DM Lags in Directional B-to-B Survey

While admittedly not a representative sample, a new study from integrated marketing firm Sagefrog gives directional insight into business-to-business marketers’ activities. Direct marketing does not fare especially well.

The highest percentage of respondents’ budget was allocated to Web development and Web marketing, followed by marketing materials and awareness marketing, such as advertising and tradeshows. Brand development efforts were in the middle of the pack, with laggard activities including direct marketing, public relations and marketing planning.

Sources of sales leads reflect the trend away from DM. The most significant source of new business cited was referrals, followed by seminars and events. E-mail marketing, the first DM channel, ranked no higher than third, followed by public relations, advertising, direct mail, search ending marketing and telemarketing.

While referrals, seminars and events and public relations rank highest, in terms of return on investment generated, direct mail outscores the other direct response channels. In descending order, the rest of the ranked channels include advertising, search engine marketing, e-mail and telemarketing.

While nearly all (90%) have a Web site, only 64% send out e-mail newsletters. Just over half engage in search engine marketing, and exactly half use e-mail promotional marketing. Forty-four percent have optimized their Web sites for search results, and 38% use social networking.

Thirty five percent make use of online advertising, while 32% host or contribute to blogs. Twenty two percent offer RSS feeds, and 17% host podcasts.

One in five of the firms surveyed spend one percent of their total budgets on marketing, while roughly half spend at least 10% of their total budget on marketing, a significant jump over last year’s level, according to Sagefrog.

According to Sagefrog, half of the firms surveyed use a mix of internal and outsourced marketing services. Another 37% rely entirely on in-house talent, and 12 outsource all their marketing operations.

Among those turning to outside firms, two thirds contract on a per-project basis, while another 30% have at least one marketing firm on retainer. Only 5% engage a consultant.

Sagefrog conducted an online survey and based its data on 100 responses. The survey was weighted toward health and technology marketers found in the greater Philadelphia and New Jersey areas.