B2B: The Digital Wake Up Call

What do most B2B marketers think of digital advertising? 

According to eMarketer, B2B digital ad spend makes up only 4.6% of the total digital ad market. B2B marketers prefer traditional publishing, direct email, and events-based marketing by far, and believe that digital ads are both designed for, and only work for, B2C brands. 

However, those forward-thinking B2B marketers who are investing in the digital ad space are starting to see results from their spend. In fact, they often see their digital ads deliver a higher ROI than other channels. 

B2B buyers are people, too

In the past, companies relied on personal relationships and reputation to build their brand. Events, phone calls, physical stores, traditional publishing and direct email formed the basis of B2B marketers’ plans, and they still play an important role. But today we often reach for our smartphones first to research and find our more about our next purchase – from clothes, to holiday destinations, to household products. Why should that stop at business decisions? 

As Brian Glover, the Director of Product Marketing for Marketo puts it: “B2B buyers are the same individuals that shop on Amazon or interact with Apple on their mobile phone every day, and they expect the same treatment when they’re shopping as a consumer or as a business.” 

Take our recent research into IT decision-makers across Singapore, Thailand and Indonesia. Every decision involves an average of 7 decision-makers and countless people who report to them. While each person is conducting their own research specific to the business decision, they're also living a regular life - chatting with friends, watching videos on YouTube, browsing through an Instagram feed. How many times do you think your brand’s Google display ad (or LinkedIn ad, or Facebook ad) might surface? 

We found that 97% of IT decision makers actively searched for information online during the planning stage of their purchase journey, and 60% of decision-makers admitted to searching for alternatives and better options when it’s time for renewal even when they’re satisfied with a service or product.

They look for product specifications and brand comparisons. They try to figure out where to find the best deals or promotions. They use digital technologies to increase collaboration in their teams, sharing research and data. Only then do they head offline to their meetings to discuss POs, shake hands, and approve budgets. 

It’s not just the IT industry where we see that happening. This research shows that on average, 67% of purchases for multiple industrial manufacturing and pack-and-ship industries were influenced by digital. In every industry digital touchpoints are leveraged in the path to purchase, which means every industry is open to being influenced by digital advertising. 

Forward-thinking B2B companies are beginning to experiment 

Early adopters and forward-thinking companies are starting to break the rules of B2B. As they’re hiring new talent, upskilling existing talent, and expanding their advertising tools, they’re learning what works and what doesn’t. 

They’re building brands that don’t look like the rest; funny brands, brightly-coloured brands, memorable brands, big-awareness brands, brands that take a stand on industry debates and even social issues. Early adopter B2B brands are learning how to be smart with their digital advertising, and they’re going to be miles ahead when the rest of the industry starts to take steps into the arena. 

We (Google) actually noticed the B2B marketing industry was changing back in 2015, with decision makers using mobile for research and purchase more often. 

Fast forward to 2019 and we still only see 4.6% of digital ad spend being placed by B2B brands, and yet B2B decision makers are increasingly active on digital media. It’s time that the B2B marketers followed - it’s time for a wake up call. 

As a B2B marketer you might find that investing heavily on digital is slightly “crazy”. But as Larry Page, Google’s co-founder once said: “If you’re not doing some things that are crazy, then you’re doing the wrong things.” 

And honestly in my POV it isn’t crazy at all - all the data points in one direction: If you’re advertising in the B2B space, it’s time to go digital!