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B2B CONTENT MARKETING:
  2012 BENCHMARKS, BUDGE TS & TRENDS
FOREWORD
Hello, Fellow B2B Marketer!

  n the past year, content marketing has gained incredible momentum. As this topic gains mindshare, it’s fueling discussions
I around the web, at events, and in boardrooms. But just how well are B2B marketers achieving their goals when it comes to
content marketing? And how much has changed in the past year?

To answer these questions, the Content Marketing Institute and MarketingProfs surveyed 1,092 marketers in
August 2011.1 In this second annual survey, we uncovered some interesting findings.

While we saw some unexpected changes between this year and last, we weren’t surprised to see that content marketing still
ranks highly in the list of priorities for B2B marketers. Just as in 2010, 9 in 10 organizations market with content – regardless
of company size or industry.

And they are doing what it takes to bring about desired results:

        On average, B2B marketers employ eight different content marketing tactics to achieve their marketing goals.
        60% report that they plan to increase their spend on content marketing over the next 12 months.
        Marketers, on average, spend over a quarter of their marketing budget on content marketing.

However, while marketers are committing time and budget to adopt the concepts and practices of content marketing, it’s clearly
a tool they are getting accustomed to using. As a result, they’re still formulating strategies for how to best measure effectiveness.
From all appearances, marketers are headed in the right direction; we see a significant improvement in the perceived
effectiveness of the most popular content tactics. The good news is that with progress come even better results.

B2B Content Marketing: 2012 Benchmarks, Budgets and Trends provides a detailed look at many aspects of content marketing,
including the tactics used, social media considerations, goals, measurements, budgets, outsourcing, and challenges. The end of
the report presents the practices of self-described “best in class” content marketers.

We hope this report helps you benchmark your content marketing efforts and inspires you to pump up your content
marketing strategy!




                           JOE PULIZZI                                                         ANN HANDLEY
                           Founder & Executive Director                                        Chief Content Officer
                           Content Marketing Institute                                         MarketingProfs




1
    Last year’s survey covered North America; this year’s survey was worldwide, with the majority of respondents from North America.


                                                                                   2
EXECUTIVE SUMMARY
B2B Content Marketing: 2012 Benchmarks, Budgets and Trends is the second annual survey about content marketing in the
business-to-business (B2B) space. We surveyed 1,092 marketers from diverse industries and a wide range of company sizes
in August 2011. Last year, the results revealed content marketing is a well-established, core marketing strategy in the B2B
marketplace. However, while many marketers were using these tactics, they were uncertain about their effectiveness. This year,
even though the confidence gap is shrinking regarding content marketing, there is still more education that needs to be done.

For purposes of the research, the survey defined content marketing as follows:

“Content marketing/custom media (sometimes called custom publishing, custom content, or branded content) is the creation and
distribution of educational and/or compelling content in multiple formats to attract and/or retain customers.”

Content Marketing Institute and MarketingProfs developed and conducted the study.



MAJOR FINDINGS IN 5 KEY AREAS
1. Usage and Effectiveness:
Just as last year’s survey showed, nine out of 10 B2B marketers are using content marketing to grow their
businesses, and on average, marketers use eight content marketing tactics to achieve their marketing goals. The most
popular tactics are article posting (79%), social media (excluding blogs) (74%), blogs (65%), eNewsletters (63%), case studies
(58%), and in-person events (56%).

While marketers are confident about the value of content marketing, they are challenged to demonstrate the
effectiveness and impact of individual tactics and distribution channels. That said, the “confidence gap” we discovered last
year is shrinking when it comes to the rates of adoption of specific content marketing tactics and the perceived effectiveness of
those tactics.

Content marketing uptake is high across industries, with no single industry reporting below 70% adoption. The
professional services industry reports the highest level of adoption, just nudging out computing/software, which ranked number
one last year.



2. Goals and Measurement:
Marketers are using content marketing to support multiple business goals, led by brand awareness (69%), customer acquisition
(68%), lead generation (67%), and customer retention/loyalty (62%); just as we found last year, the least widely employed goal
for content marketing is lead management/nurturing.

Just as in last year’s findings, web traffic is the most widely used success metric (58%). However, this year, sales lead
quality (49%) is the second-highest used metric (versus direct sales in the previous study).




                                                               3
3. Budgets and Production:
B2B marketers dedicate approximately 26% of their total budgets to content marketing initiatives — precisely the
percentage allocated in the previous year. Also in line with last year’s results is the fact that smaller companies (in terms of
number of employees) allocate a larger share of their budget to content marketing than do larger companies.

This year, a majority of marketers (60%) report they plan to spend more money on content marketing in 2012 (compared to
51% in 2011).

62% of B2B marketers use outsourcing for content marketing, a substantial increase compared to last year’s findings (55%).



4. Challenges:
As it was last year, the greatest reported challenge is “producing the kind of content that engages prospects
and customers” (41% of respondents). And nearly the same percentage of respondents in 2011 as in 2010 reports that
“producing enough content” (20%) and “budget to produce content” (18%) are their greatest challenges in content marketing.



5. Practices of Best in Class:
40% of marketers consider themselves to be more effective in content marketing than their competitors.
All marketers have the opportunity to increase effectiveness, and they all can learn from the “best in class.” Just as was the case
last year, effective marketers spend more and are more strategic in their approach:

    They allocate 31% of their budget to content marketing, compared to less effective marketers who invest 18%.

    They are 50% more likely to consider the “stage in the buying cycle” when developing content, whereas less effective
    marketers are less likely to tailor content in any way.

    They benefit from substantially more buy-in from senior members of the organization. Only 8% of effective marketers
    complain about lack of buy-in from higher-ups, versus 17% of those who rate themselves as less effective (though, on a
    positive note, this number has declined, dropping down from last year’s rate of 24% for less effective marketers).



While the data indicates marketers have made solid headway over the past year, marketers from all industries and
company sizes can benefit from fine-tuning their approaches to content planning, development, promotion, and
measurement. Those that do will reap the rewards.

Read on for our detailed findings in all of these areas.




                                                                  4
USAGE & EFFECTIVENESS
Content Marketing Adoption Remains Steady at 90% of Marketers
In general, B2B marketers are using the same mix of tactics as they did in the previous study (average of 8 tactics
in both years). Some notable increases:
        • Blogs (27% increase)
        • White papers (19% increase)
        • Videos (27% increase)

Content Marketing Tactics Used                B2B Content Marketing Usage (by Tactic)
Just as we found in last year’s study,
article posting and social media
(excluding blogs) are the most popular             Articles                                                         79%
tactics and are currently used by 79%
and 74% of B2B marketers, respectively
                                                   Social Media (other than blogs)                              74%
(Figure 1). However, use of social                 Blogs                                                 65%
media actually declined in 2011 by 5
percentage points.
                                                   eNewsletters                                          63%
                                                   Case Studies                                      58%
                                                   In-Person Events                                56%
                                                   Videos                                        52%
                                                   White Papers                                  51%
                                                   Webinars/Webcasts                       46%
                                                   Microsites                     31%
     Articles and social                                                          31%
                                                   Print Magazines
   media continue to be
   most popular content                            Traditional Media           30%
     marketing tactics.                            Research Reports        25%
                                                   Branded Content Tools 22%

