The good news is industrial marketers are making the evidence-based decision to invest more in online marketing. On the other hand, they still need to optimize their digital mix. This was one of the key findings from IHS GlobalSpec’s latest research report, 2014 Trends in Industrial Marketing, based on a recent survey of marketing and sales professionals in the industrial sector.
The results provide new insight into the strategies, budgets and tactics industrial marketers use today.
Here are the highlights:
Diversifying the marketing mix
Currently, corporate websites command about 25 percent of online budgets, which amounts to more than twice the spending on any other channel. There’s no question your company website is important and will continue to be, but establishing and maintaining a broad and deep online presence is critical in this age of digital disruption, when technical professionals have at their disposal a variety of digital resources to find the work-related information they seek. Your target audience doesn’t primarily rely on a single channel, so why should you? Industrial marketers should consider shifting a portion of their budget to other online channels such as e-newsletters, webinars and banner advertising on industry websites.
Playing catch-up to customer behavior
Forty-nine percent of industrial companies are increasing their online marketing budgets, but on average less than half (46 percent) of the overall marketing budget is spent online. While this online marketing percentage is up from 40 percent last year and 32 percent back in 2007, it still may not be enough to keep pace with the behavior of your customers. It may also be a contributing factor to the level of satisfaction industrial marketers feel about their online marketing efforts. Twenty-nine percent are still dissatisfied or very dissatisfied with their online marketing efforts and 40 percent are feeling neutral.
Customer acquisition is still king
Year over year, customer acquisition tops the list of marketing goals in the industrial sector. Almost half (47 percent) of industrial marketers said customer acquisition is their primary marketing goal in 2014, up from 38 percent in 2012. Related to customer acquisition is lead generation; 29 percent of industrial marketers say it is the biggest challenge in their profession. In addition, customer acquisition is a key measurement of success for 55 percent of companies, along with sales attributed to marketing campaigns (64 percent) and leads (47 percent).
Preferred marketing channels
E-mail marketing using in-house lists, tradeshows, content marketing and search engine optimization are the top marketing channels in the industrial sector. Direct mail using rented/purchased lists, mobile marketing and podcasts are at the bottom of the list. Five of the top six channels used are digital channels, indicating that many marketers understand the importance of devoting resources to a mix of digital channels. Fifty-five percent say they use both inbound (pull) and outbound (push) marketing programs but state they could better diversify their mix.
Content marketing efforts must mature
Sixty-one percent of industrial marketers are now using content marketing as tactic and 54 percent are planning to increase their spending on content creation. This reflects marketers’ understanding that their prospects and customers are hungry for relevant content that will help them do their jobs better and make informed buying decisions. On the other hand, 44 percent of marketers are just getting started with content marketing, just 29 percent have a content marketing strategy, only nine percent can demonstrate how content marketing contributes to sales and only 15 percent align their content with the different phases of their customers’ buy cycle. These results reveal the need for industrial companies to mature their content marketing efforts in order to be more efficient and effective.
Marketers are more social-media savvy
Industrial marketers have gotten more savvy in how they use social media. They are now focusing their efforts on those objectives that social media best fulfills. Seventy-eight percent use social media for branding and 72 percent for content delivery. Only 34 percent use social media to generate leads, down from 59 percent in 2011. The most popular social media channel is LinkedIn. Twenty-seven percent are satisfied with their social media efforts, up from 17 percent in 2012. As industrial marketers continue to get more comfortable using social media and understanding its place in their marketing mix, they will likely achieve better results and their level of satisfaction will continue to increase.
Marketing budgets are steady
Over the past three years, marketing budgets have remained constant. Thirty-five percent are spending more in 2014 than they did in 2013; only 17 percent expect to spend less in 2014. About half are spending the same. For those companies with marketing budgets of $1 million or less, the average marketing budget is $166,000. Forty-two percent of companies have marketing budgets under $50,000 and 12 percent of companies have marketing budgets greater than $1 million. Forty-one percent of industrial marketers are spending at least half of their 2014 budgets for online marketing.
This annual survey can help you evaluate your marketing strategies in relation to your competitors, fine-tune your marketing programs and keep pace with your customers and the market. For complete survey results, along with recommendations for industrial marketers, download your complimentary copy of 2014 Trends in Industrial Marketing.
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What do you think of the survey results? Should industrial marketers diversify their online marketing spend and marketing mix? Share your thoughts in the comments section below.