An Australian Research Report Exploring B2b Marketing Practice .

Section 1: INTRODUCTORY SUMMARYB2B Marketing Outlook AUSTRALIA 20161.2 ObservationsWhat does Best-in-Class B2B Marketinglook like?‘Revenue Marketing’: Little traction ona slippery slopeYou can’t manage what you can’tmeasureAs per our definition above, a Best-In-Class Marketer(BICM) invests in persona profiling, marketingtechnology and alignment with Sales. Other key traitsare:One of the common complaints of the B2B marketer isthat Sales doesn’t follow up on their leads. If you are inthis category, then (sadly) you are in the majority.We wanted to understand how systematically marketerswere measuring outcomes. The question was phrasedas ‘What do you measure with 80% accuracy?’.We asked about customer engagement, salesacceptance/follow-up of leads, then lead conversion torevenue.1. They are less challenged in measuring marketingperformance (21%) than the rest of respondents (40%).To that end, 83% are aware of their cost per leadcompared to only 59% of their peers.2. They value Content Marketing – 94% of BICMsrate it as very significant or significant in theirmarketing activities, compared to 75% for the rest ofrespondents.3. Proportionally, they will spend 50% more of theirbudget on marketing automation in 2016 (12%of total budget compared to just 8% of the rest ofrespondents).4. They are twice as likely to be satisfied with their SocialMedia Marketing (48%) than the rest of respondents(24%). BICMs are also more active as publishers onsocial media.5. Lastly, they invested more in inbound marketingthan outbound marketing in 2015 than the rest ofrespondents.So for those marketers aspiring to join the ranks of‘best in class’, we recommend optimising five keyareas: audience profiling, content/inbound marketing,automation, measurement and aligning tightly with thesales team.In last year’s report, only 48% of respondents hadsatisfactory lead follow-up. This year, the number hasdropped to 36%. Also trending in the wrong directionare those who are unsure if leads are followed up,which has increased from 20% to 23%.Further analysis tells us that the larger the business, themore likely it is to have a problem with lead follow-up.Larger enterprises ( 500M revenue) reported that only12% of their leads are satisfactorily addressed by Sales.Mid-size enterprises ( 25- 500M revenue) do not faremuch better, with a satisfactory follow-up of only 28%.A more important metric is ‘lead conversion torevenue’. Only 26% of respondents said that at leastone in three leads handed to Sales convert to orders.But the blind spot is that only half of respondents (51%)have rated ‘measuring marketing ROI’ as an importantobjective. This will be at odds with most CEOs andCSOs who want to see measurable results. Given theB2B sector is ‘sales-led’ (not marketing-led like B2C),we expect successful B2B marketers in 2016 will bethose who embrace strong alignment with their Salescounterparts.Logically, engagement is required before a buyerbecomes a lead, and follow-up happens before the leadturns into revenue. We also asked the same questionabout campaign ROI attribution. This involves trackingrevenue attributed to marketing activities, but can alsomean attributing leads and opportunities.The response range to these four metrics was belowhalf; in fact, 33% to 44%. We found that two-thirds arenot accurately attributing ROI for their campaigns andalmost three in five are not accurately tracking leads torevenue.However, this is an area where BICMs shine. Theyare 72% more likely to be accurately attributing ROI tocampaigns, 53% more likely to accurately measure leadacceptance and follow-up by Sales, and 39% more likelyto be accurately measuring lead conversion to revenue.7

