itsma services marketing budgets and benchmarks: 2014 budget allocations and trends

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.

http://www.itsma.com/research/services-marketing-budgets-and-benchmarks-2014-budget-allocations-and-trends/

www.itsma.com | B025AS | 2

ITSMA Benchmarking Study | 2014 Budget Allocations and Trends

© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.

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

http://www.itsma.com/





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









Despite an improving economic picture, the era of doing

more

is not yet over

with less






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)






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







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







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)






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






Study Participants



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




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.


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)






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%


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






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

Buy the Study



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



mailto:[email protected]?subject=2014%20Services%20Marketing%20Budget%20Allocations%20and%20Trends%20Abbreviated%20Summary



itsma services marketing budgets and benchmarks: 2014 budget allocations and trends

Business

services marketing budgets

itsma benchmarking study

servicesmarketing budget

percentage of services

trends survey

percentage of revenue

trendsabbreviated summary

est source