With fears of recession having now being laid to rest, business establishments have once again begun to spend on marketing their products and services to
other business establishments i.e., business to business advertising is slowly looking up again. In fact, according to the latest Forrester report,
manufacturers plan to spend 6.7% more on business to business advertising in 2011 than they did in the preceding year. Increasing business to business advertising spends is a vital indicator of business growth and potential.
The same Forrester report also mentions that in 2011 business to business advertising is aimed more at lead generation, product marketing, product management, and product branding. Manufacturers and service providers seem to have realized that in order to position themselves with potential corporate and institutional buyers they must position themselves in new interactive spaces as well.
A study conducted by Interactive Advertising Bureau (IAB) indicated that roughly 69% of the business to business advertising will be through increased use of digital video advertising (DVA) because the manufacturers and service providers felt that business to business advertising via digital video advertising was more traceable and easier to target. Also, with new technologies available, digital video advertising was less expensive and hence more cost efficient.
The Forrester report further pointed out that tech service sector would increase their business advertising solutions by as much as 17% while Business and professional services would increase their business to business advertising spend by 4.3% and Finance and Insurance by 5.9% and manufacturers would increase their business to business advertising by 4.3%. The new statistics on business to business advertising is hardly surprising when considering that the tech industry was least affected by the recent recession. But increased ad spends by the other industries indicates a robust business recovery.
In all this we should not fail to notice that the Forrester report pointed out that a significant portion of the business to business advertising would be spent on product branding and despite being a young platform, as much as 7.4% of the business to business advertising money would be spent on community and social marketing. All in all, business to business advertising will definitely see a significant revival in 2011.
Small business establishments will continue to focus their business to business advertising using traditional media whereas the larger manufacturers and service providers are keen to try out non-traditional media including social networking and the internet. This too is along expected lines because small businesses have lesser margin for error and trying out new avenues of marketing and are therefore bound to stick to tried and tested methods of business to business advertising. Large manufacturers and service providers on the other hand have larger budgets and therefore enjoy a wider playing field. Large manufacturers and service providers can afford to allocate their business to business advertising budgets to traditional as well as non-traditional methods. In fact, if it weren’t for the large manufacturers and service providers, non traditional methods of business to business advertising might never have taken off.