1. A 2 0 12
Co
mpany
B2B B2C
B2C
B2B

2. 2
These are the results of the 2nd annual Each year, brands increase their level of engagement
Webmarketing123 State of Digital Marketing with social media.
Survey. Over 500 U.S. marketing professionals B2C leads the way, with 42% “very” or “fully” engaged with social media,
— two-thirds B2B, one-third B2C—answered compared to 27% for B2B. By a more broad measure, a full two-thirds of
questions about their objectives, results and marketers now describe themselves as “moderately” to “fully” engaged with
budgeting for three channels of digital marketing: social media. That said, 1 in 10 marketers still have no social media
Search Engine Optimization (SEO), Pay Per Click presence at all.
Advertising (PPC), and Social Media Marketing
• Follow the Money: 9 out of 10 digital marketers are spending money
(SMM). The results show that generating leads and
on Social Media, and 8 out of 10 have reported leads or sales from
sales, as well as increasing brand awareness, are
their efforts.
the top objectives for digital marketers. Across
company size and industry, digital marketers • 2C Marketers Discover LinkedIn: The number of B2C marketers
B
are adopting more sophisticated systems for generating leads or sales via LinkedIn has increased 75% since last year,
measurement and attribution, boosting while the number reporting sales from Facebook has declined nearly 20%.
confidence to increase or maintain budgets.
• s more sophisticated attribution tools become available, the number of
A
• or B2B, lead generation is the top objective,
F marketers able to attribute leads and sales to particular social channels
and SEO is twice as effective as PPC or SMM more than doubled (leads from 15 to 31%, sales from 23% to 60%). But
for this purpose. 4 in 10 B2Cs and 2 in 10 B2Bs continue to find attribution completely
out of reach.
• or B2C, boosting awareness and reputation
F
of their brands and products has doubled in
importance since 2011, overtaking online sales
TOP OBJECTIVES FOR DIGITAL MARKETING PROGRAMS
as the top objective for digital marketing.
• Budgets: 90% of marketers will increase or
maintain spending on SEO, PPC, and SMM. B2B
• till doing SEO in-house? Marketers using an
S Generate
Leads
agency are twice as likely to be highly satisfied 54%
Increase
with their campaign performance. Awareness
#1 Increase
28% Sales
• PC: Only a quarter of marketers surveyed are
P objectivE
10%
highly satisfied with the performance of
campaigns managed internally, compared to
one-third who work with agencies.
B2C
Increase
Awareness
Increase 33%
Sales Generate
26% #1 Leads
objectivE
22%
© 2012

3. 3
Industry Demographics
SURVEY PARTICIPANTS
Is your company primarily B2B or B2C?
35%
B2C
B2B
65%
COMPANY SIZE
How many employees does your company have?
50
23%
51-200 21%
201-1,000 23%
1,000 32%
Companies responding to the survey include: Sony, Olympus, Phillips, IBM, Hitatchi, Cisco, Agilent,
Microsoft, Citrix, Medtronic, Merck, Novo Nordisk, Blue Shield, ADP, Pitney Bowes, Monster.com,
Angie’s List, GE, John Deere, Aramark, Thomson Reuters, Federal Express, Bose, and Nestlé.
© 2012

4. 4
B2B LEAD GENERATION IS THE #1 OBJECTIVE
Top objectives for digital marketing programs
GENERATE LEADS
54% #1
objective
INCREASE
SALES 10%
INCREASE
AWARENESS 28%
GENERATE SITE
TRAFFIC 6%
BUILD ONLINE
COMMUNITY 0.3%
OTHER
0.7%
While lead generation is by far the most common objective for digital marketing campaigns, brand
and product awareness has nearly doubled in importance since last year. As budgets continue to
grow, marketers are expanding their focus to include earlier stages in the sales cycle.
B2C
INCREASING BRAND AND PRODUCT AWARENESS IS THE #1 OBJECTIVE
Top objectives for digital marketing programs
GENERATE LEADS
22%
INCREASE
SALES 26%
INCREASE
AWARENESS 33% #1
objective
GENERATE SITE
TRAFFIC 11%
BUILD ONLINE
COMMUNITY 6%
OTHER
3%
Increasing brand and product awareness has become the #1 objective for B2Cs online. This is a
marked change from last year, when online sales were the top priority.
© 2012

