1. Snapshot: B2B Marketing Outlook Report 2012 Andrew Haussegger, Green Hat February/March 2012 © 2012 Green Hat Marketing Pty Ltd. All Rights Reserved

2. Slide 2 © 2012 Green Hat Marketing Pty Ltd What will be discussed today  Marketing teams & budgets  Key challenges in B2B marketing  Marketing measurement & benchmarks  Traditional vs digital tactics  Role of social media in B2B marketing

3. Slide 3 © 2012 Green Hat Marketing Pty Ltd Acknowledgements 187 Research Participants

4. Slide 4 © 2012 Green Hat Marketing Pty Ltd Companies 178 Participants 187 Questions 32 Responses 13,000 + Data points 84 4 The most comprehensive research conducted into the practice of B2B Marketing in Australia - providing an insight into the objectives, challenges, responses and outcomes for the Australian B2B marketer. Industries 15 Some numbers before the numbers...

5. Slide 5 © 2012 Green Hat Marketing Pty Ltd Marketing teams are small... in most cases Revenue < $1M 100% with <5 staff Revenue $1M to $50M 89% Revenue $50M to $500M 67% Revenue $500M+ 32% Point of View: Lack of financial ROI measurement impacts ability to justify staff increases. As well, marketing teams are often cut in economic hard times but not increased when conditions improve. Most B2B marketing teams are small. Even one third of the largest revenue category have teams of less than five staff.

6. Slide 6 © 2012 Green Hat Marketing Pty Ltd What’s happening to marketing budgets? More than half of budgets are essentially unchanged. Budget increases outnumber budget decreases by about three to one.

7. Slide 7 © 2012 Green Hat Marketing Pty Ltd Point of View: Marketers are shifting their spend to online where buyers are researching and networking. New leader in 2014! How is that budget being spent (2011 v 2012)? Investment in traditional (offline) activities slides back (again) in favour of digital and lead nurturing initiatives.

8. Slide 8 © 2012 Green Hat Marketing Pty Ltd What did marketers find most challenging in 2011? Point of View: Marketers are challenged in their backend operations. Key drivers are ROI accountability & performance optimisation.

9. Slide 9 © 2012 Green Hat Marketing Pty Ltd Understanding what it costs to produce a sales lead A surprisingly high number of marketers do not track Cost per Lead. The bigger the order value, the more likely the marketer does not know cost. Point of View: Are marketers unable to measure cost or unwilling to? Lack of process? Knowing the cost helps optimise future channels to market. 34% not sure Demand-Gen Leads 66% know Cost-per-Lead 50% not sure Nurture Program Leads 50% know Cost-per-Lead

10. Slide 10 © 2012 Green Hat Marketing Pty Ltd So... what does a lead cost? Point of View: Nurture programs are working with largely known and conditioned audiences. Lower order values

11. Slide 11 © 2012 Green Hat Marketing Pty Ltd Point of View: Sales are leaving too many leads ‘on the table’. Closed-loop processing is missing. Lead acceptance by Sales & lead-to-order conversion Percentage of leads marketers lose sight of: 27% Percentage of companies who follow up 80%+ of leads: 35% Lead-time least likely to convert to an order: 4-12 months

12. Slide 12 © 2012 Green Hat Marketing Pty Ltd Conversion rates have a long way to go 35% 60% Point of View: More tightly integrated sales & marketing planning and execution is needed.

13. Slide 13 © 2012 Green Hat Marketing Pty Ltd What traditional tactics will marketers deploy in 2012?

14. Slide 14 © 2012 Green Hat Marketing Pty Ltd What digital tactics will marketers deploy in 2012?

15. Slide 15 © 2012 Green Hat Marketing Pty Ltd Which Social Media is being used by B2B marketers? Most of the surveyed social media forums increased in usage. 75%59%47%40%29%13% 20% 11% 5% Point of View: Marketers have put more than their toe in water and are now spreading their bets. Winners tomorrow will have invested in inbound today. 10% #admab2b

16. Slide 16 © 2012 Green Hat Marketing Pty Ltd And how do marketers feel about Social Media? Overall, current sentiment is not positive, however marketers are persisting and testing options. Good results and ROI: 7% Undecided – too early to tell: 33% Not happy with results: 29% Plan to get started: 20% Resisting the trend: 11% Point of View: ‘Show me the money’ but Social needs time. Offers a platform to turn strangers into friends into customers for relatively low cost.

17. Slide 17 © 2012 Green Hat Marketing Pty Ltd A selection from many great comments...  (We need to avoid) formalising a marketing/sales process that won't constrain our business to a set of arbitrary KPIs and kill off our ability to be flexible and creative.  Cross channel Marketing and Information marketing is where it's happening...  Developing compelling content: building a content marketing strategy that is relevant to the market in ANZ is my top priority  Keep up the good work! So refreshing to have a B2B focused survey!

18. Slide 18 © 2012 Green Hat Marketing Pty Ltd What to expect in the 2012 Outlook Report 1.Objectives & challenges in B2B Marketing 2.Marketing budget distribution 3.Use of traditional vs digital marketing tactics 4.Marketing metrics and conversion rates 5.Adoption of social media 6.Marketing department profiles (staff, budgets) To register for the 2012 Outlook report visit: www.green-hat.com.au/b2b2012