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HubSpots All-in-OneMarketing SoftwareGet Found: Help prospects find you online
Convert: Nurture your leads and drive conversionsAnalyze: Measure and improve your marketing.More: See marketplace for apps and integrations
LeadGeneration
Ublogging &
social media
qEmail &
Automation
M Searchoptimization
sMarketinganalytics
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YLeadmanag ementgRequest A Demo Video Overview4 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!
COntentsthe state of marketing costs & budgets /8inbound channels convert leads into customers /21Whats important to marketers? /29Conclusion & additional resources /365 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!
Five Key TakeawaysThis report is based on a January 2012 survey of 972 professionals familiar withtheir businessmarketing strategy. The key takeaways are:Inbound Marketing Brings Low-Cost LeadsInbound marketing channels are maintaining their low-cost
advantage. Inbound marketing-dominated organizationsexperience a cost per lead 61% lower than outboundmarketing-dominated organizations.More Spending on Inbound ChannelsThe distribution of marketing budgets continues to shift toinbound channels. The difference between inbound andoutbound marketing expenditures grew by 50% from 2011
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to 2012.Social media Growth2012 saw growth in social media use across the spectrum.62% of companies said that social media had becomemore important as a source of leads in the past six months.
12
36 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!The Rise of Google+Google+ has started to affect social media marketing. Withinsix months of its launch, over 40% of marketers consider ituseful, important or critical. Itll be interesting to see
how Google+ affects marketers in the future.Increasing Value of BloggingBusinesses are increasingly aware their blog is highlyvaluable. 81% of businesses rated their company blogs asuseful, important or critical. An impressive 25% ratedtheir company blog as critical to their business.
4
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5 p7 the 2012 state of inbound marketingwww.Hubspot.comShare This Ebook!Overview of Inbound MarketingThis report is designed to help businesses and marketers understandthe current usage and results of inbound marketing. Inboundmarketing is a set of marketing strategies and techniques focused onpulling relevant prospects and customers towards a business and itsproducts. Inbound marketing is becoming widely accepted because itcomplements the way buyers make purchasing decisions todaytheyare using the Internet to learn about the products and services thatbest meet their needs.Inbound marketers offer their audiences useful information and tools to attractpeople to theirsite, while also interacting and developing relationships with these potentialcustomers. Inboundmarketing tools include blogging, content publishing, search engine optimization
and socialmedia.Inbound marketing contrasts with traditional outbound marketing,where businesses push their messages at consumers. Withtechniques that include direct mail, telemarketing and tradeshows, outbound marketing has become less effective over timeas buyers have behaviorally and technologically (e.g., DVR, spamfilters, do-not-call lists) tuned these interruptive campaigns out.8 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!CHAPTER 1
the state of
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marketingcosts &
budgets9 the 2012 state of inbound marketingwww.Hubspot.comShare This Ebook!Inbound consistently delivers acost per lead dramatically lower
than outbound. Survey participants were asked to report the distribution oftheir spending and their average cost per lead. Respondentswho spend more than 50% of their lead generation budget oninbound marketing channels report a significantly lower cost
per sales lead than those who spend 50% or more of theirbudgets on outbound marketing channels.
The average
whilecost/lead
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for outbound-dominatedbusinesses was
$346,on average. cost
inbound businesses $135reported their leads10 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!Inbound marketing-dominated organizations experience a 61% lower cost perlead thanoutbound marketing dominated organizations.This finding is remarkably consistent from year to year. The previous studiesshowed strikingly
similar results: the 2010 survey and 2011 survey showed that inbound marketing-centricorganizations experienced a 60% and 62% lower cost per lead respectively.
Average Cost Per LeadInbound vs. Outbound61% Lower Cost per LeadOutbound MarketingDominatedInbound MarketingDominated2010 2011 2012The 2012 State of Inbound Marketing
www.HubSpot.com/SOIM11 the 2012 state of inbound marketingwww.Hubspot.com
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52%
45%
38%
34% 33%28%
19%
0%
20%
40%
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60%Blogs Social Media SEO (OrganicSearch)Direct Mail Telemarketing PPC (PaidSearch)
Trade Shows
% of Respondents
Below Average Cost Per Lead,% Respondents by Lead Channel
The Three Inbound MarketingChannels
Cost Less Than Any OutboundChannelWhen asked to classify each lead generation category as below average cost,near averagecost, or above average cost, businesses consistently ranked inboundmarketing channels ashaving costs lower than outbound channels.Blogs, social media and organic search maintained the top slots as least
expensive.Below Average Cost Per Lead,% Respondents by Lead ChannelThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIM12 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!