5. 5
B2B engages more with Social, B2C discovers SEO
Compared to last year, nearly 50% more B2Bs now identify Social Media
as having the most impact on lead generation (2011 vs 2012). In a
similar vein, 20% more B2Cs now identify SEO as most impactful for
lead generation (2011 vs 2012).
Which makes the biggest impact on lead generation?
20%
26%
PPC PPC
59% SEO B2B 49% SEO B2C
SOCIAL
MEDIA 21% SOCIAL
MEDIA
25%
© 2012

6. 6
SEARCH ENGINE OPTIMIZATION
B2B GOT SEO? B2C
84% 80%
YES YES
NO NO
B2B AGENCY OR IN-HOUSE? B2C
16% AGENCY IN-HOUSE NO SEO PROGRAM
20%
21%
27%
63% 53%
B2B BUDGETING FOR 2013 B2C
2% INCREASE
BUDGET
MAINTAIN
BUDGET
DECREASE
BUDGET
5%
43% 50% 45%
55%
© 2012

7. 7
SEO Campaign Measurement
Are marketers measuring the right things? The most common measures of SEO
performance are the volume of traffic, organic traffic, and the number of keywords
appearing on page 1, which give no insight into financial impact. Fewer marketers
are employing more sophisticated measures of SEO performance, such as number
of qualified leads or sales attributable to organic search.
NOT ALL MEASUREMENT IS CREATED EQUAL
How does your company measure the effectiveness of your SEO program? Check all that apply.
OVERALL VOLUME
OF TRAFFIC 51%
Basic: VOLUME OF
Easy to implement
but no measure of
ORGANIC
TRAFFIC
49%
financial impact
NUMBER OF
KEYWORDS ON
PAGE 1
47%
NUMBER OF
QUALIFIED LEADS 36%
Advanced:
More indicative of
financial impact, LEADS OR SALES
more challenging
to implement
ATTRIBUTABLE
TO ORGANIC
34%
SEARCH
NOT SURE WHAT
TO MEASURE 10%
© 2012

8. 8
MEASURING THE SUCCESS OF SEO PROGRAMS
Remains A CHALLENGE
More than 3 in 10 respondents indicate that “difficulty in
measuring SEO results” was their top frustration with SEO.
7 in 10 companies are unable to accurately attribute leads or
sales to organic search.
1 in 10 companies have no measurement system in place.
THREE STAGES OF MEASUREMENT SOPHISTICATION
While there are many ways to measure
40% 40%
SEO performance, they can be broadly
categorized as basic or advanced (see
previous table, p.7). The survey results
suggest that marketers are likely to be at
one of three stages, with a “measurement
gap” between the least and most
20% sophisticated. This gap holds true
regardless of company size, industry, and
whether SEO is managed internally or
through an agency. We believe this
reflects a growing gap between companies
STAGE 1: MEASURES SEO STAGE 2: MEASURES SEO STAGE 3: MEASURES SEO
BY MEANS OF 1-3 BY 1-3 METRICS, BY 3-5 METRICS, with competence in analytics and
BASIC METRICS INCLUDING 1 INCLUDING 1 OR MORE
attribution and those without.
ADVANCED METRIC ADVANCED METRICS
Without Sophisticated Measurement, Satisfaction and Investment are Lacking
5 in 10 measurement-challenged marketers feel neutral to
negative about their SEO performance. Marketers who said that
they don’t know how to measure SEO performance are
significantly less satisfied with their results, and less likely to
increase their SEO investment.
© 2012

9. 9
PAY PER CLICK ADVERTISING
B2B GOT PPC? B2C
64% 73%
YES YES
NO NO
B2B AGENCY OR IN-HOUSE? B2C
36% AGENCY IN-HOUSE NO PPC PROGRAM
27%
42%
44%
31%
20%
B2B BUDGETING FOR 2013 B2C
11% INCREASE MAINTAIN DECREASE
8%
BUDGET BUDGET BUDGET
31% 40%
58% 52%
© 2012

10. 10
Satisfaction levels consistently higher when
working with agencies
AGENCY IN-HOUSE
21%
highly satisfied
with SEO program
performance 11%
SEO
20%
highly satisfied
with PPC program
15%
performance
PPC
21%
highly satisfied
with Social
Media program
performance
10%
SOCIAL
MEDIA
Marketers working with an agency (as opposed to in-house) are twice as likely to be highly
satisfied with SEO and Social Media, and significantly more likely to be highly satisfied with PPC.
© 2012

