ITSMA 2013 Budget Allocations and Trends Survey Abbreviated Summary

2013 Services Marketing Budget

Allocations and Trends

Julie Schwartz

Senior Vice President

Research and

Thought Leadership

ITSMA

Dianne Kim

Research Associate

ITSMA

Abbreviated Summary

Note: This Abbreviated Summary highlights some of the significant findings from

2013 Services Marketing Budget Allocations and Trends.

A more in-depth analysis can be found in the full report.

http://www.itsma.com/research/services-marketing-budgets-and-benchmarks-2013/

www.itsma.com | B024AS | 2

ITSMA Benchmarking Study | 2013 Budget Allocations and Trends

© 2013 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.

Abbreviated Summary

The 2013 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

relationship management

digital marketing

sales enablement

Account Based Marketing

services

b u d g e t allocations




Key trends highlighted in the report include:

Marketers are optimistic; nearly half of B2B services marketers plan to

increase their budgets in 2013

In response to changing buyer behavior,

marketers are shifting their spending in 2013 to reflect new

priorities

– Developing thought leadership content that drives business

– Enabling the sales force

– Building a more effective lead management/nurturing model

– Increasing use of Account Based Marketing




76% of marketers are increasing their

digital marketing budgets

Technology budgets are also on the

rise with lead management systems and social media topping the list

Advancing marketing skills is critical to staying ahead

– To that end, agencies have becomes essential partners




Nearly half of

B2B services

marketers plan

to increase

their budgets

in 2013

In FY2013, do you expect your marketing budget to increase, decrease, or stay the same when compared to FY2012? % of Respondents (N=42)

Average increase:

17.3%

Average decrease: 9.7%

Increase 45%

Stay the same 38%

Decrease 17%

1.5

0.8 0.8 1.0

1.5

0.9 0.8

1.0

FY2012 FY2013 (est.)

What was the size of your annual marketing budget as a percentage of revenue? Mean % of Revenue

EMEA (N=20)

Worldwide (N=32)

North America (N=23)

Asia/Pacific (N=17)

Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends




However, in response to changing buyer

behavior, marketers are shifting their

spending in 2013 to reflect new priorities


Marketing Mix Overall Marketing Budget

Budget is flowing into:

Digital marketing

Direct marketing

Private events, seminars, and conferences

Budget is flowing into:

Demand generation and lead management

Brand and communications

Content development

Sales (channel) enablement and support Budget is flowing away from:

Public trade shows

Sponsorships

Traditional advertising




Spending on Digital/Online/

Social Marketing

continues to grow

Budget is flowing into: Corporate website

Search engine optimization (SEO)

Public online communities

Email, email newsletters

Online video





50 48 45

42 38 37

33

25

% Currently Using (N=165)

Marketers are also increasing investment in

technology with lead management, social media,

and web analytics topping the list What are your spending plans in FY2013 for the following Marketing Technology/ Automation software, tools, and processes? % of Respondents Increasing Spending (N~30)

Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends, ITSMA/VEM Marketing Performance Management Survey, July 2012

NA

Lead nurturing and management

Social media monitoring/

measurement

Web analytics

and optimization

Content management/

delivery

Campaign management

Customer/ contact

management

Marketing performance management

Email marketing

38 35 16

54

75

19

54




Advancing marketing skills is critical

to staying ahead Which of the following skills do you believe are essential to your marketing organization’s future success? % of Respondents (N=42)

Note: Up to five responses allowed. Source: ITSMA, Budget and Trends Survey, 2013

48

41

41

41

36

33

31

26

26

26

21

Thought leadership development

Marketing automation/marketing technology

Client engagement/relationship program management

Leadership (e.g., leading teams, motivating, creating a vision)

Social media participation/management

Writing/editing (content creation)

Market intelligence/competitive intelligence

Strategic planning

Vertical market/industry expertise

Account Based Marketing (ABM)

Data management/mining/analytics




Agencies consume a substantial portion of

the marketing budget, providing more

execution rather than strategic work

What percentage of the marketing budget was used to purchase services from or through agencies? Mean % of Marketing Budget (N=39) 25%


How would you describe the work that agencies do for your marketing organization?

% of Respondents (N=40)

FY2012

30 45 20 5

Primarily execution

Mostly execution: approximately 75% execution

and 25% strategic

About a balance: 50% execution and

50% strategic

Mostly strategic: approximately 25% execution

and 75% strategic




B2B solution providers earn the lion’s share of

their business from existing accounts, making

client engagement programs essential

Advance client engagement

Follow-on Business % of Professional Services Revenue (N=17)

Follow-on Business

71%

New Business

29%

Revenue from New and Existing Clients % of Professional Services Revenue (N=23)

Existing Clients

86%

New Clients

14%





Account Based Marketing Programs

(aka Key Account Marketing) have been so

successful that marketers are doubling

their spending in 2013! Advance client engagement

Approximately what percentage of your marketing budget was/will be dedicated to Account Based Marketing? Mean % (N~24)

6.4%

FY2012

12.0%

FY2013 (est.)





Study Participants

http://www.alcatel-lucent.com/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3cjUDSUGYpvqRKGIG8Y4IkSB9b31fj_zcVP0A_YLc0IhyR0dFAJgg_-M!/delta/base64xml/L3dJdyEvd0ZNQUFzQUMvNElVRS82X0FfMkU2




We sell services primarily

through a direct sales force

60%

We sell services through a mix of direct sales and

channel partners 40%

Study

Methodology

From November 2012 through January

2013, 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 42

responses from 38 unique companies.

Countries Represented % of Respondents (N=42)

Sales Model % of Respondents (N=42)

North America

67%

Europe 17%

Asia 14%


South or Central America 2%

Industry

Subsector % of Respondents (N=42)

45%

19%

14%

10%

12% Other

Network systems and solution provider

Computer systems and solutions provider

Software solutions provider

Professional services firm (consulting,outsourcing, and systems integration)




7

2

17

12

29

33

Less than$100M

$100– 249M

$250– 499M

$500– 999M

$1–5B Greaterthan $5B

ITSMA analyzed the survey data in three ways:

The data set as a whole

Company type—primarily services or product and services

Company size—less than $1 billion or $1 billion or more in annual services revenue

Respondent Titles From which perspective will you be answering this survey? % of Respondents (N=42)


Organization Size How large is your services business? % of Respondents (N=42)

In Services Revenue

A specific business unit or

division 55%

Entire company

45%

We sell both products and

services 50%

We primarily sell services (10% or

less revenue from products)

50%

Type of Company % of Respondents (N=42)




Table of Contents for 2013 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 25

Size of the Marketing Budget 36

Services Revenue 42

Marketing Staffing 53

Agency Relationships 62

Services Marketing Budget Allocation 67

The Marketing Mix 75

Marketing Operations and Automation 81

Market and Competitive Intelligence 85

Relationship Management 90

Sales Enablement 93

Marketing Priorities 100

Crosstabs 104

By Size of Company 104

By Type of Company 168

Appendix: Definitions Used in This Report 232



mailto:[email protected]

