B2B Software Content Marketing: 2013 Benchmarks, Budgets and Trends
ITSMA Services Marketing Budgets And Benchmarks 2008
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Transcript of ITSMA Services Marketing Budgets And Benchmarks 2008
Abbreviated Summary | B018AS
Services Marketing Budgets and Benchmarks2008 Budget Allocations and TrendsABBREVIATED SUMMARY
Data from ITSMA Key Metrics Survey
May 2008
Julie Schwartz
Senior Vice President
Thought Leadership and Research
ITSMA
Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 2Services Marketing Budgets and Benchmarks
Introduction
In this report, ITSMA shares the results of 46 responses from 44
unique companies that provided data on and insights into:
Services marketing budget size, allocations, and growth rates
Marcom budget allocation
Services revenue and profitability
Services marketing staffing and operations
Solutions marketing
Gross margin trends
Top services marketing initiatives and priorities
Note: This abbreviated summary highlights some of the significant findings from
ITSMA’s IT Professional Services and Solutions, 2008 Brand Tracking Study.
A more in-depth discussion of the study findings can be found in the full report.
Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 3Services Marketing Budgets and Benchmarks
Marketers are Optimistic Amid a Slowing Economy
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008
2008 Growth Forecasts Are Optimistic
1114 15
21 19 1818
26
38
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
(est.)
Projected Growth in Services Revenue
-2
Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 4Services Marketing Budgets and Benchmarks
Heading into 2008, marketers are predicting both marketing budget and staff increases
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008
What changes do you anticipate
in your services marketing
budget in 2008?
% of Respondents (N=46)Decrease (15%)
Increase (61%)
Amount of
increase: 18.9%
(N=28)
Stay the same
(24%)
Amount of decrease: 9.9%
(N=8)
What changes do you
anticipate in your services
marketing staff in 2008?
% of Respondents (N=25)
Decrease (12%)
Increase (40%)
Amount of
increase: 6.4%
(N=10)
Stay the same (48%)
Amount of decrease:
1.7% (N=3)
Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 5Services Marketing Budgets and Benchmarks
ITSMA data shows a steady trend toward allocating more marketing budget for programs, rather than personnel
What percentage of the services marketing budget was personnel costs (direct
employees and benefits) vs. marketing program expenses?
Mean % of Services Marketing Budget
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2005, 2006, 2007, 2008
51 47 44 43
49 53 56 57
2005 (N=22) 2006 (N=44) 2007 (N=44) 2008 (N=44)
Nonpersonnel
Personnel
Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 6Services Marketing Budgets and Benchmarks
There are two drivers reducing marketing personnel expense
Increasing prominence of Indian services providers with lower
personnel costs
Growing penchant for outsourcing marketing
4915
5185
NA/EMEA
Companies
(N=36)
Indian
Companies
(N=8)
Nonpersonnel
Personnel
In FY2008, do you expect outsourcing
of marketing initiatives and programs
to increase, decrease, or stay the same
when compared to FY2007?
% of Respondents (N=43)
Increase
(51%)
Stay the
same
(44%)
Decrease (5%)
What percentage of the services
marketing budget was personnel costs
(direct employees and benefits) vs.
marketing program expenses?
2008 Mean % of Services Marketing
BudgetNote: Differences by region are statistically significant.
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008
Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 7Services Marketing Budgets and Benchmarks
The biggest news this year is that 67% of respondents plan to increase their spending on sales enablement activitiesWhat are your spending plans in 2008 for the following budget categories?
% of Respondents (N=27)
Sales (channel) enablement and support
Strategy and market planning
Offering management
Marcom
Marketing operations
Market intelligence/market research
Business partners/alliances
Customer satisfaction/relationship
management and monitoring
Other 11
26
31
37
44
48
48
52
67
41
11
19
11
11
7
4
19
15
48
63
50
52
44
44
48
30
19
Increase Decrease Stay the Same
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008
Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 8Services Marketing Budgets and Benchmarks
The marcom emphasis is on highly targeted campaigns using face-to-face events, digital media, and thought leadership
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008
OtherSponsorships of Sports/Cultural Events
Public/Press/Media/Community Relations
Advertising
Industry Analyst Relations/Events
Thought Leadership Development and Dissemination
Direct Marketing/Database Marketing
Public Trade Shows
Private Events, Seminars, and Conferences
Interactive/Online/Digital Marketing
Collateral (brochures, datasheets, etc.)
Marcom Budget Allocation FY2008 Mean % (N=21)
Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 9Services Marketing Budgets and Benchmarks
Services marketers are shifting more of the marcom budget online
Online
(29%)
Offline
(71%)
Approximately what percentage of your services marcom budget is online vs. offline?Mean % of Marcom Budget
2007 (N=25)
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2007, 2008
2008 (N=23)
Offline
(66%)
Online
(34%)
Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 10Services Marketing Budgets and Benchmarks
Search engine marketing is poised for growth, however, the most effective marketers are also expanding their use of new social media
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008
Email, electronic newsletters
Wikis
Corporate Website
Virtual worlds (e.g., Second Life,
Universe, Forterra, There.com)
Extranets or Microsites
Online communities
Podcasts
Intranets/internal collaboration
Webinars
Blogs
Search engine marketing/advertising70%
% of Respondents Increasing Investment
(N=23)
50-60%
<=30%
Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 11Services Marketing Budgets and Benchmarks
Account-Based Marketing continues to gain momentum
% Spent on
Account-Based
Marketing
FY2006 (N=28)
% Spent on
Account-Based
Marketing
FY2007 (N=18)
7.6% 13.7%
Approximately what percentage of your services marketing budget is
dedicated to Account-Based Marketing?
% To Be Spent on
Account-Based
Marketing
FY2008 (est.) (N=19)
20.1%
Note: Only includes companies that have implemented Account-Based Marketing programs.
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2006, 2007, 2008
Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 12Services Marketing Budgets and Benchmarks
Marketing shakes things up
Rank
2008 2007
1 1 Differentiating the company or offerings
2 3 Enabling the sales force
3 7 Generating demand
4 8 Improving customer satisfaction and loyalty
5 — Developing thought leadership
6 — Refining value propositions
7 16 Increasing use of digital tools and online marketing channels
8 6 Leveraging Account-Based Marketing
9 9 Developing and launching new offerings
10 10 Increasing focused marketing programs for vertical/industry markets
Note: Top priorities that did not make the list in 2008 but were in the Top 10 of 2007 include developing and refining the
marketing strategy (#2 in 2007), deepening customer insight (#4), and enhancing the company's reputation (#5).
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2007, 2008
Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 13Services Marketing Budgets and Benchmarks
ContactJulie SchwartzSenior Vice President
Thought Leadership and Research
ITSMA
+1-781-862-8500, Ext. 112