46%
26% 26% 25%
14% 14%
10%
0%
20%
40%
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Trade Shows Direct Mail Telemarketing PPC (PaidSearch)SEO (OrganicSearch)Social Media Blogs
% of RespondentsAbove Average Cost Per Lead,% Respondents by Lead ChannelBlogs had the highest instance of being reported as below average cost. 52%of companieswho blog indicated leads from this channel were below average cost. Tradeshows, direct mail,and telemarketing were most frequently ranked as more expensive.
52% indicated leads
from this channel of companies who blogbelowav erag e.cost
Above Average Cost Per Lead,% Respondents by Lead ChannelThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIM13 the 2012 state of inbound marketing
www.Hubspot.comShare This Ebook!No change
42%
Lower
11%
Higher
47%
Many Businesses Are IncreasingTheirInbound Marketing BudgetsThe survey asked, How does your 2012 Inbound Marketing budgetcompare to your 2011 budget? and If your 2012 inbound marketing
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budget changed from your 2011 budget, what drove that decision?The data shows that a large percentage of businesses are consistentlyincreasing inboundmarketing budgets.89% are either maintaining
or increasing their inboundmarketing budgets. Amongthe 47% of respondents withincreased inbound marketingbudgets, the most commonlycited reason was past successwith inbound marketing.
?47% their inbound
marketing of those surveyed{are increasing budgets.How does your inbound marketing budgetfor the current year compare to yourbudget for the previous year?The 2012 State of Inbound Marketing
www.HubSpot.com/SOIM14 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!The majority of businessesattributed their decreasingbudgets to the economic
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conditions (62%) or a changein management (21%).
Among the 47% ofrespondents with increasedinbound marketing budgets,
the most commonly citedreason was past successwith inbound marketing.
Why businesses are increasinginbound budgets?Why businesses are decreasinginbound budgets?The 2012 State of Inbound Marketing
www.HubSpot.com/SOIMThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIM15 the 2012 state of inbound marketingwww.Hubspot.com
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Distribution of Budgets Continuesto
Shift to Inbound ChannelsWe asked survey respondents what percentage of their lead generationbudgets would be spent on each of the following nine marketing channels:InboundChannelsblogssocialmediaSEO(organicsearch)outboundChannelstradeshowsdirect
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mailtelemarketingNotPPC classified
(paid search)emailmarketing16 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!The results show that:The gap between inbound and outbound grew by 50% and continues to widen.Inboundmarketing had an 8% greater share of the lead generation budget in 2011 in
comparison to a12% greater share in 2012.
The average budget dedicated to
portion of 35%in 2012.
inboundincreased from32% in 2011 to
Lead Generation Budget Average Distribution,2011 vs 2012
OutboundInbound2011 2012The 2012 State of Inbound Marketing
www.HubSpot.com/SOIM17 the 2012 state of inbound marketingwww.Hubspot.com
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A more granular view of the data shows that:Marketers are allocating more of their lead generation budgets to socialmedia and company blogs.The average budget spent on company blogs and social media increased from9% in 2009 to 21% in 2012. Much of this growth can be attributed to socialmedia. In 2010, blogs were 7% and social media was 8% of total marketingbudget; in 2012, they were 8% and 13%, accordingly.
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Inbound Lead Generation Budget Average Distribution,2009 - 2012
SEOBlogs &Social Media2009 2010 2011 2012The 2012 State of Inbound Marketing
www.HubSpot.com/SOIM18 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!The outbound lead generation budget, on the other hand, has been steadilydecreasing over the last four years.By taking a more granular look at the different outbound channels, we
notice that the largest drop has been in relation to telemarketing. In 2009,telemarketing was 10% of the total marketing budget on average. In 2012, ithalf of what it used to be.
