Understanding your marketplace

1
Understanding your marketplace

• Guy Phillipson - Chief Executive, IAB UK
• 22nd March 2006

2
Agenda

• Decision makers can be found online
• A valued source of information
• An aid to the purchase process
• Attitudes to internet marketing
• Making use of internet marketing
• Looking to the future

3
Decision makers can be found online
4
They are using the internet on a regular basis
How frequently do you use the internet for
business/personal use?
More so for Business than personal use
Source IAB/B2B Marketing Magazine Internet
Marketing Survey, March 2006
Base Senior Decision Makers (541)
5
Spending a lot of time online
Business Decision Makers spend an average of 4.8
hours per week online
Source AOP The Role of B2B Websites, March 2005
Base All Business Decision Makers who use the
web for work (300)
6
The internet is the best way to reach decision
makers at work
Reach of each media by day part (Monday to
Friday) amongst business decision makers
Reach
Source BBS 2005
7
The internet is a valued source of information
8
The most useful sources of work related
information are online
Source AOP The Role of B2B Websites, March 2005
Base All Business Decision Makers who use the
web for work (300)
9
The internet plays an important role in their
working day
Source AOP The Role of B2B Websites, March 2005
Base All Business Decision Makers who use the
web for work (300)
10
They value B2B websites

• 73 agree B2B websites provide useful information
  on products and services.
• 70 expect their usage of B2B websites to
  increase over the next two years.
• 64 agree B2B websites are a trustworthy source
  of information in their industry.
• 53 agree B2B websites are an essential source of
  information in their work.

Source AOP The Role of B2B Websites, March 2005
11
Advertising on B2B sites gets a strong response
Actions taken after seeing an advert on a B2B
website
83 have done something as a result of seeing
an advert on a B2B website 54 have either
bought a product on or offline
Source AOP The Role of B2B Websites, March 2005
Base All Business Decision Makers who use the
web for work (300)
12
The internet is helpful when making complex
purchase decisions
13

• Guy - what do you want to do with this section?

14
A great tool for researching products and services
The internet is more effective than at helping
customers to find and research products and
services
Source IAB/B2B Marketing Magazine Internet
Marketing Survey, March 2006
Base Senior Decision Makers (541)
15
The new purchase model The need to be informed
An example of buying a washing machine
Pre
-
internet
Source AOL, Brand New World, 2004
16
Attitudes to internet marketing
17
Some hesitancy remains

• Online marketing is not appropriate for a
  business audience.
• Online security is a concern to me and my
  customers.
• The internet is only ever likely to play a
  secondary role in our marketing communications.

3.7 11.0 32.4
Source IAB/B2B Marketing Magazine Internet
Marketing Survey, March 2006
Base Senior Decision Makers (541)
18
But the potential is being realised

• The internet has revolutionised our marketing
  communications.
• Conducting business online has helped the growth
  of our company.
• Eventually the majority of our business activity
  will be conducted online.

35.3 38.2 11.8
Source IAB/B2B Marketing Magazine Internet
Marketing Survey, March 2006
Base Senior Decision Makers (541)
19
Making use of internet marketing
20
Email is the most widely used internet marketing
tools
Does your company make use of?
Source IAB/B2B Marketing Magazine Internet
Marketing Survey, March 2006
Base Senior Decision Makers (541)
21
Potential remains for businesses to be more
ambitious with their websites
What is the primary function of your own
corporate website?
Source IAB/B2B Marketing Magazine Internet
Marketing Survey, March 2006
Base Senior Decision Makers (541)
22
Email becoming the cornerstone of B2B
communication
23
Email marketing

• 83.7 of respondents make use of email marketing.
• The cost, immediacy and measurability of email
  means that B2B marketers see it as the most
  effective medium ahead even of direct mail.

Source IAB/B2B Marketing Magazine Internet
Marketing Survey, March 2006 / B2B Marketing
magazine State of the market survey, June 2005
24
Email is fulfilling a wide range of purposes
Source IAB/B2B Marketing Magazine Internet
Marketing Survey, March 2006
Base Senior Decision Makers (541)
25
Search
26
Marketers have a good understanding of search
terminology
Which of the following terms are you familiar
with?
Source IAB/B2B Marketing Magazine Internet
Marketing Survey, March 2006
Base Senior Decision Makers (541)
27
and are making use of it
Use of search marketing methods
Source IAB/B2B Marketing Magazine Internet
Marketing Survey, March 2006
Base Senior Decision Makers (541)
28
Looking to the future
29
Online investment set to grow
How will your companys investment in internet
marketing change in the coming year?
Source IAB/B2B Marketing Magazine Internet
Marketing Survey, March 2006
Base Senior Decision Makers (541)
30
Most typically by between 5 and 20
Anticipated growth in online adspend
Source IAB/B2B Marketing Magazine Internet
Marketing Survey, March 2006
Base Senior Decision Makers (541)
31
Conclusion

• Business Decision Makers are regular users of the
  internet, particularly for work purposes.
• The opportunity remains to increase the
  sophistication and functionality of their
  websites.
• Email already plays an integral role in a lot of
  B2B marketing activity.

32
Conclusion

• Display advertising and, to a lesser extent,
  search are yet to be fully embraced by the B2B
  community.
• Many business decision makers anticipate that
  they will increase their investment in internet
  marketing in the future.
• The internet has already had a significant
  effect, not only on marketing communications, but
  the success of businesses as a whole.

33
Understanding your marketplace

• Guy Phillipson - Chief Executive, IAB UK
• 22nd March 2006