Friday, July 08, 2011

Not much potential for Digital Marketing in B2B?

We are currently working on a digital marketing plan for an e-mail service provider. The company is trying to target the Decision Making Units at their potential clients (mainly CMOs). So far, this company has relied on referrals to get new clients. This company also has a great product all their clients have never left them. Although they have been growing, it is a challenge to get new clients in industries outside what they are already serving (due to the referral process).

What can they do in digital marketing to get to their corporate clients?

Search does not look very promising. SEO appears to be irrelevant, ranking higher in organic searches has a limited potential in attracting CMOs to this e-mail service provider. The same happens with paid search. Basically CMOs do not make decisions based on their Google searches.

Display makes more sense. We are working with this company to understand what their target Decision Making Units are consuming on-line (e.g. which blogs they read, what industry publications they follow, what industry events they are interested in, etc.) So we can then place Display Ads in those sources. Although better than search, display is also very limited in its effectiveness, many users other than the CMOs that we are trying to target are shown the display generating a cost that will never generate revenue.

Social Media might be the channel that makes more sense for this B2B company. Trying to find those CMOs through their subscriptions to professional networks, or job information in social networks is a lot more promising.

In conclusion, I believe that Digital Marketing channels are much more effective for B2C companies that need to get to a large number of consumers that follow a buying decision process that differs greatly from that of the few corporate buyers who are the clients of B2B.
I understand that Digital Marketing can help B2B companies to build their brand. When Andersen Consulting changed its name to Accenture, it spent almost $200 million to publicize its new name, including $10 million for the Super Bowl to try to reach a very small subgroup of viewers (top managements) the rest of viewers did not understand what the company was about and thought it was one the least interesting ads (according to the USA Today rankings). If you are willing to spend that much money on brand building then it makes sense to complement the effort with a presence in all the on-line channels. But if you are a B2B start-up, your marketing budget might be better spent somewhere else (e.g. attending industry events and networking with potential clients)

3 comments:

Anand said...
This comment has been removed by the author.
Anand said...

Completely disagree with this posting that SEO or digital marketing is not effective for B2B products. I am assuming the author means Enterprise class products when he refers to B2B products.
In this case I believe Felipe is refering to digital marketing of an Enterprise class Email Marketing Service Provider. Google is being used as the primary research tool to conduct preliminary research on a service or product by most people. I do not have hard numbers or statistics here, but I know this from personal experience and by observing actions of CxO's and senior executives around me. Try searching for the phrase "email marketing service providers" in google and bing and it will prove my point. If you are not on the first page then it may be presumed that your service or tool is either to new to rate or even consider or simply not good enough.

Felipe said...

Anand,
My point is that SEO is not as effective for B2B as it is for B2C. The buying decision process of consumers is very different than that of corporations. It is certainly very different how consumers buy consumer packaged goods, electronics, entertainment, etc.than how corporations source their raw materials or contract their services.
For example, I don't think it is as important for the renown consulting firms and investment banks to rank high in search as it would be for auto insurance and consumer electronics. A CEO wouldn't hire McKinsey by clicking on its link after a search for consulting in Google, but a consumer might indeed buy a camera from Nikon or car insurance from Geico after searching for those keywords.