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STATE of INBOUND 2014 AND MEASURE INBOUND MARKETING AND SELLING. TABLE OF CONTENTS CH. 1 Introduction CH. 2 Budgeting for Inbound CH. 3 Planning for Inbound CH. 4 Executing for Inbound CH. 5 Measuring for Inbound CH. 6 Survey Methodology HUBSPOT • State of Inbound • 2014 2 CHAPTER ONE 1 Introduction INTRODUCTION About “State of Inbound” For the past five years, HubSpot has published a mid-year survey that posed questions about the findings from its annual survey, which probesfull-year programs. As such, the findings and marketers on their challenges, priorities, tacticsuidance remain current well into 2015. and results, in a popular report branded “The Asmuchaswehopeyouenjoyreadingthisreport, State of Inbound Marketing.” The series tracks the practice of inbound marketing – the art and it’s even more important that you use it. It’s meant to be a functional document. Print it and mark it science of drawing visitors to your company on up. Share it with your boss, your head of sales, the their own terms versus obtrusively pushing your rep who always beats her numbers (or, better still, messages onto them – from its humble “two guys therepwhoisstrugglingtohitquota),maybeeven in a garage” (or, in this case, two guys in businyour customer support team. Please remember school) beginning up through last year’s 164- that the data is based on self-reported survey page leviathan. responses.Considerthefindingstobedirectional. For this year’s report, we followed many We’ve organized the data into four self-contained of the same processes as in the past. We sections: budgeting, planning, execution and surveyed thousands of marketers (see “Audience measurement. There’s no need to read the report Composition” graphic) and asked a blend of linearly. Dive into whichever section corresponds repeat questions (for trending data) and new onesto your greatest needs, and save the rest for later. (to keep pace with emerging marketing trends). You want to understand how to maximize your We produced nearly a hundred graphs, which budget? Read the Budgeting chapter. Looking we winnowed down to 40 or so compelling “data to report to your leadership the same metrics narratives” that we believe will help readers top performers report to theirs? The Execution improve top-line performance. chapter has you covered. Yet as similar as our objectives and methodology were, there are two significant differences in thisdience Composition year’s report – beginning with the title itself. If there exists a modern marketing report that’s We’ve dropped “marketing” from the title to reflectaseachange.“Inbound”isnolongerlimited based on survey data from a larger, more diverse to marketing. Businesses now turn to inbound audience, then we’d like to know about it. We methodologies to power sales (25%) and even believe State of Inbound is the definitive report customer service (10%). Certainly the marketing on inbound business in large part because of the use-case remains foremost, but make no mistake: audience composition, which we’ve visualized in Inbound has become an interdepartmental the graphic below. phenomenon. The report also straddles calendar years, 2014 to 2015. It is comprised of data from HUBSPOT • State of Inbound • 2014 4 State of Inbound – Audience Composition 5% 4% HubSpot Not a HubSpot Partner Partner 78% 6% 15% 44% 34% 1% 3,570 RESPONDENTS HubSpot Not a HubSpot Customer Customer COMPANY SIZE BY COMPANY SIZE BY NUMBER ANNUAL REVENUE OF EMPLOYEES Less than $250,000 Less than $250,000 Less than 10 $250,001 - $1M Less than 10 $1M - $10M $1M 11 to 255 $1M - $10M 26 to 200 $10M - $500M 201 to 1000 $500M - $1B 201 to 1000 Prefer not to say More than 1000 More than 1000 Prefer not to say TYPES OF ORGANIZATIONS VERTICAL MARKETS 5% NONPROFIT Software 21% B2C Information Technology & Services Marketing Agenciesces Education 68% B2B Marketing Agencies 68% B2B Remaining 11 Industries Represented Healthcare & Medical Remaining 11 Industries Represented RESPONDENTS BY CAREER RESPONDENT JOB LEVEL Executive and above Manager and below 1,723 Executive and above 31% Manager and below Marketers 631 Sales 69% Professionals HUBSPOT • State of Inbound • 2014 5 The Six Most Important Takeaways If you are pressed for time, here’s the TL;DR-style executive summary: We noticed six clear and consistent trends when analyzing the data . They are: 1.) Inbound unlocks ROI; ROI unlocks budget. If you are running an inbound marketing program and not tracking ROI, you are doing your company – and your career – a disservice because inbound marketers who measure ROI are more than 12 times more likely to be generating a greater as opposed to lower year-over-year return. INBOUND ROI IMPACT YEAR OVER YEAR Inbound marketers that measure ROI are enjoying major impact 40 35 30 25 20 15 10 5 % of Respondents 0 the previous year the previous year Athe previous year Inbound Marketing ROI Proving that you are increasing return is important for several reasons, most notably the positive impact it has on budget. No single factor had a greater impact on budget – positive or negative – than did “past success with inbound.” Improving ROI may even safeguard your budget against factors beyond your control, like the economy itself. HUBSPOT • State of Inbound • 2014 6 FACTORS INFLUENCING INBOUND BUDGET CHANGE Proving success is key to securing more budget 60 Higher Inbound Marketing Budget 50 Marketing Budget 40 30 20 10 % of Respondents Economy Change in mainbound marinbound marketing Reasons for Change 2.) “Getting found” is priority #1 (and #2 and #3) for high performers. We zoomed in on the segment of inbound marketers who are generating positive ROI (“high performers”) to see if they prioritized different types of projectsthanlowperformers.Asyouwillseeinthe“Measurement”chapter, high performers are emphasizing programs designed to get their content, and by extension their company, found. In order, blogging, organic search, and content amplification top the list. Blogging appears to have the most substantial impact on performance. THE IMPACT OF BLOGGING ON INBOUND ROI 13 x Marketers who have prioritized blogging are 13x more likely to enjoy positive ROI Given that marketers who blog are 13x more likely to drive positive ROI, it shouldn’t be a surprise that the tactic tops high performers’ lists of most important inbound projects. HUBSPOT • State of Inbound • 2014 7 3.) Data facilitates alignment. If inbound marketing were a sports team, data would be the coach. The chart below depicts remarkably tight alignment between marketing practitioners and their leaders (director and above title). Data is objective. It’s immune to the feelings and instincts that drove the previous era of “arts and crafts” marketing. TOP MARKETING PRIORITIES BY ROLE Strong alignment exists between marketing practitioners and leaders Increasing number of contacts/leads Converting contacts/ leads to customers Reaching the relevant audience Increasing revenue derived from existing customers Proving the ROI of our marketing activities Reducing the cost of contacts/ leads/customer acquisition Marketing Priorities 0 5 10 15 20 25 % of Respondents LeadershipPractitioner HUBSPOT • State of Inbound • 2014 8 4.) Agencies are leading the pack. Inbound marketing performance is up across the board. More companies are running inbound than ever before. More are measuring ROI and more are enjoying improved ROI. Inbound is expanding into other lines of business, and those departments are experiencing positive results. It’s even driving revenue globally. But the group that’s setting the standard is marketing agencies, who are outpacing vendorsbysourcingnearlyhalf(47%)ofallleadsthroughinboundchannels. AGENCIES VS. VENDORS Marketing agencies are most effective at driving leads through inbound channels Primary Lead Source = Inbound Vendors Primary Lead Source = Outbound Agencies Industry0 10 20 30 40 50 60 70 80 % of Respondents 5.) Theeraof“inboundselling”hasarrived.Inboundisnolongerlimited to “just” marketing. More than 25% of respondents reported that their organizations’ sales teams practice inbound, and it’s not just lip service. Contrast the two charts below, and you’ll see that sales professionals are far more “inbound” than are marketers who favor outbound practices. WHICH LEAD SOURCES HAVE BECOME MORE IMPORTANT (OVER LAST 6 MONTHS) Outbound marketers are placing minimal