IT/​Telecom Firms to Boost BtoB Marketing

A quick glance at the top-​spending brands in the U.S. confirms that telecom companies allocate billions of dollars trying to attract consumer attention.  Businesses in this sector and in high-​tech services also market to the BtoB sector. The good news is that over 40% of these companies plan to increase BtoB marketing efforts in 2010 while another 44% will level-​budget the activity according to Gartner.

Many managers are still feeling the sting of cutbacks which took place last year. But the recession also forced these marketers to learn how to operate in a ‘new normal.’ "Marketing has to continue to look at becoming more efficient and cost-​effective," says Laura McLellan, research vice president at Gartner. As part of the new normal, high tech and telcom operators will consider the following options while they search for the right balance in marketing to end users:

  • Adopting lower-​cost alternatives
  • Outsourcing the marketing task
  • Reviewing growth targets to be reached through both traditional and new channels

In general, these companies spend about 1/​3rd of their marketing budget in-​house and 2/3’s is outsourced. When it comes to marketing communications, these businesses plan to allocate their budgets as follows this year:

  • Events 22%
  • Advertising 16%
  • Direct mail 11%

Despite the cautious outlook for 2010, operators understand that they need to increase their BtoB marketing efforts to win clients. Some operators will increase the marketing budget more than others as the following statistics show:

  • Increase of between 1–15%: 30%
  • Increase of between 16–30%: 13%

While this study primarily focused on large companies worldwide, the findings point to a positive trend in the BtoB sector. Companies in the high-​tech arena are back and they’re beginning to advertise again.
[Source: “Gartner Says Marketing Spending by High Tech and Telecom Providers Will Increase in 2010.” Gartner​.com. 21 Apr. 2010. Web. 5 May 2010] 

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.