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                  The 2011 State of
                  Inbound Marketing




                                      February 2011

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THE STATE OF INBOUND MARKETING




Contents
Introduction ............................................................................................................................................ 3
The State of Marketing Costs & Budgets ............................................................................................... 4
Inbound Channels Convert Leads into Customers ............................................................................... 10
What‘s Important to Marketers? ........................................................................................................... 13
Conclusion and Additional Resources.................................................................................................. 16
Appendix.............................................................................................................................................. 17




        HubSpot.com                                                                                                                                           2
THE STATE OF INBOUND MARKETING


Introduction
Summary
This report is based on a January 2011 survey of 644 professionals familiar with their business‘
marketing strategy.1 The key takeaways are:

            Inbound marketing channels are maintaining their low-cost advantage: Inbound
             marketing-dominated organizations experience a cost per lead 62% lower than outbound
             marketing-dominated organizations.
            The gap between spending on inbound vs. outbound continues to widen: In 2009,
             inbound marketing had a 9% greater share of the lead generation budget; in 2011 its share
             was 17% greater.
            Blogs and social media channels are generating real customers: 57% of companies
             using blogs reported that they acquired customers from leads generated directly from their
             blog.
            More and more business are blogging: Businesses are now in the minority if they do not
             blog. From 2009 to 2011 the percentage of businesses with a blog grew from 48% to 65%.
            Businesses are increasingly aware their blog is highly valuable: 85% of businesses
             rated their company blogs as ―useful,‖ ―important‖ or ―critical;‖ a whopping 27% rated their
             company blog as ―critical‖ to their business.


Overview of Inbound Marketing
This report is designed to help businesses and marketers understand the current usage and results of
inbound marketing. Inbound marketing is a set of marketing strategies and techniques focused on
pulling relevant prospects and customers towards a business and its products. Inbound marketing is
becoming widely accepted because it complements the way buyers make purchasing decisions
today—they are using the Internet to learn about the products and services that best meet their needs.

Inbound marketers offer their audiences useful information and tools to attract these people to
their site, while also interacting and developing relationships with individuals on the Web. Inbound
marketing tools include blogging, content publishing, search engine optimization and social media.

Inbound marketing contrasts with traditional outbound marketing, in which businesses push their
messages at consumers. With techniques that include direct mail, telemarketing and trade shows,
outbound marketing has become less effective over time as buyers have behaviorally and
technologically (e.g., TIVO, spam filters, ‗do-not-call‘ lists) tuned these interruptive campaigns out.




1
    For more information about the survey please see the appendix.


        HubSpot.com                                                                                         3
THE STATE OF INBOUND MARKETING


The State of Marketing Costs & Budgets
Inbound Consistently Delivers a Cost per Lead Dramatically Lower Than Outbound
Survey participants were asked to report the distribution of their spending and their average cost per
lead. Respondents who spend more than 50% of their lead generation budget on inbound marketing
channels report a significantly lower cost per sales lead than those who spend 50% or more of their
budgets on outbound marketing channels:

                     In 2011, the average cost per lead for outbound-dominated businesses was $373, while
                      inbound businesses reported their leads cost on average $143.
                     Inbound marketing-dominated organizations experience a 62% lower cost per lead
                      than outbound marketing dominated organizations.

This finding is remarkably consistent from year to year. The previous study showed strikingly similar
results: the 2010 survey showed that inbound marketing-centric organizations experienced a 60% lower
cost per lead.




                                                     Average Cost Per Lead
                                                     Inbound vs. Outbound

                                $400                            $373
                                       $332

                                                                              62% Lower Cost per Lead
           Avg. Cost per Lead




                                $200

                                              $134                     $143            Outbound Marketing
                                                                                       Dominated
                                                                                       Inbound Marketing
                                                                                       Dominated


                                 $0
                                          2010                     2011




     HubSpot.com                                                                                             4
THE STATE OF INBOUND MARKETING

Three Out of Four Inbound Channels Cost Less than Any Outbound Channel
When asked to classify each lead generation category as ―below average cost,‖ ―near average cost,‖ or
―above average cost,‖ businesses consistently ranked inbound marketing channels as having costs
lower than outbound channels. PPC was the only inbound channel that was ranked among the
outbound channels.

                               Blogs, social media and organic search maintained the top slots as least expensive.
                               Blogs had the highest instance of being reported as ―Below Average Cost:‖ 55% of
                                companies who blog indicated leads from this channel were ―Below Average Cost.‖
                               Trade shows, PPC, direct mail and telemarketing were most frequently ranked as more
                                expensive.

                                                        Below Average Cost per Lead,
                                                       % Respondents by Lead Channel
                          60%

                                                  Majority reported blog leads are cheaper.                          Outbound
       % of Respondents




                                                                                                                     Inbound
                          40%


                                    55%
                                                 47%
                          20%                                   39%          36%              33%
                                                                                                         27%
                                                                                                                      19%

                           0%
                                   Blogs      Social Media      SEO      Telemarketing Direct Mail       PPC         Trade
                                                              (Organic                                   (Paid       Shows
                                                               search)                                  search)



                                                        Above Average Cost per Lead,
                                                       % Respondents by Lead Channel

                                                  Trade Shows were most frequently                                  Outbound
                          40%
      % of Respondents




                                                  reported as more expensive than average                           Inbound
                                                                                                                    Channle

                                   47%
                          20%
                                                 29%           27%
                                                                             21%
                                                                                            13%         13%
                                                                                                                      9%
                          0%
                                Trade Shows      PPC         Direct Mail Telemarketing     SEO       Social Media    Blogs
                                                 (Paid                                   (Organic
                                                search)                                   search)




     HubSpot.com                                                                                                                5
THE STATE OF INBOUND MARKETING

The Majority of Businesses Are Increasing Their Inbound Marketing Budgets
―How does your 2011 Inbound Marketing budget compare to your 2010 budget?‖ the survey asked. ―If
your 2011 inbound marketing budget changed from your 2010 budget, what drove that decision?‖ The
answers to these questions show that the majority of businesses are consistently increasing inbound
marketing budgets:

                                54% of those surveyed are increasing their inbound marketing budgets.
                                89% are either maintaining or increasing their inbound marketing budgets.
                                This increase was observed two years in row.
                                Among the 54% of respondents with increased inbound marketing budgets, the most
                                 commonly cited reason was ―past success with inbound marketing.‖
                                The majority of businesses attributed their decreasing budgets to the ―economic
                                 conditions‖ (71%) or ―a change in management‖ (15%).

