1. The B2B Digital Marketing Shift
(Presentation of results for a commissioned study conducted by Forrester Consulting on behalf of American Business Media)

2. Agenda
What do B2B marketers believe are the most effective marketing vehicles?
How effective are online marketing vehicles?
How is the B2B marketing mix changing?

3. Survey Background
American Business Media commissioned Forrester Consulting to conduct a survey of B2B marketers
Survey fielded July – August 2005 to a screened subset of members of eRewards panel
867 responses across a wide range of industries and titles
Click here for more on the survey methodology

4. Definitions
When the respondents completed the survey, they used the following definitions:
Business-to-business / trade marketing efforts: targeting large, small, or medium-sized companies, small offices or home offices, retailers, wholesalers, or distributors
General business magazines and newspapers: publications that cover broad business issues and economic topics (e.g., Wall Street Journal, Business Week, Forbes, etc)
Industry-specific / trade magazines (business-to-business/trade): publications that focus on news and trends affecting a specific industry (e.g., Progressive Grocer, Medical Economics)
Web-based events: product demonstrations, briefings, or presentations on clients, product/services, and/or industry topics conducted for customers and/or prospects on the Internet using services like Webex, etc.
In-person events: trade shows, conferences, product demonstrations, or presentations on industry topics conducted for customers and/or prospects held in-person at a hotel or other meeting facility.
Online marketing: e.g., ads, search, , directories, and sponsored Web content.
In the course of this presentation, we use these additional terms:
Online advertising: e.g., search, ads, and content sponsorship on Web sites.
Other online marketing: e.g., Web-based events, lists, and online directories.
Marketing communications: e.g., public relations, custom publications, printed newsletters

5. Key findings – B2B Marketing Mix
Industry-specific marketing opportunities of all kinds (trade shows, magazines, web sites) are viewed as more effective than general business magazines or web sites.
The most effective branding vehicles include in-person events and industry specific magazines. Online is as effective at branding as general business magazines and TV.
The most effective lead generation vehicles include in-person events, industry specific magazines, and online marketing.
Fewer marketers will use general business magazines, direct mail, and newspapers, and those using these media will only minimally increase spending, implying a shift of marketing budget allocation toward digital media.
48% of B2B marketers use online marketing today, and spend 24% of their budget online

6. Confidence interval: + / – 3.3 percentage points
Industry-Specific Vehicles Are Most Effective For Branding
“How effective are the following marketing tactics at building brand image?”
Online is as effective as TV, general business magazines, and newspapers
(On a scale of 1 to 6, 1 being “very ineffective” and 6 being “very effective,” the chart reflects the percentage selecting 5 or 6)
Confidence interval: + / – 3.3 percentage points
(Base: 867 US B2B marketers; Source: Forrester Consulting Survey for ABM)

7. Confidence interval: + / – 3.3 percentage points
Industry-Specific Vehicles Are Most Effective For Lead Generation
“How effective are the following marketing tactics at generating qualified leads?”
Online is more effective than TV, general business magazines, and newspapers
(On a scale of 1 to 6, 1 being “very ineffective” and 6 being “very effective,” the answers reflect a combination of 5 and 6)
Confidence interval: + / – 3.3 percentage points
(Base: 867 US B2B marketers; Source: Forrester Consulting Survey for ABM)

8. 2005 B2B Marketing Spending
Events
15%
Direct Mail 9%
General
publications
12%
Marketing
communications
16%
TV and radio
Directories 3%
Other 2%
Online
Company web site
Trade
magazines 7%
Industry-specific/trade magazines are viewed as more effective than general publications, but receive a smaller share of budget.
(Base: 867 US B2B marketers;
Source: Forrester Consulting Survey for ABM)

9. 2005 B2B Online Marketing Spending
Industry-specific/trade sites are viewed as more effective than general sites, but receive a smaller share of budget.
Percent of 2005 Online Marketing budget by tactic
General sites includes portals such as Yahoo!, search sites such as Google, and general business sites such as Forbes.com
(Base: 406 US B2B marketers using online in 2005; Source: Forrester Consulting Survey for ABM)

10. Almost Half Of B2B Marketers Are Using Online Marketing
“Which of the following B2B / trade marketing tactics has your company used in 2004 and/or 2005? Which will you use in 2008?”
In-person events
60.8
60.2
Online marketing
54.6
48.7
48.7
Direct mail
56.2
Industry-specific/trade magazines
48.3
45.4
44.1
Custom publications
45.8 TV
44.1
41.4
41.6
2008
Public relations
37.7
2004/5
38.6
General business magazines
41.3
35.6
Newspapers
46.9
35.1
Printed newsletters
43.5
33.0
Radio
35.3
24.8
Printed directories
26.8
(Base: 867 US B2B marketers; Source: Forrester Consulting Survey for ABM)

