Executive summary:  Wave Two - Q1 2010

The B2B Barometer is an ongoing research study developed to better understand current and future B2B marketing trends in today's economic climate. Undertaken by B2B research specialists Circle Research and supported by ABBA and the IDM, the benchmark survey (April 2009) canvassed the opinions of over 100 client-side B2B marketing professionals. The recently completed second wave captures the views of around 200 B2B marketing professionals from major companies and the marketing services agencies that serve them.

 

Key areas covered include:

 

The B2B Barometer has established itself as the definitive state of the nation study.  The B2B marketers who took part in the research collectively control around £36 million for B2B marketing activities and as a group, the marketing services agencies turnover £575 million worth of revenue per annum. 

 

Interesting comparisons can be made between client's perceptions over the past six months, as well as differences between clients and agencies' views.  A full report will be available in January 2010, with this interim document uncovering the following insights.

 

In the context of a shaky economic climate, confidence exists internally in organisations

 

Marketing services agencies are confident in the outlook for their own organisation, with 79% expecting to see growth in the next twelve months.  Looking to the wider economy however the forecast is not as strong - 52% of agencies believe the downturn will last for at least another 9 months. 

 

B2B marketers are more pessimistic than agencies about the duration of the economic downturn with 64% predicting this period to last for at least another 9 months.  However, the level of negativity has declined remarkably - six months ago, 86% of B2B marketers expected the downturn to last another 9 months or more.  Similarly to agencies 66% of B2B marketers are confident for growth in their organisation in the coming year.  This shows a marked improvement from the benchmark wave of research, when just half of marketers predicted organisational growth.

 

B2B marketing budgets are recovering

 

B2B marketers' overall budgets are likely to hold steady (57%) which represents a strong recovery since six months ago when 48% expected budget declines.  In particular, two fifths of marketers state their B2B marketing budgets are likely to increase in the coming year, up from one quarter expecting an increase six months ago.

 

Consistent with the benchmark wave of research, newer media accounts for a solid share of B2B marketing budgets, with 41% of budgets being allocated to email campaigns, online advertising, website development or social media.  Future budget projections highlight traditional media as being an area likely to take the biggest cuts in budgets, whereas new media channels have promising growth opportunities.

 

Social media has a place in B2B marketing....but how does it fit?

 

The industry hype and buzz around social media shows no signs of abating.  In fact the vast majority of B2B marketers (92%) and agencies (95%) agree that managing brand reputation online has grown in importance in recent times.  Likewise it is widely felt that it would be unwise for B2B organisations to ignore social media as a channel to reach their customers.  Marketers and agencies believe that social media in a B2B context is not a passing phase, so how are they getting involved?

 

Agencies are more active in the social media space, engaging in blogs and social networking sites.  Whilst interested in the area, B2B marketers highlight lack of time and resources, as well as an insufficient understanding as the main obstacles that prevent their organisation from using social media to engage with their target market.

 

Focus on accountability for marketing spend

 

Cost reduction and maximising the return on investment in marketing expenditure are strong focus areas for agencies at the moment.  In particular, the measurement of new areas such as social media, SEO and online reputation is an important trend in B2B marketing. 

 

When it comes to measuring return on marketing investment disparity exists - 86% of agencies believe their clients measure this return, whilst only 65% of B2B marketers state they actually do.  However this does represent an increase in accountability since the benchmark wave when only 51% of B2B marketers claimed to measure ROMI.  The most common metrics to measure ROMI are lead generation, conversion rates and web analytics. 

 

The constant challenge that B2B marketers face is being able to attribute new clients or leads to specific marketing spend.  In particular, they point out the difficulty in isolating the effectiveness of individual components within marketing activities.

 

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