                                      How does your Inbound Marketing budget for the current year
                            60%             compare to your budget for the previous year?


                                                                Majority reported increases in inbound
         % of Respondents




                            40%                                 budgets two years in a row.
                                                                                                                    2010
                                                                                                                    2011

                                         51%        54%
                            20%                                       37%   35%


                                                                                             12%      11%
                                0%
                                              Higher                  No Change                  Lower



                                Why Businesses are Increasing                      Why Businesses are Decreasing
                                     Inbound Budgets                                     Inbound Budgets
        Past Success with
                                                          50%                        Economy                71%
             Inbound

                                                                                   Change in
                                     Other         21%                                             15%
                                                                                  Management

                                 Economy          15%                                    Other     11%

                             Change in                                       Past Success with
                                              14%                                                  3%
                            Management                                           Outbound

        Past Success with                                                    Past Success with
                                              0%                                                   0%
            Outbound                                                              Inbound

                                             0%        20%      40%                              0%     25%      50%
                                                   % of Respondents                                   % of Respondents




     HubSpot.com                                                                                                           6
THE STATE OF INBOUND MARKETING

Distribution of Budgets Continues to Shift To Inbound Channels
We asked survey respondents what percentage of their lead generation budgets would be spent on
each of 9 marketing channels: ―direct mail,‖ ―telemarketing,‖ ―trade shows,‖ ―email marketing,‖ ―PPC
(paid search / AdWords),‖ ―SEO (organic / natural search),‖ ―social media,‖ ―blogs,‖ and ―other.‖ Those
nine channels were grouped as follows (email marketing can be used both as an inbound and an
outbound marketing tool so it was not classified):

                                                              OUTBOUND                          NOT
              INBOUND CHANNELS                                CHANNELS                       CLASSIFIED

                                PPC                            Direct Mail                  Email Marketing

                               SEO                           Telemarketing                      Other

                            Social Media                     Trade Shows

                               Blogs


The results show that:

                         The average portion of budget dedicated to inbound increased from 38% to 41% from 2009
                          to 2011.
                         The net effect is that the gap continues to widen - inbound marketing had a 9% greater
                          share of the lead generation budget in 2009 in comparison to a 17% greater share in
                          2011.


                                                  Lead Generation Budget
                                              Average Distribution, 2009 v. 2011
                         40%

                                   9% gap                                                         Outbound
                                                                   17% gap
                                                                                                  Inbound
       Avg % of Budget




                         20%                                                          41%
                                                    38%
                                       29%
                                                                         24%




                         0%
                                             2009                              2011




     HubSpot.com                                                                                                   7
THE STATE OF INBOUND MARKETING

A more granular view of the data shows that:

        Marketers are allocating more of their lead generation budgets to social media and company
         blogs.
        The average budget spent on company blogs and social media increased from 9% in 2009 to
         17% in 2011.
        Marketers are decreasing the portion spent on PPC, direct mail and telemarketing.


                                             Inbound Lead Generation Budget
                                              Average Distribution, 2009-2011
                                 50%


                                 40%                                             PPC
                                                                        10%
              Avg % of Budget




                                                       11%                       SEO (organic
                                 30%   16%                                       search)
                                                                        13%      Blogs & Social
                                 20%                   13%                       Media
                                       13%
                                 10%                                    18%
                                                       15%
                                       9%
                                 0%
                                   2009                2010               2011




                                             Outbound Lead Generation Budget
                                              Average Distribution, 2009-2011
                                 40%
               Avg % of Budget




                                                                                 Telemarketing
                                       10%
                                                                         5%      Trade Shows
                                 20%                   6%
                                                                                 Direct Mail

                                       11%             11%              13%


                                       9%              7%                6%
                                 0%
                                   2009               2010                2011




        HubSpot.com                                                                                   8
THE STATE OF INBOUND MARKETING

Small Companies Continue to Spend More of Their Budgets on Inbound Marketing
In a continuation of a trend identified in previous reports, small businesses are attempting to level the
playing field by focusing on lower-cost inbound lead generation techniques.

                     In 2011, small businesses (1 to 5 employees) plan to spend 49% of their lead generation
                      budgets on inbound marketing.
                     In comparison, medium-to-large businesses (50 or more employees) only plan to spend 36% of
                      their lead generation budgets on inbound marketing.
                     Small business are only giving 10% of their budget to outbound, while medium-to-large
                      business are allocating 28% of their budget to outbound channels.
                     Small businesses plan to spend dramatically more of their budgets on social media and blogs.
                     Medium-to-large businesses plan to spend more of their budgets on outbound methods,
                      including trade shows, direct mail and telemarketing.

