ABBREVIATED SUMMARY 2020 Services Marketing · 2020. 2. 5. · 2020 Services Marketing Budget...

2020 Services Marketing Budget Allocations and TrendsJulie Schwartz, Senior Vice President, Research and Thought Leadership, ITSMA

ABBREVIATED SUMMARY

This abbreviated summary highlights some of the most significant findings of ITSMA’s 2020 Services Marketing Budget Allocations and Trends Study. A more in-depth analysis can be found in the full report:http://www.itsma.com/research/2020-services-marketing-budget-allocations-trends/.

https://www.itsma.com/research/2019-services-marketing-budget-allocations-trends/

http://www.itsma.com/research/2020-services-marketing-budget-allocations-trends/

22020 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2020 | B031A © 2020 ITSMA. All rights reserved. www.itsma.com

Introduction

25 Years of Benchmarking Marketing Performance, Budgets, and Trends

Since 1995, ITSMA has been conducting annual benchmarking studies on services marketing budgets, performance, practices, and trends. Our objective then, and now, is to help leading services and solutions companies understand how they compare with like organizations in a variety of critical marketing management areas.

ITSMA’s 2020 survey of the most important trends in marketing for services and solutions highlights the critical contributions that marketers can make to growth and profitability. The report reviews current projections for marketing budget and staff growth and allocation, outlines the priorities of marketing executives from top technology and professional services companies, and explores such issues as:

• Building data-driven, insight-led organizations that inform business strategy and optimize marketing outcomes

• Designing and managing programs and experiences to strengthen executive-level relationships

• Repositioning the brand and driving awareness, interest, and credibility for new buyers, offerings, and markets

• Embedding account-based marketing (ABM) in the business to drive strategic growth

• Developing the next wave of marketing talent to accelerate marketing’s transformation

In 2020, B2B marketers that are data-driven and insight-led will take the lead in enabling strategic growth #ITSMA20

https://twitter.com/ITSMA_B2B

https://twitter.com/ITSMA_B2B

ITSMA’s 2020 State of the Marketing Profession | February 5, 2020 | OLB200205 © 2020 ITSMA. All rights reserved www.itsma.com #ITSMA20 3

Marketing is under pressure to drive growth

Marketers aspire to be more strategic

But the strategic value marketing provides is not always recognized


To be recognized as strategic growth drivers, marketers need to be more data-driven and insight-led

When it comes to data and analytics, marketers have three equally important objectives

Prove marketing’s impact on business results

1Optimize marketing’s performance

2Provide input for business decisions and strategy

3


The good news: building a data-driven marketing culture is now on the priority list two years running!

Source: ITSMA, Services Marketing Budget Allocations and Trends, 2013, 2014, 2015, 2016, 2017, 2018, 2019, and 2020

2020 2019 2018 2017 2016 2015 2014 2013 Marketing Priorities

1 2 1 2 2 1 5 3 Lead generation management, and nurturing

2 1 1 4 4 5 3 4 Account-based marketing (ABM)

3 4 3 3 4 7 3 8 Marketing performance management

4 5 11 13 12 10 13 12 Data-driven marketing culture

5 2 2 1 1 3 2 5 Brand/reputation management/ differentiation

5 5 2 7 4 7 2 2 Sales and marketing alignment

6 3 4 8 6 5 4 10 Integrating marketing programs and messaging

6 8 8 12 3 4 13 NA Product/portfolio marketing

6 6 8 6 6 2 1 1 Thought leadership development and dissemination

7 2 1 5 6 8 5 9 Digital and social media marketing

Despite being a top priority, marketers are still at the beginning of their data-driven, insight-led journey

% of respondents (N=28)Source: ITSMA, 2020 Services Marketing Budget Allocations and Trends

Our marketing organization is:

Data-driven

Insight-led

Outcome-focused

4% 11% 25%


In 2020, marketing budgets and staffs are growing, albeit slowly

2020 B2B services marketing budget growth:

2.4%

46%

18%

36%

What changes do you anticipate in your marketing budget in FY2020?