                                                   Print Newsletters 20%
                                                   eBooks          16%
                                                   Podcasts        16%
                                                                 Mobile Content 15%
                                                                Digital Magazines 14%

                                                              Virtual Conferences         10%

                                               0        10         20        30      40     50      60     70      80      90        100

                                            Figure 1                    B2B Content Marketing: 2012 Benchmarks, Budgets and Trends




                                                                   5
Figure 2




Some of the tactics, such as blogs, video
and white papers are used much more
                                                Di erences in Content Marketing Usage (By Tactic)
frequently this year than in the previous           2011      2010
study (Figure 2).
                                                            Blogs                                                                                   65%
                                                                                                                                    51%
                                                           Videos                                                                   52%
                                                                                                                        41%
                                                   White Papers                                                                     51%
                                                                                                                          43%
                                                Print Magazines                                              31%
                                                                                                                         42%
                                               Print Newsletters                            20%
                                                                                               25%
                                                           eBooks                         16%
                                                                                 9%
                                                                    0           10          20          30         40          50          60           70   80


                                              Figure 2              B2B Content Marketing: 2012 Benchmarks, Budgets and Trends




CONTENT MARKETING BY COMPANY SIZE
For some tactics, adoption varies widely based on company size:

Just as in the previous study, on average, the larger the company, the greater number of content marketing
tactics used. The largest companies (those with over 1000 employees) use 9 tactics, and the smallest
companies (those with fewer than 10 employees) use 6 tactics.

    Like last year, the largest companies report a higher adoption rate for most tactics. Last year, the
    most marked differences between the largest and smallest companies were seen in their use of print
    magazines and microsites. This year, the most notable differences lie in their use of white papers (67% of
    the largest companies versus 35% of the smallest companies), webinars (60% of the largest companies
    versus 28% of the smallest companies), and microsites (54% of the largest companies versus 16% of
    the smallest companies).

    This year, small- and medium-sized companies
    report higher adoption rates than the largest                   Industries with the highest rates
    companies in a number of categories. For                        of content marketing adoption:
    example, while 79% of the largest companies use
    articles, 85% of medium-sized companies (those                      Professional Services .....................................94%
    with 100-1,000 employees) use this tactic; 78%                                                          ......................................93%
    of medium-size companies use social media (not                                                             ...................................89%
    including blogs), while only 65% of the largest
                                                                                  ................................................................89%
    companies do. And 68% of companies with 10 – 99
    employees maintain a blog, though only 55% of the                                                .............................................84%
    largest companies employ this tactic.                                                                                 ........................83%




                                                                     6
SOCIAL MEDIA DISTRIBUTION CHANNELS
We also asked marketers to tell us what social media channels they use to distribute content. Once again,
Twitter trumps all other social media distribution types (Figure 3), and at higher rates than last year
(Figure 4). That said, every social media channel is seeing increased adoption, often by 15-20%:
  •   YouTube: 47% increase
  •   LinkedIn: 39% increase
  •   Twitter: 35% increase
  •   Facebook: 30% increase
                                                                      Percentage of  Marketers Who Use Various
It should come as no surprise that the increased                      Social Media Sites to Distribute Content
adoption rate of the video-sharing site YouTube
(56%) is in line with the increase in video usage
(52%).
                                                                               Twitter                                                   74%
This year, Google+ joins the list of distribution                              LinkedIn                                                71%
channels, with an industry average of 13%.                                     Facebook                                                70%
Three industries are using this channel at                                     YouTube                                     56%
higher rates than other industries: professional
                                                                               Slideshare 20%
services (19%), advertising/marketing (19%),
and business services (17%). For the first                                             Google+ 13%
time, we surveyed marketers about their use                                        Flickr 10%
of SlideShare and Flickr, and found these                                        None 9%
channels being used at rates of 20% and 10%,
respectively. Those marketers rating themselves                        0       10         20     30      40      50        60         70        80
as effective are significantly more likely to use all
of these distribution channels.                                     Figure 3               B2B Content Marketing: 2012 Benchmarks, Budgets and Trends




                                               Social Media & Content - Growth Trends
                                                    2011     2010
  Every social media                                                                                                                  74%
   channel is seeing                               Twitter
                                                                                                                 55%
 increased adoption,
    often by 15-20%.                             LinkedIn                                                                            71%
                                                                                                                51%
                                                 Facebook                                                                        70%
                                                                                                                 54%
                                                 YouTube                                                          56%
                                                                                                   38%
                                                             0        10        20        30      40       50         60        70         80


                                             Figure 4               B2B Content Marketing: 2012 Benchmarks, Budgets and Trends




                                                                           7
CONTENT MARKETING EFFECTIVENESS                       Con dence Gap: E ectiveness Ratings of Tactics Among Users
It’s clear that marketers are feeling more                                                     Believe it is                     Believe it is
assured in using content marketing to achieve                                                   Effective                   Less Effective/Ineffective
their goals. Just as important, they’re more
confident in how well they are using these                                   50%                                           Social Media              50%
tactics — across just about every tactic. In                                  51%                                         Articles                  49%
other words, the large confidence gap we saw                                 56%                                           Microsites             44%
in last year’s study is shrinking.
                                                                         58%                                              Blogs                  42%

                                                                       60%                                                White Papers         40%
Figure 5 shows how marketers rated the
effectiveness of each tactic.                                          60%                                                eNewsletters         40%

                                                                       61%                                                Videos               39%
While in-person events and webinars are                           70%                                                     Case Studies        30%
still seen as the most effective tactics, on
                                                                  70%                                                     Webinars/Webcasts 30%
average, the following ranked notably higher
                                                            78%                                                           In-Person Events 22%
in perceived effectiveness compared to our
last report:
                                                      100         75                 50               25              0                  25         50    75      100
    • Blogs: 45% increase
    • Case studies: 32% increase
    • Videos: 36% increase                           Figure 5                B2B Content Marketing: 2012 Benchmarks, Budgets and Trends
    • Webinars/webcasts: 25% increase

Though social media is still considered the
least effective of the top tactics, just as it was
in 2010, half of this year’s respondents think it
                                                                       Content Marketing
is effective. And, in fact, 61% more marketers              Tactic E ectiveness Ratings: High & Low
perceive social media as effective in 2011
                                                      Among those who use a particular content marketing tactic, what percentage
than last year.
                                                      of marketers believe that tactic is either “very effective” or “effective”?

Now that marketers have found ways to                  Top Effectiveness Ratings Amongst Those Who Use A Given Tactic
use some of these tactics to effectively
                                                       78% ................Rate In-Person Events
achieve their goals, the next step is to gain          70% ................Rate Webinars/Webcasts
                                                                                                                                       EFFECTIVE/VERY EFFECTIVE
confidence in their use of branded content,             70% ................Rate Case Studies
digital magazines, mobile content, and                 68% ................Rate Research Reports
podcasts.
                                                       Bottom Effectiveness Ratings Amongst Those Who Use A Given Tactic
                                                       37%.................Rate Podcasts
                                                       42% ................Rate Mobile Content
                                                                       (e.g., content formatted for PDAs/iPhones,                      EFFECTIVE/VERY EFFECTIVE
                                                                       content applications for smart phones, etc.)