                                             Avg. Distribution of Lead Generation Budgets
                                                Small vs. Medium to Large Businesses
                     20%    19%

                                          16% 17%                                                           1 to 5 Employees

                                                                                                            Over 50 Employees
                                                                      13%         13%
   Avg % of Budget




                                                                12%
                                                     10%                                         10%
                     10%
                                                                                                                               8%
                                  6%                                                                            7%

                                                                             4%
                                                           3%                               3%            3%              3%


                     0%
                           Social Media     SEO       Blogs      Email      Trade Shows       PPC         Direct Mail   Telemarketing
                                          (Organic              Marketing                 (Paid Search)
                                           Search)




                     HubSpot.com                                                                                                        9
THE STATE OF INBOUND MARKETING


Inbound Channels Convert Leads into Customers
Social Media and Blogs Generate Real Customers
The use of social media and company blogs as marketing tools not only gets your company better
brand exposure, but it also generates leads that result in real customer acquisition.

          57% of those using company blogs have acquired a customer from a blog-generated lead;
           this is an increase of 11 percentage points since 2010.
          Similarly, 57% of companies using LinkedIn have acquired a customer from that channel.
          Facebook and Twitter users reported customer acquisition rates of 48% and 42%,
           respectively.


                                              Customer Acquisition by Channel

                           60%         57%              57%

                                    46%                               48%
                                                                   44%
                                                   41%                            41%42%
               % of Channel
                            40%
                Users who
                Acquired a                                                                        2010
                 Customer
               Through that                                                                       2011
                            20%
                 Channel


                            0%
                                  Company Blog     LinkedIn        Facebook        Twitter




Customer Acquisition through Blogs is Directly Related to Frequency of Posts
If your blog is underutilized, you are leaving customers on the table. The 2011 survey shows a direct
correlation between blog post frequency and new customers acquired.

                                     Blog Post Frequency vs. Customer Acquisition
                           100%                                                               89%
                                                                      76%         78%
                                                           72%
             % of BlogUsers
             who Acquired                        49%
              a customer    50%
                through              33%
               their blog



                             0%
                                  Less Than   Monthly     Weekly    2-3 Times     Daily      Multiple
                                   Monthly                           a Week                  Times a
                                                                                               Day
                                                        Frequency of Blog Posts




     HubSpot.com
                                                                                                         10
THE STATE OF INBOUND MARKETING

Most Company Blogs Publish at Least Weekly
Despite the evidence showing that increased blogging correlates with increased customer acquisition,
blogging frequency remained relatively steady between 2009 and 2011.

       In 2011, 71% of respondents indicated they blog at least weekly.

                                                        Frequency of Blog Posts
                                                             2009 v. 2011
                                  80%
                                                                                                         2009
                                                                   62%     61%
                                  60%                                                                    2011
               % of Repsondents




                                  40%
                                                                                               29%
                                                                                        23%
                                  20%    15%
                                                 10%


                                  0%
                                              Daily                  Weekly            Monthly or less




Facebook Is More Effective for B2C; LinkedIn Is More Effective for B2B
The effectiveness of a particular social media channel depends upon the type of business. While both
B2B and B2C companies are able to acquire customers through any of the four channels surveyed,
Facebook is clearly more effective for B2C businesses and LinkedIn is clearly more effective for B2B
businesses. Both business types found similar and relatively high success with customer acquisition
through a company blog.

                                                Customer Acquisition by Channel
                                                          B2B v. B2C
                                        80%                                                                 B2B
                                                                                       67%                  B2C
                                                      61%                 63%
                                        60%                         55%                                  53%
               % of Channel
                Users who                                                        41%
                Acquired a                                  39%                                  39%
                            40%
                 Customer
                 Through
               that Channel
                            20%



                                        0%
                                                      LinkedIn    Company Blog   Facebook         Twitter




       HubSpot.com
                                                                                                                  11
THE STATE OF INBOUND MARKETING

Channel Effectiveness by Industry
A deeper dive into the customer acquisition results shows how the effectiveness of blogs, Twitter,
Facebook and LinkedIn varies by industry. The major takeaways from this data include:

       Higher Education, Professional Services & Consulting, and Software & Biotech found blogging
        was highly effective. All of those industries had over 50% of respondents indicating customer
        acquisition through their blog.
       The Retail industry experienced the most success through Facebook and Twitter.
       Communications & Media, Banking/Insurance/Financial Services, Manufacturing, Professional
        Services & Consulting, and Technology Hardware found LinkedIn was highly effective.


                                   Customer Acquisition by Channel
                                             by Industry

                                                                               61%
        Banking/Insurance/Financial Services


                                                                                 66%
                     Communications/Media

                                                                                                    LinkedIn
                                                                                                    Twitter
                           Higher Education                                          72%
                                                                                                    Facebook
                                                                                                    Blog
                                                                               60%
                              Manufacturing


                                                                             59%
            Professional Services/Consulting
                                                                             58%


                           Retail/Wholesale                                            80%


                                                                         50%
                     Technology (Hardware)



              Technology (Software/Biotech)
                                                                             58%

                                               0%        20%      40%      60%       80%     100%

                                                    % of Channel Users who Acquired a Customer
                                                               Through that Channel




       HubSpot.com
                                                                                                               12
THE STATE OF INBOUND MARKETING


What’s Important to Marketers?
Inbound Marketing Channels Continue to Grow in Importance
Based on the data regarding customer acquisition and lower average costs for inbound marketing, it is
not surprising that inbound marketing channels continue to grow in importance. Looking at the last six
months:

                            62% of businesses rated social media as being more important.
                            Social media and SEO were the channels most frequently reported as MORE important.
                            Direct mail was the channel most frequently cited as LESS important.
                            Businesses rated every outbound channel as LESS important than any inbound channel.

