2014 Services Marketing
Budget Allocations
and Trends
Julie Schwartz
Senior Vice President
Research and Thought Leadership
ITSMA
Abbreviated Summary | January 2014 2014 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B025AS | © 2014 ITSMA. All Rights Reserved.
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ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
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Abbreviated Summary
The 2014 Services
Marketing Budget
Allocations and Trends
survey provides data on
services marketing budgets,
budget allocations, and
marketing priorities from a
range of companies across
the technology and
consulting industries.
Topics covered in the report include:
marketing budget size and growth rates
revenue growth rates
marketing budget allocations
marketing staff growth rates
marketing staff allocations
marketing mix budget allocations
marketing operations and automation
marketing priorities
digital marketing
Account Based Marketing
services
budget allocations
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ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
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As we look ahead to 2014, we see both good news
and some concerns
Note: This Abbreviated Summary highlights some
of the significant findings from 2014 Services
Marketing Budget Allocations and Trends. A more
in-depth analysis can be found in the full report.
Good News The perception of marketing is
improving
Marketing roles are expanding
Marketing budgets, staff, and agency spend are increasing
Concerns • Senior executives still
do not see marketing contributing enough to – Strategy development
–Revenue growth
– Shareholder value
• Marketing budgets are declining as a percentage of revenue
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ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
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Despite an improving economic picture, the era of doing
more
is not yet over
with less
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More companies are increasing
marketing spend in 2014…
In FY2014, do you expect your marketing budget to increase, decrease, or stay the same when compared to FY2013? % of Respondents (N=45)
Source: ITSMA, 2014 Services Marketing Budget Allocations and Trends
Average increase:
10.0% Average
decrease: 15.3%
51% Increase
13% Decrease
36% Stay the Same
Overall 2014 B2B Services
Marketing Budget Growth:
4.8%
… but as a percentage of revenue,
marketing budgets are trending
lower
What is the size of your annual services marketing budget as a percentage of services revenue? % of Services Revenue Spent on Marketing
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014
1.5
1.3
1.5
0.8
1.4
1.2 1.2
1.0 1.0
2006 2007 2008 2009 2010 2011 2012 2013 2014(est)
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ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
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Marketing Budget Trends
In response to changing buyer behavior and economic pressures,
marketers are shifting their spending in 2014 to reflect new priorities
Decreasing spending • Sponsorships
• Public trade shows, events, conferences
• Advertising (traditional)
• Direct marketing (email/mail/telemarketing)
• Content development
• Sales (channel) enablement and support
• Brand and communications
• Digital marketing
• Private events, seminars, and conferences
• Marketing technology
• Marketing performance management
Increasing spending
Source: ITSMA, 2014 Services Marketing Budget Allocations and Trends
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ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
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The digital marketing budget composition is shifting with
the old mainstays—email and webinars—declining Digital Marketing Budget Trends
Decreasing spending • Email, email newsletters
• Client extranets or microsites
• Virtual tradeshows, conferences, and events
• Webinars
• Podcasts
• Online video
• Blogs
• Search engine optimization (SEO)
• Public online communities
Increasing spending
Source: ITSMA, 2014 Services Marketing Budget Allocations and Trends
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ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
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Content development, leadership, and
data/analytical skills are in highest demand 53
51
36
22
22
22
20
18
11
11
11
9
4
4
4
Writing/storytelling/editing/publishing
Leadership
Data and analytics
Critical thinking
Business acumen
Strategic planning
Vertical market/industry expertise
Influence and negotiation
Technology
Project management
Social media
Design/creativity
Sales/business development
Primary research
OtherNote: Up to three responses allowed. Source: ITSMA, 2014 Services Marketing Budget Allocations and Trends
Which of the following skills do you believe are essential to your marketing organization’s future success? % of Respondents (N=45)
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Five mandates for marketers in 2014
1. Measure and communicate metrics that matter
2. Become a data and technology frontrunner
3. Improve relevance and personalization
4. Enable thought leadership selling
5. Develop a proactive and adaptive marketing culture
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ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
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Study Participants
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ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
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In Services Revenue
7% 7% 11% 11%
33% 31%
Lessthan
$100M
$100– 249M
$250– 499M
$500– 999M
$1–5B Greaterthan$5B
Study Methodology From December 2013 through January 2014,
ITSMA used a web-based survey to gather data
from its members and select non-members about
services marketing budgets, services growth, and
top marketing priorities. ITSMA received 45
responses from 44 unique companies.
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends
Industry Subsector
Which of these categories best describes your industry subsector? % of Respondents (N=45)
40%
22%
16%
13%
9% Professional services firm (consulting, outsourcing, and systems integration)
Computer systems and solutions provider
Software solutions provider
Network systems and
solutions provider
Other
How large is your services business? % of Respondents (N=45)
Organization Size
Type of Company
60%
40% We sell both
products and
services
We primarily
sell services
Which of the following best describes your company? % of Respondents (N=45)
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What was/will be the percentage growth rate of your company or division revenue? % of Respondents (N=35)
ITSMA analyzed the survey data in four ways:
The data set as a whole
Company type: primarily services or product and services
Company size: less than $1B or $1B or more in annual services revenue
Revenue growth rate: less than 10% or 10% or more
Geographic location: North America, Europe, or Asia
Geographic Location
69%
18%
13% North America
Asia
In which geography are you based? % of Respondents (N=45)
Europe
Services Revenue Growth Rate
37%
63% Lower Growth (<10%)
Higher Growth
(>=10%)
Note: Includes only those companies that provided services revenue growth rates. Higher Growth = annual services revenue growth rate >=10%; Lower Growth = annual service revenue growth rate <10%
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends
Respondents’ Perspective
From which perspective will you be answering this survey? % of Respondents (N=45)
53%
47%
Entire company
A specific business unit
or division
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ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
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Table of Contents for 2014 Services Marketing Budget Allocations and Trends
For More Information Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Email: [email protected] Phone: +1-781-862-8500, Ext. 112
Slide
Survey Highlights 3
Survey Methodology and Demographics 26
Size of the Marketing Budget 36
Services Revenue 42
Marketing Staffing 45
Agency Relationships 54
Services Marketing Budget Allocation 59
The Marketing Mix 67
Marketing Operations 73
Account Based Marketing 76
Marketing Priorities 79
Marketing Organization Perception and Scope 82
Crosstabs 87
By Size of Company 87
By Type of Company 130
Select Crosstabs by Growth 171
Select Crosstabs by Geographic Location 185
Appendix: Definitions Used in This Report 193
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