B2B finds a new growth model with Account-Based Advertising
- 1st April 2020
As budgets are scrutinized and with marketers needing to show business value: how much credit should go to advertising as contribution to revenue?Common sense and empirical evidence show that advertising has a big impact on expected margins, loyalty levels and customer trust. However, brand building is a long-term strategy that just too often is overlooked by marketing teams
The most profitable companies are often the ones to first embrace changes. To find the upside, companies need to add new effective solutions that not many else are using. In other words, if you do the same as your competitors you can only ever be marginally better than them.
Working according to consensus and common wisdom has never made anyone rich: it only hedges your risks. This is well known in the Financial Markets and explains the success of Index Investment. The idea is very simple, just replicate an index and the results of your investment will be average. This strategy eliminates volatility associated to making the wrong choice. Just follow the market and you will not be blamed.
Replicate this strategy as CMO and you’ll never make your company a performing star, just an average one.
Everyone agrees that Marketing and Sales achieve best their objectives when working together. Alas, sales cycles and marketing strategies are asynchronous.
B2B sales normally run on long and complex cycles, with big major contracts needing 12 months or more to close. However, according to available data, 96% of marketers do not measure impact beyond 6 months. The corollary is that companies are built on long term visions that rely on short term tactics. In economic terms, this is the kind of irrational exhuberance that has so often puzzled scholars.
Common sense and empirical evidence show that advertising has a big impact on expected margins, loyalty levels and customer trust. However, brand building is a long-term strategy that just too often is overlooked by marketing teams. This is so just because it can not be measured within the usual 6 month period.
Marketing teams ready to shift away from conventional marketing tactics and willing to take a look at the big picture will out-perform their competition. And here is where Account Based Advertising is a precious opportunity to do the right thing.
By shifting away part of the focus from short term wins to long term brand value, companies are set to benefit from a substantial increase in revenue, lower cost of acquisition and higher customer loyalty.
There is a better growth model for B2B, away from conventional consensus and common practices. One model that takes a bold statement on the value of building a brand and the ability of Account Based Advertising to achieve just that.