Services marketing budgets are reaching new heights in 2017 as companies continue to invest in new areas of growth and the ongoing transformation of marketing itself, according to ITSMA’s 2017 services marketing budget and trends study with 46 leading B2B technology and services firms.
On average, the B2B services marketing budget will grow 4.4% in 2017 to reach 1.7% of total services revenue, which is higher than it has been in more than a decade. Growth in marketing spending will lag projected growth in services, however. Marketers in the ITSMA study anticipate worldwide growth in services revenue of almost 11% this year.
Moreover, the average increase in marketing spending masks a great divide between services growth leaders and laggards. Among the growth leaders, a majority of organizations are increasing marketing spending and staff, while only about one-third of the laggards are similarly increasing marketing spending and staff. Perhaps more important, the growth leaders are much more likely to contribute directly to business strategy and innovation, invest in more agile ways of working, and emphasize overall customer experience and success.
From a budget allocation perspective, services marketers are slightly shifting the people-programs balance compared with last year. Estimates for 2017 include 52% for program spend vs. 48% for people, compared with a straight 50-50 split in 2016. The top areas for increased spending include content and communications, sales and field enablement, and marketing operations. Marketers are also continuing to shift spending from offline marketing to digital, with digital now comprising 49% of total services marketing spending.
Account-based marketing continues to grow, with almost half of the survey participants already implementing ABM and another 26% planning on beginning in the next year or two. Of those groups already doing ABM, a majority are increasing spending in 2017 and ABM overall will comprise 17% of the total services marketing budget (compared with 13% last year).
In terms of overall marketing priorities, the top five for 2017 include:
- Brand/reputation management/differentiation
- Lead generation, management, and nurturing
- Marketing performance management
- Account-based marketing
- Digital and social media marketing
2017 Services Marketing Budget Allocations and Trends, a PowerPoint-style report, delivers a detailed look at the state of the services marketing profession as it exists in early 2017. It provides data on services marketing budgets, budget allocations, and marketing priorities from a range of companies across the technology and professional services industries.
Topics covered in the report include:
- Size of the marketing budget
- Marketing staffing
- Services marketing budget allocation
- Content and communications budget allocation
- Digital and offline marketing budget allocation
- Event marketing budget allocation
- Marketing technology and tools budget allocation
- Account-based marketing budget and spending plans
- Marketing tactics
- Marketing priorities and challenges
- Marketing organization perception and scope
ITSMA gathered detailed data on services marketing budgets, trends, and priorities from a cross-section of large B2B technology and IT services firms with an invitation-only, Web-based survey during December 2016 and January 2017. Survey respondents were 46 senior marketing and services marketing leaders at 46 global firms, roughly half product-based and half professional service firms, with 59% of the respondents from $1 billion+ companies.
The report includes data analyzed four ways:
- The data set as a whole
- By company performance (growth leaders and laggards)
- By company size (less than $1B and $1B or more annual revenue)
- By company type (product & services, and services only companies)
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.
If your company is on the above list, please send us an email (using your company email) and request your copy of the report. Orders will be processed the next business day.
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.