Section 1: INTRODUCTORY SUMMARYB2B Marketing Outlook AUSTRALIA 20161.2 ObservationsContent and Inbound Marketing:More talk than walk?With 77% of marketers embracing the significance ofIn 2016, marketers again plan to spend more on inboundInterestingly, the research tells us that about half (51%)content marketing, we would expect to see a strategicthan outbound, but we wonder about this. We knowof B2B marketers use marketing automation – whichapproach to understanding the audience for whom thisinbound marketing is a longer-term play than mostis only up slightly from 2015 (47%). We would havecontent is intended. This year, we expected to see moretraditional outbound techniques – especially for drivingexpected adoption to have grown at a faster rate, givenmarketers developing audience personas – however itdemand. A trend is evolving in which the plans ofthe drive for improved lead generation and nurturing,has remained on par with last year at 42% of respondentspassionate inbound marketers do not always materialiseas well as the significant marketing investment major(43% in 2015).in action and investment, usually due to internalautomation software vendors are making in our region.We predict that personalisation of content andpressures for short-term financial outcomes.However, when we analyse the responses based on sizecommunications will become a critical success factorSocial media is being used as an omni-channel itself –of business, we see the adoption in mid-to-large-sizedin B2B marketing from this year on. The keyword isfor paid, earned and owned media, as well as a ‘socialbusinesses ( 25M revenue) is in fact at 62%. Conversely,‘relevance’. Google knows it and continues to mouldselling’ channel for the salesforce. We see three campsonly 42% of small businesses ( 25M) have invested in aits algorithms around it. Marketers need to betterof response almost split evenly into thirds. About onemarketing automation platform.understand their audience in order for their content tothird are getting good results or at least breaking even,drive effective customer engagement.another third are yet to achieve any return and theB2B content marketing is closely aligned with inboundstrategy – as quality content is required to effectivelydrive inbound traffic. We were surprised to see thatactual investment was higher in outbound marketingthan inbound, given last year’s respondents said theyplanned to spend more on inbound during 2015.8Marketing Automation crossesthe half-way mark!remaining third is unsure. Social is often used as a ‘backup’ channel for B2B integrated campaigns and there aredefinitely some good signs. Overall, the findings of ourresearch indicate there is still scepticism in the market– especially within the C-suite, where nearly two-thirdsare either not yet seeing ROI or are unsure.Over half of the BICMs (56%) are very satisfied orsatisfied with the return on their automation investment,whereas only 37% of the rest of respondents felt the sameway. This is understandable given two observations;firstly, BICMs are generally measuring outcomes moreeffectively and secondly, a higher percentage of themhave integrated their automation platform with theirCRM (being a key performance enabler).

2.0 The ResultsResearch MethodologyThis research was conducted from December 2015 to February 2016.Respondents were approached by email and telephone with 448 complete responses collected via an online questionnaire.

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.1 Research DemographicsINDUSTRYTURNOVERWhich most accurately describes your industry?What is your organisation’s annual turnover?PROFESSIONAL, SCIENTIFIC & TECHNICAL SERVICES%INFORMATION, MEDIA & TELECOMMUNICATIONS24MANUFACTURING & SUPPLY CHAIN13FINANCE/BANKING/INSURANCEPUBLIC SECTOR/GOVERNMENTOTHER1033%%% LESS THAN 5 MILLION18111521%9%%19 5- 24 MILLION% 25- 49 MILLION%235 50- 499 MILLION% 500 MILLIONAND OVER%

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.1 Research DemographicsROLE TYPESIZE OF MARKETING TEAMWhich of the following best describes your role?How many people are in your marketing team (full-time equivalents)?4%5AGENCYBUSINESS MARKETERDEVT/SALES4%HEAD OF SALES%LESSTHAN 59%OTHER20%CEO/MD/DIRECTOR5 TO 910 TO 1940%MARKETINGPROFESSIONAL53%1815%12%%HEAD OFMARKETING20 20%11

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.2 Marketing Challenges & ObjectivesMARKETING CHALLENGES IN 2015How challenging were the following activities in 2015?MEASURING MARKETING ROIGROWING BRAND AWARENESSGENERATING LEADSCHALLENGINGNURTURING AND PROGRESSING LEADSSOMEWHAT CHALLENGINGNOT CHALLENGINGN/AINTEGRATING MARKETING WITH SALESDEVELOPING QUALITY CONTENT0%10%20%BEST-IN-CLASS: BICMs are less challenged in measuringmarketing performance (21%) than the rest of respondents(40%). To that end, 83% are aware of their cost per leadcompared to only 59% of their peers.1230%40%50%60%70%80%90%100%

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.2 Marketing Challenges & ObjectivesMARKETING OBJECTIVES IN 2016How significant are the following objectives in 2016?GENERATING LEADSNURTURING AND PROGRESSING LEADSDEVELOPING QUALITY CONTENTSIGNIFICANTGROWING BRAND AWARENESSSOMEWHAT SIGNIFICANTNOT SIGNIFICANTMEASURING MARKETING ROIN/AINTEGRATING MARKETING WITH SALES0%10%20%30%40%50%60%70%80%90%100%GLOBAL INSIGHT: Increase in revenue (69%) and increasein leads generated (68%) topped the list of marketingobjectives accomplished in 2015 they continue to be topobjectives in 2016. Regalix, State of B2B Marketing 201613