importance on core inbound channels 100 Inbound Marketers 80 Outbound Marketers 60 40 20 % of RespSocialsBlogs SEO Email PPC Trade Traditional DiTelemarketing Media Marketing Shows AdvertisiMail Lead Source HUBSPOT • State of Inbound • 2014 9 WHICH LEAD SOURCES HAVE BECOME MORE IMPORTANT (OVER LAST 6 MONTHS) Sales gravitates toward outbound channels whereas marketers lean inbound 100 Marketing Professionals Sales Professionals 80 60 40 20 % of Respondents Social Blogs SEO Email PPC Trade Traditional DiTelemarketing Media Marketing Shows AdvertisiMail Lead Source The belief that European marketers trail their North American 6.) counterparts is unfounded. Many marketers believe that the U.S. leads theworldintermsofmarketinginnovation.Priortoanalyzingthedata, even the author of this report may have made a statement or two to that effect. As it turns out, this statement doesn’t hold water. Data from respondents in North America and Europe, Middle East, and Africa (EMEA) showedminimalvariance. HUBSPOT • State of Inbound • 2014 10 INBOUND MARKETING TRENDS BY GEOGRAPHY The claim that Europe trails North America is a myth INBOUNDINBOUND MARKETING TRENDS BY GEOGRAPHY COMPANIThe claim that Europe trails North America is a myth The claim that Europe trails North America is a myth INBOUND MARKETING BY GEOGRAPHY INBOUND ROI BY GEOGRAPHY COMPANIES THAT PRACTICECTICE ROI of Do you do INBOUND MARKETING BY GEOGRAPHYOGRAPHY inbound IINBOUND ROI BY GEOGRAPHY inbound marketing: marketing? ROI PREVIOUS YEAR Do you do inbound DYESou NO North America Europe, the Middle East, inboLOWER THAN North America Europe, the Middle East, inboundinbound and Africa (EMEA) markPREVIOUS YEAR and Africa (EMEA) marketing? marketing: marketing? GREATERTHAN GREATER THAN YES NO North America Europe, the Middle East, LOWER THANEAR North America Europe, the Middle East, YES NO and Africa (EMEA) PREVIOUSYEAR and Africa (EMEA) North America Europe, the Middle East, LOWER THAN North America Europe, the Middle East, and Africa (EMEA) PREVIOUS YEAR and Africa (EMEA) 30 TOP MARKETING PRIORITIES BY GEOGRAPHY 25 30 North America Europe, the Middle East, and Africa (EMEA) TOP MARKETING PRIORITIES BY GEOGRAPHY 30 20 25 TOP North AmericaORITEurope, the Middle East, and Africa (EMEA) 15 20 North America Europe, the Middle East, and Africa (EMEA) 10 15 15 10 5 5 10 Increasing Converting Reaching Proving the Increased Reducing the 5 number of contacts/leads the relevant ROI of our revenue derived cost of contacts Increasing Converting Reaching Proving the Increased Reducing the contacnumber of to ccontacts/leads athe relevant ROI of our revenue derived cost of contactsmer contacts/leads to customers audience marketings from existing leads/ customer activities customers acquisition Increasing Converting Reaching Proving the Increased Reducing the number of contacts/leads the relevant ROI of our revenue derived cost of contacts contacts/leads to customers audience marketing from existing leads/ customer 25 25 activities customers acquisition TOTOP INBOUND MARKETING PROJECTS BY GEOGRAPHY 20 20 NoNorth America Europe, the Middle East, and Africa (EMEA) 25 15 TOP INBOUND MARKETING PROJECTS BY GEOGRAPHY 15 20 North America Europe, the Middle East, and Africa (EMEA) 10 10 15 5 5 10 Blog content Growing Content Webinars Longform/ Interactive Product Online tools Fremium 5 Blog contenton Growing/organContentributiWebinars Longform/ontecInteractivehoProduct Online toolsalFremium presence amplification creation creation videos creation SEO/organic distribution/ visual contentcontent how-to trials presence amplification creation creation videos Blog content Growing Content Webinars Longform/ Interactive Product Online tools Fremium creation SEO/organic distribution/ visual contentcontent how-to trials presence amplification creation creation videos HUBSPOT • State of Inbound • 2014 11 What Do We Mean By “Inbound” Anyway? When HubSpot coined the term “inbound marketing” back in 2006, the company had loosely defined it as meaning: “a methodology that focuses on creating quality content that pulls people toward your company and product.” In other words, inbound is the superset of quality content and other “magnetic” tactics. Sincethattime,asimilarmethodologycalled“contentmarketing”hastaken root. Perhaps because content marketing wasn’t championed by a single organization, it tends to have a less “ratified” definition. Nevertheless, it’s become a popular term of art. In fact, Google Trends data shows search volume is considerably higher for “content marketing” (blue line) than for “inbound marketing” (orange line). GOOGLE SEARCH TRENDS: INBOUND MARKETING VS. CONTENT MARKETING Inbound MarketingContent Marketing Average 2005 2007 2009 2011 2013 So are we even using the proper terminology when we refer to inbound marketing? Do the thousands who completed the survey and the tens of thousands who will read this report perceive inbound marketing in the same way that HubSpot does? It turns out, yes. HUBSPOT • State of Inbound • 2014 12 RELATIONSHIP BETWEEN CONTENT MARKETING AND INBOUND MARKETING BY DEPARTMENT Front-office professionals, particularly marketers, see content marketing as a subset of inbound marketing 60 is a subset ofing inbound marketing 50 They are synonyms 40 is a subset ofing content marketing The two are 30 fundamentally diﬀerent 20 10 0 % of Respondents Marketing Sales Services Department Marketers concluded that content marketing is a subset of inbound at nearly twice the rate (59% to 33%) as all other options combined. While the data showed less variance for sales and services professionals, “content marketing is a subset of inbound” was still clearly the most popular answer even for groups newer to inbound. WANT TO USE A STATE OF INBOUND DOWNLOAD ALL OF THE GRAPHS HERE CHART IN YOUR NEXT PRESENTATION? HUBSPOT • State of Inbound • 2014 13 CHAPTER TWO 2 Budgeting for Inbound BUDGETING FOR INBOUND This fact may cause your CFO to groan, but spending money is one of marketing’s most important jobs. Whether it’s licensing technology, sourcing and distributing content, procuring development resources, or commissioning specialty skills like SEO and video production, spending wisely is a prerequisite for marketing success. But for many marketers, securing funds can feel like a Catch-22: If budget contributes to results, then how do you get budget before you are able to demonstrate success? We asked several budget-related questions in hopes of collecting data that would help marketers better understand how to secure the resources they need. Fortunately, it appears most of the means are within marketers’ span of influence and, in some cases, are even within their immediate control. Here are some of the patterns that emerged: INBOUND MARKETING ROI BY COMPANY TYPE Companies of all types enjoying greater ROI from inbound 50 B2B B2C 40 ▯▯n▯r▯▯t 30 20 10 % of Respondents Greater ROI than the previouLower ROI than the previous year Inbound Marketing ROI Inbound marketing budgets are up for all types of companies (chart above). In fact, more than 5 times as many marketers reported higher budgetsthan claimed budgets had been cut this year. The majority of B2B companies surveyed are enjoying a lift in budget, with 74% reporting the same or increased budget in this year (the 27% “unchanged” segment is not reflected in the above chart). If your budget is down from last year, then odds are the cause is as simple as a lack of demonstrated success. HUBSPOT • State of Inbound • 2014 15 FACTORS INFLUENCING INBOUND BUDGET CHANGE Proving success is key to securing more budget 60 Marketing Budget 50 Lower Inbound Marketing Budget 40 30 20 10 % of Respondents Economy Change in managemPast success wiPast failure with inbound marketiinbound marketing Reasons for Change The chart above reveals that no single factor has a greater impact on budget than previous success with inbound marketing. Remarkably, the financial upside of prior inbound success exceeds even the downside of adverse economic conditions. Simply put, success – best expressed in terms of return on investment (ROI) – unlocks budget and insulates marketers against economic vagaries. Proving marketing effectiveness can also be valuable during leadership changes. Executive turnover often has an adverse impact on budget. Quantifying inbound success can steel marketers against the whims of new management. HUBSPOT • State of