A 2012 Company B2C B2B B2C B2B

(1)

B2C

B2B

(2)

These are the results of the 2nd annual Webmarketing123 State of Digital Marketing Survey. Over 500 U.S. marketing professionals — two-thirds B2B, one-third B2C—answered questions about their objectives, results and budgeting for three channels of digital marketing: Search Engine Optimization (SEO), Pay Per Click Advertising (PPC), and Social Media Marketing (SMM). The results show that generating leads and sales, as well as increasing brand awareness, are the top objectives for digital marketers. Across company size and industry, digital marketers are adopting more sophisticated systems for measurement and attribution, boosting confidence to increase or maintain budgets. • For B2B, lead generation is the top objective,

and SEO is twice as effective as PPC or SMM for this purpose.

• For B2C, boosting awareness and reputation of their brands and products has doubled in importance since 2011, overtaking online sales as the top objective for digital marketing. • Budgets: 90% of marketers will increase or

maintain spending on SEO, PPC, and SMM. • Still doing SEO in-house? Marketers using an

agency are twice as likely to be highly satisfied with their campaign performance.

• PPC: Only a quarter of marketers surveyed are highly satisfied with the performance of campaigns managed internally, compared to

one-third who work with agencies.

B2C

Generate Leads Increase Sales Increase Awareness

#1

oBjeCtive

toP oBjeCtiveS FoR DiGitAL MARKetiNG PRoGRAMS

Each year, brands increase their level of engagement

with social media.

B2C leads the way, with 42% “very” or “fully” engaged with social media, compared to 27% for B2B. By a more broad measure, a full two-thirds of marketers now describe themselves as “moderately” to “fully” engaged with social media. That said, 1 in 10 marketers still have no social media presence at all.

• Follow the Money: 9 out of 10 digital marketers are spending money on Social Media, and 8 out of 10 have reported leads or sales from their efforts.

• B2C Marketers Discover LinkedIn: The number of B2C marketers generating leads or sales via LinkedIn has increased 75% since last year, while the number reporting sales from Facebook has declined nearly 20%. • As more sophisticated attribution tools become available, the number of

marketers able to attribute leads and sales to particular social channels more than doubled (leads from 15 to 31%, sales from 23% to 60%). But 4 in 10 B2Cs and 2 in 10 B2Bs continue to find attribution completely out of reach.

33%

26%

B2B

Increase Awareness Generate Leads Increase Sales

#1

oBjeCtive

54%

28%

10%

22%

(3)

Industry demographIcs

COMPANY SIZE

How many employees does your company have?

<

50 51-200

201-1,000

>

1,000

23%

21%

23%

32%

Companies responding to the survey include:

Sony, Olympus, Phillips, IBM, Hitatchi, Cisco, Agilent,

Microsoft, Citrix, Medtronic, Merck, Novo Nordisk, Blue Shield, ADP, Pitney Bowes, Monster.com,

Angie’s List, GE, John Deere, Aramark, Thomson Reuters, Federal Express, Bose, and Nestlé.

SURVEY PARTICIPANTS

Is your company primarily B2B or B2C?

65%

35%

B2B

(4)

While lead generation is by far the most common objective for digital marketing campaigns, brand

and product awareness has nearly doubled in importance since last year. as budgets continue to

grow, marketers are expanding their focus to include earlier stages in the sales cycle.

Increasing brand and product awareness has become the #1 objective for B2cs online. this is a

marked change from last year, when online sales were the top priority.

Top objectives for digital marketing programs

54%

22%

10%

26%

28%

33%

6%

11%

0.3%

6%

0.7%

3%

GENERATE LEADS GENERATE LEADS INCREASE SALES INCREASE SALES INCREASE AWARENESS INCREASE AWARENESS GENERATE SITE TRAFFIC GENERATE SITE TRAFFIC BUILD ONLINE COMMUNITY BUILD ONLINE COMMUNITY OTHER OTHER

LEAD GENERATION IS THE #1 OBJECTIVE

INCREASING BRAND AND PRODUCT AWARENESS IS THE #1 OBJECTIVE

#1

oBjeCtive

#1

oBjeCtive

B2C

B2B

(5)

compared to last year, nearly 50% more B2Bs now identify social media

as having the most impact on lead generation (2011 vs 2012). In a

similar vein, 20% more B2cs now identify seo as most impactful for

lead generation (2011 vs 2012).

