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2019 Services Marketing
Budget Allocations and Trends
Julie Schwartz, SeniorVice President,Research and Thought Leadership,ITSMA
ABBREVIATED SUMMARY
This abbreviated summary highlights some of the most significant
findings of ITSMA’s 2019 Services Marketing Budget Allocations and
Trends Study. A more in-depth analysis can be found in the full report:
http://www.itsma.com/research/2019-services-marketing-budget-
allocations-trends/.
22019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com
More focus on
relationships
2019: The Rise of Marketing Influence
“Marketing has
traditionally been a
demand generation
engine.Now it is
increasingly expected
to enhance customer
experience,provide
market insights,and
influence deals.”
“Marketing has been tasked to lead the
overall business unit strategy development,
position into new markets, and play a key
role in driving sales. We are now involved at
a strategic level within the business.”
Greater
strategic
responsibilities
Expanded
execution
32019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com
Marketing’s influence is steadily
increasing in key areas
Most marketers continue to see
their responsibilities expand&
Has the scope of your marketing organization’s
responsibilities changed over the last year?
% of respondents
(N=42)
Marketing’s scope of
responsibilities has
expanded
Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends
69%
Marketing technology A Lot of
InfluenceThought leadership agenda
Identification of new market
opportunities and offers
Some
Influence
Customer experience management
Business strategy for company/
division/BU
Key account planning and analysis Growing
InfluenceCustomer success management
How much influence does your marketing organization
have over the following?
42019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com
Changes in the scope of marketing are three-fold
How has the scope of marketing changed?
% of respondents (N=28)
Expanded execution
• Invest in new skills and ways of working
• Build a digital marketing infrastructure
• Use data and analytics
Greater strategic responsibilities
• Contribute market and customer insight
• Shape new offerings
• Refine positioning
“Market relevance, solutions, and
offerings naming; expansion into
other global locales”
“Increased requests from
executive level for marketing to
provide market insights”
“Channel Marketing and an employee
advocacy program are now responsibilities
we have taken on”
“Marketing is being asked to apply more
technology, digital, and data to inform
business decisions and enable each
individual customer journey”
More focus on relationships
• Emphasize customer experience, success,
and advocacy
• Accelerate sales with executive
engagement
• Optimize investments in ABM
“Strategic changes to modernize
and become customer centric”
“Significant shift to customer
success and digital customer
experience”
32% 39% 29%
Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends
52019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com
2019
B2B
services
marketing
budget
growth:
5.1%
48%
17%
36%
A key question: Are marketing budgets and staff growing
enough to fuel marketing’s ongoing transformation?
What changes do you anticipate
in your marketing budget in FY2019?
% of respondents (N=42)
Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends
What changes do you anticipate
in your marketing staff in FY2019?
2019
B2B
services
marketing
staff
growth:
2.1%
Increase
Decrease
Stay the same
36%
7%
57%
62019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com
Here’s what the leading
B2B marketers have planned
for 2019
• Transforming marketing to play a more strategic role
and contribute to growth
• Engaging executives with more compelling content
and collaborative programs for business innovation
and change
• Building highly-targeted,personalized,content-
driven lead management and nurturing programs
• Cultivating long-term,deeper relationships with
account-based marketing
• Measuring and communicating what matters to
drive improvements in the three R’s of strategic
marketing: Reputation,Revenue,and Relationships
72019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com
Transforming marketing to play a more strategic
role and contribute to growth
Strategy & Planning: Market/competitor intelligence,
opportunity identification, brand & positioning,
buyer insight, go-to-market planning
Increasing marketing strategy & planning budget in FY2019
Note: Differences are statistically significant.
Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends
53%
17%
Leaders
(N=17)
Contenders
(N=21)
https://www.itsma.com/pdfs/mea/2018/ITSMA-2018-MEA-Diamond-LTI.pdf
No Marketer Left Behind
82019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com
Engaging executives with more compelling content and
collaborative programs for business innovation and change
Chief Content Officer/Managing Editor
% of respondents have this role now/expectto have this role
in marketing in the next one to two years
76% 43%Leaders Contenders
(N=21)
Note: Differences are statistically significant.
