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1                    the 2012 state of inbound marketing




         the 2012

         State of
         inbound
         marketing
                                                       2012 Report on
                                                       Inbound marketing
                                                       practices & trends


                    Blogging

                    Social media




                                                           A publication of

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    iS tHiS book rigHt for me?
    Not quite sure if this ebook is right for you? see the below description to determine if
    your level matches the content you are about to read.



                             introduCtorY
                             Introductory content is for marketers who are new to the subject.
                             this content typically includes step-by-step instructions on how
                             to get started with this aspect of inbound marketing and learn its
                             fundamentals. Read our Inbound marketing Glossary to review all
                             the terms and definitions that can make you a marketing rockstar.



                             intermediate                              This ebook!

                             Intermediate content is for marketers who are familiar with the
                             subject but have only basic experience in executing strategies and
                             tactics on the topic. this content typically covers the fundamentals
                             and moves on to reveal more complex functions and examples.
                             After reading it, you will feel comfortable leading projects with this
                             aspect of inbound marketing.

                             adVanCed
                             Advanced content is for marketers who are, or want to be, experts
                             on the subject. In it, we walk you through advanced features of
                             this aspect of inbound marketing and help you develop complete
                             mastery of the subject. Read our online marketing opportunity
                             Report by Industry for more advanced information on inbound
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                             marketing trends.


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Hubspot’s All-IN-oNe
mARketING softwARe                                          U q
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                                                           GeNeRAtIoN
                                                                                bloGGING &
                                                                               socIAl medIA
Hubspot brings your whole marketing
world together in one, powerful, integrated
system.

   get found: Help prospects find you online
   Convert: Nurture your leads and drive conversions
   analyze: measure and improve your marketing.
   more: see marketplace for apps and integrations
                                                           M s
                                                             emAIl &
                                                           AutomAtIoN
                                                                                 seARcH
                                                                               optImIzAtIoN


 Request A demo             Video overview


                                                            g Y
                                                             leAd
                                                          mANAGemeNt
                                                                               mARketING
                                                                               ANAlytIcs




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  ContentS



  tHe State of marketing CoStS & budgetS /8


  inbound CHannelS ConVert leadS into CuStomerS             /21



  WHat’S important to marketerS?               /29



  ConCluSion & additional reSourCeS /36




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five key takeaways
this report is based on a January 2012 survey of 972 professionals familiar with their business’
marketing strategy. the key takeaways are:



                    INbouNd mARketING bRINGs low-cost leAds


   1                Inbound marketing channels are maintaining their low-cost
                    advantage. Inbound marketing-dominated organizations
                    experience a cost per lead 61% lower than outbound
                    marketing-dominated organizations.



                    moRe speNdING oN INbouNd cHANNels


    2               the distribution of marketing budgets continues to shift to
                    inbound channels. the difference between inbound and
                    outbound marketing expenditures grew by 50% from 2011
                    to 2012.



                    socIAl medIA GRowtH



   3                2012 saw growth in social media use across the spectrum.
                    62% of companies said that social media had become
                    more important as a source of leads in the past six months.



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                    tHe RIse of GooGle+


   4                Google+ has started to affect social media marketing. within
                    six months of its launch, over 40% of marketers consider it
                    “useful,” “important” or “critical.” It’ll be interesting to see
                    how Google+ affects marketers in the future.




                    INcReAsING VAlue of bloGGING


   5                businesses are increasingly aware their blog is highly
                    valuable. 81% of businesses rated their company blogs as
                                                                                       p
                    “useful,” “important” or “critical.” An impressive 25% rated
                    their company blog as “critical” to their business.




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overview of Inbound marketing

this report is designed to help businesses and marketers understand
the current usage and results of inbound marketing. inbound
marketing is a set of marketing strategies and techniques focused on
pulling relevant prospects and customers towards a business and its
products. Inbound marketing is becoming widely accepted because it
complements the way buyers make purchasing decisions today—they
are using the Internet to learn about the products and services that
best meet their needs.

Inbound marketers offer their audiences useful information and tools to attract people to their
site, while also interacting and developing relationships with these potential customers. Inbound
marketing tools include blogging, content publishing, search engine optimization and social
media.

                             Inbound marketing contrasts with traditional outbound marketing,
                             where businesses push their messages at consumers. with
                             techniques that include direct mail, telemarketing and trade
                             shows, outbound marketing has become less effective over time
                             as buyers have behaviorally and technologically (e.g., dVR, spam
                             filters, ‘do-not-call’ lists) tuned these interruptive campaigns out.




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    CHapter 1



    tHe State of
    marketing
    CoStS &
    budgetS

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      “       Inbound consistently delivers a
              cost per lead dramatically lower

                                                   ”
              than outbound.


  survey participants were asked to report the distribution of
  their spending and their average cost per lead. Respondents
  who spend more than 50% of their lead generation budget on
  inbound marketing channels report a significantly lower cost
  per sales lead than those who spend 50% or more of their
  budgets on outbound marketing channels.




                              cost/          for outbound-dominated
        the average                                                             $346,
                              leAd           businesses was




                                                    cost
wHIle            inbound businesses
                                                    $135                on average.
                 reported their leads



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Inbound marketing-dominated organizations experience a 61% lower cost per lead than
outbound marketing dominated organizations.



                                    average Cost per lead
                                    INbouNd Vs. outbouNd




                                                                                       61% lower cost per lead




                                                                                         outbound marketing
                                                                                         dominated


                                                                                         Inbound marketing
                                                                                         dominated


                    2010                         2011                  2012
           the 2012 state of Inbound marketing
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This finding is remarkably consistent from year to year. The previous studies showed strikingly
similar results: the 2010 survey and 2011 survey showed that inbound marketing-centric
organizations experienced a 60% and 62% lower cost per lead respectively.



