How to Succeed in the B2B Marketing Renaissance

Traditionally, B2B companies have focused mainly on sales and lead generation, often overlooking brand building. Recent insights from a 2023 Forrester study reveal that B2B companies are now investing more in brand-related activities such as creative content, brand management, websites, and digital channels.

The importance of brand building in 2023

The latest data from The CMO Survey in March 2023 shows that B2B marketers still allocate a significant portion of their budgets to short-term performance-driven tactics. However, there is a growing desire for a more balanced marketing approach. Investing in long-term brand-building strategies alongside short-term tactics is becoming increasingly popular. While the pendulum is gradually swinging toward brand building, a rapid shift is needed.

What’s driving the change?

B2B marketers are realizing that buyers are not just defined by their job titles or pain points. They are people, influenced by emotions and storytelling just like B2C customers. Through modern and effective marketing, companies can create emotional connections with their B2B audience and nurture relationships that impersonal and outdated content cannot achieve. In competitive markets, a strong brand offers companies a meaningful competitive advantage: personality.

Artificial intelligence, including tools like ChatGPT, has leveled the playing field in marketing by enabling companies to achieve more with fewer resources. However, the widespread use of AI has also led to a flood of similar messages and increased market noise. To stand out amid this noise, B2B companies recognize the unique role that human creativity, innovative ideas, and building brand trust and reputation play.

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The perception of a brand or company affects not only external audiences but also has a significant internal impact. In an increasingly competitive labor market, a strong brand with clear values can make a meaningful difference. Therefore, investing in brand building is crucial for both CMOs and HR professionals.

Why should you make a change now?

It can be a profitable investment for B2B companies to allocate funds toward marketing initiatives that build the brand. Long-term brand strategies support various outcomes, including brand recognition, loyalty, the ability to stand out in saturated markets, and increased perceived value. Although it can be difficult to directly link leads and sales to a broad brand-building strategy, research from McKinsey & Company shows that B2B companies with strong brands deliver up to 20% higher shareholder returns than their competitors.

The way forward in the renaissance

For B2B companies that have primarily focused on performance marketing aimed at sales and lead generation, it is now time to reconsider their strategies. While performance marketing remains important, a lack of brand building can lead to fewer new customers, lost sales, weakened loyalty among existing customers, and lower overall performance. The B2B marketing renaissance demands a balanced approach that embraces both performance marketing and brand building.

We are in the midst of a renaissance in B2B marketing, and it is crucial for companies to seize the opportunities this change brings. By embracing brand building and long-term marketing strategies, B2B companies can more easily establish emotional connections with their audience, navigate the increasingly AI-driven market, improve recruitment and employee retention, and ultimately outperform competitors.

For companies seeking long-term growth and success in an ever-changing market, embracing these changes in B2B marketing is not just optional but a strategic necessity to thrive in the dynamic landscape.