The perception of marketing is improving, marketing roles are expanding, and marketing budgets, staff, and agency spend are increasing. Investments in content development, marketing technology, and sales enablement are keeping pace with changing buyer behavior. However as percentage of revenue, marketing budgets are declining. Senior executives still do not see marketing contributing enough to strategy development, revenue growth, and shareholder value. They are asking marketers to stretch their budgets and do more with less. Based on the results of the study, ITSMA outlines five priorities for marketers in 2014: Measure and communicate metrics that matter Become a data and technology frontrunner Improve relevance and personalization Enable thought leadership selling Develop a proactive and adaptive marketing culture Overview Services Marketing Budgets and Benchmarks: 2014 Budget Allocations and Trends, a PowerPoint-style report, delivers a detailed look at the state of the services marketing profession as it exists in early 2014. It provides data on services marketing budgets, budget allocations, and marketing priorities from a range of companies across the technology and consulting industries. Topics covered in the report include: Services marketing budget size and growth rates Services growth rates Services marketing budget allocations Services marketing staff growth rates Services marketing staff allocations Marketing mix budget allocations Digital marketing budget allocations Marketing operations and automation Marketing priorities Study Methodology During December 2013 through January 2014, ITSMA used a Web-based survey to gather data from its members about services marketing budgets, services growth, and top marketing priorities. ITSMA received 45 responses from 44 unique companies and analyzed the collected data five ways: The data set as a whole Company type—primarily services or product and services Company size—less than $1 billion or $1 billion or more in annual services revenue Growth Rate—less than 10% or 10% or higher Geographic location—North America, Europe, or Asia

1. 2014 Services Marketing
Budget Allocations
and Trends
Julie Schwartz
Senior Vice President
Research and Thought Leadership
ITSMA
Abbreviated Summary | January 2014
2014 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B025AS | © 2014 ITSMA. All Rights Reserved.

2. ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
Abbreviated Summary
The 2014 Services
Marketing Budget
Allocations and Trends
survey provides data on
services marketing budgets,
budget allocations, and
marketing priorities from a
range of companies across
the technology and
consulting industries.
Topics covered in the report include:
services
marketing budget size and growth rates
revenue growth rates
marketing budget allocations
marketing staff growth rates
marketing staff allocations
marketing mix budget allocations
marketing operations and automation
marketing priorities
digital marketing
Account Based Marketing
© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
budget allocations
www.itsma.com | B025AS |
2

3. ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
As we look ahead to 2014, we see both good news
and some concerns
Good News
The perception of marketing is
improving
Marketing roles are expanding
Marketing budgets, staff, and
agency spend are increasing
Note: This Abbreviated Summary highlights some
of the significant findings from 2014 Services
Marketing Budget Allocations and Trends. A more
in-depth analysis can be found in the full report.
© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
Concerns
• Senior executives still
do not see marketing
contributing enough to
– Strategy development
– Revenue growth
– Shareholder value
• Marketing budgets are
declining as a
percentage of revenue
www.itsma.com | B025AS |
3

4. ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
Despite an improving economic
picture, the era of doing
with less
more
is not yet over
© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
www.itsma.com | B025AS |
4

5. ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
More companies are increasing
marketing spend in 2014…
In FY2014, do you expect your marketing
budget to increase, decrease, or stay the
same when compared to FY2013?
Overall 2014
% of Respondents (N=45)
B2B Services
Marketing
Budget Growth:
4.8%
… but as a percentage of revenue,
marketing budgets are trending
lower
What is the size of your annual services
marketing budget as a percentage of services
revenue? % of Services Revenue Spent on Marketing
1.5
1.5
1.4
1.3
1.2
1.0
Stay the Same
36%
1.2
1.0
0.8
Increase
51%
Decrease
13%
Average
decrease:
15.3%
Average
increase:
10.0%
Source: ITSMA, 2014 Services Marketing Budget Allocations and Trends
© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
2006 2007 2008 2009 2010 2011 2012 2013 2014
(est)
Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2006, 2007, 2008,
2009, 2010, 2011, 2012, 2013, 2014
www.itsma.com | B025AS |
5

6. ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
In response to changing buyer behavior and economic pressures,
marketers are shifting their spending in 2014 to reflect new priorities
Marketing Budget Trends
Increasing spending
• Content development
Decreasing spending
• Sponsorships
• Sales (channel) enablement
and support
• Public trade shows, events,
conferences
• Brand and communications
• Advertising (traditional)
• Digital marketing
• Direct marketing
(email/mail/telemarketing)
• Private events, seminars, and
conferences
• Marketing technology
• Marketing performance management
Source: ITSMA, 2014 Services Marketing Budget Allocations and Trends
© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
www.itsma.com | B025AS |
6

7. ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
The digital marketing budget composition is shifting with
the old mainstays—email and webinars—declining
Digital Marketing Budget Trends
Increasing spending
• Online video
• Blogs
Decreasing spending
• Email, email newsletters
• Client extranets or microsites
• Search engine optimization (SEO)
• Virtual tradeshows,
conferences, and events
• Public online communities
• Webinars
• Podcasts
Source: ITSMA, 2014 Services Marketing Budget Allocations and Trends
© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
www.itsma.com | B025AS |
7

8. ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
Content development, leadership, and
data/analytical skills are in highest demand
Which of the
following skills
do you believe
are essential to
your marketing
organization’s
future success?
% of Respondents
(N=45)
Note: Up to three responses allowed.
Source: ITSMA, 2014 Services Marketing
Budget Allocations and Trends
Writing/storytelling/editing/publishing
Leadership
Data and analytics
Critical thinking
Business acumen
Strategic planning
Vertical market/industry expertise
Influence and negotiation
Technology
Project management
Social media
Design/creativity
Sales/business development 4
Primary research 4
Other 4
© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
53
51
36
22
22
22
20
18
11
11
11
9
www.itsma.com | B025AS |
8

9. ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
Five mandates for marketers in 2014
1. Measure and communicate metrics that matter
2. Become a data and technology frontrunner
3. Improve relevance and personalization
4. Enable thought leadership selling
5. Develop a proactive and
adaptive marketing culture
© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
www.itsma.com | B025AS |
9

10. ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
Study Participants
© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
www.itsma.com | B025AS |
10

11. ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
Organization Size
Study Methodology
From December 2013 through January 2014,
ITSMA used a web-based survey to gather data
from its members and select non-members about
services marketing budgets, services growth, and
top marketing priorities. ITSMA received 45
responses from 44 unique companies.
How large is your services business?
% of Respondents (N=45)
7%
7%
Less
than
$100M
$100–
249M
Industry Subsector
Which of
Other
Network
these
9%
systems and
categories
best describes solutions
13%
provider
your industry
subsector?
Software 16%
% of
solutions
Respondents
provider
(N=45)
22%
11%
$500–
999M
31%
$1–5B
Greater
than
$5B
11%
$250–
499M
33%
In Services Revenue
Type of Company
40%
Professional
services firm
(consulting,
outsourcing,
and systems
integration)
Computer systems and
solutions provider
© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
Which of the
following
We
best
primarily
describes
sell
40%
your
services
company?
% of
Respondents
(N=45)
60%
We sell
both
products
and
services
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends
www.itsma.com | B025AS |
11

12. ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
Services Revenue Growth Rate
ITSMA analyzed the survey data in four ways:
 The data set as a whole
 Company type: primarily services or product
and services
 Company size: less than $1B or $1B or more
in annual services revenue
 Revenue growth rate: less than 10% or 10%
or more
 Geographic location: North America,
Europe, or Asia
Respondents’ Perspective
From which perspective
will you be
answering
A specific
this survey?
business unit
% of
or division
Respondents
(N=45)
47%
53%
Entire
company
What was/will be the
percentage
growth rate of
your company
or division
revenue?
% of
Lower
Respondents
Growth
(N=35)
(<10%)
37%
Higher
Growth
(>=10%)
63%
Note: Includes only those companies that provided services revenue growth rates.
Higher Growth = annual services revenue growth rate >=10%; Lower Growth =
annual service revenue growth rate <10%
Geographic Location
In which
geography
are you
based?
% of
Respondents
(N=45)
Europe
Asia
13%
69%
North
America
18%
Source: ITSMA, 2013 Services Marketing Budget Allocations and Trends
© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
www.itsma.com | B025AS |
12

13. ITSMA Benchmarking Study | 2014 Budget Allocations and Trends
Table of Contents for 2014 Services Marketing Budget
Allocations and Trends
Slide
Survey Highlights
3
Survey Methodology and Demographics
26
Size of the Marketing Budget
36
Services Revenue
42
Marketing Staffing
45
Agency Relationships
54
Services Marketing Budget Allocation
59
The Marketing Mix
67
Marketing Operations
73
Account Based Marketing
76
Marketing Priorities
79
Marketing Organization Perception and Scope
82
Crosstabs
87
By Size of Company
87
By Type of Company
130
Select Crosstabs by Growth
171
Select Crosstabs by Geographic Location
185
Appendix: Definitions Used in This Report
193
© 2014ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.
For More Information
Julie Schwartz
Senior Vice President
Research and Thought Leadership
ITSMA
Email: jschwartz@itsma.com
Phone: +1-781-862-8500, Ext. 112
www.itsma.com | B025AS |
13