Top B2B SaaS Marketing Benchmarks | 2024 SaaS Management Index Report

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Top B2B SaaS Marketing Benchmarks for PPC Campaigns

Pay-Per-Click (PPC) is a digital advertising model where advertisers pay a fee each time one of their ads is clicked. It’s a way of buying visits to your site, rather than attempting to “earn” those visits organically. PPC is commonly associated with search engines like Google Ads and social media platforms, including Facebook Ads. In this model, advertisers bid for ad placement in a search engine’s sponsored links when someone searches for a keyword that is related to their business offering. PPC allows advertisers to target specific audiences and measure the effectiveness of their ads in real time. PPC advertising is one of the primary tools that B2B marketers use to increase brand awareness, generate leads, and drive conversions. Have you ever carefully strategized and implemented a marketing campaign only to be left wondering, “How will I know if I’ve succeeded?” You’re not alone. Measuring campaign success is an essential first step, but for those numbers to have meaning, you’ve got to compare your data to PPC SaaS marketing benchmarks.

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Zylo Releases 2024 SaaS Management Index Report?

Zylo , a leading enterprise SaaS subscription management tool, has just released its 2024 SaaS Management Index. Now in its sixth year, the report offers a comprehensive analysis of SaaS spending, adoption, and management trends. It provides valuable insights into the current state of SaaS portfolios and the critical challenges businesses face. ?

Here's a closer look at some of the report’s findings:?

1. Market Expansion, Shrinking Spend?

The number of tools on the market continues to grow, even as SaaS budgets shrink. MarTech, for example, has seen an 11% YoY market increase in its 12th consecutive year of growth. AI has emerged as the fastest-growing app category, driven by its potential to enhance productivity and automation. Unsurprisingly, Content Marketing Institute has reported that marketers in the tech sector are leading the way, with “More than two-thirds (79%) [saying] they use AI compared with 72% of B2B marketers as a whole and only 58% of enterprise marketers.” However, as efficiency rises as a corporate priority, companies are becoming more selective about their SaaS choices. Overall, SaaS spending is down, as is per-employee spending, making it harder for SaaS providers to succeed.?

2. Persistent License Waste?

One of the most startling revelations from the report is the sheer volume of wasted SaaS licenses. We’ve noted before that Gartner estimates this figure to be 30%. Zylo puts it even higher, concluding that, on average, companies only utilize 49% of the licenses in their tech stack, leaving the remaining 51% unused. This inefficiency results in a staggering annual $18 million in wasted spend per enterprise, a 7% increase from 2022. For marketers managing SaaS portfolios, this highlights the urgent need for better license management practices to optimize spending and reduce waste.?

3. Security Risks from Employee-Expensed Apps?

The report also uncovers significant security risks associated with employee-expensed apps. Nearly two-thirds (65%) of these apps carry a "Poor" or "Low" security score, posing substantial threats to organizational data. This finding emphasizes the importance of implementing strict governance policies and robust security measures to manage and monitor all SaaS applications, especially those procured outside standard IT protocols.?

4. Shadow IT and Redundancy?

Shadow IT – the use of software, devices, applications, and services without explicit approval from the IT department – continues to be a major vulnerability at many companies, with over one-third of applications falling into this category. Additionally, redundancy within SaaS portfolios is rampant. The average company uses 15 duplicative online training apps, 11 project management tools, and 10 team collaboration apps. This redundancy inflates costs and complicates management efforts, underscoring the need for comprehensive discovery and reduction initiatives.?

5. Decline in IT Control?

The decentralization of SaaS purchasing has led to a decline in IT's control over software assets. In 2023, IT managed only 28% of software spending and 17% of applications, down from 31% and 18% in 2022, respectively. This shift necessitates stronger collaboration between IT, software asset management (SAM), procurement teams, and business units to ensure efficient and secure software management.?

The key takeaways from these findings can be relatively neatly summarized: Organizations must look for ways to decrease wasted spending and increase digital security.?

There is a critical need to optimize SaaS budgets. Organizations can achieve better cost efficiency and drive growth by addressing the issue of unused licenses. Implementing effective license management practices will free up significant resources and allow for reinvestment in innovative initiatives. The prevalence of unnecessary applications and unused licenses calls for a streamlined approach to SaaS management. Conducting thorough audits and rationalizing app portfolios eliminates redundancies, reduces costs, and improves overall efficiency. Interdepartmental collaboration is required to identify and address overlapping functionalities.?

With new security risks arising all the time, every company from startups to enterprises should enhance security measures now. Adopt robust policies that provide visibility into all applications, enforce compliance, and mitigate risks. The reported decline in IT control over SaaS assets highlights the need for stronger cross-functional collaboration. Procurement and IT teams should work closely with Business Development, Sales, and Marketing departments to establish governance policies, optimize software selection and subscription processes, and ensure a cohesive approach to SaaS management.?

Visit Zylo's website to dive deeper into the findings and strategies outlined in the 2024 SaaS Management Index. You'll come away with a better understanding of SaaS management, which can positively impact your organization’s bottom line.?

How to Choose the Best SaaS Subscription Management Tool

Choosing the best SaaS subscription management tools improves your ability to meet user needs. Customer experience is enhanced, satisfaction rates go up, and SaaS churn goes down. Do you know what to look for?

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