11. Online Marketers Have Already Shifted 24% of the Budget to Online
“Using your best estimate, what percent of your business-to-business/trade marketing budget was spent on each of the following marketing tactics in 2005?”
In-person events
16.34
14.37
Television
12.20
7.77
Direct mail
9.90
7.42
Newspapers
8.98
5.06
Industry-specific / trade magazines
8.58
5.82
8.22
Your company’s Web site*
10.09
Custom publications
7.73
4.52
General business magazines
6.75
3.37
Printed newsletters
6.44
3.31
Radio
5.80
4.20
Public relations
4.25
5.70
Printed directories
2.81
Offline marketers
Online marketers
2.18
Other*
1.83
1.83
Online Advertising
0.17
18.17
Other Online Marketing
0.00
6.18
Note: Offline marketers are defined as those who indicated they are not using any online marketing vehicles in 2004 or 2005.
*Adjusted for offline marketers.
(Base: 867 US B2B marketers; Source: Forrester Consulting Survey for ABM)

12. Online Marketing Will Be More Important Than Direct Mail and General Business Magazines
“How much of a role will the following marketing tactics play in your B2B/trade marketing budget in 2008?”
Experimental role Major role
(Mean rating on a scale of 1 to 6, 1 being “experimental role” and 6 being “major role”)
(Base: 867 US B2B marketers; Source: Forrester Consulting Survey for ABM)

13. Appendix Study Objective and Methodology Marketing Goals
Online Marketing Data by BIN

14. Appendix 1 – Study Objectives And Methodology

15. Objectives
As digital marketing becomes more mainstream, ABM members wonder how it will impact their business. But most research on digital marketing only addresses consumer marketing, not B2B. ABM engaged Forrester Consulting for an independent analysis of the trends in B2B digital marketing spend across 21 categories of B2B marketers.
Specifically, the project addressed the following questions:
What percent of marketing spend do B2B marketers allocate to digital media?
What is the value proposition of digital marketing and how big a role will it play in the future?
What are the perceived strengths and weaknesses of each element of the B2B marketing mix?
How will spending on digital marketing change in the next three years and where will the money come from?
For each of the 21 categories of B2B marketers, what percentage of the budget is currently being spent on digital media and how important will digital media become in the next three years?

16. Methodology
Forrester developed research and screener questions for an online survey jointly with the American Business Media to address the current and future state of business-to-business digital marketing.
Forrester fielded screener questions to a predetermined portion of the eRewards panel to identify qualified respondents.
Membership into the eRewards panel is by invitation only. Potential panelists can request an invitation through an eRewards sponsor (i.e., American Airlines, Hilton, Hertz, etc.). Once the potential panelist completes an online profile and the request is accepted, panelist will then receive a notification via .
Members can earn up to $1 in e-Rewards for each they receive, and much more for providing their opinions on periodic research surveys. Once sufficient currency has been accumulated, members can then redeem their e-Rewards for rewards from companies like American Airlines, BLOCKBUSTER, Hertz, Hilton, IBM, Omaha Steaks, and e-Bags.
There are over a half million active business panelists.
Forrester fielded the entire survey (including screeners) to qualified eRewards panelists and received a total of 867 respondents within 21 various industry areas.
Determine quote – we work with clients to determine the basics of what a respondent would look like – they sit in IT, about 1/3rd should come from SMBs, etc.
Develop screener questions – we work with the client as we design the survey, to design additional screening criteria that we wouldn’t have access to in a panel database (i.e., Have you deployed Windows or Linux -based solid state thin client devices in your organization?)
Field screeners – we field the screener question, as well as questions about the quota (i.e., company size) to panelists to qualify them as respondents.
We field the entire survey, as well as the screeners, to the qualified set of panelists. This allows us to again screen the respondents and ensure that they are who they say they are.
Companies, like Budget rental car or American airlines, will send customers an invitation to earn more points, etc. and join eRewards. They can use their points toward rental cars or frequent flyer miles, etc.
To date, there are around 700,000 active business panelists at North American companies.
Click here to return to the presentation

17. Appendix 2: Respondent data

18. Respondents By 2005 Marketing Budget
(Base: 867 B2B US marketers; Source: Forrester Consulting Survey for ABM)

19. Respondents By Company Revenue
(Base: 867 B2B US marketers; Source: Forrester Consulting Survey for ABM)

20. Respondents By Title
(Base: 867 B2B US marketers; Source: Forrester Consulting Survey for ABM)

21. Appendix 3 – Marketing Goals
One survey question presented respondents with a list of 12 specific marketing goals and asked them to pick the best medium from each from the following list of advertising choices:
General business publications
Industry-specific publications
General business Web sites
Industry-specific Web sites
Your company’s Web site
None of the above
The following page lists the 12 marketing goals