Outbound Lead Generation Budget Average Distribution,2009 - 2012TelemarketingTrade ShowsDirect Mail2009 2010 2011 2012
The 2012 State of Inbound Marketingwww.HubSpot.com/SOIM19 the 2012 state of inbound marketingwww.Hubspot.com
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Small Companies Continue toSpend
More of Their Budgets on InboundMarketingIn a continuation of a trend identified in previous reports, small businesses areattempting tolevel the playing field by focusing on lower-cost inbound lead generationtechniques.
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while large business areallocating 33% of their budgetto outbound channels.
small
Businesses larg eBusinessesIn 2012, small businesses (1 to 5employees) plan to spend 43% of theirlead generation budgets on inboundmarketing.
In comparison, large businesses (500or more employees) only plan to spend21% of their lead generation budgets oninbound marketing.Small business are only giving 14% oftheir budget to outbound,20 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!18%14%11% 11%5%
7%5%4%7%11%3%10%17%11%9%7%
0%
10%
20%
Social Media SEO (OrganicSearch)
Blogs EmailMarketingTrade Shows PPC (PaidSearch)Direct Mail Telemarketing1 to 5 EmployeesOver 500 Employees
Small businesses plan to spend dramatically more of their budgets on socialmedia and blogs.
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Large businesses plan to spend more of their budgets on outbound methods,including trade shows, direct mail and telemarketing.
Average Distribution of Lead Generation Budgets,Small vs. Larg e BusinessesThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIMAverage % Budget21 the 2012 state of inbound marketingwww.Hubspot.com
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CHAPTER 2
inboundchannels
convertleads into
customers22 the 2012 state of inbound marketingwww.Hubspot.com
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Inbound Channels ProduceHigher Quality LeadsThe survey results clearly show that inbound leads cost less; but are they betterquality? Howwell do inbound channels produce customers in comparison to outbound?We looked at sample of over 150 businesses using closed-loop marketinganalytics, and foundthe median lead-to-close rate of each business by the lead source. The datashowed that:.SEO leads have a 14.6% close rate, while outbound sourced leads have a1.7% close rate.SEO leads are eight times more likely to close into customers than outboundleads.Leads from inbound links (referrals) are five times more likely to becomecustomers than outbound leads.The 2012 State of Inbound Marketing
www.HubSpot.com/SOIM
Lead-to-Customer Close % by Channel15% 15%
9%
7%
4%
2%
0%
4%
8%
12%
16%
SEO Direct Traffic Referrals Paid Search Social Media Outbound
Lead to Customer Close %(Median)
Lead-to-Customer Close % by Channel23 the 2012 state of inbound marketingwww.Hubspot.com
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Social Media and BlogsGenerate Real CustomersThe use of social media and company blogs as marketing tools not only getsyour company
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better brand exposure, but it also generates leads that result in real customeracquisition.LinkedIn, Facebook, and Twitter are becoming more usefulways to acquire customers with significant growth in 2012.Similarly, company blogs continue to be strong performers
as 57% of companies have acquired a customer from thatchannel.
pCustomer Acquisition by ChannelCompany Blog LinkedIn Facebook Twitter% of Channel UsersWho Acquired ACustomer Through ASpecific Channel
20112012The 2012 State of Inbound Marketing
www.HubSpot.com/SOIM24 the 2012 state of inbound marketingwww.Hubspot.com
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Frequency of Blog Posts DirectlyCorrelates to Customer AcquisitionIf your blog is underutilized, you are leaving customers on the table. The 2012survey shows adirect correlation between blog post frequency and new customers acquired.Despite the evidence showingthat increased bloggingcorrelates with increasedcustomer acquisition, it hasremained relatively steady
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between 2011 and 2012. In2012, 70% of respondentsindicated they blog at leastweekly.
Blog Post Frequency vs. Customer AcquisitionFrequency of Blog Posts2011 vs 2012% of Blog UsersWho Acquired
A CustomerThroughTheir BlogThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIMThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIM25 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!While both B2C and B2B companies were able to acquire customers through thechannelsbelow, there was a strong disparity in effectiveness depending on the type ofbusiness. Thebest platform for B2B companies was LinkedIn with 65% of respondentsacquiring a customerthrough that channel, while 77% of B2C companies said that they had acquired acustomerthrough Facebook.
facebook is more effective for b2c.linkedin is more effective for b2b.Customer Acquisition by ChannelB2B vs. B2C% of ChannelUsers Who
Acquired A
CustomerThrough ThatChannelThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIM26 the 2012 state of inbound marketingwww.Hubspot.com
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Channel Effectiveness by IndustryA deeper dive into the customer acquisition results shows how the effectivenessof blogs, Twitter,Facebook and LinkedIn varies by industry.