11. 11
Social media
B2B GOT SOCIAL MEDIA? B2C
90% 91%
YES YES
NO NO
B2B AGENCY OR IN-HOUSE? B2C
10% AGENCY IN-HOUSE NO SOCIAL MEDIA
14%
5% PROGRAM
13%
85% 83%
B2B BUDGETING FOR 2013 B2C
3% INCREASE MAINTAIN DECREASE
2%
BUDGET BUDGET BUDGET
41% 52%
56% 46%
© 2012

12. 12
SOCIAL MEDIA ENGAGEMENT
B2C marketers are ahead with 70% moderately to highly engaged (40%
highly engaged), but B2B is catching up, with 63% at those levels of
engagement (27% highly engaged), Overall, only 1 in 10 have no social
media program.
B2B VS. B2C
How would you describe your company’s engagement with Social Media?
B2B 36%
B2C
31%
30%
27%
20% 19%
10% 9% 8% 10%
NO INVOLVEMENT SOMEWHAT MODERATELY VERY FULLY
INVOLVED INVOLVED INVOLVED INTEGRATED
B2B B2C
PERCEPTION
B2B marketers are far
less engaged than B2C
in Social Media REALITY
B2Bs are closing the
gap. 63% of B2Bs
are engaged with
social media, vs.
70% of B2Cs.
63% 70%
% marketers who are moderately to
highly engaged with social media
© 2012

13. 13
Spending Money on Social Media
B2B B2C
40% 65%
39% 23%
30% 39%
14% 17%
6% 14%
MAKING MONEY from Social Media % of Marketers who % of Marketers who
Generated Leads from Generated Sales from
Social Media Social Media
B2B B2C
39% 67%
19% 39%
44% 21%
23% 9%
30% 43%
14% 19%
7% 15%
3% 7%
3% 13%
1% 6%
Across the board, marketers’ social media expenditures are producing revenue opportunities.
© 2012

14. 14
SOCIAL MEDIA: INVESTMENT CONTINUES, ATTRIBUTION
STILL A CHALLENGE
9 out of 10 digital marketers are spending money on Social
Media, and 8 out of 10 have reported leads or sales from their efforts. As expectations rise, marketers are staffing up
and 95% of Social Media engagers now manage their own Social Media campaigns (up from 85% last year).
Attribution challenges continue: 4 in 10 of marketers in our
survey are unable to attribute sales or deals specifically to Social Media marketing.
Despite the inability to directly attribute revenue to Social Media, 95% of companies intend to increase or maintain their
spending on Social Media next year. B2C marketers are increasing their spending on Social Media faster than B2B, but no one is
taking their foot off the gas (5 in 10 B2C marketers and 4 in 10 B2B marketers will increase budgets).
B2B Social Media Analysis B2C Social Media Analysis
90% of B2Bs have some level of Social Media engagement, 90% of B2Cs have some level of Social Media engagement,
with 63% describing themselves as moderately to fully engaged, with 70% describing themselves as moderately to fully
and 25% “very” to “fully” engaged. The majority of this group engaged, and 40% “very” to “fully” engaged. Like their B2B
are seeing a return on their investment. Top areas of investment counterparts, the vast majority of B2Cs (90%) are managing
(for the 60% that spend) are Facebook LinkedIn (where 40% their Social Media in-house, and 70% are spending money
are active), and Twitter (30%). On these platforms, nearly on it. Two-thirds of B2Cs are active on Facebook and
all advertisers are generating leads, and roughly half have generate leads this way, and more than half of them see
closed deals. closed deals. Across the board, roughly half of Social Media
efforts see measurable results (for example, 14% of B2C
It’s notable that 20% of the marketers active on Social Media
marketers are active on Pinterest and 6% get sales or deals
aren’t sure if they’re generating leads, and a full 40% aren’t sure
from it.) The number of B2Cs generating leads via LinkedIn
if they’ve closed sales attributable to Social Media.
has increased 75% since last year, while the number
Clearly, marketers are still struggling to measure and attribute reporting Facebook as a source of sales declined nearly
the value of their investment. Despite the lack of consistent 20% (from 48% to 39%). 50% of B2C marketers will
results and attribution challenges, 41% of marketers plan to increase their investment in Social Media and 47% will
increase their Social Media budgets, and another 56% will maintain spending.
maintain their budgets.
© 2012

15. 15
The second annual Webmarketing123 State of Digital Marketing Survey was conducted online in July of
2012. Over 500 U.S. participants completed the survey—all individuals who responded to an email
invitation sent to marketing professionals. Participants answered questions using an online survey tool.
For more information about the survey, please contact marketingteam@webmarketing123.com.
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© 2012