                                                Which sources of leads have become MORE
                                                important to you over the last six months?
                           70%
                                    62%
                           60%
                                                 51%
                                                                                                                Outbound
        % of Respondents




                           50%
                                                            38%                                                 Inbound
                           40%

                           30%
                                                                            22%
                           20%                                                              16%
                                                                                                          11%        10%
                           10%

                            0%
                                 Social Media     SEO       Blogs           PPC       Trade Shows Telemarketing   Direct Mail
                                                (Organic                (Paid search)
                                                 search)




                                                Which sources of leads have become LESS
                                                important to you over the last six months?
                           60%
                                     50%
                           50%
                                                                                                                  Outbound
      % of Respondents




                                                    38%
                           40%                                                                                    Inbound
                                                                  33%
                           30%                                                     25%

                           20%
                                                                                                  12%
                                                                                                                  10%
                           10%

                           0%
                                  Direct Mail      Trade    Telemarketing          PPC            Blogs           SEO
                                                   Shows                           (Paid                        (Organic
                                                                                  search)                        search)




     HubSpot.com
                                                                                                                                13
THE STATE OF INBOUND MARKETING

Blogs Remain Most Important Social Media Channel
Survey respondents were asked to indicate if their
business publishes a blog. From 2009 to 2011, the                                      Do you publish a company blog?
volume of respondents indicating that their                                          100%
company publishes a blog has shown rapid
                                                                                                                           35%




                                                                  % of Repsondents
                                                                                                            39%
growth:                                                                                           52%

        From 2009 to 2011, the percentage of                                        50%                                          No
         respondents with a company blog grew                                                               61%            65%    Yes
                                                                                                  48%
         from 48% to 65%.
        On the flip side, the likelihood of a not                                    0%
         having a blog has been reduced from 52%                                                  2009      2010           2011
         to 35%.

Respondents were also asked to rank the services that they use as ―critical,‖ ―important,‖ or ―useful.‖
The results indicate:

             A whopping 27% of users rated their company blog as “critical” to their business.
             85% of users rated company blogs as “useful” or better.
             LinkedIn, YouTube, Facebook and Twitter were considered ―useful‖ or better by over 60%.
             In contrast, MySpace, StumbleUpon, Digg and Flickr all had user bases where over 70%
              considered the channel only ―somewhat useful‖ or ―not useful.‖

                             How important are these services to your business?

                    27% reported their blog was “Critical”.

             Company Blog           27%              35%                              23%

                  LinkedIn        16%          34%              21%

                 YouTube          14%         30%           28%

                Facebook          18%         26%          23%
                                                                                                                Critical
                   Twitter     14%        25%             25%
                                                                                                                Important
                    Flickr
                                                                                                                Useful
                     Digg
                                                                                                                Somewhat Useful
             StumbleUpon
                                                                                                                Not Useful
                 MySpace

                             0%         20%         40%         60%                         80%          100%

                                                     % of Users




        HubSpot.com
                                                                                                                                        14
THE STATE OF INBOUND MARKETING

Company Blogs, YouTube, Facebook and Twitter Increasingly Valued by Businesses
The results of both the 2009 and 2011 studies reveal that certain channels are gaining importance over
time. The graph below shows the percentage of users who rated the channel as either ―critical‖ or
―important‖ in 2009 and 2011.

The results of this comparison show:

                      Company blogs are increasingly valued. The blog is the channel most frequently
                       reported as critical or important, both in 2009 and 2011.
                       YouTube, Facebook, and Twitter are also increasingly important. Facebook and Twitter gained
                       an additional 18%, and YouTube gained 20%.
                      Flickr, Digg, StumbleUpon, and MySpace had reduced importance.

                                     % Respondents indicating Channel was Critical or Important
                                                           2009 vs. 2011

                                           Gaining Importance


                                   62%
                       60%
                             52%
                                                                                                                   2009
    % of Repsondents




                                               44%         44%
                                                                                                                   2011
                                                                       38%
                       40%

                                         26%         24%                                             25%
                                                                 21%                     21%
                       20%
                                                                             14%                                  13%
                                                                                   11%         9%
                                                                                                           6%
                                                                                                                        4%

                       0%
                             Company     YouTube     Facebook    Twitter      Flickr      Digg      StumbleUpon   MySpace
                               Blog




                 HubSpot.com
                                                                                                                             15
THE STATE OF INBOUND MARKETING


Conclusion and Additional Resources

Traditional outbound marketing techniques – including direct mail, print advertising and telemarketing –
are becoming less effective. Buyers are not only finding ways to tune these messages out, but more
importantly, they now have the capability to evaluate the products and services they need on their own.

As a result, businesses are transforming their marketing efforts to focus more on inbound programs that
allow customers to find them. The State of Inbound Marketing report shows that businesses that more
aggressively practice this are capturing leads more effectively. Given the digital nature of inbound
marketing, the marginal cost per customer acquisition is typically close to zero, meaning that as buyers
continue to shift how they make purchasing, the cost per lead for a given business will continue to
decrease.

While it is clear that businesses are gravitating towards inbound marketing, some are moving more
aggressively than others. Those who move first are more likely to reap the tremendous business
benefits of this new era of marketing.




                                           If you are interested in learning more about inbound
                                           marketing and how to combine blogging, SEO and social
                                           media for results, try HubSpot‘s free 30-day trial!

                                           http://www.hubspot.com/free-trial




     HubSpot.com
                                                                                                           16
THE STATE OF INBOUND MARKETING


Appendix
We asked respondents to name the best and worst marketing programs they‘ve executed to drive leads
and sales over the past year. Represented below are their answers in a word cloud.