22. Review the statements below and indicate which advertising option, if any, in your opinion best matches the statement
The best medium to reach decision makers
The best medium to reach senior executives that approve purchases
The best medium to reach other purchase influencers
The best medium to reach the highest percentage of prospects for my company’s products/services
The best medium to raise awareness of my company’s products and services
The best medium to enhance the credibility of my company’s products/services
The best medium to reach highly involved users/readers
The best medium in terms of the frequency the audience reads/uses it
The best medium in terms of users’/readers’ level of trust in the content
The best medium to generate the most qualified leads
The best medium to generate the highest number of leads
The best medium for ROI

23. Appendix 4 – Online Marketing Data by BIN

24. B2B Marketing Profile -- Agriculture

25. B2B Marketing Profile -- Agriculture
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 30
Source: Forrester Consulting Survey for ABM

26. B2B Marketing Profile -- Agriculture
Base: N=30
Source: Forrester Consulting Survey for ABM

27. B2B Marketing Profile -- Agriculture
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
Base: N= 30
Source: Forrester Consulting Survey for ABM
2008
2004/5

28. B2B Marketing Profile -- Architecture

29. B2B Marketing Profile -- Architecture
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 30
Source: Forrester Consulting Survey for ABM

30. B2B Marketing Profile – Architecture
Base: N=30
Source: Forrester Consulting Survey for ABM

31. B2B Marketing Profile -- Architecture
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 30
Source: Forrester Consulting Survey for ABM

32. B2B Marketing Profile -- Automotive

33. B2B Marketing Profile -- Automotive
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N=32
Source: Forrester Consulting Survey for ABM

34. B2B Marketing Profile – Automotive
Base: N=32
Source: Forrester Consulting Survey for ABM

35. B2B Marketing Profile –Automotive
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 32
Source: Forrester Consulting Survey for ABM

36. B2B Marketing Profile – Aviation
Base: N= 39
Source: Forrester Consulting Survey for ABM

37. B2B Marketing Profile -- Aviation
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 39
Source: Forrester Consulting Survey for ABM

38. B2B Marketing Profile -- Aviation

39. B2B Marketing Profile -- Aviation
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 39
Source: Forrester Consulting Survey for ABM

40. B2B Marketing Profile – Banking, Finance & Insurance

41. B2B Marketing Profile – Banking, Finance & Insurance
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 47
Source: Forrester Consulting Survey for ABM

42. B2B Marketing Profile – Banking, Finance & Insurance
Base: N= 47
Source: Forrester Consulting Survey for ABM

43. B2B Marketing Profile -- Banking, Finance & Insurance
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
Base: N= 47
Source: Forrester Consulting Survey for ABM
2008
2004/5

44. B2B Marketing Profile – Building, Design & Construction

45. B2B Marketing Profile – Building, Design & Construction
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 45
Source: Forrester Consulting Survey for ABM

46. B2B Marketing Profile – Building, Design & Consutruction
Base: N= 45
Source: Forrester Consulting Survey for ABM

47. B2B Marketing Profile –Building, Design & Construction
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N=45
Source: Forrester Consulting Survey for ABM

48. B2B Marketing Profile – Business, Advertising and Marketing

49. B2B Marketing Profile – Business, Advertising and Marketing
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 55
Source: Forrester Consulting Survey for ABM

50. B2B Marketing Profile – Business, Advertising & Marketing
Base: N= 55
Source: Forrester Consulting Survey for ABM

51. B2B Marketing Profile -- Business, Advertising & Marketing
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 55
Source: Forrester Consulting Survey for ABM

52. B2B Marketing Profile -- Computing

53. B2B Marketing Profile -- Computing
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 69
Source: Forrester Consulting Survey for ABM

54. B2B Marketing Profile – Computing
Base: N= 69
Source: Forrester Consulting Survey for ABM

55. B2B Marketing Profile -- Computing
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 69
Source: Forrester Consulting Survey for ABM

56. B2B Marketing Profile – Electric Engineering

57. B2B Marketing Profile – Electric Engineering
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 33
Source: Forrester Consulting Survey for ABM

58. B2B Marketing Profile – Electric Engineering
Base: N= 33
Source: Forrester Consulting Survey for ABM

59. B2B Marketing Profile -- Electric Engineering
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 33
Source: Forrester Consulting Survey for ABM

60. B2B Marketing Profile -- Government

61. B2B Marketing Profile -- Government
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N=35
Source: Forrester Consulting Survey for ABM