                                                       43% ................Rate Digital Magazines
                                                       47%.................Rate Branded Content Tools
                                                                       (e.g., website grader, online calculator,
                                                                       widget, etc.)




                                                                        8
GOALS & MEASUREMENT
Content Marketers Name Different Objectives and Measurements for Success:
    Brand awareness and customer acquisition rise to the top of content marketing goals.

    Marketers use a number of metrics to measure effectiveness. Just as in last year’s report,
    web traffic and sales lead quality top the list.

Just as in the previous year, marketers are adopting content marketing strategies to achieve a variety of goals. In fact, the
top goals of brand awareness, customer acquisition, lead generation, and customer retention/loyalty remain the same
(Figure 6). Some notable differences from last year:

    Fewer marketers are using content marketing to achieve brand awareness, customer acquisition/loyalty,
    and sales.

    More marketers are using content marketing for customer acquisition (referred to as customer recruitment in last
    year’s report), lead generation, website traffic, thought leadership, and lead management/nurturing.




  Organizational Goals for Content Marketing

       Brand Awareness                        68%
       Customer Acquisition                   68%
       Lead Generation                      66%                                                 Brand awareness
                                                                                                   and customer
       Customer Retention/Loyalty          61%                                                 acquisition rise to
       Website Tra c                    56%                                                    the top of content
       Engagement                      55%                                                       marketing goals
       Thought Leadership              55%
       Sales                        47%
       Lead Management/Nurturing 39%

   0        10       20        30        40        50        60        70      80


Figure 6          B2B Content Marketing: 2012 Benchmarks, Budgets and Trends




                                                                      9
To measure the effectiveness of content
marketing, marketers are now relying on          Measurement Criteria for
slightly different criteria than they did
last year. While web traffic and sales
                                                 Content Marketing Success
lead quality still top the list, we see a 12
percentage point bump over last year in the
number of marketers using SEO ranking
to measure success. Inbound links are                Web Tra c                                           58%
also proving more valuable to marketers in
                                                     Sales Lead Quality (e.g., sales accepted leads) 49%
gauging effectiveness. At the same time,
fewer marketers are expecting direct sales           Direct Sales                            41%
as the result of their content marketing             Sales Lead Quantity                     41%
efforts (Figure 7).
                                                     Qualitative Feedback from Customers 40%
                                                     SEO Ranking                            40%
            While web traffic                         Inbound Links                30%
       and sales lead quality
         still top the list, we
        see a 12 percentage                      0        10      20      30        40       50       60       70       80
        point bump over last
       year in the number of                   Figure 7          B2B Content Marketing: 2012 Benchmarks, Budgets and Trends
             marketers using
                 SEO ranking




                                                           10
BUDGETS & PRODUCTION
Content Marketing Spend is Jumping, Marketers are Increasingly Outsourcing
While approximately 26% of B2B marketers’ total budgets are allocated to content marketing efforts — exactly the
same percentage as in last year’s report — investment in content marketing continues to grow:
  • 60% of respondents indicate they will increase spending on content marketing in 2012.
  • Over half (62% of respondents) use outsourcing for at least a portion of their content marketing activities, a significant
    increase over last year’s use of outsourcing (52%).

Content Marketing Spending
Rising confidence in the effectiveness of content
marketing seems to be spurring marketers
to dedicate more budget to this strategy. On
average, 60% of respondents indicate that
they plan to increase their content marketing
budgets over the next 12 months (Figure 8).

While, like last year, B2B marketers, on average,
spend 26% of their budgets on content marketing
activities, this varies by company size. The smaller
the company (in terms of number of employees),
the larger the percentage it spends on content
marketing (Figure 9). Companies with fewer
than 10 employees spend 34% of their budgets
on content marketing, whereas companies with
greater than 1000+ employees spend 20% of their
budgets on content marketing.                          Figure 8             B2B Content Marketing: 2012 Benchmarks, Budgets and Trends




                                                        Total Marketing Budget Spent on Content Marketing

                                                            Company Size                                       Ratio of                Percentage
         60% of respondents                                                                            Distribution to Creation         of Budget
      indicate that they plan
    to increase their content                               Micro (Fewer than 10 employees) ...........1.8 ......................... 34%
     marketing budgets over                                 Small (10 - 99 employees) .....................2.0 ......................... 26%
         the next 12 months.                                Mid-size (100-999 employees)....................2.2 ......................... 23%
                                                            Large (1000+ employees) ......................5.5 ......................... 20%
                                                            Overall .............................................3.5 ......................... 26%

                                                       Figure 9             B2B Content Marketing: 2012 Benchmarks, Budgets and Trends




                                                                  11
On average, the spend on content distribution is 3.5 times the size of that spent on content creation. The ratio increases with the
size of the company (Figure 9). For instance, companies with more than 1,000 employees spend over 5.5 times as much on content
distribution as they do on creation, and companies with fewer than 10 employees spend only 1.8 times as much on distribution as they
do on creation.

Content Marketing Outsourcing
As content marketing budgets increase, so too does the percentage of companies that outsource.

Last year, only 55% of marketers used outsourcing in some capacity. This year, 62% of B2B marketers use a mix of insourced and
outsourced content. Outsource-only strategies are rare at only 4% (Figure 10).

While 38% of marketers handle their content creation in house, respondents spend, on average, 25% of their content-creation
budget with outside resources, such as consultants and agencies. A much smaller percentage of marketers hire external resources
to help with distributing content.

Our survey also finds that larger companies
(defined as greater than 1,000 employees)                  Insource vs. Outsource of Content Marketing
are 24% more likely than smaller
                                                                 2011      2010
companies (10-99 employees) and 19%
more likely than the average company to
                                                               In House Only                                         38%
outsource content (Figure 11).                                                                                              45%
                                                             Outsourced Only           4%
When seeking out the right vendors to
                                                                                       3%
support content marketing — whether for
writing, management, or production —                                      Both                                                      58%
marketers use a variety of resources. The                                                                                         52%
biggest changes from last year’s report are:                                      0       10       20       30      40       50       60

    An increase in use of consultants (32% in            Figure 10           B2B Content Marketing: 2012 Benchmarks, Budgets and Trends
    2011 versus 27% in the previous report)

    A decrease in the use of trade shows as a             Percentage of Companies that Outsource
    venue to find support (20% in 2011 versus              Content Marketing
    26% in last year’s report)


                                                                                                        2011                      2010
            This year, 62% of                                 Micro (Fewer than 10 Employees) ....... 53% ..................... 48%
         B2B marketers use a
         mix of insourced and                                 Small (10-99 Employees) ................ 60% ..................... 42%
          outsourced content.                                 Mid-size (100-999 Employees) ......... 62% ..................... 54%
                                                              Large (1000+ Employees) ............... 74% ..................... 77%
                                                              Average................................. 58% ..................... 55%

                                                         Figure 11               B2B Content Marketing: 2012 Benchmarks, Budgets and Trends




                                                                     12
CHALLENGES IN CONTENT MARKETING
Marketers Still Challenged to Stay Relevant and Compelling
Just as in last year’s report, the number one challenge is producing engaging content, followed closely by
resource constraints.


The largest challenge (for 41% of respondents) is “producing the kind of content that engages prospects and
customers” (Figure 12). While a greater number of respondents are struggling with this in 2011 compared with last year (36% of
2010 respondents reported this as their biggest challenge), just like last year, this year’s respondents are also struggling with two
challenges that go hand in hand: producing enough content (20%) and having the budget to produce enough content (18%).

