inbound marketing ‘breaks the line’ with a higher
    proportion of B2B marketers expecting to spend more
    on inbound than outbound marketing in 2013.




                  ©2013 Green Hat Marketing Pty Ltd ABN 30 099 016 752. All rights reserved.
                  No part of this document may be reproduced or transmitted in any form without the prior approval of Green Hat Marketing Pty Ltd. Any quotation from this document must be attributed to the author.
                                                                                                                                                                                                                                                           PAGE 19
2.0	Research Results                                                                                                                                                                                                     B2B Marketing Outlook Australia 2013


2.6	 Social       Media Marketing


Social Media Engagement                                                                              Which of the following best describes your organisation’s involvement in social media?

Participation in social media is increasing – only 15% are now
inactive, compared with 23% in both 2012 and 2011, although                                                                    Creator/publisher of
the number ‘watching from the fence’ has stayed much the                                                                   blogs and online content
same at around one in ten. Over half (52%) of companies are
now actively creating/publishing of blogs, tweets and online
content – with Information companies being the most active                                                                                        Inactive
industry sector (65%).

                                                                                                                       Joiner/member of groups
                                                                                                                  but generally do not participate
                                                                                                                                                                                                                                                    2013
                                                                                                                                                                                                                                                    2012
                                                                                                                Monitor/consumer of content
                                                                                                         but generally do not become member                                                                                                         2011


                                                                                                                 Commentator/participator in
                                                                                                        discussions but generally do not create



                                                                                                                                                     Other


                                                                                                                                                             0%              10%              20%               30%     40%     50%       60%


    Key Finding
    The majority of B2B marketers (52%) now say their
    organisations are engaged in social media as publishers
    or creators of social media content.




                  ©2013 Green Hat Marketing Pty Ltd ABN 30 099 016 752. All rights reserved.
                  No part of this document may be reproduced or transmitted in any form without the prior approval of Green Hat Marketing Pty Ltd. Any quotation from this document must be attributed to the author.
                                                                                                                                                                                                                                                  PAGE 22
B2B Marketing Outlook Australia 2013




For further information on this research, please contact the report authors:                                                                                             Melbourne
                                                                                                                                                                         Level 1, 39 Burwood Road, Hawthorn, VIC 3122
Andrew Haussegger                                         Caroline Leslie
                                                                                                                                                                         Phone +61 3 9290 9777
Managing Director                                         Head of Content & Communications
andrewh@green-hat.com.au                                  carolinel@green-hat.com.au                                                                                     Sydney:
linkedin.com/in/andrewhaussegger                          linkedin.com/in/carolineleslie                                                                                 Level 7, 33 Chandos Street, St Leonards, NSW 2065
+61 3 9290 9777                                           +61 3 9290 9777                                                                                                Phone +61 2 9947 1220
                                                                                                                                                                         www.green-hat.com.au
                                                                                                                                                                         email: enquiries@green-hat.com.au
                                                                                                                                                                         LinkedIn: linkedin.com/company/green-hat
                                                                                                                                                                         Twitter: @greenhatmktg




                   ©2013 Green Hat Marketing Pty Ltd ABN 30 099 016 752. All rights reserved.
                   No part of this document may be reproduced or transmitted in any form without the prior approval of Green Hat Marketing Pty Ltd. Any quotation from this document must be attributed to the author.
                                                                                                                                                                                                                                                  PAGE 26

