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What is account-based marketing today and how has the space evolved?

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What is account-based marketing today and how has the space evolved?

B2B marketers have employed account-based marketing (ABM) for well over a decade, of course, but the space has evolved rapidly over the past two to three years.

Factors driving changes in ABM include shifts in buyer preferences and pre-purchase behavior, as well as the development of more sophisticated technology and data products that enable marketers to analyze behavior, identify in-market audiences, and craft experiences for a buying group or its individual members.

Additionally, the COVID pandemic accelerated fundamental shifts in the B2B buying cycle by forcing events and in-person meetings to go virtual. A survey by the IT Sales and Marketing Association (ITSMA) found 27% of the marketing budget dedicated to ABM in 2021, with 75% of those surveyed saying they planned to increase spending on ABM in 2022.

Even a return to the “new normal,” however unlikely that may current seem, isn’t expected to slow the growth of ABM, because the trends driving the changes in buyer behavior have long been brewing.

How B2B buying has changed

For some time, B2B buyers have conducted substantial research online before talking to a salesperson, and the vast amount of information available to buyers has given them an upper hand. The lockdowns, canceled events and work-from-home trends that characterized the pandemic period exaggerated this phenomenon, and, even as in-person opportunities return, the buying cycle has been forever changed.

Last year, Forrester Research found the average number of buying interactions occurring during the purchase process soared by 10 to 27 in 2021. This trend shows that buyers are determined to do their due diligence before making purchase decisions, raising the importance of the personalized, targeted experiences enabled by ABM technologies.

Digital engagement, Salesforce notes in its most recent “State of the Connected Customer”
report, “hit a tipping point” in 2021, when an estimated 60% of interactions took place online,
compared to 42% the year before.

This shift from a reactive to proactive marketing approach is working well for many B2B
companies.

Read next: A deep dive into changes in the ABM space — our new ABM Marketing Intelligence Report

The vendors respond

A great number of ABM vendors provide everything from all-in-one platforms to enable ABM strategies, to adjacent services like data enrichment, identity resolution, analytics, and interaction management/orchestration to B2B marketers ramping up their programs. The more comprehensive platforms come from B2B mainstays such as Dun & Bradstreet, Salesforce and Marketo, which share the space with a growing group of independent ABM platforms including 6Sense, Integrate, Demandbase, Bombora, Jabmo, RollWorks (a division of NextRoll), N. Rich, MRP, Madison Logic, Terminus and more.

Here are seven of the top developments we are monitoring:

1. Platforms, not point solutions

Where the ABM landscape dominated by point solutions offering specific elements of the mix, but now, through partnerships, consolidation and technological development, many vendors offer more comprehensive solutions.

2. Consolidation of ABM and demand gen

Another notable development among ABM vendors is the move to consolidate ABM with demand generation. Many vendors are buying into the vision of eliminating the distinction between these two elements of B2B selling and are developing the tools to enable marketers to carry it out. For example, Demandbase calls this convergence its “Smarter Go-To Market” offering, while Kwanzoo
expects a B2B Go-To Market suite — anchored by its B2B GTM platform — to become standard.
Madison Logic calls its solution “Journey Acceleration,” and Salesforce expects businesses
to align all of their customer-facing activity (marketing, sales and customer service) on the
Salesforce Customer 360 Platform. Meanwhile, Terminus and Dun & Bradstreet are unifying
around a CDP.

3. More M&A

Most vendors we surveyed expect merger and acquisition activity to pick up in the space as the larger players build more comprehensive platforms. Inflation worries, interest rate hikes and general economic uncertainty are also factors here, since they all contribute to a less-attractive IPO market, leading venture-funded companies to seek M&A opportunities.

4. Deeper investments in AI

In addition to consolidating their tool sets, vendors are also investing heavily in artificial intelligence (AI) to deepen the data insights available through their tools, as well as the targeting and relevance of marketing execution. More vendors have introduced recommendation engines that analyze multiple data sources to provide “next-best-actions” based on account intent and behavior signals.

5. Help for the sales team

To enhance the alignment between B2B sales and marketing teams, vendors are also adding sales enablement tools that automatically activate sales triggers based on CRM account reporting, and provide lead-to-account mapping, for example. The goal is to streamline the “hand-off” of leads from marketing to sales.

6. Efficiency across channels

Interaction management, or orchestration, is a key feature for many ABM vendors profiled in this report, which are expanding the number of channels that can be managed through their tools. Vendors are building out APIs and increasing the availability of native (outof-the-box) integrations with CRMs, marketing automation systems, digital ad networks and other ABM data providers.

7. The growing importance of compliance

While data unquestionably drives value, it can also create difficulties with complying
with privacy regulations especially for those businesses looking to take their ABM programs
global. This is why many vendors touted their capabilities for data management and compliance
as they gear up to support global marketing initiatives.

Download Enterprise Account-Based Marketing Platforms: A Marketer’s Guide

Account-based marketing: A snapshot

What it is. Account-based marketing, or ABM, is a B2B marketing strategy that aligns sales and marketing efforts to focus on high-value accounts. 