Inbound • 2014 16 But what about marketers who are new to inbound? How can they secure ample budgets before they’ve collected enough data to prove success? The chart below shows an encouraging trend. Inbound budgets positively correlate to the presence of a Service Level Agreement (SLA) between marketing and sales. ANNUAL MARKETING BUDGET BY SLA Marketing budget size positively correlates to having an SLA 80 70 Yes, we have an SLA 60 No, we don’t have an SLA 50 40 30 20 10 % of Respondents Less than $25$25,001 -$100,001 -$500,001 - $1M - $5MMore than $5M $100,000 $500,000 $1M Annual Marketing Budget Ratifying an SLA with sales demonstrates credibility. For example, if marketing commits to delivering a certain number of leads that meet a measurable quality score, and sales is accountable for following up on those leads in a documented amount of time, then the two groups are signaling to leadership that they are focused on driving business results, not just intradepartmental metrics. Establishing an SLA also doubles as a forcing function – it requires marketers to measure consistently, which, as we will see in subsequent chapters, is a prerequisite to becoming a high performer. HUBSPOT • State of Inbound • 2014 17 It appears the “magic number” for an SLA is $500,000. That is, if your marketing budget exceeds a half-million dollars, then you are expected to have an SLA with sales. Surprisingly, 29% of marketers with a budget greater than $500,000 don’t have a sales SLA. If the patterns detected in this report continue, metrics-centric high performers will likely replace those marketers. The chart below suggests that the presence of an SLA has a positive impact on even the inbound portion of the total marketing budget. INBOUND MARKETING BUDGET BY SLA SLA positively correlates to higher year over year inbound budget 50 Higher Inbound Marketing Budget Lower Inbound 40 Marketing Budget 30 20 10 % of Respondents SLA HUBSPOT • State of Inbound • 2014 18 Because an SLA applies to large and small companies alike, doesn’t require a track-record of success, and is “free” to create, holding oneself accountable to an SLA is a prudent move for any marketer. It even holds true for marketers who need to loosen finance’s grip on purse strings, despite not yet having demonstrated ROI. Formarketersatmid-sizedcompanies,anotherstraightforwardwaytoearn a bump in budget is simply to run an inbound-driven marketing program (chart below). MID-SIZED COMPANIES MARKETING BUDGET BY INBOUND VS. OUTBOUND Running inbound correlates to larger budget 35 30 Doing Inbound Marketing Doing Outbound Marketing 25 20 15 10 5 % of Respondents Less than $2$25,001 - $100,001 -$500,001 - $1M - $5More than $5M $100,000 $500,000 $1M Annual Marketing Budget HUBSPOT • State of Inbound • 2014 19 Running inbound positively correlates to higher marketing budgets for mid-sized companies. As annual marketing budgets approach $100,000, the balance of attention begins to flip from outbound to inbound practices. The larger the budget, and by extension the company, the more budget tilts in the favor of inbound marketers. Butwhatshouldyourbudgetbe?Theanswerstothisquestionvariedgreatly, and were influenced by many factors, several of which we discussed in this report. The benchmarking graphic below visualizes the most commonly cited budgets for companies of various sizes. If you are well below the band for your size company, presenting this chart to leadership may be an effective way to initiate budgetary discussions, but remember that the keys to funding can be found in demonstrating success, establishing an SLA, and running the inbound playbook. MARKETING BUDGET Budgets are most variable for mid-size companies 100% # OF EMPLOYEES Less than 10 80% 11 to 25 60% 26 to 200 201 to 1000 40% More than 1000 20% $25,000an $100,000- $500,000 $500,001 - $$1M - $5MMore than $5M BUDGET WANT TO USE A STATE OF INBOUND DOWNLOAD ALL OF THE GRAPHS HERE CHART IN YOUR NEXT PRESENTATION? HUBSPOT • State of Inbound • 2014 20 CHAPTER THREE 3 Planning for Inbound PLANNING FOR INBOUND Because “Planning for Inbound” is the longest chapter in the report, we’ve broken it into an introduction, followed by four sub-sections, each corresponding