Greenhat B2B Marketing Outlook 2013

  • 1.
    B2B Marketing OutlookAustralia 2013 B2B Marketing Outlook Australia 2013 A research report exploring B2B marketing practice, intentions and directions In association with measurable b2b marketing
  • 2.
    Our Research Partners B2B Marketing Outlook Australia 2013 This study was conducted by Green Hat in association with ADMA and Marketing Magazine. measurable b2b marketing Green Hat is an Australian marketing consulting agency The Association for data-driven marketing and advertising (ADMA) Marketing magazine has been exploring the strategic working exclusively for the B2B sector. Our services include is the principal industry body for information based marketing challenges facing businesses large and small every month market research, strategic planning and execution of and advertising and is the largest marketing and advertising body for over 25 years, and it continues to be a trusted resource programs that require lead nurturing and progression, lead in Australia with over 500 member organisations. for marketers and media professionals in Australia. Each generation, marketing automation, digital marketing and issue is packed with in-depth reports, commentary and sage ADMA represents the new era of marketing and advertising content development. We assist clients that have medium advice from leading industry specialists, and Marketing is – a 3600 view from end to end. to long consideration times – especially in the high-tech, still Australia’s number one resource for information on professional services, financial services and industrial • From marketing to advertising implementing strategies, maximising campaigns and gaining sectors. Our client list includes global blue-chip brands • From effective to creative competitive advantage in the marketplace. such as IBM, EMC, SingTel Optus, Hitachi, Chep and Nokia • From above to below www.marketingmag.com.au Siemens, as well as many local organisations. • From measurable to engaging www.green-hat.com.au ADMA is the ultimate authority and go-to resource for creative and effective data-driven marketing across all channels and platforms, providing knowledge, advocacy, insight and innovation to advance responsive and enlightened marketing. www.adma.com.au
  • 3.
    Contents B2B Marketing Outlook Australia 2013 Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.4 Marketing Channels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Traditional Marketing Tactics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 1: Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Digital Marketing Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 1.1 Key Findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Digital versus Traditional Marketing Trends. . . . . . . . . . . . . . . . . 18 1.2 Observations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Inbound versus Outbound Marketing. . . . . . . . . . . . . . . . . . . . . . 19 Section 2: Research Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.5 Marketing Metrics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2.1 Market Offering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Cost per Marketing Lead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Type of Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Marketing and Sales Alignment: ‘Closing the Loop’ . . . . . . . . . . 20 Lead Times . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.6 Social Media Marketing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Typical Order Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Social Media Platforms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2.2 Marketing Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Social Media Engagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Size of Marketing Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Satisfaction with Social Media. . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Size of Marketing Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Social Media Return on Investment . . . . . . . . . . . . . . . . . . . . . . . 24 Change in Marketing Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 3: Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Budget Justification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Budget Allocation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2.3 Marketing Challenges and Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . 14 Marketing Challenges in 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Marketing Objectives in 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 ©2013 Green Hat Marketing Pty Ltd ABN 30 099 016 752. All rights reserved. No part of this document may be reproduced or transmitted in any form without the prior approval of Green Hat Marketing Pty Ltd. Any quotation from this document must be attributed to the author.
  • 4.