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.3 Marketing ChannelsTRADITIONAL (OFFLINE) MARKETING TACTICSHow will you use the following traditional (offline) marketing tactics in 2016 compared to 2015?PUBLIC RELATIONSSURVEYS/RESEARCHIN-PERSON EVENTSMORESAMEDIRECT T ADVERTISING0%1410%20%30%40%50%60%70%80%90%100%

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.3 Marketing ChannelsDIGITAL MARKETING TACTICSHow will you use the following digital marketing tactics in 2016 compared to 2015?E-NURTURE MARKETINGSOCIAL MEDIA MARKETINGEMAIL CAMPAIGNSSEARCH ENGINE OPTIMISATION (SEO)MOREONLINE CONTENT AMPLIFICATION/SYNDICATIONSAMELESSONLINE COMMUNITIES AND PORTALS/HUBSN/AONLINE DISPLAY ADVERTISINGWEBINARSMOBILE APP MARKETING0%10%20%30%40%50%60%70%80%90%100%GLOBAL INSIGHT: Digital marketing has gone mainstream; 98% ofmarketers affirm that offline and online marketing are merging. Athird say digital techniques are fully incorporated into their marketingoperation. Gartner, 2015-2016 CMO Spend Survey, November 201515

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.3 Marketing ChannelsDIGITAL VERSUS TRADITIONAL MARKETING TRENDSDIGITALThis graph provides a comparative snapshot of trends in traditional and digital marketing, based on our respondents’ intentions for 2016.E-NURTURE MARKETINGSOCIAL MEDIA MARKETINGEMAIL CAMPAIGNSSEARCH ENGINE OPTIMISATION (SEO)MORELESSONLINE CONTENT AMPLIFICATION/SYNDICATIONONLINE COMMUNITIES AND PORTALS/HUBSONLINE DISPLAY ADVERTISINGTRADITIONALWEBINARSPUBLIC RELATIONSIN-PERSON EVENTSSURVEYS/RESEARCHDIRECT MAILTELEMARKETINGTRADESHOWS/CONFERENCESPRINT ADVERTISING-40%16-20%0%20%40%60%80%MORELESS

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.3 Marketing ChannelsINBOUND VERSUS OUTBOUNDIn comparing Inbound (pull) versus Outbound (push) tactics, how did/will you spend your marketing 20%10%0%LASTYEARTHISYEARMORE EXPENDITURE ONINBOUNDLASTYEARTHISYEARSIMILAR EXPENDITURE ONBOTHLASTYEARTHISYEARMORE EXPENDITURE ONOUTBOUND17

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.4 Marketing AutomationFor the purposes of this research, we define Marketing Automation as the use of software and web-based servicesto generate, track, nurture, manage and score leads as well as execute repetitive campaign tasks. It does not refer tosimple bulk email blast technology.MARKETING AUTOMATION ADOPTIONCRM INTEGRATIONWhich Marketing Automation Platform do you use?Is your Marketing Automation Platform integrated with your CRM?5 610%%252MARKETOORACLEELOQUA7%%NOT SUREHUBSPOT%IBM SILVERPOP%SALESFORCE.COMPARDOT%49%DO NOTUSE30%NO63%YESACT-ON21%OTHERBase: Marketing Automation usersTOP PLATFORMSSMALL BUSINESSES ( 25M)MARKETO 7% HUBSPOT 6% PARDOT 4%18MID-SIZE BUSINESSES ( 25- 499M)MARKETO 14% HUBSPOT 7% ELOQUA 6%LARGE BUSINESSES ( 500M )MARKETO 15% ELOQUA 13% PARDOT 9%

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.4 Marketing AutomationMARKETING AUTOMATION BENEFITSMARKETING AUTOMATION ROIHow do you benefit from Marketing Automation?How would you rate your ROI from Marketing Automation?23%6159423932%%%%%NOT SUREIMPROVED LEAD GENERATION AND LEAD NURTURINGIMPROVED MARKETING PRODUCTIVITYIMPROVED EMAIL OPEN/CLICK THROUGH RATES8%9%VERY SATISFIEDBREAKEVENIMPROVED INTEGRATION WITH SALES TEAMIMPROVED LEAD CONVERSION AND REVENUE OUTCOME26%YET TOACHIEVE ROIBase: Marketing Automation users34%SATISFIEDBase: Marketing Automation usersBEST-IN-CLASS: 56% of BICMs are very satisfied or satisfied with theirmarketing automation investment, compared to only 37% of the rest ofrespondents.19

