B2B: Business 2 Business Services
There are thousands of daily transactions between businesses, generating billions of dollars of revenue for both parties. Is your business getting its fair share of the growing pie? Or are your competitors’ stealing your potential sales?
Many business owners and marketing managers have admitted to tightening their spending in the past few years as uncertainty over the economic climate forces them to become fiscally conservative. The question for many business owners or their marketing managers is whether their new found “fiscal conservatism” has actually decreased their profits and sabotaged future sales.
Now, when we talk about “fiscal conservatism” we are not referring to a business owner purchasing a less expensive office chair, or a less expensive painting to impress their clients. We are referring to cutbacks on their marketing and presentation budget.
A recent release from the Direct Marketing Association showed that Business to Business companies spend in excess of USD$55 billion per year on Business 2 Business marketing. This includes everything from advertisements, direct mail, case studies, white papers etc
Furthermore, market research firm AMR Research has shown that Business 2 Business companies will spend more than “USD$3 billion alone on online marketing this year … and that number is expected to grow by 12% a year through at least 2013”( http://www.amr-research.com/cms/index.php/en/)
In addition, in their published B-to-B, The Magazine for Marketing Strategists, “AMR predicts B2B social media spending will grow at an annual average rate of 21% through 2013 … and that B2B spending on lead-generation sites is anticipated to grow at 17% in the same time frame”
The most interesting (or alarming depending on what side you are on) is the observation made by AMR CEO Denzil Rankin who announced that business to business publishers are not doing anywhere near enough to take advantage of the projected growth in spending!
“There is not enough innovation in lead-generation products. Multi-media services are weak, and measurement capabilities are frequently lacking,” he said.
Technology and ever changing consumer preferences wait for no-one. A casing point is one of Australia’s largest retail stores, David Jones, who had their profits and market share, crumble because of their outdated and insufficient digital marketing strategy and expenditure.
More and more business owners and marketing managers, in the wake of such high profile disasters, are analysing their own business to business online marketing strategies and re-evaluating their budgets.
Are you taking advantage of the increased in expenditure, or is your competition getting ahead?