U.S. B2B advertising via digital channels will jump to 48% of total spend by the end of 2023… that is a BIG deal! We want to make sure you’re growing in digital and don’t miss out on owning your niche and having the most robust advertising offerings in your industry. Our goal is to help you demonstrate the depth of your advertising; that’s why we want to answer all our most asked questions, so that you’re ready to own your market.
Paid media represents a fourth of total marketing budgets. Ad budgets vary across industry and vary depending on the type of company. For example, product-focused companies typically spend 10% of operating costs on marketing whereas service-oriented B2B firms spend 12%.
Here are some industry numbers that help demonstrate the advertiser’s budgets, coming from a Deloitte and Duke/Fuqua School of Business Study:
- Banking, Finance, Insurance, 14%
- Communications, Media, 13%
- Packaged Goods, 14%
- Consumer Services, 7%
- Education, 2%
- Energy, 3%
- Healthcare, 18%
- Manufacturing, 26%
- Mining, Construction, 2%
- Services, Consulting, 30%
- Retail, Wholesale, 14%
- Tech, Software, 25%
- Transportation, 8%
We give you this data to show you the average budgets, so you can smartly determine how much spend your advertisers have, and how much is likely allocated for print vs digital.
Among the most effective marketing channels for B2B, we see that content marketing makes up 62% followed by in-person events at 41% with email marketing and search (SEO and SEM) not far below. Knowing the full spectrum of what works, you can decipher what client needs what channels. Our B2B marketing funnel gives a great starting landscape into what we find works, along with our recommended budget for each funnel category.
Your B2B Marketing Funnel
January Spring’s B2B Marketing Funnel ™
The B2B marketing funnel begins with a key pillar, creating awareness, which includes channels like display advertising, Search SEO and SEM and video. Brand awareness should account for 40% of your overall budget.
Building trust is the second building block within the funnel where content becomes important, such as case study, whitepaper, and infographic usage. That corresponds with paid and organic social as well as events that are in-person or done through recorded videos or webinars.
The next block is lead gen which includes all your email marketing, content downloads, and video. Building trust and generating engagement through Leads account for 50% of the budget.
The last part of the funnel is for retention which is performed using email marketing, paid and organic social and display advertising. Retention and growth account for 10% of the budget.
Understand the Type of Campaign You Need
Revenue Retention is the maintenance or growth of existing customers. These key metrics include remarketing exposure (impressions), returning site visitors, lifetime value, net promoter score, and brand lift.
Demand generation is the increasing awareness and demand for a product or service. These key metrics include audience exposure (impressions), site traffic, time on site, time with content, content engagement (clicks), and qualified leads.
The important metrics in a revenue and demand gen campaign differ from each other. The campaign goal you are trying to reach will require one of these campaigns more than the other, and knowing which one and what the goals are helps us to figure out the best way to support you and your growth.
We love sharing this B2B knowledge with you so that you can deepen your advertising and grow in new ways. If you ever have questions regarding B2B, our team is ready to help give you more answers.