Marketers were asked to explain what particular challenges they face within their own organizations. We noticed a number of
themes running throughout their comments:

• Getting buy-in:
  “Management patience - mgt needs to understand that in today’s B2B environment it takes time to
  engage prospects. The prospect has a lot more power than they did in the 90’s and 2000’s.”

• Finding internal help:
  “Finding people within my organization to contribute their expertise to relevant content.
  Nobody outside of marketing seems to see the value in sharing our expertise with the market via content marketing.”




     Biggest Content Marketing Challenge

                        1%
                7%                                        Producing the Kind of Content
                                                          that Engages Prospects/Customers
       12%                      41%                       Producing Enough Content
                                                          Budget to Produce Content
                                                          Lack of Buy-In/Vision from
      18%                                                 Higher-Ups Inside Your Company
                                                          Producing a Variety of Content
                  20%                                     Budget to License Content




   Figure 12         B2B Content Marketing: 2012 Benchmarks, Budgets and Trends



                                                                     13
• Having enough time:
  “Time and content creation. The ideas are all there, it’s just a matter of finding time to create and write copy.”

  “Producing enough content and distributing it through *all* of the relevant channels. (I am the sole person responsible for
  creating/promoting our content, and there’s never enough time in the day.)”

• Creating a sustainable process:
  “Creating emotionally compelling content and maintaining a consistent cadence of creation/distribution”

  “Having the discipline and being able to assign sufficient resources to create and manage the right content for the target
  audience, in a sustainable manner.”

That said, more B2B marketers are segmenting their audience than last year (88% versus 82%). While the most popular way to
segment an audience last year was by company characteristics (50%), marketers are becoming more sophisticated, increasingly
segmenting based on the profile of the decision maker (57% versus 49% last year).

Only 39% of respondents align
content with the stage in the                      Content Segmentation
buying cycle or sales funnel. And
12% of respondents do not tailor
their content in any way (Figure
13). Regardless, segmentation is                                                                              2011                 2010
becoming more common.

                                                      Pro le of Individual Decision-makers ....... 57% ............... 49%
                                                      (e.g., Title, Persona, etc.)
       Marketers are
     becoming more                                    Company Charateristics ............................ 51% ............... 50%
       sophisticated,                                 (e.g., Size, Industry, etc.)
         increasingly
  segmenting based
 on the profile of the                                 Stage in the Buying Cycle.......................... 39% ............... 32%
     decision maker.                                  (or Sales Funnel)

                                                      None ........................................................ 12% ............... 18%

                                                 Figure 13           B2B Content Marketing: 2012 Benchmarks, Budgets and Trends




                                                                       14
PRACTICES OF BEST IN CLASS
Lessons from the Best Content Marketers: Spend More, Align with the Buying Cycle,
and Secure Exec Buy-in

Those marketers who rate their work as more effective than their competitors’ spend more overall, align their content
with the buying cycle, and have more support of top executives.


A subset of respondents to our survey (40%) identified their own content marketing as “effective” or “very effective” (defined as an
answer of 4 or 5 on a scale of 1 to 5) compared to that of their competitors. We were interested in finding out whether this self-
selected group differed in any meaningful way from their peers (Figure 14).

    Best-in-class marketers invest 31%
    of their budgets in content marketing,
    compared to the least effective
                                                   Comparison of Most E ective Content Marketers to
    marketers, who only allocate 18%.
                                                   Least E ective Content Marketers

    They are also more likely to segment
                                                                                                                Most                  Overall/             Least
    their content based on the buying                                                                          E ective               Average             E ective
    cycle (45% of best in class versus
    39% of industry average and 29% of               Percentage of Marketing Budget .............. 31% ............... 26% .............. 18%
    laggards).                                       Allocated to Content Marketing

    They are less likely to lack executive           Percentage Who Segment Based .............. 45% ............... 39% .............. 29%
    buy-in for content marketing (8% of              on Buying Cycle
    best in class versus 12% of industry
    average versus 17% of laggards).                 Percentage Who Cite Exec Buy-In ............. 8% ................. 12% .............. 17%
                                                     as a Challenge

           Marketers are                             Percentage Who Plan to Increase ............. 63% ............... 60% .............. 59%
         becoming more                               Content Marketing Spend in Next
           sophisticated,                            12 Months
             increasingly
                                                    Marketers were asked to rate how e ective they thought their organization’s use of content marketing was
      segmenting based                              as compared to the competition. Respondents could then rate themselves on a scale of 1 (least e ective) to
     on the profile of the                           5 (most e ective). This section compares self-rated e ective (rating of 4 or 5) to less e ective (rating of 1 or 2)
         decision maker.                            content marketers.


                                                  Figure 14                B2B Content Marketing: 2012 Benchmarks, Budgets and Trends




                                                                      15
Industry Classi cation
RESEARCH DETAILS                                                                                                                           n=1092


B2B Content Marketing: 2012 Benchmarks, Budgets
                                                                          13%                                 Advertising/Marketing
                                                                                    5%                        Banking/Financial/Insurance
and Trends was produced by MarketingProfs and
                                                                                       8%                     Business Services
Content Marketing Institute.                                    39%                                           Computing/Software
The survey was mailed electronically to a sample of                                                           Healthcare
B2B marketers from among members and subscribers                                   17%                        Manufacturing/Processing
of MarketingProfs and the Content Marketing Institute.                                                        Professional Services
A total of 1,092 responded worldwide (with the majority                                                       Other
                                                                       6% 7% 5
                                                                              %
from North America) in August 2011, representing a full
range of industries, functional areas, and company size,
as shown in the tables to the right.                       Figure 15     B2B Content Marketing: 2012 Benchmarks, Budgets and Trends


Here’s what we found:
                                                            Job Title/Function
    Those marketers who describe themselves
    as effective content marketers have adopted                                    3%                                                     n=1092
    content marketing tactics at far greater rates                       7%            2%                    Communications
    than the laggards. On average, effective                     16%                                         Consultant
    marketers use nine tactics, whereas less               3%                                                Editorial
    effective marketers use six.                                1%                                           Marketing
                                                           4%                                                Other
    Self-proclaimed effective content marketers                              36%                             Owner/CEO/President
    outpace less effective respondents by at least                                                           Product Marketing
    15 percentage points in adoption rates across               25%                                          Product Manager
    six content categories: blogs, articles, videos,                                                         Sales
    eBooks, social media, and mobile content.                                                                Senior Executive (VP, CMO, etc.)

    Effective marketers tap into a more extensive                       2%                  *Represents those jobs that came in as at least 1% of total


    distribution network, using all distribution           Figure 16     B2B Content Marketing: 2012 Benchmarks, Budgets and Trends

    channels in the survey at significantly higher
    rates than their less effective peers. 94% of           Size of Company (by employees)
    effective marketers are using at least one                                                                                          n=1092
    platform compared to 82% of ineffective
    marketers. Interestingly, even the least effective
    marketers have boosted their use of social-                                                            Micro (fewer than 10 employees)
    media channels, up from 66% last year.                                                                 Small (10-99 employees)
                                                                                                           Mid-size (100-999 employees)
    Effective marketers use 3.6 social media                                                               Large (1000+ employees)
    platforms on average compared to the average
    of 2.4 used by ineffective marketers.