Best Things People Did in Marketing Last Year:




Worst Things People Did in Marketing Last Year:




     HubSpot.com
                                                                                                 17
THE STATE OF INBOUND MARKETING

Respondent Profiles
The State of Inbound Marketing report is based on surveys conducted in early 2009, 2010, and 2011.
The 2011 results are based on responses from 644 professionals who were familiar with their business‘
marketing strategy. These professionals included marketers, business owners, entrepreneurs, and
executives at companies of various sizes. 76% of these professionals worked in business-to-business
companies and the range of industries varied greatly. Industries represented in the sample included
Retail, Technology, Professional Services & Consulting, Banking/Insurance/Financial Services and
Communications & Media among others.

         How many full-time employees does your                       My business primarily sells to other
                    company have?                                      businesses (B2B) or consumers
                                                                                    (B2C)




                      201 or more                                               B2C
                         17%                                                    24%
                                               1 to 5
                                               39%
                  51 to 200
                    15%


                    26 to 50
                      8%                                                                      B2B
                            11 to 25 6 to 10                                                  76%
                             12%       9%




       What industry best describes your company?                       What best describes your role?




                     Other            Technology                            Business
                     27%                 19%                                Owner /
                                                         Retail /            Partner
                                                        Wholesale             33%
                                                          6%                                   Marketing
     Banking /                                                                                   50%
    Insurance /
                                      Professional
     Financial
                                       Services /
     Services
                                       Consulting
        4%
                                          30%
                                                                                      Other
      Communicati                                                    CEO /
                                                                                       8%
      ons / Media                                                   Executive
         14%                                                           9%




     HubSpot.com
                                                                                                             18
THE STATE OF INBOUND MARKETING

Sample Questions Asked
The survey was designed to collect data on the marketing practices and results for a wide range of
businesses. This is the third consecutive year in which this survey has been conducted. Respondents
were asked a series of questions related to their business‘ marketing programs the results they have
seen. Most of the questions fell within three categories:

   -    Marketing budget and sources of leads, including:
           o What percent of your sales leads come from each of your lead channels?
           o What percent of your lead generation budget do you spend on each of your lead
               channels?
           o Estimate the cost per lead for each of your lead channels.
   -    Trends in ―importance‖ and ―usefulness‖ of marketing channels and leads, including:
           o Which sources of leads have become MORE important to you over last six months?
           o Which sources of leads have become LESS important to you over last six months?
           o How useful are social media sources to your business?
   -    Focus on blogs and social media
           o Do you publish a blog?
           o How often do you publish a post?
           o Have you ever acquired a customer from the following social media / blog channels?




       HubSpot.com
                                                                                                       19

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The 2011 State of Inbound Marketing