73% 44%
Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends
Contenders
(N=16)
Leaders
Collaborative Innovation Programs
% of respondents increasing spend
https://www.itsma.com/pdfs/mea/2018/ITSMA-2018-MEA-Gold-Vodafone-TL.pdf
Gigabit Society
(N=17)
(N=11)
92019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com
Building highly-targeted, personalized, content-
driven lead management and nurturing programs
Most important marketing
skills to strengthen
Marketing technology/
automation/tools*
35%
8%
Leaders (N=17)
Contenders (N=24)
% of respondents
* Indicates a statistically significant difference.
Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends
Top 5 marketing priorities
Lead generation, management,
and nurturing*
61%
25%
Leaders (N=18)
Contenders (N=24)
https://www.itsma.com/pdfs/mea/2018/ITSMA-2018-MEA-Gold-HCL.pdf
Treating the Best Customers
in a More Personal Way
102019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com
Cultivating long term, deeper relationships
with account-based marketing
% of respondents
Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends
Top 5 marketing priorities
Account-based marketing (ABM)
https://www.itsma.com/pdfs/mea/2018/ITSMA-2018-MEA-Diamond-Microsoft.pdf
Enabling Sales with
Account-Based Engagement
61% 46%
Leaders
(N=18)
Contenders
(N=24)
112019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com
Measuring and communicating what matters to drive
improvements in the three R’s of strategic marketing
Reputation Revenue Relationships
• Customer brand perceptions,
awareness, and knowledge
• Customer satisfaction
• Customer loyalty
• Email opt-ins
• Campaign response rates
• Thought leadership downloads
• Referenceability of account
(case studies or live)
• Pipeline growth
• Number of qualified leads
• Revenue growth
• Win rate/number of deals
closed
• Portfolio penetration,
cross-sell/upsell
• Share of wallet
• Size of deals
• Length of sales cycle
• Profit growth
• Pipeline progression and
acceleration
• Event attendance
• Number of meetings
• Advisory board memberships/
participation
• Collaborative innovation/joint
marketing
• Quality of interactions
• Number of new relationships
within the account
• Sole-sourced deals
• Strategic levels of deals
• Wallet share
• Customer lifetime value
Counting
& Effort
Reporting Outcomes
& Efficiency
Anticipating
Outcomes
Predicting
Outcomes
Optimizing
Outcomes
• Articles/blog posts
• Datasheets created
• Website registrations
• Downloads
• Customer lifetime
value
• Pipeline contribution
• Campaign ROI
• Cost per lead
• Brand awareness/
preference
• Personas
• Customer satisfaction/
loyalty
• Buyer’s journey
• Propensity to purchase
• Customer retention/
renewal
• Marketing mix
optimization
• Personalization
• Pattern recognition
• Dynamic pricing
• Content generation/
curation
ACTIVITY OUTCOMES
Performance
Management &
Buyer Insight
Business
Outcomes
& Predictive
AI & Machine
Learning
Activity &
Output
Marketing
Outcomes
& ROI
https://www.itsma.com/pdfs/mea/2018/ITSMA-2018-MEA-Gold-Tata.pdf
Single View of the Customer
122019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com
1. For B2B marketers,2019 will see a Rise in Marketing Influence on
Strategic Growth not just Revenue #ITSMA19
2. The scope of B2B marketing responsibilities continue to expand:
more strategic,increased execution,and relationship focused #ITSMA19
3. B2B services marketing budgets will grow 5.1% and staffs
at 2.1% in 2019 per #ITSMA19 research
4. B2B marketing’s top 4 priorities in 2019: ABM,Digital & Social,
LeadGen & Nurturing,and Brand Differentiation #ITSMA19
5. Top’19 digital mktg spend increases are Online Ads/Paid Search,Social
Media,SEO,Blogs,and Conversational Mktg per #ITSMA19 research
6. Leading B2B marketers are investing in strategy & planning,collaboration
& engagement,digital marketing,lead mgmt,and metrics #ITSMA19
#ITSMA19
Tweetable takeaways
Methodology and
demographics
Web-based survey
December 2018 through
January 2019
42 participants
from 40 companies
Which of these categories best describes your industry subsector?