                                                           Figure 17     B2B Content Marketing: 2012 Benchmarks, Budgets and Trends



                                                                16
For further information on the survey content, please contact:

ANN HANDLEY                       JOE PULIZZI
MarketingProfs                    Content Marketing Institute
ann@marketingprofs.com            joe@junta42.com
866-557-9625                      216-941-5842




ABOUT CONTENT MARKETING INSTITUTE:
The Content Marketing Institute (CMI) teaches marketers how to own their media channels instead of having to rent them through
advertising. We do this through events like Content Marketing World, media properties like Chief Content Officer magazine, and
strategic consulting and research for some of the best known brands in the world.

CMI content marketing experts Joe Pulizzi and Robert Rose have teamed up to help marketing pros and business owners develop
a content marketing plan that goes beyond theories, and explains it in a way that can actually be implemented in their new book,
Managing Content Marketing: The Real-World Guide for Creating Passionate Subscribers to Your Brand.

To get more content marketing how-to resources, sign up to CMI blog alerts.



ABOUT MARKETINGPROFS:
MarketingProfs helps the smartest marketers worldwide turn even the toughest marketing challenges into success stories. More
than 400,000 members rely on its free daily publications, virtual conferences, online seminars and short webcasts, in-depth how-to
reports, research, interactive planning tools, online courses, and in-person events (and more!) for actionable know-how designed to
make marketers both smarter and more effective.

MarketingProfs Chief Content Officer Ann Handley is the co-author of Content Rules: How to Create Killer Blogs, Podcasts, Videos,
Ebooks, Webinars (and More) That Engage Customers and Ignite Your Business (Wiley 2010), which streamlines the process of
creating remarkable web content that will lure would-be customers to you.

To get more content marketing how-to resources, sign up to be a MarketingProfs PRO member, benefits of which include access to
a rich library of articles and newsletters, how-to seminars, short Take 10 webcasts, inspiring case studies, handy tools, and more.

Authors
• Ann Handley, Chief Content Officer, MarketingProfs
• Michele Linn, Content Development Director, Content Marketing Institute
• Stephanie Tilton, Principal, Ten Ton Marketing
• Joe Pulizzi, Executive Director and Founder, Content Marketing Institute

Special Thanks
• Joseph Kalinowski, Art Director, Content Marketing Institute
• Bryan Spencer, Market Research Consultant