to a frequently asked question. Specifically, the chapter providespracticalguidancetomarketerswhoare(1)strugglingtostrikethe right balance between inbound and outbound, (2)peeking around corners to see what unexpected challenges might be coming their way, (3) trying to identify the highest return projects, and (4)thinking about the best way to partner with their sales counterparts. If you are wrestling with any of these questions, there’s a good chance you’ll find your answer in this chapter. The planning chapter is the most comprehensive by design, because planning is the first building block of any effective marketing program – and that includes inbound programs. A smart plan is more than a collection of tactics neatly organized in outline form. A smart plan is actionable – it reflectsbothwhatshouldbedoneandwhatshouldbeavoided,drawingfrom the successes and failures of others to accelerate progress and avoid pitfalls. A smart plan isn’t cobbled together on January s, archived on January 2nd, and dusted off again on December 31 s. No, a smart plan is bedrock. Beforeweapplydatatopopularplanningquestions,let’sbeginbydebunking a couple of myths. The first has to do with perceptions of marketing sophistication and geography. HUBSPOT • State of Inbound • 2014 22 INBOUND MARKETING TRENDS BY GEOGRAPHY The claim that Europe trails North America is a myth COMPANIES THAT PRACTICE INBOUND MARKETING BY GEOGRAPHY INBOUND ROI BY GEOGRAPHY ROI of Do you do inbound inbound marketing: marketing? PREVIOUS YEAR YES NO North America Europe, the Middle East, LOWER THAN North America Europe, the Middle East, and Africa (EMEA) PREVIOUS YEAR and Africa (EMEA) 30 TOP MARKETING PRIORITIES BY GEOGRAPHY 25 North America Europe, the Middle East, and Africa (EMEA) 20 15 10 5 Increasing Converting Reaching Proving the Increased Reducing the number of contacts/leads the relevant ROI of our revenue derived cost of contacts contacts/leads to customers audience marketing from existing leads/ customer activities customers acquisition 25 TOP INBOUND MARKETING PROJECTS BY GEOGRAPHY 20 North America Europe, the Middle East, and Africa (EMEA) 15 10 5 Blog content Growing Content Webinars Longform/ Interactive Product Online toolsFremium creation SEO/organic distribution/ visual contecontent how-to trials presence amplification creation creation videos The takeaway is clear: The next time someone says, “Europe trails North America in inbound marketing by about a year,” don’t nod in agreement. Instead present them with the above four-chart image, because by virtually all measures, Europe (specifically Europe, Middle East, and Africa, though our data set skewed Western European) and North America parallel one another’s inbound programs. An identical number (86%) of marketers in EMEA and North America say they run inbound marketing programs, and of those that do, both share similar priorities, emphasize similar projects, and enjoy similar results. HUBSPOT • State of Inbound • 2014 23 In fact, according to the following chart, European marketing agencies are outpacing their North American counterparts when it comes to producing top-of-the-funnel(TOFU)content.Whydoesthistrendmerithighlighting? Because as you will see in later chapters, these types of TOFU content positively correlate to ROI. TOP MARKETING PROJECTS FOR AGENCIES BY GEOGRAPHY International marketing agencies are going "all in" on producing discoverable content Blog content creation Growing SEO/ organic presence Content distribution/ amplification Lcontent creation content creation Webinars Online tools Product how-to videos Freemium trials Inbound Marketing Projects 5 10 15 20 25 % of Respondents North American International Marketing AgenciesMarketing Agencies The world is getting smaller. Social media and the rise in corporate transparency have combined to nullify the geographic boundaries that once divided marketers. Thanks to Twitter, Facebook, webinars, and blogs, what works for one company is instantly accessible to others. It’s merely a matter of listening to the right people, and there are influencer identification tools to ease that process as well. The second myth has to do with terminology. Some argue that inbound and content