  • 1. www.HubSpot.com The 2011 State of Inbound Marketing February 2011 Tweet This!
  • 2. THE STATE OF INBOUND MARKETING Contents Introduction ............................................................................................................................................ 3 The State of Marketing Costs & Budgets ............................................................................................... 4 Inbound Channels Convert Leads into Customers ............................................................................... 10 What‘s Important to Marketers? ........................................................................................................... 13 Conclusion and Additional Resources.................................................................................................. 16 Appendix.............................................................................................................................................. 17 HubSpot.com 2
  • 3. THE STATE OF INBOUND MARKETING Introduction Summary This report is based on a January 2011 survey of 644 professionals familiar with their business‘ marketing strategy.1 The key takeaways are:  Inbound marketing channels are maintaining their low-cost advantage: Inbound marketing-dominated organizations experience a cost per lead 62% lower than outbound marketing-dominated organizations.  The gap between spending on inbound vs. outbound continues to widen: In 2009, inbound marketing had a 9% greater share of the lead generation budget; in 2011 its share was 17% greater.  Blogs and social media channels are generating real customers: 57% of companies using blogs reported that they acquired customers from leads generated directly from their blog.  More and more business are blogging: Businesses are now in the minority if they do not blog. From 2009 to 2011 the percentage of businesses with a blog grew from 48% to 65%.  Businesses are increasingly aware their blog is highly valuable: 85% of businesses rated their company blogs as ―useful,‖ ―important‖ or ―critical;‖ a whopping 27% rated their company blog as ―critical‖ to their business. Overview of Inbound Marketing This report is designed to help businesses and marketers understand the current usage and results of inbound marketing. Inbound marketing is a set of marketing strategies and techniques focused on pulling relevant prospects and customers towards a business and its products. Inbound marketing is becoming widely accepted because it complements the way buyers make purchasing decisions today—they are using the Internet to learn about the products and services that best meet their needs. Inbound marketers offer their audiences useful information and tools to attract these people to their site, while also interacting and developing relationships with individuals on the Web. Inbound marketing tools include blogging, content publishing, search engine optimization and social media. Inbound marketing contrasts with traditional outbound marketing, in which businesses push their messages at consumers. With techniques that include direct mail, telemarketing and trade shows, outbound marketing has become less effective over time as buyers have behaviorally and technologically (e.g., TIVO, spam filters, ‗do-not-call‘ lists) tuned these interruptive campaigns out. 1 For more information about the survey please see the appendix. HubSpot.com 3
  • 4. THE STATE OF INBOUND MARKETING The State of Marketing Costs & Budgets Inbound Consistently Delivers a Cost per Lead Dramatically Lower Than Outbound Survey participants were asked to report the distribution of their spending and their average cost per lead. Respondents who spend more than 50% of their lead generation budget on inbound marketing channels report a significantly lower cost per sales lead than those who spend 50% or more of their budgets on outbound marketing channels:  In 2011, the average cost per lead for outbound-dominated businesses was $373, while inbound businesses reported their leads cost on average $143.  Inbound marketing-dominated organizations experience a 62% lower cost per lead than outbound marketing dominated organizations. This finding is remarkably consistent from year to year. The previous study showed strikingly similar results: the 2010 survey showed that inbound marketing-centric organizations experienced a 60% lower cost per lead. Average Cost Per Lead Inbound vs. Outbound $400 $373 $332 62% Lower Cost per Lead Avg. Cost per Lead $200 $134 $143 Outbound Marketing Dominated Inbound Marketing Dominated $0 2010 2011 HubSpot.com 4
  • 5. THE STATE OF INBOUND MARKETING Three Out of Four Inbound Channels Cost Less than Any Outbound Channel When asked to classify each lead generation category as ―below average cost,‖ ―near average cost,‖ or ―above average cost,‖ businesses consistently ranked inbound marketing channels as having costs lower than outbound channels. PPC was the only inbound channel that was ranked among the outbound channels.  Blogs, social media and organic search maintained the top slots as least expensive.  Blogs had the highest instance of being reported as ―Below Average Cost:‖ 55% of companies who blog indicated leads from this channel were ―Below Average Cost.‖  Trade shows, PPC, direct mail and telemarketing were most frequently ranked as more expensive. Below Average Cost per Lead, % Respondents by Lead Channel 60% Majority reported blog leads are cheaper. Outbound % of Respondents Inbound 40% 55% 47% 20% 39% 36% 33% 27% 19% 0% Blogs Social Media SEO Telemarketing Direct Mail PPC Trade (Organic (Paid Shows search) search) Above Average Cost per Lead, % Respondents by Lead Channel Trade Shows were most frequently Outbound 40% % of Respondents reported as more expensive than average Inbound Channle 47% 20% 29% 27% 21% 13% 13% 9% 0% Trade Shows PPC Direct Mail Telemarketing SEO Social Media Blogs (Paid (Organic search) search) HubSpot.com 5
  • 6. THE STATE OF INBOUND MARKETING The Majority of Businesses Are Increasing Their Inbound Marketing Budgets ―How does your 2011 Inbound Marketing budget compare to your 2010 budget?‖ the survey asked. ―If your 2011 inbound marketing budget changed from your 2010 budget, what drove that decision?‖ The answers to these questions show that the majority of businesses are consistently increasing inbound marketing budgets:  54% of those surveyed are increasing their inbound marketing budgets.  89% are either maintaining or increasing their inbound marketing budgets.  This increase was observed two years in row.  Among the 54% of respondents with increased inbound marketing budgets, the most commonly cited reason was ―past success with inbound marketing.‖  The majority of businesses attributed their decreasing budgets to the ―economic conditions‖ (71%) or ―a change in management‖ (15%). How does your Inbound Marketing budget for the current year 60% compare to your budget for the previous year? Majority reported increases in inbound % of Respondents 40% budgets two years in a row. 2010 2011 51% 54% 20% 37% 35% 12% 11% 0% Higher No Change Lower Why Businesses are Increasing Why Businesses are Decreasing Inbound Budgets Inbound Budgets Past Success with 50% Economy 71% Inbound Change in Other 21% 15% Management Economy 15% Other 11% Change in Past Success with 14% 3% Management Outbound Past Success with Past Success with 0% 0% Outbound Inbound 0% 20% 40% 0% 25% 50% % of Respondents % of Respondents HubSpot.com 6