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.5 Content MarketingSIGNIFICANCE OF CONTENTCONTENT TRENDSTARGETING BUYERSHow significant is Content Marketing in yourB2B marketing?How will you use the following content types in 2016 comparedHave you developed personas forbuyers in your target market?47VIDEOS/ANIMATIONS%VERYSIGNIFICANTto 2015?5%NOTSIGNIFICANTFOR /BLOGSMORE2029%WE PLAN TOLESSNO24%LONG ARTICLES/WHITE PAPERS5%PODCASTS-20%GLOBAL INSIGHT: B2B marketers allocate28% of their total marketing budget, onaverage, to content marketing.Content Marketing Institute/MarketingProfs,B2B Content Marketing Benchmarks, Budgets,and Trends – North America, 201642%CUSTOMERCASE STUDIESINFOGRAPHICS%YES0%20%40%60%NOT SURE

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.6 Social MediaSOCIAL MEDIA PLATFORMSWhich of the following platforms does your organisation use as a channel for B2B DUSTRY & PROFESSIONAL BLOGSGOOGLE 0%100%21

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.6 Social MediaSOCIAL MEDIA INVOLVEMENTSOCIAL MEDIA ROIWhich of the following best describes your organisation’s involvement inHow would you rate your Social Media ROI?social media?3%6%MONITOR/CONSUMEROF CONTENT BUT GENERALLYDO NOT BECOME A MEMBER9%COMMENTATOR/PARTICIPATOR INDISCUSSIONS BUT GENERALLYDO NOT CREATEOTHER99%VERY SATISFIEDINACTIVE%JOINER/MEMBER OFGROUPS BUT GENERALLYDO NOT PARTICIPATESATISFIEDBREAK EVEN64YET TO ACHIEVE ROI%CREATOR/PUBLISHER OFBLOGS ANDONLINE CONTENTNOT SURE0%10%20%30%40%BEST-IN-CLASS: BICMs are twice as likely to be satisfied with their SocialMedia Marketing (48%) than the rest of respondents (24%). BICMs are alsomore active as publishers on social media.22

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.7 Marketing Budget & MetricsMEASUREMENT ACCURACYWhich of the following areas do you measure with at least 80% accuracy?LEAD CONVERSION TO REVENUESALES ACCEPTANCE & FOLLOW-UP OF LEADSCUSTOMER & PROSPECT ENGAGEMENTCAMPAIGN ROI ATTRIBUTIONNONE OF THE ABOVENOT SURE0%10%20%30%40%50%60%GLOBAL INSIGHT: A quarter of B2B product and a third of B2B service marketers were able to quantifythe long-term impact of marketing spend on their business, while 56% of product and 49% of servicesmarketers said they had a good qualitative sense of the impact.Duke University for Deloitte & American Marketing Association, The CMO Survey, February 201623

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.7 Marketing Budget & MetricsSIZE OF MARKETING BUDGETCHANGES IN MARKETING BUDGETBUDGET ALLOCATIONWhat is your planned marketing budget for 2016(excluding salaries)?How does your 2016 marketing budget compareto your 2015 budget?How will you spend your marketing budget in2016?16% WILL INCREASE65%20% 24% WILL LATIONS9%MARKETINGAUTOMATION51% WILL STAY THE SAME13 17% 500K 500K 999K% 1M 4.9M3 2% 5M 9.9M% 10M 72(WITHIN 5%)%%%WILL DECREASE5%-20%%WILL DECREASE20% BEST-IN-CLASS: 50% of BICMs reported thattheir budgets will increase in 2016.241913ADVERTISING KETING17%CONTENTDEVELOPMENT& CURATION