B2B engages more WIth socIal, B2c dIscovers seo

Seo

20%

SoCiAL

MeDiA

PPC

21%

59%

_B2B

_Seo

PPC

49%

26%

25%

B2C

Which makes the biggest impact on lead generation?

SoCiAL

MeDiA

(6)

16%

21%

63%

20%

27%

53%

84%

_80%

43%

55%

2%

AGeNCY iN-HoUSe No Seo PRoGRAM

iNCReASe

BUDGet MAiNtAiN BUDGet DeCReASe BUDGet

45%

50%

5%

search engIne optImIZatIon

B2C

B2B

B2C

B2B

B2C

B2B

Got Seo?

AGeNCY oR iN-HoUSe?

BUDGetiNG FoR 2013

YeS

No

(7)

seo campaIgn measurement

How does your company measure the effectiveness of your SEO program? Check all that apply.

51%

49%

47%

36%

34%

10%

OVERALL VOLUME OF TRAFFIC Basic: Easy to implement but no measure of financial impact Advanced: More indicative of financial impact, more challenging to implement VOLUME OF ORGANIC TRAFFIC NUMBER OF KEYWORDS ON PAGE 1 NUMBER OF QUALIFIED LEADS LEADS OR SALES ATTRIBUTABLE TO ORGANIC SEARCH

NOT SURE WHAT TO MEASURE

Are marketers measuring the right things? the most common measures of seo

performance are the volume of traffic, organic traffic, and the number of keywords

appearing on page 1, which give no insight into financial impact. Fewer marketers

are employing more sophisticated measures of seo performance, such as number

of qualified leads or sales attributable to organic search.

(8)

Without Sophisticated Measurement, Satisfaction and Investment are Lacking

measurIng the success oF seo programs

remaIns a challenge

20%

40%

STAGE 1: MEASURES SEO

BY MEANS OF 1-3 BASIC METRICS

BY 1-3 METRICS, INCLUDING 1 ADVANCED METRIC

BY 3-5 METRICS, INCLUDING 1 OR MORE

ADVANCED METRICS

More than 3 in 10 respondents indicate that “difficulty in measuring SEO results” was their top frustration with SEO.

5 in 10 measurement-challenged marketers feel neutral to negative about their SEO performance. Marketers who said that they don’t know how to measure SEO performance are

significantly less satisfied with their results, and less likely to increase their SEO investment.

7 in 10 companies are unable to accurately attribute leads or sales to organic search.

1 in 10 companies have no measurement system in place.

THREE STAGES OF MEASUREMENT SOPHISTICATION

While there are many ways to measure SEO performance, they can be broadly categorized as basic or advanced (see previous table, p.7). The survey results suggest that marketers are likely to be at one of three stages, with a “measurement gap” between the least and most sophisticated. This gap holds true regardless of company size, industry, and whether SEO is managed internally or through an agency. We believe this reflects a growing gap between companies with competence in analytics and

(9)

64%

_73%

31%

58%

11%

40%

52%

8%

36%

20%

44%

27%

31%

42%

B2C

B2B

B2C

B2B

B2C

B2B

Got PPC?

AGeNCY oR iN-HoUSe?

BUDGetiNG FoR 2013

YeS

No

_No

iNCReASe

(10)

satIsFactIon levels consIstently hIgher When

WorKIng WIth agencIes

marketers working with an agency (as opposed to in-house) are twice as likely to be highly

satisfied with seo and social media, and significantly more likely to be highly satisfied with ppc.

AGeNCY iN-HoUSe

11%

15%

10%

Seo

PPC

SoCiAL

MeDiA

21%

highly satisfied

with seo program

performance

20%

highly satisfied

with ppc program

performance

21%

highly satisfied

with social

media program

performance

(11)

90%

91%

41%

56%

3%

52%

46%

2%

B2C

B2B

B2C

B2B

B2C

B2B

Got SoCiAL MeDiA?

AGeNCY oR iN-HoUSe?

BUDGetiNG FoR 2013

YeS

No

_No

iNCReASe

85%

10%

5%

83%

14%

13%

AGeNCY iN-HoUSe No SoCiAL MeDiA PRoGRAM

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B2B VS. B2C

socIal medIa engagement

How would you describe your company’s engagement with Social Media?