                                                                 17

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B2 b content_marketing_2012

  • 1. B2B CONTENT MARKETING: 2012 BENCHMARKS, BUDGE TS & TRENDS
  • 2. FOREWORD Hello, Fellow B2B Marketer! n the past year, content marketing has gained incredible momentum. As this topic gains mindshare, it’s fueling discussions I around the web, at events, and in boardrooms. But just how well are B2B marketers achieving their goals when it comes to content marketing? And how much has changed in the past year? To answer these questions, the Content Marketing Institute and MarketingProfs surveyed 1,092 marketers in August 2011.1 In this second annual survey, we uncovered some interesting findings. While we saw some unexpected changes between this year and last, we weren’t surprised to see that content marketing still ranks highly in the list of priorities for B2B marketers. Just as in 2010, 9 in 10 organizations market with content – regardless of company size or industry. And they are doing what it takes to bring about desired results: On average, B2B marketers employ eight different content marketing tactics to achieve their marketing goals. 60% report that they plan to increase their spend on content marketing over the next 12 months. Marketers, on average, spend over a quarter of their marketing budget on content marketing. However, while marketers are committing time and budget to adopt the concepts and practices of content marketing, it’s clearly a tool they are getting accustomed to using. As a result, they’re still formulating strategies for how to best measure effectiveness. From all appearances, marketers are headed in the right direction; we see a significant improvement in the perceived effectiveness of the most popular content tactics. The good news is that with progress come even better results. B2B Content Marketing: 2012 Benchmarks, Budgets and Trends provides a detailed look at many aspects of content marketing, including the tactics used, social media considerations, goals, measurements, budgets, outsourcing, and challenges. The end of the report presents the practices of self-described “best in class” content marketers. We hope this report helps you benchmark your content marketing efforts and inspires you to pump up your content marketing strategy! JOE PULIZZI ANN HANDLEY Founder & Executive Director Chief Content Officer Content Marketing Institute MarketingProfs 1 Last year’s survey covered North America; this year’s survey was worldwide, with the majority of respondents from North America. 2
  • 3. EXECUTIVE SUMMARY B2B Content Marketing: 2012 Benchmarks, Budgets and Trends is the second annual survey about content marketing in the business-to-business (B2B) space. We surveyed 1,092 marketers from diverse industries and a wide range of company sizes in August 2011. Last year, the results revealed content marketing is a well-established, core marketing strategy in the B2B marketplace. However, while many marketers were using these tactics, they were uncertain about their effectiveness. This year, even though the confidence gap is shrinking regarding content marketing, there is still more education that needs to be done. For purposes of the research, the survey defined content marketing as follows: “Content marketing/custom media (sometimes called custom publishing, custom content, or branded content) is the creation and distribution of educational and/or compelling content in multiple formats to attract and/or retain customers.” Content Marketing Institute and MarketingProfs developed and conducted the study. MAJOR FINDINGS IN 5 KEY AREAS 1. Usage and Effectiveness: Just as last year’s survey showed, nine out of 10 B2B marketers are using content marketing to grow their businesses, and on average, marketers use eight content marketing tactics to achieve their marketing goals. The most popular tactics are article posting (79%), social media (excluding blogs) (74%), blogs (65%), eNewsletters (63%), case studies (58%), and in-person events (56%). While marketers are confident about the value of content marketing, they are challenged to demonstrate the effectiveness and impact of individual tactics and distribution channels. That said, the “confidence gap” we discovered last year is shrinking when it comes to the rates of adoption of specific content marketing tactics and the perceived effectiveness of those tactics. Content marketing uptake is high across industries, with no single industry reporting below 70% adoption. The professional services industry reports the highest level of adoption, just nudging out computing/software, which ranked number one last year. 2. Goals and Measurement: Marketers are using content marketing to support multiple business goals, led by brand awareness (69%), customer acquisition (68%), lead generation (67%), and customer retention/loyalty (62%); just as we found last year, the least widely employed goal for content marketing is lead management/nurturing. Just as in last year’s findings, web traffic is the most widely used success metric (58%). However, this year, sales lead quality (49%) is the second-highest used metric (versus direct sales in the previous study). 3
  • 4. 3. Budgets and Production: B2B marketers dedicate approximately 26% of their total budgets to content marketing initiatives — precisely the percentage allocated in the previous year. Also in line with last year’s results is the fact that smaller companies (in terms of number of employees) allocate a larger share of their budget to content marketing than do larger companies. This year, a majority of marketers (60%) report they plan to spend more money on content marketing in 2012 (compared to 51% in 2011). 62% of B2B marketers use outsourcing for content marketing, a substantial increase compared to last year’s findings (55%). 4. Challenges: As it was last year, the greatest reported challenge is “producing the kind of content that engages prospects and customers” (41% of respondents). And nearly the same percentage of respondents in 2011 as in 2010 reports that “producing enough content” (20%) and “budget to produce content” (18%) are their greatest challenges in content marketing. 5. Practices of Best in Class: 40% of marketers consider themselves to be more effective in content marketing than their competitors. All marketers have the opportunity to increase effectiveness, and they all can learn from the “best in class.” Just as was the case last year, effective marketers spend more and are more strategic in their approach: They allocate 31% of their budget to content marketing, compared to less effective marketers who invest 18%. They are 50% more likely to consider the “stage in the buying cycle” when developing content, whereas less effective marketers are less likely to tailor content in any way. They benefit from substantially more buy-in from senior members of the organization. Only 8% of effective marketers complain about lack of buy-in from higher-ups, versus 17% of those who rate themselves as less effective (though, on a positive note, this number has declined, dropping down from last year’s rate of 24% for less effective marketers). While the data indicates marketers have made solid headway over the past year, marketers from all industries and company sizes can benefit from fine-tuning their approaches to content planning, development, promotion, and measurement. Those that do will reap the rewards. Read on for our detailed findings in all of these areas. 4
  • 5. USAGE & EFFECTIVENESS Content Marketing Adoption Remains Steady at 90% of Marketers In general, B2B marketers are using the same mix of tactics as they did in the previous study (average of 8 tactics in both years). Some notable increases: • Blogs (27% increase) • White papers (19% increase) • Videos (27% increase) Content Marketing Tactics Used B2B Content Marketing Usage (by Tactic) Just as we found in last year’s study, article posting and social media (excluding blogs) are the most popular Articles 79% tactics and are currently used by 79% and 74% of B2B marketers, respectively Social Media (other than blogs) 74% (Figure 1). However, use of social Blogs 65% media actually declined in 2011 by 5 percentage points. eNewsletters 63% Case Studies 58% In-Person Events 56% Videos 52% White Papers 51% Webinars/Webcasts 46% Microsites 31% Articles and social 31% Print Magazines media continue to be most popular content Traditional Media 30% marketing tactics. Research Reports 25% Branded Content Tools 22% Print Newsletters 20% eBooks 16% Podcasts 16% Mobile Content 15% Digital Magazines 14% Virtual Conferences 10% 0 10 20 30 40 50 60 70 80 90 100 Figure 1 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends 5
  • 6. Figure 2 Some of the tactics, such as blogs, video and white papers are used much more Di erences in Content Marketing Usage (By Tactic) frequently this year than in the previous 2011 2010 study (Figure 2). Blogs 65% 51% Videos 52% 41% White Papers 51% 43% Print Magazines 31% 42% Print Newsletters 20% 25% eBooks 16% 9% 0 10 20 30 40 50 60 70 80 Figure 2 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends CONTENT MARKETING BY COMPANY SIZE For some tactics, adoption varies widely based on company size: Just as in the previous study, on average, the larger the company, the greater number of content marketing tactics used. The largest companies (those with over 1000 employees) use 9 tactics, and the smallest companies (those with fewer than 10 employees) use 6 tactics. Like last year, the largest companies report a higher adoption rate for most tactics. Last year, the most marked differences between the largest and smallest companies were seen in their use of print magazines and microsites. This year, the most notable differences lie in their use of white papers (67% of the largest companies versus 35% of the smallest companies), webinars (60% of the largest companies versus 28% of the smallest companies), and microsites (54% of the largest companies versus 16% of the smallest companies). This year, small- and medium-sized companies report higher adoption rates than the largest Industries with the highest rates companies in a number of categories. For of content marketing adoption: example, while 79% of the largest companies use articles, 85% of medium-sized companies (those Professional Services .....................................94% with 100-1,000 employees) use this tactic; 78% ......................................93% of medium-size companies use social media (not ...................................89% including blogs), while only 65% of the largest ................................................................89% companies do. And 68% of companies with 10 – 99 employees maintain a blog, though only 55% of the .............................................84% largest companies employ this tactic. ........................83% 6