62. B2B Marketing Profile – Government
Base: N= 35
Source: Forrester Consulting Survey for ABM

63. B2B Marketing Profile -- Government
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 35
Source: Forrester Consulting Survey for ABM

64. B2B Marketing Profile -- Healthcare

65. B2B Marketing Profile -- Healthcare
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N=56
Source: Forrester Consulting Survey for ABM

66. B2B Marketing Profile – Healthcare
Base: N= 56
Source: Forrester Consulting Survey for ABM

67. B2B Marketing Profile -- Healthcare
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 56
Source: Forrester Consulting Survey for ABM

68. B2B Marketing Profile – Manufacturing & Processing

69. B2B Marketing Profile – Manufacturing & Processing
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 57
Source: Forrester Consulting Survey for ABM

70. B2B Marketing Profile – Manufacturing & Processing
Base: N= 57
Source: Forrester Consulting Survey for ABM

71. B2B Marketing Profile -- Manufacturing & Processing
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N=57
Source: Forrester Consulting Survey for ABM

72. B2B Marketing Profile – Movies, Radio & TV

73. B2B Marketing Profile – Movies, Radio & TV
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 30
Source: Forrester Consulting Survey for ABM

74. B2B Marketing Profile – Movies, Radio & TV
Base: N= 30
Source: Forrester Consulting Survey for ABM

75. B2B Marketing Profile -- Movies, Radio & TV
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 30
Source: Forrester Consulting Survey for ABM

76. B2B Marketing Profile – Pharmaceuticals

77. B2B Marketing Profile – Pharmaceuticals
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 31
Source: Forrester Consulting Survey for ABM

78. B2B Marketing Profile – Pharmaceuticals
Base: N= 31
Source: Forrester Consulting Survey for ABM

79. B2B Marketing Profile -- Pharmaceuticals
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N=31
Source: Forrester Consulting Survey for ABM

80. B2B Marketing Profile – Professional Services

81. B2B Marketing Profile – Professional Services
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N=56
Source: Forrester Consulting Survey for ABM

82. B2B Marketing Profile – Professional Services
Base: N= 56
Source: Forrester Consulting Survey for ABM

83. B2B Marketing Profile -- Professional Services
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N=56
Source: Forrester Consulting Survey for ABM

84. B2B Marketing Profile – Resources

85. B2B Marketing Profile – Resources
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 30
Source: Forrester Consulting Survey for ABM

86. B2B Marketing Profile – Resources
Base: N=30
Source: Forrester Consulting Survey for ABM

87. B2B Marketing Profile -- Resources
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 30
Source: Forrester Consulting Survey for ABM

88. B2B Marketing Profile – Restaurant

89. B2B Marketing Profile – Restaurant
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 30
Source: Forrester Consulting Survey for ABM

90. B2B Marketing Profile – Restaurant
Base: N= 30
Source: Forrester Consulting Survey for ABM

91. B2B Marketing Profile -- Restaurant
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 30
Source: Forrester Consulting Survey for ABM

92. B2B Marketing Profile – Retail Services

93. B2B Marketing Profile – Retail Services
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N=57
Source: Forrester Consulting Survey for ABM

94. B2B Marketing Profile – Retail Services
Base: N= 57
Source: Forrester Consulting Survey for ABM

95. B2B Marketing Profile – Retail Services
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 57
Source: Forrester Consulting Survey for ABM

96. B2B Marketing Profile – Science and R&D

97. B2B Marketing Profile – Science and R&D
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 35
Source: Forrester Consulting Survey for ABM

98. B2B Marketing Profile – Science and R&D
Base: N= 35
Source: Forrester Consulting Survey for ABM

99. B2B Marketing Profile -- Science and R&D
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N=35
Source: Forrester Consulting Survey for ABM

100. B2B Marketing Profile – Transportation

101. B2B Marketing Profile – Transportation
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 49
Source: Forrester Consulting Survey for ABM

102. B2B Marketing Profile – Transportation
Base: N= 49
Source: Forrester Consulting Survey for ABM

103. B2B Marketing Profile -- Transportation
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 49
Source: Forrester Consulting Survey for ABM

104. B2B Marketing Profile -- Travel

105. B2B Marketing Profile -- Travel
Respondent Profile - Annual Revenues
Marketing Spend
Less than $1 million
$1 million to $10 million
More than $10 million
Base: N= 30
Source: Forrester Consulting Survey for ABM

106. B2B Marketing Profile – Travel
Base: N= 30
Source: Forrester Consulting Survey for ABM

107. B2B Marketing Profile -- Travel
% of respondents increasing
marketing spend by more
than 5% in 2008
% of 2005 budget
% using this marketing tactic
Marketing tactics
2008
2004/5
Base: N= 30
Source: Forrester Consulting Survey for ABM