NO INVOLVEMENT SOMEWHAT

INVOLVED MODERATELY INVOLVED INVOLVEDVERY INTEGRATEDFULLY

10%

_9%

27%

20%

36%

30%

19%

31%

8%

10%

B2B

B2C

B2c marketers are ahead with 70% moderately to highly engaged (40%

highly engaged), but B2B is catching up, with 63% at those levels of

engagement (27% highly engaged), overall, only 1 in 10 have no social

media program.

PeRCePtioN

B2B marketers are far less engaged than B2C

in Social Media

B2Bs are closing the gap.

63%

of B2Bs

are engaged with social media, vs.

70%

of B2Cs.

ReALitY

% marketers who are moderately to highly engaged with social media

63%

70%

(13)

MAKING MONEY FROM SOCIAL MEDIA

_{% of marketers who}

Generated Leads from

social media

% of marketers who

Generated Sales from

social media

B2B

B2C

40%

65%

39%

_23%

6%

_14%

30%

39%

14%

17%

30%

14%

23%

44%

39%

67%

9%

21%

19%

43%

1%

3%

6%

13%

15%

7%

3%

7%

19%

39%

(14)

socIal medIa: Investment contInues, attrIButIon

stIll a challenge

Despite the inability to directly attribute revenue to Social Media, 95% of companies intend to increase or maintain their

spending on Social Media next year. B2C marketers are increasing their spending on Social Media faster than B2B, but no one is taking their foot off the gas (5 in 10 B2C marketers and 4 in 10 B2B marketers will increase budgets).

B2C

B2B

90% of B2Bs have some level of Social Media engagement, with 63% describing themselves as moderately to fully engaged, and 25% “very” to “fully” engaged. The majority of this group are seeing a return on their investment. Top areas of investment (for the 60% that spend) are Facebook & LinkedIn (where 40% are active), and Twitter (30%). On these platforms, nearly all advertisers are generating leads, and roughly half have closed deals.

It’s notable that 20% of the marketers active on Social Media aren’t sure if they’re generating leads, and a full 40% aren’t sure if they’ve closed sales attributable to Social Media.

Clearly, marketers are still struggling to measure and attribute the value of their investment. Despite the lack of consistent results and attribution challenges, 41% of marketers plan to increase their Social Media budgets, and another 56% will maintain their budgets.

90% of B2Cs have some level of Social Media engagement, with 70% describing themselves as moderately to fully engaged, and 40% “very” to “fully” engaged. Like their B2B counterparts, the vast majority of B2Cs (90%) are managing their Social Media in-house, and 70% are spending money on it. Two-thirds of B2Cs are active on Facebook and generate leads this way, and more than half of them see closed deals. Across the board, roughly half of Social Media efforts see measurable results (for example, 14% of B2C marketers are active on Pinterest and 6% get sales or deals from it.) The number of B2Cs generating leads via LinkedIn has increased 75% since last year, while the number reporting Facebook as a source of sales declined nearly 20% (from 48% to 39%). 50% of B2C marketers will increase their investment in Social Media and 47% will maintain spending.

Social Media Analysis

9 out of 10 digital marketers are spending money on Social Media, and 8 out of 10 have reported leads or sales from their efforts. As expectations rise, marketers are staffing up and 95% of Social Media engagers now manage their own Social Media campaigns (up from 85% last year).

Attribution challenges continue: 4 in 10 of marketers in our survey are unable to attribute sales or deals specifically to Social Media marketing.

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The second annual Webmarketing123 State of Digital Marketing Survey was conducted online in July of

2012. Over 500 U.S. participants completed the survey—all individuals who responded to an email

invitation sent to marketing professionals. Participants answered questions using an online survey tool.

For more information about the survey, please contact

marketingteam@webmarketing123.com

.

ABOUT WEBMArkETIng123

Webmarketing123 is a digital marketing agency that helps clients convert online visibility into measurable business results.

In 2012, Webmarketing123 was named by Inc. Magazine as one of the fastest growing private companies in the U.S. Our distinctive approach is to pair our metrics-rich methodology with an understanding of our clients’ unique business goals and challenges. We combine a deep expertise across industry verticals, smart use of automation, and efficient use of analytics to inform data-driven decision-making. At Webmarketing123, each client has a dedicated team employing Search Engine Optimization, Pay Per Click advertising, and/or Social Media Marketing to create remarkable, results-driven marketing programs.

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A 2012

Company

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