What changes do you anticipate in your marketing staff in FY2020?

2020 B2B services marketing staff growth:

3.8%

Increase

Decrease

Stay the same

46%

14%

39%


Engagement & advocacy

Demand generation & lead management

Content & communications

Portfolio management

Marketing operations

Strategy & planning

Partners & alliances

Sales & field enablement

56

50

43

37

29

27

20

12

-4

-15

-7

-7

-4

-12

-5

-8

Marketers are investing in the elements that underpin strategic growth

The shift to digital marketing continues

How do you anticipate your digital & offline marketingspend changing in FY2020? % of respondents (N=27)

Digital marketing

Offline marketing

52

19

-7

-35

Increasing spend

Decreasing spend

Source: ITSMA, 2020 Services Marketing Budget Allocations and Trends

How was/will your digital & offline marketing spend be allocated?Mean % (N=24)

45%55% Offline marketing

FY2019 FY2020 (est.)

Digital marketing

52%48%

What are your spending plans in FY2020 for the following budget categories? % of respondents (N~27)

Increasing spend

Decreasing spend

ITSMA’s 2020 State of the Marketing Profession | February 5, 2020 | OLB200205 © 2020 ITSMA. All rights reserved www.itsma.com #ITSMA20 8

Here’s where to focus in 2020

• Build data-driven, insight-led organizations that inform business strategy and optimize marketing outcomes

• Design and manage programs and experiences to strengthen executive-level relationships for growth and innovation

• Reposition the brand and drive awareness, interest, and credibility for new buyers, offerings, and markets

• Embed ABM in the business to drive strategic growth

• Attract, develop, and retain the next wave of marketing talent to accelerate marketing’s transformation


Build data-driven, insight-led organizations that inform business strategy and optimize market outcomesFew leaders outside of marketing rely on marketing data to make decisions

Source: ITSMA Measuring What Matters: Metrics Survey, June 2019

To what extent are other functions or organizations using the data and metrics developed by marketing?

% of respondents who indicated that executive in the company “relies on marketing data to make decisions” (N~68)

13%6%

16%22%

7%

CEO CFO/Finance Sales BU orDivision leaders

Servicedelivery/

operations


Design and manage programs and experiences to strengthen executive-level relationships for growth and innovation

% of respondents (N~23)Source: ITSMA, 2020 Services Marketing Budget Allocations and Trends

Increasing spend in 2020:

Executive Engagement Programs 52%

Collaborative Innovation Programs 37%Customer Experience Management 33%

Thought Leadership 43%


Building the brand

Growing pipeline and revenue among new customers

Broadening and deepening customer relationships and advocacy

Retaining and expanding business with existing customers

Driving business strategy for your company/division/BU

Accelerating the sales cycle

Where does marketing have the greatest impact on the business?% of respondents (N=28)

36

21

14

14

7

7

Source: ITSMA, 2020 Services Marketing Budget Allocations and Trends

Reposition the brand and drive awareness, interest, and credibility for new buyers, offerings, and markets

“One of our top challenges is brand/reputation transformation to reflect our ‘new’ company, particularly in new markets and industries.” VP Marketing Operations, global software company

https://www.youtube.com/watch?v=p-3QYZyug7w


Embed ABM in the business to drive strategic growth

Source: ITSMA and ABM Leadership Alliance, 2019 ABM Benchmark Study, October 2019

How does ABM return on investment (ROI) compare to traditional marketing initiatives?