  • 7. THE STATE OF INBOUND MARKETING Distribution of Budgets Continues to Shift To Inbound Channels We asked survey respondents what percentage of their lead generation budgets would be spent on each of 9 marketing channels: ―direct mail,‖ ―telemarketing,‖ ―trade shows,‖ ―email marketing,‖ ―PPC (paid search / AdWords),‖ ―SEO (organic / natural search),‖ ―social media,‖ ―blogs,‖ and ―other.‖ Those nine channels were grouped as follows (email marketing can be used both as an inbound and an outbound marketing tool so it was not classified): OUTBOUND NOT INBOUND CHANNELS CHANNELS CLASSIFIED PPC Direct Mail Email Marketing SEO Telemarketing Other Social Media Trade Shows Blogs The results show that:  The average portion of budget dedicated to inbound increased from 38% to 41% from 2009 to 2011.  The net effect is that the gap continues to widen - inbound marketing had a 9% greater share of the lead generation budget in 2009 in comparison to a 17% greater share in 2011. Lead Generation Budget Average Distribution, 2009 v. 2011 40% 9% gap Outbound 17% gap Inbound Avg % of Budget 20% 41% 38% 29% 24% 0% 2009 2011 HubSpot.com 7
  • 8. THE STATE OF INBOUND MARKETING A more granular view of the data shows that:  Marketers are allocating more of their lead generation budgets to social media and company blogs.  The average budget spent on company blogs and social media increased from 9% in 2009 to 17% in 2011.  Marketers are decreasing the portion spent on PPC, direct mail and telemarketing. Inbound Lead Generation Budget Average Distribution, 2009-2011 50% 40% PPC 10% Avg % of Budget 11% SEO (organic 30% 16% search) 13% Blogs & Social 20% 13% Media 13% 10% 18% 15% 9% 0% 2009 2010 2011 Outbound Lead Generation Budget Average Distribution, 2009-2011 40% Avg % of Budget Telemarketing 10% 5% Trade Shows 20% 6% Direct Mail 11% 11% 13% 9% 7% 6% 0% 2009 2010 2011 HubSpot.com 8
  • 9. THE STATE OF INBOUND MARKETING Small Companies Continue to Spend More of Their Budgets on Inbound Marketing In a continuation of a trend identified in previous reports, small businesses are attempting to level the playing field by focusing on lower-cost inbound lead generation techniques.  In 2011, small businesses (1 to 5 employees) plan to spend 49% of their lead generation budgets on inbound marketing.  In comparison, medium-to-large businesses (50 or more employees) only plan to spend 36% of their lead generation budgets on inbound marketing.  Small business are only giving 10% of their budget to outbound, while medium-to-large business are allocating 28% of their budget to outbound channels.  Small businesses plan to spend dramatically more of their budgets on social media and blogs.  Medium-to-large businesses plan to spend more of their budgets on outbound methods, including trade shows, direct mail and telemarketing. Avg. Distribution of Lead Generation Budgets Small vs. Medium to Large Businesses 20% 19% 16% 17% 1 to 5 Employees Over 50 Employees 13% 13% Avg % of Budget 12% 10% 10% 10% 8% 6% 7% 4% 3% 3% 3% 3% 0% Social Media SEO Blogs Email Trade Shows PPC Direct Mail Telemarketing (Organic Marketing (Paid Search) Search) HubSpot.com 9
  • 10. THE STATE OF INBOUND MARKETING Inbound Channels Convert Leads into Customers Social Media and Blogs Generate Real Customers The use of social media and company blogs as marketing tools not only gets your company better brand exposure, but it also generates leads that result in real customer acquisition.  57% of those using company blogs have acquired a customer from a blog-generated lead; this is an increase of 11 percentage points since 2010.  Similarly, 57% of companies using LinkedIn have acquired a customer from that channel.  Facebook and Twitter users reported customer acquisition rates of 48% and 42%, respectively. Customer Acquisition by Channel 60% 57% 57% 46% 48% 44% 41% 41%42% % of Channel 40% Users who Acquired a 2010 Customer Through that 2011 20% Channel 0% Company Blog LinkedIn Facebook Twitter Customer Acquisition through Blogs is Directly Related to Frequency of Posts If your blog is underutilized, you are leaving customers on the table. The 2011 survey shows a direct correlation between blog post frequency and new customers acquired. Blog Post Frequency vs. Customer Acquisition 100% 89% 76% 78% 72% % of BlogUsers who Acquired 49% a customer 50% through 33% their blog 0% Less Than Monthly Weekly 2-3 Times Daily Multiple Monthly a Week Times a Day Frequency of Blog Posts HubSpot.com 10
  • 11. THE STATE OF INBOUND MARKETING Most Company Blogs Publish at Least Weekly Despite the evidence showing that increased blogging correlates with increased customer acquisition, blogging frequency remained relatively steady between 2009 and 2011.  In 2011, 71% of respondents indicated they blog at least weekly. Frequency of Blog Posts 2009 v. 2011 80% 2009 62% 61% 60% 2011 % of Repsondents 40% 29% 23% 20% 15% 10% 0% Daily Weekly Monthly or less Facebook Is More Effective for B2C; LinkedIn Is More Effective for B2B The effectiveness of a particular social media channel depends upon the type of business. While both B2B and B2C companies are able to acquire customers through any of the four channels surveyed, Facebook is clearly more effective for B2C businesses and LinkedIn is clearly more effective for B2B businesses. Both business types found similar and relatively high success with customer acquisition through a company blog. Customer Acquisition by Channel B2B v. B2C 80% B2B 67% B2C 61% 63% 60% 55% 53% % of Channel Users who 41% Acquired a 39% 39% 40% Customer Through that Channel 20% 0% LinkedIn Company Blog Facebook Twitter HubSpot.com 11
  • 12. THE STATE OF INBOUND MARKETING Channel Effectiveness by Industry A deeper dive into the customer acquisition results shows how the effectiveness of blogs, Twitter, Facebook and LinkedIn varies by industry. The major takeaways from this data include:  Higher Education, Professional Services & Consulting, and Software & Biotech found blogging was highly effective. All of those industries had over 50% of respondents indicating customer acquisition through their blog.  The Retail industry experienced the most success through Facebook and Twitter.  Communications & Media, Banking/Insurance/Financial Services, Manufacturing, Professional Services & Consulting, and Technology Hardware found LinkedIn was highly effective. Customer Acquisition by Channel by Industry 61% Banking/Insurance/Financial Services 66% Communications/Media LinkedIn Twitter Higher Education 72% Facebook Blog 60% Manufacturing 59% Professional Services/Consulting 58% Retail/Wholesale 80% 50% Technology (Hardware) Technology (Software/Biotech) 58% 0% 20% 40% 60% 80% 100% % of Channel Users who Acquired a Customer Through that Channel HubSpot.com 12