    2.0 Research Results B2B Marketing Outlook Australia 2013 2.2 Marketing Resources Budget Allocation How did/will you spend your marketing budget? Over the past three years we have asked respondents to tell us how they spent their previous year’s marketing budget and how Traditional demand generation 28% (inc events, trade shows, telemarketing, DM) they plan to spend it in the coming year (to an enforced total of 33% 100%). In 2012, we added the option lead nurturing and lead Digital marketing 24% (inc website, online ads, SEO, management program (including marketing automation) and, search marketing, social media, webinars) 21% in this year’s questionnaire, we added content development. Content development 15% In interpreting this graph, bear in mind that these new categories (inc white papers, videos, articles, web/social content) 12% may have been represented amongst other categories in previous 2013 (planned) years. For example, spend on content development may have Advertising & sponsorship 12% been allocated to PR or digital marketing in earlier years. (excluding online) 14% 2012 (actual) The gap between spend on digital marketing and traditional Lead nurturing & management program 9% (inc marketing automation) demand generation activity is expected to further close. In 2012, 7% the differential was 12% but in 2013 it is expected to narrow 7% to 4%. This is on track to fulfil our prediction last year that Public Relations 7% expenditure on digital marketing will overtake traditional tactics in 2014. 5% Other 6% And to fuel this digital direction, marketers are planning to invest about $1 in $7 on developing content for their target audience. 0% 5% 10% 15% 20% 25% 30% 35% We expect this will include thought leadership papers, videos, sales collateral, social media content and well as website content. Key Finding Spend on digital marketing is closing in on traditional demand generation and – as predicted last year – is on track to exceed it in 2014. ©2013 Green Hat Marketing Pty Ltd ABN 30 099 016 752. All rights reserved. No part of this document may be reproduced or transmitted in any form without the prior approval of Green Hat Marketing Pty Ltd. Any quotation from this document must be attributed to the author. PAGE 13
  • 5.
    2.0 Research Results B2B Marketing Outlook Australia 2013 2.4 Marketing Channels Inbound versus Outbound Marketing In comparing Inbound (pull marketing) versus Outbound (push marketing) tactics, how did/will you spend your marketing budget? In 2012, expenditure on outbound marketing exceeded that on inbound marketing. However, companies plan to spend more on inbound in 2013 – indicating that an important turning point has being reached. 35% This finding is supported by growth trends in content 34% development, social media and arguably Public Relations. Spent in 22% 35% Will spend in 2012 2013 43% 31% Similar expenditure on both More expenditure on Inbound More expenditure on Outbound Key Finding Inbound marketing ‘breaks the line’ with a higher proportion of B2B marketers expecting to spend more on inbound than outbound marketing in 2013. ©2013 Green Hat Marketing Pty Ltd ABN 30 099 016 752. All rights reserved. No part of this document may be reproduced or transmitted in any form without the prior approval of Green Hat Marketing Pty Ltd. Any quotation from this document must be attributed to the author. PAGE 19
  • 6.
    2.0 Research Results B2B Marketing Outlook Australia 2013 2.6 Social Media Marketing Social Media Engagement Which of the following best describes your organisation’s involvement in social media? Participation in social media is increasing – only 15% are now inactive, compared with 23% in both 2012 and 2011, although Creator/publisher of the number ‘watching from the fence’ has stayed much the blogs and online content same at around one in ten. Over half (52%) of companies are now actively creating/publishing of blogs, tweets and online content – with Information companies being the most active Inactive industry sector (65%). Joiner/member of groups but generally do not participate 2013 2012 Monitor/consumer of content but generally do not become member 2011 Commentator/participator in discussions but generally do not create Other 0% 10% 20% 30% 40% 50% 60% Key Finding The majority of B2B marketers (52%) now say their organisations are engaged in social media as publishers or creators of social media content. ©2013 Green Hat Marketing Pty Ltd ABN 30 099 016 752. All rights reserved. No part of this document may be reproduced or transmitted in any form without the prior approval of Green Hat Marketing Pty Ltd. Any quotation from this document must be attributed to the author. PAGE 22
  • 7.
    B2B Marketing OutlookAustralia 2013 For further information on this research, please contact the report authors: Melbourne Level 1, 39 Burwood Road, Hawthorn, VIC 3122 Andrew Haussegger Caroline Leslie Phone +61 3 9290 9777 Managing Director Head of Content & Communications andrewh@green-hat.com.au carolinel@green-hat.com.au Sydney: linkedin.com/in/andrewhaussegger linkedin.com/in/carolineleslie Level 7, 33 Chandos Street, St Leonards, NSW 2065 +61 3 9290 9777 +61 3 9290 9777 Phone +61 2 9947 1220 www.green-hat.com.au email: enquiries@green-hat.com.au LinkedIn: linkedin.com/company/green-hat Twitter: @greenhatmktg ©2013 Green Hat Marketing Pty Ltd ABN 30 099 016 752. All rights reserved. No part of this document may be reproduced or transmitted in any form without the prior approval of Green Hat Marketing Pty Ltd. Any quotation from this document must be attributed to the author. PAGE 26