This customer acquisition strategy focuses on delivering promotions — advertising, direct mail, content syndication, etc. — to targeted accounts. Individuals who may be involved in the purchase decision are targeted in a variety of ways, in order to soften the earth for the sales organization. 

Why it’s hot. Account-based marketing addresses changes in B2B buyer behavior. Buyers now do extensive online research before contacting sales, a trend that has accelerated during the COVID-19 pandemic. One of marketing’s tasks in an ABM strategy is to make certain its company’s message is reaching potential customers while they are doing their research. 

Why we care. Account engagement, win rate, average deal size, and ROI increase after implementing account-based marketing, according to a recent Forrester/SiriusDecisions survey. While B2B marketers benefit from that win rate, ABM vendors are also reaping the benefits as B2B marketers invest in these technologies and apply them to their channels.

Read next: What is ABM and why are B2B marketers so bullish on it?


About The Author

Pamela Parker is Research Director at Third Door Media’s Content Studio, where she produces MarTech Intelligence Reports and other in-depth content for digital marketers in conjunction with Search Engine Land and MarTech. Prior to taking on this role at TDM, she served as Content Manager, Senior Editor and Executive Features Editor. Parker is a well-respected authority on digital marketing, having reported and written on the subject since its beginning. She’s a former managing editor of ClickZ and has also worked on the business side helping independent publishers monetize their sites at Federated Media Publishing. Parker earned a master’s degree in journalism from Columbia University.

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MARKETING

Amazon announces AWS Clean Rooms

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Elon Musk has acquired Twitter

This week, Amazon announced AWS Clean Rooms, a service that will enable customers who use AWS Advertising and Marketing, as well as other data and media partners, to build data clean rooms. These clean rooms, which can be built in minutes, will keep data secure, while advertisers can use insights from the data to optimize campaigns and make other advertising and marketing decisions based on these insights.

“Using AWS Clean Rooms, customers can collaborate on a range of tasks, such as more effectively generating advertising campaign insights and analyzing investment data while improving data security,” said Dilip Kumar, vice president of AWS Applications, in a company release.

AWS Clean Rooms will become available in early 2023 in some U.S. markets, as well as in Europe and Asia Pacific markets.

Why we care. Through a number of partnerships over the last year, clean rooms have become more widely available for campaigns on the open web, as well as within “digital giants” (aka walled gardens) such as Amazon.

By including partners across identity, measurement and media, AWS can provide clean rooms for advertisers to execute campaigns outside of Amazon while gaining intelligence on campaign performance, all while keeping customer data secure.

Media partnerships. For instance, Fox Corporation is on board with their sports, news and entertainment properties. “It can be challenging for our advertising clients to determine how to best leverage our deep, differentiated set of data sources to optimize their media spend across our combined portfolio of entertainment, sports, and news brands, which reach hundreds of millions of monthly viewers,” said Lindsay Silver, senior vice president of data and commercial technology at Fox Corporation, in a release. “AWS Clean Rooms will enable data collaborations easily and securely in the AWS Cloud, which will help our advertising clients unlock new insights across every Fox brand and screen while protecting consumer data.”

Additionally, DISH Media will allow advertisers and agencies to run their own analysis in AWS Clean Rooms to optimize future campaigns across their audience of 31 million consumers.

Identity. Amazon says new identity capabilities will roll out to advertisers in the coming months to help brands match and link customer records across channels without compromising anonymity. They’ve announced information services company Experian as an AWS Clean Rooms partner in helping brands enrich their first-party data.

“By combining Experian’s identity resolution capabilities with AWS Clean Rooms, customers can securely unify and analyze their collective data to derive deeper insights and deliver more personalized customer experiences,” said Aimee Irwin, senior vice president of strategy and partnerships at Experian, in a statement.

Measurement and analytics. Comscore is also signed on as an AWS Clean Rooms partner. This means that they will be using the AWS cloud to host brands and connect them to Comscore’s Media Metrix suite, powered by Unified Digital Measurement 2.0 and Campaign Ratings.

These partnerships insert the AWS Advertising and Marketing cloud into the digital ad ecosphere at a time when privacy and first-party enrichment are top priorities for brands.

Dig deeper: Why we care about data clean rooms


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About The Author

Chris Wood

Chris Wood draws on over 15 years of reporting experience as a B2B editor and journalist. At DMN, he served as associate editor, offering original analysis on the evolving marketing tech landscape. He has interviewed leaders in tech and policy, from Canva CEO Melanie Perkins, to former Cisco CEO John Chambers, and Vivek Kundra, appointed by Barack Obama as the country’s first federal CIO. He is especially interested in how new technologies, including voice and blockchain, are disrupting the marketing world as we know it. In 2019, he moderated a panel on “innovation theater” at Fintech Inn, in Vilnius. In addition to his marketing-focused reporting in industry trades like Robotics Trends, Modern Brewery Age and AdNation News, Wood has also written for KIRKUS, and contributes fiction, criticism and poetry to several leading book blogs. He studied English at Fairfield University, and was born in Springfield, Massachusetts. He lives in New York.

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