BtoB - January 16, 2012 - (Page 1)
CMO Close-Up
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The story behind British Airways’ largest branding campaign in a decade
JANUARY 16, 2012 | $5.00 ($59/YEAR)
THE MAGAZINE FOR MARKETING STRATEGISTS
WWW.BTOBONLINE.COM
SOCIAL MEDIA MATURING AS A MARKETING TOOL
3
A Crain Communications Inc. publication
B-to-b learns from b-to-c e-commerce experience
BY SEAN CALLAHAN
OUTLOOK 2012
Large share of marketers boosting spending, especially online
BY KATE MADDOX
Retail e-commerce is big and getting bigger. In the U.S. it totaled $37.2 billion in November and December, a 15% increase over the same period in 2010, according to comScore. Annual retail e-commerce is expected to increase at a 10% compound annual growth rate through 2015, reaching $278.9 billion, according to Forrester Research. But what about b-to-b e-commerce? While retail e-commerce grabs the headlines, b-to-b e-commerce is a sleeping giant with massive potential, observers say. Large b-to-b companies, such as industrial distributor W.W. Grainger and security software company Symantec Corp., are quietly building significant e-commerce businesses. They’re doing it, in part, by following the templates of the consumer businesses. For instance, Grainger, which generates about 25% of its revenue from e-commerce, hired an e-commerce director with consumer experience. Paul Miller, VP-e-commerce, came to the company after stints at Sears Holdings Corp. and WilliamsSonoma Inc.
Despite being beset by continued economic woes and global turmoil, 40.8% of b-to-b companies will boost their marketing budgets this year, according to BtoB’s “2012 Outlook: Marketing Priorities and Plans” survey. The survey also found that marketers overall are shifting spending into lower-cost online and social media programs. The annual study is now in its ninth year. It was conducted between Nov. 21 and Dec. 12 and based on an online survey of 343 b-to-b marketers. The study found that nearly half (48.4%) will keep their budgets flat this year; 40.8% will increase them; and 10.8% will cut back. “We are trying to do a lot more with the same amount of money,” said Kathy Button Bell, CMO at engineering company Emerson, in echoing the concern of many b-to-b marketers. “We’re trying to keep our media levels similar and add more online, especially video production.” Seeing the first signs of recovery last year after two tough years before that, 51.9% of
Exclusive ‘BtoB’survey
In 2012, will your marketing budget be: Flat Up What is your primary marketing goal in 2012? Customer acquisition 75.4% 48.4% 40.8%
10.8% Down
Source: “2012 Outlook: Marketing Priorities and Plans,” BtoB
Brand awareness
14.9% 9.7%
Customer retention
b-to-b marketers increased their budgets; 40.8% kept them flat; and 7.3% cut back. This year, online will see the most significant marketing investment, with 74.0% of marketers increasing their online spending. The survey also found that 41.4% of marketers will raise their event spending this year; 36.5% will increase direct mail; and 20.1% will boost print advertising. On the down side, 22.4% of marketers plan
to slash their print advertising this year; 13.4% will cut back on direct mail; and 12.1% will decrease event marketing spending. “ few years ago, we pulled back someA what from print to put more in online,” said Tom Haas, CMO at Siemens Corp. “We find that print works really well to drive people to our website, so we will continue to use print.” Siemens will run print ads in business
Outlook, page 16
Mobile apps, social integration, content are key trends
BY KATE MADDOX
EMULATE THE LEADERS
Alex Latham, VP-information services at Novation, a supply chain management company in the healthcare sector, said his company emulates Best Buy, Home Depot and other consumer-oriented e-commerce leaders. “Your b-to-b sites are looking more and more like consumer e-commerce sites, having an
E-commerce, page 18
As b-to-b marketers usher in the new year, they have even more ways to create innovative, engaging programs to connect with their target audiences. The marketing landscape has been transformed by new technology, with platforms such as mobile devices and social media allowing marketers to interact in completely different ways with users who are always connected
Top Trends
and increasingly engaged. However, marketers face obstacles this year as well, brought on by a still sluggish economy and global challenges. BtoB talked to marketers, agency executives and analysts to identify the following top 10 trends for 2012.
MOBILE EXPLOSION
With 36% of U.S. adults now owning smartphones and 5%
owning tablet computers, according to Nielsen, the mobile market is set to explode. EMarketer projects that 10.8% of the U.S. population (all ages) now use a tablet computer at least once a month, and tablet penetration is projected to reach 27.7% of the U.S. population by 2014. “For the enterprise segment, you have a whole separate class of tablets being built by companies like Cisco and Motorola. So
AP Photo/Charlie Riedel
in that regard, you will see more mobile devices in the hands of b-to-b marketers,” said Noah Elkin, an analyst at eMarketer. An online survey of 501 U.S. marketers conducted by AT&T Inc. in September found that 88% plan to increase their mobile marketing programs this year. The top mobile programs this year will be mobile apps (43%), followed by mobile barcodes (41%) and banner ads (40%),
Trends page 15
B-to-b marketers take spots in the Super Bowl Page 3
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Table of Contents for the Digital Edition of BtoB - January 16, 2012
BtoB - January 16, 2012
B-to-b learns from b-to-c e-commerce experience
Large share of marketers boosting spending, especially online
Mobile apps, social integration, content are key trends
ANA ramps up I CANN domain name protest
B-to-b marketers still in Super Bowl lineup
'BtoB' to host Digital Edge Live conference
Social media matures with added players, new metrics
Quick Hits
Reader Comments/Polls
Opinion
Positive outlook for online ad spending
Advertising
Media companies flock to mobile Web
Business Media
Email remains a strong marketing tool
Direct & Database
Tools & Metrics
BtoB - January 16, 2012
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