Integrate, the leader in B2B Precision Demand Marketing (PDM), announced new research on “The State of B2B Marketing Budgets 2023” that reveals how marketing budgets, priorities, and sentiments have changed in the past six months. The report found that nearly 50% of B2B marketers cite the difficulty of using data to inform decisions and measure performance as the biggest challenge, suggesting an increasing need for marketers to “defend the spend” to finance departments and C-level executives. As a result, nearly 90% of marketers surveyed report that data compliance and accuracy is a priority at their company. This study is follow-on research from “The State of B2B Marketing Budgets 2022” and was conducted with global research and advisory firm, Demand Metric.
“Today’s B2B marketers are in the unenviable position of making the unpredictable predictable in an uncertain market, and that means recalibrating everything from their goals to their focus,” said Colby Cavanaugh, SVP, Marketing at Integrate. “This research suggests that today’s marketers are incredibly resilient, and they’re adapting by being flexible and leveraging both what they know works and investing in creative new solutions to drive pipeline.”
With rising interest rates, bank failures, and other economic headwinds looming, many B2B companies are hedging their bets and tightening budgets, forcing marketers to do more with less. In fact, the next biggest challenges the survey found include headcount cuts (40%), increasing growth targets (39%), and budget cuts (38%).
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What’s more, 66% of respondents report that they are experiencing burnout as a result of additional economic stressors.
Interestingly, despite these challenges, 72% say their marketing team will meet or exceed goals in 2023. Meanwhile, 84% of marketers surveyed report having a neutral to optimistic outlook for the remainder of 2023, up slightly as compared to 80% six months ago.
To adapt to these shifting tides, “The State of B2B Marketing Budgets 2023” survey found that 57% of B2B marketers are optimizing for growth in 2023 by leveraging customer marketing (upsell/cross-sell); 42% are building team skills and adding new competencies; and 36% are investing in existing verticals or markets.
They are also cutting travel budgets (46%), consolidating teams/job responsibilities (41%), and relying more on contractors (36%) and agencies (34%).
The top three areas marketers plan to invest more in include customer marketing, content creation/strategy, and sales enablement.
As for budget spend for specific marketing disciplines, the survey found that about 40% of marketers are spending about the same on ABM, communications, content, demand generation, field/event marketing, marketing operations, product marketing, and sales enablement. This is in contrast to the 2022 results, which reported starker changes to planned budget investments with nearly 50% planning to invest more in digital marketing, content creation, and customer marketing, while 53% planned to spend less on ABM. Today, the areas marketers are investing more in include customer marketing (38%), marketing operations/technology (37%), and product marketing/strategy (36%). Conversely, marketers are investing less in ABM (25%), communications (24%), and demand generation (22%).
The survey results find that two-thirds of marketers (67%) are satisfied with their current marketing approach and 64% are satisfied with their martech stack. However, there is always room for improvement as 80% report evaluating their martech stack on a continual basis and 77% report redundancies in their martech stack.
“These survey results indicate that despite economic challenges, B2B marketers are forging ahead and making do with the resources they have with a focus on their customer,” said John Follett, Co-Founder, CXO & Head of Research at Demand Metric. “They’re overworked but optimistic and are in the greatest need of accurate and connected data to better understand their buyer, guide their decisions, and defend their spend in difficult times.”