Source:ITSMA,2019ServicesMarketingBudgetAllocationsandTrends|%ofrespondents(N=42)
Company’s
sales model
Respondents’
perspective
55%
45%
Sell services
through a mix
of direct sales
and channel
partners
Sell services
primarily
through a
direct sales
force
60%
40%
Entire
company
A specific business
unit or division
How large is your services business?
7 10 10 12
21
41
Less than
$100M
in services
revenue
$100–249M
in services
revenue
$250–499M
in services
revenue
$500–999M
in services
revenue
$1–5B
in services
revenue
Greater than
$5B
in services
revenue
132019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 B030A © 2019 ITSMA. All rights reserved. www.itsma.com
50%
17%
14%
5%
14%
Professional services firm
Software solutions provider
Computer systems and solutions provider
Telecommunications services provider
Other
142019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com
Slide
Executive summary 3
Survey methodology & demographics 28
Size of the marketing budget 38
Marketing staffing 47
Services marketing budget allocation 53
Content & communications budget allocation 61
Digital & offline marketing budget allocation 64
Marketing tactics 68
Advertising/paid media marketing budget 71
Event marketing budget 74
Engagement & advocacy budget allocation 82
Marketing operations budget allocation 86
Account-based marketing budget & spending plans 89
Marketing priorities & challenges 98
Marketing organization, perception, & scope 114
Marketing agility 128
Appendix: ITSMA budget taxonomy & definitions used in this report 132
Want to learn more?
For more information
Here’swhat is included in the full study:
Julie Schwartz
SeniorVice President
Research and ThoughtLeadership
ITSMA
jschwartz@itsma.com
+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/2019-
services-marketing-budget-allocations-trends-study/

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ITSMA 2019 Services Marketing Budget Allocations and Trends Study

  • 1. 2019 Services Marketing Budget Allocations and Trends Julie Schwartz, SeniorVice President,Research and Thought Leadership,ITSMA ABBREVIATED SUMMARY This abbreviated summary highlights some of the most significant findings of ITSMA’s 2019 Services Marketing Budget Allocations and Trends Study. A more in-depth analysis can be found in the full report: http://www.itsma.com/research/2019-services-marketing-budget- allocations-trends/.
  • 2. 22019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com More focus on relationships 2019: The Rise of Marketing Influence “Marketing has traditionally been a demand generation engine.Now it is increasingly expected to enhance customer experience,provide market insights,and influence deals.” “Marketing has been tasked to lead the overall business unit strategy development, position into new markets, and play a key role in driving sales. We are now involved at a strategic level within the business.” Greater strategic responsibilities Expanded execution
  • 3. 32019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com Marketing’s influence is steadily increasing in key areas Most marketers continue to see their responsibilities expand& Has the scope of your marketing organization’s responsibilities changed over the last year? % of respondents (N=42) Marketing’s scope of responsibilities has expanded Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends 69% Marketing technology A Lot of InfluenceThought leadership agenda Identification of new market opportunities and offers Some Influence Customer experience management Business strategy for company/ division/BU Key account planning and analysis Growing InfluenceCustomer success management How much influence does your marketing organization have over the following?