  • 13. THE STATE OF INBOUND MARKETING What’s Important to Marketers? Inbound Marketing Channels Continue to Grow in Importance Based on the data regarding customer acquisition and lower average costs for inbound marketing, it is not surprising that inbound marketing channels continue to grow in importance. Looking at the last six months:  62% of businesses rated social media as being more important.  Social media and SEO were the channels most frequently reported as MORE important.  Direct mail was the channel most frequently cited as LESS important.  Businesses rated every outbound channel as LESS important than any inbound channel. Which sources of leads have become MORE important to you over the last six months? 70% 62% 60% 51% Outbound % of Respondents 50% 38% Inbound 40% 30% 22% 20% 16% 11% 10% 10% 0% Social Media SEO Blogs PPC Trade Shows Telemarketing Direct Mail (Organic (Paid search) search) Which sources of leads have become LESS important to you over the last six months? 60% 50% 50% Outbound % of Respondents 38% 40% Inbound 33% 30% 25% 20% 12% 10% 10% 0% Direct Mail Trade Telemarketing PPC Blogs SEO Shows (Paid (Organic search) search) HubSpot.com 13
  • 14. THE STATE OF INBOUND MARKETING Blogs Remain Most Important Social Media Channel Survey respondents were asked to indicate if their business publishes a blog. From 2009 to 2011, the Do you publish a company blog? volume of respondents indicating that their 100% company publishes a blog has shown rapid 35% % of Repsondents 39% growth: 52%  From 2009 to 2011, the percentage of 50% No respondents with a company blog grew 61% 65% Yes 48% from 48% to 65%.  On the flip side, the likelihood of a not 0% having a blog has been reduced from 52% 2009 2010 2011 to 35%. Respondents were also asked to rank the services that they use as ―critical,‖ ―important,‖ or ―useful.‖ The results indicate:  A whopping 27% of users rated their company blog as “critical” to their business.  85% of users rated company blogs as “useful” or better.  LinkedIn, YouTube, Facebook and Twitter were considered ―useful‖ or better by over 60%.  In contrast, MySpace, StumbleUpon, Digg and Flickr all had user bases where over 70% considered the channel only ―somewhat useful‖ or ―not useful.‖ How important are these services to your business? 27% reported their blog was “Critical”. Company Blog 27% 35% 23% LinkedIn 16% 34% 21% YouTube 14% 30% 28% Facebook 18% 26% 23% Critical Twitter 14% 25% 25% Important Flickr Useful Digg Somewhat Useful StumbleUpon Not Useful MySpace 0% 20% 40% 60% 80% 100% % of Users HubSpot.com 14
  • 15. THE STATE OF INBOUND MARKETING Company Blogs, YouTube, Facebook and Twitter Increasingly Valued by Businesses The results of both the 2009 and 2011 studies reveal that certain channels are gaining importance over time. The graph below shows the percentage of users who rated the channel as either ―critical‖ or ―important‖ in 2009 and 2011. The results of this comparison show:  Company blogs are increasingly valued. The blog is the channel most frequently reported as critical or important, both in 2009 and 2011.  YouTube, Facebook, and Twitter are also increasingly important. Facebook and Twitter gained an additional 18%, and YouTube gained 20%.  Flickr, Digg, StumbleUpon, and MySpace had reduced importance. % Respondents indicating Channel was Critical or Important 2009 vs. 2011 Gaining Importance 62% 60% 52% 2009 % of Repsondents 44% 44% 2011 38% 40% 26% 24% 25% 21% 21% 20% 14% 13% 11% 9% 6% 4% 0% Company YouTube Facebook Twitter Flickr Digg StumbleUpon MySpace Blog HubSpot.com 15
  • 16. THE STATE OF INBOUND MARKETING Conclusion and Additional Resources Traditional outbound marketing techniques – including direct mail, print advertising and telemarketing – are becoming less effective. Buyers are not only finding ways to tune these messages out, but more importantly, they now have the capability to evaluate the products and services they need on their own. As a result, businesses are transforming their marketing efforts to focus more on inbound programs that allow customers to find them. The State of Inbound Marketing report shows that businesses that more aggressively practice this are capturing leads more effectively. Given the digital nature of inbound marketing, the marginal cost per customer acquisition is typically close to zero, meaning that as buyers continue to shift how they make purchasing, the cost per lead for a given business will continue to decrease. While it is clear that businesses are gravitating towards inbound marketing, some are moving more aggressively than others. Those who move first are more likely to reap the tremendous business benefits of this new era of marketing. If you are interested in learning more about inbound marketing and how to combine blogging, SEO and social media for results, try HubSpot‘s free 30-day trial! http://www.hubspot.com/free-trial HubSpot.com 16
  • 17. THE STATE OF INBOUND MARKETING Appendix We asked respondents to name the best and worst marketing programs they‘ve executed to drive leads and sales over the past year. Represented below are their answers in a word cloud. Best Things People Did in Marketing Last Year: Worst Things People Did in Marketing Last Year: HubSpot.com 17
  • 18. THE STATE OF INBOUND MARKETING Respondent Profiles The State of Inbound Marketing report is based on surveys conducted in early 2009, 2010, and 2011. The 2011 results are based on responses from 644 professionals who were familiar with their business‘ marketing strategy. These professionals included marketers, business owners, entrepreneurs, and executives at companies of various sizes. 76% of these professionals worked in business-to-business companies and the range of industries varied greatly. Industries represented in the sample included Retail, Technology, Professional Services & Consulting, Banking/Insurance/Financial Services and Communications & Media among others. How many full-time employees does your My business primarily sells to other company have? businesses (B2B) or consumers (B2C) 201 or more B2C 17% 24% 1 to 5 39% 51 to 200 15% 26 to 50 8% B2B 11 to 25 6 to 10 76% 12% 9% What industry best describes your company? What best describes your role? Other Technology Business 27% 19% Owner / Retail / Partner Wholesale 33% 6% Marketing Banking / 50% Insurance / Professional Financial Services / Services Consulting 4% 30% Other Communicati CEO / 8% ons / Media Executive 14% 9% HubSpot.com 18
  • 19. THE STATE OF INBOUND MARKETING Sample Questions Asked The survey was designed to collect data on the marketing practices and results for a wide range of businesses. This is the third consecutive year in which this survey has been conducted. Respondents were asked a series of questions related to their business‘ marketing programs the results they have seen. Most of the questions fell within three categories: - Marketing budget and sources of leads, including: o What percent of your sales leads come from each of your lead channels? o What percent of your lead generation budget do you spend on each of your lead channels? o Estimate the cost per lead for each of your lead channels. - Trends in ―importance‖ and ―usefulness‖ of marketing channels and leads, including: o Which sources of leads have become MORE important to you over last six months? o Which sources of leads have become LESS important to you over last six months? o How useful are social media sources to your business? - Focus on blogs and social media o Do you publish a blog? o How often do you publish a post? o Have you ever acquired a customer from the following social media / blog channels? HubSpot.com 19