marketing are at odds. They are opposite pressures, or, at the very least, one movement is inferior to the other. The terminology vendors, agencies, and consultants use matters only if it resonates with and is perpetuatedbythepractitionerswholistentothem.Soweincludedaquestion about terminology in the survey, and the response (below) was unambiguous. HUBSPOT • State of Inbound • 2014 24 RELATIONSHIP BETWEEN CONTENT MARKETING AND INBOUND MARKETING BY DEPARTMENT Front-office professionals, particularly marketers, see content marketing as a subset of inbound marketing 60 Content marketing inbound marketing 50 They are synonyms Inbound marketing 40 is a subset of content marketing The two are 30 diﬀerenttally 20 10 0 % of Respondents Marketing Sales Services Department Front-office professionals perceive “content marketing” and “inbound marketing” as co-existing, with the former being a subset of the latter. Predictably,thegreatestvarianceisseenwithmarketers,wheretherootsfor both concepts run deepest. Nearly six of ten marketing professionals consider content marketing to be a subset of inbound marketing, whereas only 10% consider the reciprocal to be true. Reassuringly, 85% of marketers believe the two concepts are related, whereas only 7% conclude the terms are fundamentally different. As a practical matter, what does it mean that content marketing is a subset of inbound marketing? There are a few considerations. First, marketers should think in terms of “and” not “or” when it comes to content and inbound. Success relies on both. Second, content – from a blog to webinars, from email nurturing to customer videos – is one of the levers marketers can pull to drive their inbound engine. Inbound marketers producegreaterresultsandenjoylargerbudgets,yetwithoutqualitycontent, the inbound machinery stalls. HUBSPOT • State of Inbound • 2014 25 How Should I Think About the Inbound/Outbound Balance? Unlike the harmonious relationship between content and inbound marketing, there is discord between outbound and inbound. This conflict is reflected in many of the graphics to follow. Before you can determine what the ideal inbound/outbound balance is for your organization, let’s begin by zooming out to spot patterns in inbound adoption. Most notably, an increasing number of marketers are practicing inbound (below). The number of marketers who state they are practicing inbound rosefrom60%lastyearto85%thisyear,whilethepercentageofmarketers who concede they don’t run inbound was nearly halved to 13%. % OF MARKETERS THAT PRACTICE INBOUND MARKETING Growth of inbound marketing spiking year over year 100 inbound marketing No, we don't do 80 inbound marketing 60 40 20 % o0 Respondents 2013 2014 Year HUBSPOT • State of Inbound • 2014 26 Now let’s zoom in a little closer and look at the relationship between budget and inbound marketing practices (chart below). % OF COMPANIES THAT PRACTICE INBOUND MARKETING BY MARKETING BUDGET Majority of companies practice inbound marketing, particularly large companies 100 80 % of Respondents $25,000a$25,001 $100,001$501,001$1M - $More than $5M $100,000$500,000 $1M Annual Marketing Budget Most organizations are practicing inbound – including more than 80% of companies with an annual marketing budget below $25,000. The concentration of inbound marketers peaks (93%) at companies with a marketing budget between $1M and $5M annually, before dipping moderately (7%) at enterprises with the largest budgets. Takentogethertheabovechartssupportthenotionthatfailingtopractice inbound puts marketers at an unfair disadvantage. Most obviously, it prevents them from realizing the benefits of inbound, but it also leads to them losing ground to competitors that are running inbound programs. While the above charts are useful in understanding how to not lose ground to competition, it’s equally important to identify ways to gain advantage. The secret may reside with your colleagues in sales and services. HUBSPOT • State of Inbound • 2014 27 R&D WHICH DEPARTMENTS IT IN YOUR COMPANY PRODUCT DEVELOPMENT PRACTICE INBOUND? SERVICESNG SALES MARKETING Inbound is not limited to marketing The graph above presents encouraging data for companies that are