  • 7. SOCIAL MEDIA DISTRIBUTION CHANNELS We also asked marketers to tell us what social media channels they use to distribute content. Once again, Twitter trumps all other social media distribution types (Figure 3), and at higher rates than last year (Figure 4). That said, every social media channel is seeing increased adoption, often by 15-20%: • YouTube: 47% increase • LinkedIn: 39% increase • Twitter: 35% increase • Facebook: 30% increase Percentage of  Marketers Who Use Various It should come as no surprise that the increased Social Media Sites to Distribute Content adoption rate of the video-sharing site YouTube (56%) is in line with the increase in video usage (52%). Twitter 74% This year, Google+ joins the list of distribution LinkedIn 71% channels, with an industry average of 13%. Facebook 70% Three industries are using this channel at YouTube 56% higher rates than other industries: professional Slideshare 20% services (19%), advertising/marketing (19%), and business services (17%). For the first Google+ 13% time, we surveyed marketers about their use Flickr 10% of SlideShare and Flickr, and found these None 9% channels being used at rates of 20% and 10%, respectively. Those marketers rating themselves 0 10 20 30 40 50 60 70 80 as effective are significantly more likely to use all of these distribution channels. Figure 3 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends Social Media & Content - Growth Trends 2011 2010 Every social media 74% channel is seeing Twitter 55% increased adoption, often by 15-20%. LinkedIn 71% 51% Facebook 70% 54% YouTube 56% 38% 0 10 20 30 40 50 60 70 80 Figure 4 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends 7
  • 8. CONTENT MARKETING EFFECTIVENESS Con dence Gap: E ectiveness Ratings of Tactics Among Users It’s clear that marketers are feeling more Believe it is Believe it is assured in using content marketing to achieve Effective Less Effective/Ineffective their goals. Just as important, they’re more confident in how well they are using these 50% Social Media 50% tactics — across just about every tactic. In 51% Articles 49% other words, the large confidence gap we saw 56% Microsites 44% in last year’s study is shrinking. 58% Blogs 42% 60% White Papers 40% Figure 5 shows how marketers rated the effectiveness of each tactic. 60% eNewsletters 40% 61% Videos 39% While in-person events and webinars are 70% Case Studies 30% still seen as the most effective tactics, on 70% Webinars/Webcasts 30% average, the following ranked notably higher 78% In-Person Events 22% in perceived effectiveness compared to our last report: 100 75 50 25 0 25 50 75 100 • Blogs: 45% increase • Case studies: 32% increase • Videos: 36% increase Figure 5 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends • Webinars/webcasts: 25% increase Though social media is still considered the least effective of the top tactics, just as it was in 2010, half of this year’s respondents think it Content Marketing is effective. And, in fact, 61% more marketers Tactic E ectiveness Ratings: High & Low perceive social media as effective in 2011 Among those who use a particular content marketing tactic, what percentage than last year. of marketers believe that tactic is either “very effective” or “effective”? Now that marketers have found ways to Top Effectiveness Ratings Amongst Those Who Use A Given Tactic use some of these tactics to effectively 78% ................Rate In-Person Events achieve their goals, the next step is to gain 70% ................Rate Webinars/Webcasts EFFECTIVE/VERY EFFECTIVE confidence in their use of branded content, 70% ................Rate Case Studies digital magazines, mobile content, and 68% ................Rate Research Reports podcasts. Bottom Effectiveness Ratings Amongst Those Who Use A Given Tactic 37%.................Rate Podcasts 42% ................Rate Mobile Content (e.g., content formatted for PDAs/iPhones, EFFECTIVE/VERY EFFECTIVE content applications for smart phones, etc.) 43% ................Rate Digital Magazines 47%.................Rate Branded Content Tools (e.g., website grader, online calculator, widget, etc.) 8
  • 9. GOALS & MEASUREMENT Content Marketers Name Different Objectives and Measurements for Success: Brand awareness and customer acquisition rise to the top of content marketing goals. Marketers use a number of metrics to measure effectiveness. Just as in last year’s report, web traffic and sales lead quality top the list. Just as in the previous year, marketers are adopting content marketing strategies to achieve a variety of goals. In fact, the top goals of brand awareness, customer acquisition, lead generation, and customer retention/loyalty remain the same (Figure 6). Some notable differences from last year: Fewer marketers are using content marketing to achieve brand awareness, customer acquisition/loyalty, and sales. More marketers are using content marketing for customer acquisition (referred to as customer recruitment in last year’s report), lead generation, website traffic, thought leadership, and lead management/nurturing. Organizational Goals for Content Marketing Brand Awareness 68% Customer Acquisition 68% Lead Generation 66% Brand awareness and customer Customer Retention/Loyalty 61% acquisition rise to Website Tra c 56% the top of content Engagement 55% marketing goals Thought Leadership 55% Sales 47% Lead Management/Nurturing 39% 0 10 20 30 40 50 60 70 80 Figure 6 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends 9
  • 10. To measure the effectiveness of content marketing, marketers are now relying on Measurement Criteria for slightly different criteria than they did last year. While web traffic and sales Content Marketing Success lead quality still top the list, we see a 12 percentage point bump over last year in the number of marketers using SEO ranking to measure success. Inbound links are Web Tra c 58% also proving more valuable to marketers in Sales Lead Quality (e.g., sales accepted leads) 49% gauging effectiveness. At the same time, fewer marketers are expecting direct sales Direct Sales 41% as the result of their content marketing Sales Lead Quantity 41% efforts (Figure 7). Qualitative Feedback from Customers 40% SEO Ranking 40% While web traffic Inbound Links 30% and sales lead quality still top the list, we see a 12 percentage 0 10 20 30 40 50 60 70 80 point bump over last year in the number of Figure 7 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends marketers using SEO ranking 10
  • 11. BUDGETS & PRODUCTION Content Marketing Spend is Jumping, Marketers are Increasingly Outsourcing While approximately 26% of B2B marketers’ total budgets are allocated to content marketing efforts — exactly the same percentage as in last year’s report — investment in content marketing continues to grow: • 60% of respondents indicate they will increase spending on content marketing in 2012. • Over half (62% of respondents) use outsourcing for at least a portion of their content marketing activities, a significant increase over last year’s use of outsourcing (52%). Content Marketing Spending Rising confidence in the effectiveness of content marketing seems to be spurring marketers to dedicate more budget to this strategy. On average, 60% of respondents indicate that they plan to increase their content marketing budgets over the next 12 months (Figure 8). While, like last year, B2B marketers, on average, spend 26% of their budgets on content marketing activities, this varies by company size. The smaller the company (in terms of number of employees), the larger the percentage it spends on content marketing (Figure 9). Companies with fewer than 10 employees spend 34% of their budgets on content marketing, whereas companies with greater than 1000+ employees spend 20% of their budgets on content marketing. Figure 8 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends Total Marketing Budget Spent on Content Marketing Company Size Ratio of Percentage 60% of respondents Distribution to Creation of Budget indicate that they plan to increase their content Micro (Fewer than 10 employees) ...........1.8 ......................... 34% marketing budgets over Small (10 - 99 employees) .....................2.0 ......................... 26% the next 12 months. Mid-size (100-999 employees)....................2.2 ......................... 23% Large (1000+ employees) ......................5.5 ......................... 20% Overall .............................................3.5 ......................... 26% Figure 9 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends 11
  • 12. On average, the spend on content distribution is 3.5 times the size of that spent on content creation. The ratio increases with the size of the company (Figure 9). For instance, companies with more than 1,000 employees spend over 5.5 times as much on content distribution as they do on creation, and companies with fewer than 10 employees spend only 1.8 times as much on distribution as they do on creation. Content Marketing Outsourcing As content marketing budgets increase, so too does the percentage of companies that outsource. Last year, only 55% of marketers used outsourcing in some capacity. This year, 62% of B2B marketers use a mix of insourced and outsourced content. Outsource-only strategies are rare at only 4% (Figure 10). While 38% of marketers handle their content creation in house, respondents spend, on average, 25% of their content-creation budget with outside resources, such as consultants and agencies. A much smaller percentage of marketers hire external resources to help with distributing content. Our survey also finds that larger companies (defined as greater than 1,000 employees) Insource vs. Outsource of Content Marketing are 24% more likely than smaller 2011 2010 companies (10-99 employees) and 19% more likely than the average company to In House Only 38% outsource content (Figure 11). 45% Outsourced Only 4% When seeking out the right vendors to 3% support content marketing — whether for writing, management, or production — Both 58% marketers use a variety of resources. The 52% biggest changes from last year’s report are: 0 10 20 30 40 50 60 An increase in use of consultants (32% in Figure 10 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends 2011 versus 27% in the previous report) A decrease in the use of trade shows as a Percentage of Companies that Outsource venue to find support (20% in 2011 versus Content Marketing 26% in last year’s report) 2011 2010 This year, 62% of Micro (Fewer than 10 Employees) ....... 53% ..................... 48% B2B marketers use a mix of insourced and Small (10-99 Employees) ................ 60% ..................... 42% outsourced content. Mid-size (100-999 Employees) ......... 62% ..................... 54% Large (1000+ Employees) ............... 74% ..................... 77% Average................................. 58% ..................... 55% Figure 11 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends 12