Section 2: RESEARCH RESULTSB2B Marketing Outlook AUSTRALIA 20162.7 Marketing Budget & MetricsCOST PER LEADLEAD FOLLOW-UP RATELEAD CONVERSION TO ORDER RATEOn average, what did it cost you to generate aWhat percentage of leads passed from MarketingWhat percentage of leads passed from Marketingqualified marketing lead during 2015?to Sales are followed up by Sales?to Sales convert to orders?3837%%NOT SURE11%17 1-250PER LEAD%917% MORE THANLESS THANONE THIRDTWO THIRDS% ONE TONOTAPPLICABLE13TWO THIRDS%ONE TOTWO THIRDS31% LESS THANONE THIRD23%NOTSURE236% NOTSURE%% 2,000 273% 1,001- 2,0005% 501- 1,00015% 251- 500MORE THANTWO THIRDS16% NOTAPPLICABLEGLOBAL INSIGHT: 75% of B2B product and65% of B2B service marketers say that Salesand Marketing work together on an equallevel.Duke University for Deloitte & AmericanMarketing Association, The CMO Survey,February 201625

Section 3: ABOUT THIS RESEARCHB2B Marketing Outlook AUSTRALIA 20163.1 Research SupportersThis study was conducted by Green Hat with the support of ADMA,Marketing Magazine, B2B Marketing (UK) and B2B Marketing Leaders Forum.Green Hat is a leading Australian marketingOur services include B2B strategy development,The Association for data-driven marketing andconsulting agency dedicated to the B2B sector. We’re amarket research, lead lifecycle marketing includingadvertising (ADMA) is the principal industry body fordiverse bunch – from seasoned corporate consultantslead generation and lead nurturing, marketinginformation based marketing and advertising and is thethrough to Gen Y digital die-hards with a wide rangeautomation, social media, SEO/web services andlargest marketing and advertising body in Australia withof skills, viewpoints and backgrounds. We assist ourcontent marketing. Industries we specialise in are ICTover 600 member organisations. ADMA is the ultimateclients in attracting, engaging and qualifying buyers(high-tech), professional services, financial services,authority and go-to resource for creative and effectiveusing data-driven digital marketing strategies.industrial and any business dealing in ‘complex anddata-driven marketing across all channels and platforms,considered purchases’.providing insight, ideas and innovation to advanceresponsive and enlightened marketing.green-hat.com.auadma.com.auFor further information on this research, please contact the report authors:26Andrew HausseggerCaroline LeslieManaging DirectorCommunications om/in/carolineleslie

Section 3: ABOUT THIS RESEARCHB2B Marketing Outlook AUSTRALIA 2016MEDIA PARTNERMEDIA PARTNEREVENT PARTNERMarketing’s goal is simple, and has been for over 30B2B Marketing (UK) is the leading media andB2B Marketing experts and CMOs from Mercer, GE,years: help marketing decision-makers excel. Throughprofessional resource, dedicated to supporting theTelstra Business, NAB Business, Cisco, Perpetual andprint, online and now in 2016 premium content, toolsbusiness marketing sector, both client side andmany more will gather in Sydney in May at the B2Band events, Marketing is evolving to give marketers inagency. ‘Marketing is the business of business’,Marketing Leaders Forum APAC 2016 to learn about thebusinesses large and small gain that extra competitivehence, B2B Marketing puts the 20B global industrylatest in B2B marketing and share the secrets to theiradvantage.within the context of business issues, not just as asuccess.marketing channel. The media, community andmarketingmag.com.auevent platforms provide practical content, shared andIf you’re a B2B Marketer, come to this unique forumbranded, professional development and peer-to-peerto take control of your career, inspire your team,engagement.benchmark your strategies against the best and takerelevant, actionable ideas back to your company. Don’tb2bmarketing.netmiss this rare opportunity for senior-level networkingand ideas exchange.b2bmarketingleaders.com.au27

MELBOURNESYDNEYgreen-hat.com.auLevel 1, 39 Burwood Road,133 Alexander Street,hello@green-hat.com.auHawthorn, VIC 3122Crows Nest, NSW 2065linkedin.com/company/green-hat 61 3 9290 9777 61 2 9431 5323@greenhatmktg 2016 Green Hat Marketing Pty Ltd ABN 30 099 016 752. All rights reserved. No part of this document may be reproduced or transmitted in any form without the prior approval of Green Hat Marketing Pty Ltd. Any quotation from this document must be attributed to the author.

Finally, thanks once again to our industry supporters - ADMA, Marketing Magazine, B2B Marketing UK and the team at B2B Marketing Leaders Forum. Once again, we have had a tremendous response to our annual B2B marketing research - thanks to the 448 respondents who participated! 2016 is shaping up to be a pivotal year for