consideringdoublingdownoninbound.Itrevealsthatsales(25%)and,toa lesser extent, services (10%) professionals have begun to employ inbound practices. These colleagues should be seen as extensions of the marketing team – both in terms of championing the inbound philosophy throughout the organization as well as contributing content to the engine that drives the program’s success. Being first to capitalize on willing talent outside of your marketing department could be a major competitive advantage for your company. HUBSPOT • State of Inbound • 2014 28 Ultimately, all marketing – whether for a B2B software vendor, a consumer products manufacturer, a nonprofit organization, or a consultancy – comes down to the team’s ability to grow revenue. For this reason, attributing new business leads to inbound or outbound practices is one of the most important considerations when determining the balance of inbound vs. outbound activities in your marketing plan. Let’s take a look at the data our survey produced in the area of “lead source.” PRIMARY LEAD SOURCE BY INBOUND/OUTBOUND Outbound’s loss is inbound’s gain 50 40 Outbound Inbound 30 % of Respondents 2011 2012 2013 2014 Year For the first time in the past four years, outbound as a primary lead source has dropped, and sharply – from 34% to 22%. Meanwhile, inbound has remained relatively stable, off just 1% from its previous three year average. As a result,in 2014, more than twice as many respondents cited inbound (45%) as their primary source of leads versus outbound (22%.) HUBSPOT • State of Inbound • 2014 29 PRIMARY LEAD SOURCE BY COMPANY TYPE Inbound lead sourcing advantage is greatest for nonprofits 60 Inbound practices (e.g., SEO, Referrals, Social Media, Content/Blog) 50 Outbound practices (e.g., Cold Calling, TV/Outdoor Ads, Trade Shows, Purchased Lists) Paid media (e.g., PPC, 40 Social Media Ads) Self-sourced leads 30 from sales team 20 10 % of Respondents B2B B2C Nonprofit Company Type Half of marketers across B2B, B2C, and nonprofit sectors ranked inbound as their primary lead source, exceeding the average (42%) of all other channels combined. (See above chart.) The disproportionate impact of inbound is enjoyed most by nonprofits, where inbound (58%) is responsible for procuring nearly twice as many leads as the roll-up of all other channels (31%). Given that nonprofits often face budget constraints, necessity is proving to be the mother of inbound. HUBSPOT • State of Inbound • 2014 30 What Challenges Should I Anticipate? Regardlessofthesizeofyourteamorbudget,fewmarketerscanaffordtobe inefficient. Spending time and money implementing flawed programs is the very definition of inefficiency. What are some of the challenges marketers should anticipate as they think through their inbound plans? Here are a few items to consider. TOP MARKETING CHALLENGES BY YEAR Marketers are overcoming many challenges, but ROI remains a hill to climb 30 2013 25 2014 20 15 10 5 % of Respondents Proving thSecuring Managing Targeting Hiring Training Finding an ROI of our enough my websitentent for top talentmy team executive marketing budget international sponsor activities audience Marketing Challenges With the significant exception of ROI, marketers are overcoming all major challenges (chart above). In fact, ROI is the only challenge cited by more marketers this year than last. The pressure to prove ROI may be mounting – management is likely expecting to see proof of marketing impact now that many pieces are in place. As you will see in the following subsection, although proving ROI is the top challenge, it’s incongruously ranked as a relatively low priority.Thatunthinkabledisconnectneedstobereconciled–ifleadership is expecting ROI, marketers need to prioritize its delivery. The below graph, which looks at top marketing challenges by company size, reinforces the universality of the ROI challenge. In fact, the larger the company, the more likely ROI is to be the organization’s top hurdle. HUBSPOT • State of Inbound • 2014 31 TOP MARKETING PRIORITIES BY COMPANY SIZE Smaller companies tend to prioritize lead gen, whereas larger companies prioritize ROI. Few focus on reducing cost per lead/customer 30
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