  • 13. CHALLENGES IN CONTENT MARKETING Marketers Still Challenged to Stay Relevant and Compelling Just as in last year’s report, the number one challenge is producing engaging content, followed closely by resource constraints. The largest challenge (for 41% of respondents) is “producing the kind of content that engages prospects and customers” (Figure 12). While a greater number of respondents are struggling with this in 2011 compared with last year (36% of 2010 respondents reported this as their biggest challenge), just like last year, this year’s respondents are also struggling with two challenges that go hand in hand: producing enough content (20%) and having the budget to produce enough content (18%). Marketers were asked to explain what particular challenges they face within their own organizations. We noticed a number of themes running throughout their comments: • Getting buy-in: “Management patience - mgt needs to understand that in today’s B2B environment it takes time to engage prospects. The prospect has a lot more power than they did in the 90’s and 2000’s.” • Finding internal help: “Finding people within my organization to contribute their expertise to relevant content. Nobody outside of marketing seems to see the value in sharing our expertise with the market via content marketing.” Biggest Content Marketing Challenge 1% 7% Producing the Kind of Content that Engages Prospects/Customers 12% 41% Producing Enough Content Budget to Produce Content Lack of Buy-In/Vision from 18% Higher-Ups Inside Your Company Producing a Variety of Content 20% Budget to License Content Figure 12 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends 13
  • 14. • Having enough time: “Time and content creation. The ideas are all there, it’s just a matter of finding time to create and write copy.” “Producing enough content and distributing it through *all* of the relevant channels. (I am the sole person responsible for creating/promoting our content, and there’s never enough time in the day.)” • Creating a sustainable process: “Creating emotionally compelling content and maintaining a consistent cadence of creation/distribution” “Having the discipline and being able to assign sufficient resources to create and manage the right content for the target audience, in a sustainable manner.” That said, more B2B marketers are segmenting their audience than last year (88% versus 82%). While the most popular way to segment an audience last year was by company characteristics (50%), marketers are becoming more sophisticated, increasingly segmenting based on the profile of the decision maker (57% versus 49% last year). Only 39% of respondents align content with the stage in the Content Segmentation buying cycle or sales funnel. And 12% of respondents do not tailor their content in any way (Figure 13). Regardless, segmentation is 2011 2010 becoming more common. Pro le of Individual Decision-makers ....... 57% ............... 49% (e.g., Title, Persona, etc.) Marketers are becoming more Company Charateristics ............................ 51% ............... 50% sophisticated, (e.g., Size, Industry, etc.) increasingly segmenting based on the profile of the Stage in the Buying Cycle.......................... 39% ............... 32% decision maker. (or Sales Funnel) None ........................................................ 12% ............... 18% Figure 13 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends 14
  • 15. PRACTICES OF BEST IN CLASS Lessons from the Best Content Marketers: Spend More, Align with the Buying Cycle, and Secure Exec Buy-in Those marketers who rate their work as more effective than their competitors’ spend more overall, align their content with the buying cycle, and have more support of top executives. A subset of respondents to our survey (40%) identified their own content marketing as “effective” or “very effective” (defined as an answer of 4 or 5 on a scale of 1 to 5) compared to that of their competitors. We were interested in finding out whether this self- selected group differed in any meaningful way from their peers (Figure 14). Best-in-class marketers invest 31% of their budgets in content marketing, compared to the least effective Comparison of Most E ective Content Marketers to marketers, who only allocate 18%. Least E ective Content Marketers They are also more likely to segment Most Overall/ Least their content based on the buying E ective Average E ective cycle (45% of best in class versus 39% of industry average and 29% of Percentage of Marketing Budget .............. 31% ............... 26% .............. 18% laggards). Allocated to Content Marketing They are less likely to lack executive Percentage Who Segment Based .............. 45% ............... 39% .............. 29% buy-in for content marketing (8% of on Buying Cycle best in class versus 12% of industry average versus 17% of laggards). Percentage Who Cite Exec Buy-In ............. 8% ................. 12% .............. 17% as a Challenge Marketers are Percentage Who Plan to Increase ............. 63% ............... 60% .............. 59% becoming more Content Marketing Spend in Next sophisticated, 12 Months increasingly Marketers were asked to rate how e ective they thought their organization’s use of content marketing was segmenting based as compared to the competition. Respondents could then rate themselves on a scale of 1 (least e ective) to on the profile of the 5 (most e ective). This section compares self-rated e ective (rating of 4 or 5) to less e ective (rating of 1 or 2) decision maker. content marketers. Figure 14 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends 15
  • 16. Industry Classi cation RESEARCH DETAILS n=1092 B2B Content Marketing: 2012 Benchmarks, Budgets 13% Advertising/Marketing 5% Banking/Financial/Insurance and Trends was produced by MarketingProfs and 8% Business Services Content Marketing Institute. 39% Computing/Software The survey was mailed electronically to a sample of Healthcare B2B marketers from among members and subscribers 17% Manufacturing/Processing of MarketingProfs and the Content Marketing Institute. Professional Services A total of 1,092 responded worldwide (with the majority Other 6% 7% 5 % from North America) in August 2011, representing a full range of industries, functional areas, and company size, as shown in the tables to the right. Figure 15 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends Here’s what we found: Job Title/Function Those marketers who describe themselves as effective content marketers have adopted 3% n=1092 content marketing tactics at far greater rates 7% 2% Communications than the laggards. On average, effective 16% Consultant marketers use nine tactics, whereas less 3% Editorial effective marketers use six. 1% Marketing 4% Other Self-proclaimed effective content marketers 36% Owner/CEO/President outpace less effective respondents by at least Product Marketing 15 percentage points in adoption rates across 25% Product Manager six content categories: blogs, articles, videos, Sales eBooks, social media, and mobile content. Senior Executive (VP, CMO, etc.) Effective marketers tap into a more extensive 2% *Represents those jobs that came in as at least 1% of total distribution network, using all distribution Figure 16 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends channels in the survey at significantly higher rates than their less effective peers. 94% of Size of Company (by employees) effective marketers are using at least one n=1092 platform compared to 82% of ineffective marketers. Interestingly, even the least effective marketers have boosted their use of social- Micro (fewer than 10 employees) media channels, up from 66% last year. Small (10-99 employees) Mid-size (100-999 employees) Effective marketers use 3.6 social media Large (1000+ employees) platforms on average compared to the average of 2.4 used by ineffective marketers. Figure 17 B2B Content Marketing: 2012 Benchmarks, Budgets and Trends 16
  • 17. For further information on the survey content, please contact: ANN HANDLEY JOE PULIZZI MarketingProfs Content Marketing Institute ann@marketingprofs.com joe@junta42.com 866-557-9625 216-941-5842 ABOUT CONTENT MARKETING INSTITUTE: The Content Marketing Institute (CMI) teaches marketers how to own their media channels instead of having to rent them through advertising. We do this through events like Content Marketing World, media properties like Chief Content Officer magazine, and strategic consulting and research for some of the best known brands in the world. CMI content marketing experts Joe Pulizzi and Robert Rose have teamed up to help marketing pros and business owners develop a content marketing plan that goes beyond theories, and explains it in a way that can actually be implemented in their new book, Managing Content Marketing: The Real-World Guide for Creating Passionate Subscribers to Your Brand. To get more content marketing how-to resources, sign up to CMI blog alerts. ABOUT MARKETINGPROFS: MarketingProfs helps the smartest marketers worldwide turn even the toughest marketing challenges into success stories. More than 400,000 members rely on its free daily publications, virtual conferences, online seminars and short webcasts, in-depth how-to reports, research, interactive planning tools, online courses, and in-person events (and more!) for actionable know-how designed to make marketers both smarter and more effective. MarketingProfs Chief Content Officer Ann Handley is the co-author of Content Rules: How to Create Killer Blogs, Podcasts, Videos, Ebooks, Webinars (and More) That Engage Customers and Ignite Your Business (Wiley 2010), which streamlines the process of creating remarkable web content that will lure would-be customers to you. To get more content marketing how-to resources, sign up to be a MarketingProfs PRO member, benefits of which include access to a rich library of articles and newsletters, how-to seminars, short Take 10 webcasts, inspiring case studies, handy tools, and more. Authors • Ann Handley, Chief Content Officer, MarketingProfs • Michele Linn, Content Development Director, Content Marketing Institute • Stephanie Tilton, Principal, Ten Ton Marketing • Joe Pulizzi, Executive Director and Founder, Content Marketing Institute Special Thanks • Joseph Kalinowski, Art Director, Content Marketing Institute • Bryan Spencer, Market Research Consultant 17