% of respondents

Most Experienced (Embedded) (N=14)All Others(N=59)

ITSMA’s ABM Adoption Model

EXPLORINGPlanning your ABM strategy

EXPERIMENTINGPiloting, measuring, & refining your approach

EXPANDINGIncreasing account

coverage

EMBEDDEDDriving strategic

growth

Significantly higher

Somewhat higher

About the same

71

21

7

25

41

24


Attract, develop, and retain the next wave of marketing talent to accelerate marketing’s transformation

Five most important marketing capabilities for 2020:


1. Account-based marketing2. Digital marketing3. Marketing metrics/performance

analysis4. Thought leadership and content5. Demand generation (tie)5. Marketing technology (tie)

75%find it challenging to attract the talent they need

https://hbr.org/2018/10/how-we-teach-digital-skills-at-pwc

https://hbr.org/2018/10/how-we-teach-digital-skills-at-pwc


1. In 2020, B2B marketers that are data-driven and insight-led will take the lead in enabling strategic growth #ITSMA20

2. When it comes to data and analytics, marketers have three goals: prove and improve marketing, and provide insight to fuel business strategy #ITSMA20

3. B2B services marketing budgets will grow 2.4% and staffs at 3.8% in 2020 per #ITSMA20 research

4. B2B marketing’s top 5 priorities in 2020: Lead Gen/Mgmt, ABM, Marketing Perf Management, Data-Driven Culture, and Brand Differentiation #ITSMA20 research

5. Top 2020 digital mktg spend increases are Conversational Mktg, Corp Website, Social Media, SEO, Ads/Paid Search #ITSMA20 research

6. Leading B2B marketers are investing in Data & Analytics, Exec Engagement, Brand Repositioning, Embedding ABM, and Next Gen Talent #ITSMA20 research

#ITSMA20

Tweetable takeaways

11 414

7

36

29

Less than$100M

in servicesrevenue

$100–249Min services

revenue


revenue


revenue

$1–5Bin services

revenue

Greater than$5B

in servicesrevenue

Methodology and demographics

Web-based surveyDecember 2019 through January 2020

28 participantsfrom 27 companies

Which of these categories best describes your industry subsector?

Source: ITSMA, 2020 Services Marketing Budget Allocations and Trends | % of respondents (N=28)

Company’ssales model

Respondents’perspective

57%43%

Sell services through a mix of direct sales and channel partners

Sell services primarily through a direct sales force

57%43%Entire

company A specific business unit or division

How large is your services business?

152020 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2020 B031A © 2020 ITSMA. All rights reserved. www.itsma.com

46%

18%

11%

11%

14% Professional services provider

Software solutions provider

Computer systems and solutions provider

Network and telecommunicationsservices provider

Other


Want to learn more?

For more information

Here’s what is included in the full study:

Julie SchwartzSenior Vice President Research and Thought [email protected] +1 781 862 8500, x112

The full report is available at no additional fee to ITSMA member companies that participated in the study. Non-member companies that participated in the study are eligible to receive an Executive Summary. For non-participating companies, this report is available for sale at member and non-member prices. http://www.itsma.com/research/2020-services-marketing-budget-allocations-trends/.

PageExecutive Summary 4Survey Methodology & Demographics 38Marketing Priorities & Challenges 45Marketing Organization, Perception, & Scope 52Size of the Marketing Budget 63Marketing Staffing 69Services Marketing Budget Allocation 73Content & Communications Budget Allocation 78Digital & Offline Marketing Budget Allocation 81Marketing Tactics 84Advertising/Paid Media Marketing Budget 87Event Marketing Budget 91Thought Leadership Spend 94Engagement & Advocacy Budget Allocation 97Account-Based Marketing Budget & Spending Plans 100Marketing Operations Budget Allocation 109Appendix: ITSMA Budget Taxonomy & Definitions Used in This Report 115

mailto:[email protected]?subject=ITSMA%202018%20Services%20Marketing%20Budget%20Allocations%20and%20Trends

https://www.itsma.com/research/2019-services-marketing-budget-allocations-trends/

http://www.itsma.com/research/2020-services-marketing-budget-allocations-trends/

http://www.itsma.com/research/2020-services-marketing-budget-allocations-trends

ABBREVIATED SUMMARY 2020 Services Marketing · 2020. 2. 5. · 2020 Services Marketing Budget...

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