Customer Acquisition by Channel by Industry% of ChannelUsers Who
Acquired ACustomerThrough ThatChannel
LinkedInTwitterFacebookBlogThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIM27 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!The major takeaways from this data include:
All of those industries had over 50%of respondents indicating customeracquisition through their blog.
Technology,communications& media, retail &wholesale, education,and professionalservices & consulting,found blogging washighly effective.The retail industry experiencedthe most success through Twitter
and Facebook.50% of respondentsfrom every industry,except retail andwholesale, indicatedcustomer acquisitionthrough LinkedIn.
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$28 the 2012 state of inbound marketing
www.Hubspot.comShare This Ebook!
Channel Effectiveness TrendsA closer look at customer acquisition trends in technology and retail & wholesaleshow how theinfluence of social media has grown over the past year.For software & biotech, customer acquisition with Facebook has grown by half..Retail & wholesale saw customer acquisition growth across every channelfrom 2011 to 2012. Company blogs were especially effective with 33% yearto-
year growth.Technology (Software/Biotech)Customer Acquisition Trends for 2011 - 2012
Retail and WholesaleCustomer Acquisition Trends for 2011 - 2012% of ChannelUsers Who
Acquired ACustomer ThroughThat Channel2011201220112012% of ChannelUsers Who
Acquired ACustomer ThroughThat ChannelLinkedIn Twitter Facebook BlogThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIMLinkedIn Twitter Facebook BlogThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIM29 the 2012 state of inbound marketingwww.Hubspot.com
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CHAPTER 3
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Whatsimportant to
marketers?30 the 2012 state of inbound marketingwww.Hubspot.comShare This Ebook!62%
52%
36%
20%
14%
10% 9%
0%
20%
40%
60%
Social Media SEO (Organic
Search)
Blogs PPC (Paid
Search)
Trade Shows Direct Mail Telemarketing
% of RespndentsWhich sources of leads have become important to you overthe last six months?
Inbound Marketing ChannelsContinue to Grow in Importance
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Not only are customer acquisition trends shifting toward inbound methods, butmarketers arealso becoming more aware of the advantages of inbound marketing.In the last six months social media, SEO, and blogs all were rated as moreimportant by over 30% of respondents.
.S ocial media is continuing a strong growth trend. 62% of respondents ratedit as more important which was consistent with the percentage in the 2011survey.
Which sources of leads have become MOREimportant to you over the last six months?The 2012 State of Inbound Marketing
www.HubSpot.com/SOIM31 the 2012 state of inbound marketingwww.Hubspot.com
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51%39% 36%
25%
12%
7% 7%
0%
20%
40%
60%
Direct Mail Trade Shows Telemarketing PPC (Paid
Search)Blogs Social Media SEO (Organic
Search)
% of Respondents
Which sources of leads have become LESSimportant to you over the last six months?Direct mail, trade shows, and telemarketing are losing traction. They were judgedless importantby over 30% of respondents.
Direct mail, trade shows, and
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telemarketing are losing
traction.Which sources of leads have become LESSimportant to you over the last six months?The 2012 State of Inbound Marketing
www.HubSpot.com/SOIM32 the 2012 state of inbound marketingwww.Hubspot.com
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Blogs Remain the Most
Important Media ChannelRespondents were also asked to rank the services that they use as critical,important, oruseful. An impressive 25% of users rated their company blog as critical totheir business.81% of users rated company blogs as useful or better.
25%of userscritical useful
22%
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of users{bloggingimportant
34%
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of users33 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!LinkedIn, YouTube, Facebook and Twitter were considered useful or better
by over 60%.In contrast StumbleUpon, Yelp, and Digg all had user bases where over 70%considered the channel only somewhat useful or not useful.