  • 4. 42019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com Changes in the scope of marketing are three-fold How has the scope of marketing changed? % of respondents (N=28) Expanded execution • Invest in new skills and ways of working • Build a digital marketing infrastructure • Use data and analytics Greater strategic responsibilities • Contribute market and customer insight • Shape new offerings • Refine positioning “Market relevance, solutions, and offerings naming; expansion into other global locales” “Increased requests from executive level for marketing to provide market insights” “Channel Marketing and an employee advocacy program are now responsibilities we have taken on” “Marketing is being asked to apply more technology, digital, and data to inform business decisions and enable each individual customer journey” More focus on relationships • Emphasize customer experience, success, and advocacy • Accelerate sales with executive engagement • Optimize investments in ABM “Strategic changes to modernize and become customer centric” “Significant shift to customer success and digital customer experience” 32% 39% 29% Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends
  • 5. 52019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com 2019 B2B services marketing budget growth: 5.1% 48% 17% 36% A key question: Are marketing budgets and staff growing enough to fuel marketing’s ongoing transformation? What changes do you anticipate in your marketing budget in FY2019? % of respondents (N=42) Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends What changes do you anticipate in your marketing staff in FY2019? 2019 B2B services marketing staff growth: 2.1% Increase Decrease Stay the same 36% 7% 57%
  • 6. 62019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com Here’s what the leading B2B marketers have planned for 2019 • Transforming marketing to play a more strategic role and contribute to growth • Engaging executives with more compelling content and collaborative programs for business innovation and change • Building highly-targeted,personalized,content- driven lead management and nurturing programs • Cultivating long-term,deeper relationships with account-based marketing • Measuring and communicating what matters to drive improvements in the three R’s of strategic marketing: Reputation,Revenue,and Relationships
  • 7. 72019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com Transforming marketing to play a more strategic role and contribute to growth Strategy & Planning: Market/competitor intelligence, opportunity identification, brand & positioning, buyer insight, go-to-market planning Increasing marketing strategy & planning budget in FY2019 Note: Differences are statistically significant. Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends 53% 17% Leaders (N=17) Contenders (N=21) https://www.itsma.com/pdfs/mea/2018/ITSMA-2018-MEA-Diamond-LTI.pdf No Marketer Left Behind
  • 8. 82019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com Engaging executives with more compelling content and collaborative programs for business innovation and change Chief Content Officer/Managing Editor % of respondents have this role now/expectto have this role in marketing in the next one to two years 76% 43%Leaders Contenders (N=21) Note: Differences are statistically significant. 73% 44% Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends Contenders (N=16) Leaders Collaborative Innovation Programs % of respondents increasing spend https://www.itsma.com/pdfs/mea/2018/ITSMA-2018-MEA-Gold-Vodafone-TL.pdf Gigabit Society (N=17) (N=11)
  • 9. 92019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com Building highly-targeted, personalized, content- driven lead management and nurturing programs Most important marketing skills to strengthen Marketing technology/ automation/tools* 35% 8% Leaders (N=17) Contenders (N=24) % of respondents * Indicates a statistically significant difference. Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends Top 5 marketing priorities Lead generation, management, and nurturing* 61% 25% Leaders (N=18) Contenders (N=24) https://www.itsma.com/pdfs/mea/2018/ITSMA-2018-MEA-Gold-HCL.pdf Treating the Best Customers in a More Personal Way
  • 10. 102019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com Cultivating long term, deeper relationships with account-based marketing % of respondents Source: ITSMA, 2019 Services Marketing Budget Allocations and Trends Top 5 marketing priorities Account-based marketing (ABM) https://www.itsma.com/pdfs/mea/2018/ITSMA-2018-MEA-Diamond-Microsoft.pdf Enabling Sales with Account-Based Engagement 61% 46% Leaders (N=18) Contenders (N=24)