How important are these services to your business?The 2012 State of Inbound Marketing
www.HubSpot.com/SOIM% of UsersDiggCompany Blog
LinkedInFacebookYouTubeGoogle+TwitterStumbleUponYelp34 the 2012 state of inbound marketingwww.Hubspot.com
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Businesses Increasingly ValueBlogs,YouTube, Facebook and TwitterThe results of both the 2009 and 2012 studies reveal that certain channels aregainingimportance over time. The graph below shows the percentage of users who ratedthe channel as
either critical or important in 2009 and 2012. The results of this comparisonare displayedbelow:
% Respondents Indicating Channel Was Critical or Important2009 vs 201220092012
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The 2012 State of Inbound Marketing
www.HubSpot.com/SOIM52%
36%
26% 24%
21%
14%
25%
21%
60%
45%
39%
42%
36%
14% 13%
8%
0%
20%40%
60%Company Blog LinkedIn YouTube Facebook Twitter Flickr StumbleUpon Digg
% of Respndents
2009
2012*LinkedIn was not collected in 2009. Historical value provided is from the 2010 study.
35 the 2012 state of inbound marketingwww.Hubspot.com
Share This Ebook!Company blogs are increasingly valued. The
blog is the channel most frequently reportedas critical or important, both in 2009 and2012.YouTube, Facebook, and Twitter areincreasingly important. Facebook has shownthe biggest gain at 18%. It is followed by
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Twitter, with a gain of 15%.+
-StumbleUpon and Digg, on the otherhand, have reduced in importance.36 the 2012 state of inbound marketingwww.Hubspot.com
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Conclusion& additional
resources37 the 2012 state of inbound marketingwww.Hubspot.comShare This Ebook!Businesses are transformingtheir marketing efforts to focus
more on inbound programs. Traditional outbound marketing techniquesincluding direct mail, printadvertising andtelemarketingare becoming less effective. Buyers are not only finding ways totune
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these messages out, but more importantly, they now have the capability toevaluate theproducts and services they need on their own.
As a result, businesses are transforming their marketing efforts to focus more oninbound programs that allow customers to find them. The State of Inbound
Marketingreport shows that businesses that more aggressively practice this are capturingleadsmore effectively. Given the digital nature of inbound marketing, the marginal costpercustomer acquisition is typically close to zero, meaning that as buyers continuetoshift how they make purchases, the cost per lead for a given business willcontinue todecrease.
While it is clear that businesses are gravitating towards inbound marketing, somearemoving more aggressively than others. Those who move first are more likely toreap thetremendous business benefits of this new era of marketing.38 the 2012 state of inbound marketingwww.Hubspot.com
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become a betterInbound marketerLearn how you can make your marketing efforts moreinbound.Request a free inbound marketing assessment with one of
HubSpots experts.www.HubSpot.com/IMA39 the 2012 state of inbound marketingwww.Hubspot.com
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Respondent ProfilesThe State of Inbound Marketing report is based onsurveys conducted each year from 2009 to 2012.The 2012 results are based on responses from 972professionals who were familiar with their businessmarketing strategy. These professionals includedmarketers, business owners, entrepreneurs, andexecutives at companies of various sizes.72% of these professionals worked in business-to-business companies and therange ofindustries varied greatly. Industries represented in the sample included retail,technology,professional services, and communications & media among others.
U40 the 2012 state of inbound marketingwww.Hubspot.com
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How many full-time employeesdoes your company have?My business primarily sells to other
businesses (B2B) or consumers (B2C)?What best describes your industry? What best describes your role?The 2012 State of Inbound Marketing
www.HubSpot.com/SOIMThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIMThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIMThe 2012 State of Inbound Marketing
www.HubSpot.com/SOIM41 the 2012 state of inbound marketingwww.Hubspot.com
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Sample Questions AskedThe survey was designed to collect data on the marketing practices and resultsfor a wide rangeof businesses. This is the fourth consecutive year in which this survey has beenconducted.Respondents were asked a series of questions related to their businessmarketing programsthe results they have seen. Most of the questions fell within three categories:Marketing budget and sources of leads, including:What percent of your sales leads comefrom each of your lead channels?What percent of your lead generationbudget do you spend on each of yourlead channels?.E stimate the cost per lead for each of your lead channels.
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?42 the 2012 state of inbound marketingwww.Hubspot.com
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Trends in importance and usefulness ofmarketing channels and leads, including:Which sources of leads have becomeMORE important to you over last sixmonths?Which sources of leads have becomeLESS important to you over last sixmonths?How useful are social media sources to your business?.F ocus on blogs and social media:
Do you publish