  • 11. 112019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com Measuring and communicating what matters to drive improvements in the three R’s of strategic marketing Reputation Revenue Relationships • Customer brand perceptions, awareness, and knowledge • Customer satisfaction • Customer loyalty • Email opt-ins • Campaign response rates • Thought leadership downloads • Referenceability of account (case studies or live) • Pipeline growth • Number of qualified leads • Revenue growth • Win rate/number of deals closed • Portfolio penetration, cross-sell/upsell • Share of wallet • Size of deals • Length of sales cycle • Profit growth • Pipeline progression and acceleration • Event attendance • Number of meetings • Advisory board memberships/ participation • Collaborative innovation/joint marketing • Quality of interactions • Number of new relationships within the account • Sole-sourced deals • Strategic levels of deals • Wallet share • Customer lifetime value Counting & Effort Reporting Outcomes & Efficiency Anticipating Outcomes Predicting Outcomes Optimizing Outcomes • Articles/blog posts • Datasheets created • Website registrations • Downloads • Customer lifetime value • Pipeline contribution • Campaign ROI • Cost per lead • Brand awareness/ preference • Personas • Customer satisfaction/ loyalty • Buyer’s journey • Propensity to purchase • Customer retention/ renewal • Marketing mix optimization • Personalization • Pattern recognition • Dynamic pricing • Content generation/ curation ACTIVITY OUTCOMES Performance Management & Buyer Insight Business Outcomes & Predictive AI & Machine Learning Activity & Output Marketing Outcomes & ROI https://www.itsma.com/pdfs/mea/2018/ITSMA-2018-MEA-Gold-Tata.pdf Single View of the Customer
  • 12. 122019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com 1. For B2B marketers,2019 will see a Rise in Marketing Influence on Strategic Growth not just Revenue #ITSMA19 2. The scope of B2B marketing responsibilities continue to expand: more strategic,increased execution,and relationship focused #ITSMA19 3. B2B services marketing budgets will grow 5.1% and staffs at 2.1% in 2019 per #ITSMA19 research 4. B2B marketing’s top 4 priorities in 2019: ABM,Digital & Social, LeadGen & Nurturing,and Brand Differentiation #ITSMA19 5. Top’19 digital mktg spend increases are Online Ads/Paid Search,Social Media,SEO,Blogs,and Conversational Mktg per #ITSMA19 research 6. Leading B2B marketers are investing in strategy & planning,collaboration & engagement,digital marketing,lead mgmt,and metrics #ITSMA19 #ITSMA19 Tweetable takeaways
  • 13. Methodology and demographics Web-based survey December 2018 through January 2019 42 participants from 40 companies Which of these categories best describes your industry subsector? Source:ITSMA,2019ServicesMarketingBudgetAllocationsandTrends|%ofrespondents(N=42) Company’s sales model Respondents’ perspective 55% 45% Sell services through a mix of direct sales and channel partners Sell services primarily through a direct sales force 60% 40% Entire company A specific business unit or division How large is your services business? 7 10 10 12 21 41 Less than $100M in services revenue $100–249M in services revenue $250–499M in services revenue $500–999M in services revenue $1–5B in services revenue Greater than $5B in services revenue 132019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 B030A © 2019 ITSMA. All rights reserved. www.itsma.com 50% 17% 14% 5% 14% Professional services firm Software solutions provider Computer systems and solutions provider Telecommunications services provider Other
  • 14. 142019 Services Marketing Budget Allocations and Trends | Abbreviated Summary | January 2019 | B030A © 2019 ITSMA. All rights reserved. www.itsma.com Slide Executive summary 3 Survey methodology & demographics 28 Size of the marketing budget 38 Marketing staffing 47 Services marketing budget allocation 53 Content & communications budget allocation 61 Digital & offline marketing budget allocation 64 Marketing tactics 68 Advertising/paid media marketing budget 71 Event marketing budget 74 Engagement & advocacy budget allocation 82 Marketing operations budget allocation 86 Account-based marketing budget & spending plans 89 Marketing priorities & challenges 98 Marketing organization, perception, & scope 114 Marketing agility 128 Appendix: ITSMA budget taxonomy & definitions used in this report 132 Want to learn more? For more information Here’swhat is included in the full study: Julie Schwartz SeniorVice President Research and ThoughtLeadership ITSMA jschwartz@itsma.com +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/2019- services-marketing-budget-allocations-trends-study/