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                    the three Inbound marketing channels
                    cost less than Any outbound channel

                    when asked to classify each lead generation category as “below average cost,” “near average
                    cost,” or “above average cost,” businesses consistently ranked inbound marketing channels as
                    having costs lower than outbound channels.

                    blogs, social media and organic search maintained the top slots as least expensive.



                                                   below average Cost perPer Lead,
                                                     Below Average Cost lead,
                                                   % RespoNdeNts by leAd cHANNel
                   60%                               % Respondents by Lead Channel
                               52%
                                               45%
% of Respondents




                   40%                                         38%
                                                                             34%            33%
                                                                                                        28%
                                                                                                                      19%
                   20%



                   0%
                               Blogs      Social Media SEO (Organic        Direct Mail Telemarketing   PPC (Paid   Trade Shows
                                                         Search)                                        Search)
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                   blogs had the highest instance of being reported as “below average cost.” 52% of companies
                   who blog indicated leads from this channel were “below average cost.” trade shows, direct mail,
                   and telemarketing were most frequently ranked as more expensive.




                    52%             of companies who                 bloG               indicated leads              cost
                                                                                        from this channel



                                                                                                 below
                                                                                                 AVeRAGe.

                                                   above average Cost per lead,
                                                     Above Average Cost Per Lead,
                                                   % RespoNdeNts by leAd cHANNel
                              46%                    % Respondents by Lead Channel

                   40%
% of Respondents




                                               26%             26%            25%

                   20%
                                                                                            14%          14%
                                                                                                                     10%


                   0%
                          Trade Shows       Direct Mail Telemarketing       PPC (Paid    SEO (Organic Social Media   Blogs
                         the 2012 state of Inbound marketing
                                                                             Search)       Search)
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 many businesses Are Increasing their




                                                                                          ?
 Inbound marketing budgets

 the survey asked, “How does your 2012 Inbound marketing budget
 compare to your 2011 budget?” and “If your 2012 inbound marketing
 budget changed from your 2011 budget, what drove that decision?”

 the data shows that a large percentage of businesses are consistently increasing inbound
 marketing budgets.



47%
                of those surveyed
                are increasing
                                               {                       their inbound
                                                                       marketing
                                                                                               budGets.


                                                   How does your inbound marketing budget
                                                   for the current year compare to your
                                                   budget for the previous year?
            89% are either maintaining
            or increasing their inbound
            marketing budgets. Among
            the 47% of respondents with                                                  No change
                                                         Higher                             42%
            increased inbound marketing                   47%
            budgets, the most commonly
            cited reason was “past success
            with inbound marketing.”


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                                                                                           Lower
                                                                                            11%
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14                                 the 2012 state of inbound marketing



                                                    Why businesses are increasing
                                                    inbound budgets?


          Among the 47% of
          respondents with increased
          inbound marketing budgets,
          the most commonly cited
          reason was “past success
          with inbound marketing.”




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                                                    Why businesses are decreasing
          the majority of businesses
                                                    inbound budgets?
          attributed their decreasing
          budgets to the “economic
          conditions” (62%) or “a change
          in management” (21%).




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15                              the 2012 state of inbound marketing




  distribution of budgets continues to
  shift to Inbound channels

              we asked survey respondents what percentage of their lead generation
              budgets would be spent on each of the following nine marketing channels:



      blogs                                                                              trade
                                                                                         shows


social                         INbouNd                        outbouNd                        direct
media                          cHANNels                       cHANNels                        mail



      seo                                                                            telemarketing
      (organic
      search)




                                              Not
                   ppc                                                         email
                                              clAssIfIed
                   (paid search)                                               marketing



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   the results show that:




the average
portion of        budGet             dedicated to                increased from
                                                                 32% in 2011 to
                                                                                    35%
                                                                                    in 2012.

                                                       INbouNd


   the gap between inbound and outbound grew by 50% and continues to widen. Inbound
   marketing had an 8% greater share of the lead generation budget in 2011 in comparison to a
   12% greater share in 2012.


                 lead generation budget average distribution,
                 2011 Vs 2012




                                                                                    outbound
                                                                                    Inbound




                                 2011                                  2012
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A more granular view of the data shows that:

                    marketers are allocating more of their lead generation budgets to social
                    media and company blogs.



                    inbound lead generation budget average distribution,
                    2009 - 2012



                                                                                       seo

                                                                                       blogs &
                                                                                       social media




                    2009                  2010               2011               2012

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                    the average budget spent on company blogs and social media increased from
                    9% in 2009 to 21% in 2012. much of this growth can be attributed to social
                    media. In 2010, blogs were 7% and social media was 8% of total marketing
                    budget; in 2012, they were 8% and 13%, accordingly.


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                    the outbound lead generation budget, on the other hand, has been steadily
                    decreasing over the last four years.

                    by taking a more granular look at the different outbound channels, we
                    notice that the largest drop has been in relation to telemarketing. In 2009,
                    telemarketing was 10% of the total marketing budget on average. In 2012, it
                    half of what it used to be.




                    outbound lead generation budget average distribution,
                    2009 - 2012




                                                                                       telemarketing
                                                                                       trade shows
                                                                                       direct mail




             2009                     2010               2011                   2012

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small companies continue to spend
more of their budgets on Inbound
marketing

In a continuation of a trend identified in previous reports, small businesses are attempting to
level the playing field by focusing on lower-cost inbound lead generation techniques.




             smAll
             busINesses
                                                                 lARGe
                                                                 busINesses


   In 2012, small businesses (1 to 5                 In comparison, large businesses (500
   employees) plan to spend 43% of their             or more employees) only plan to spend
   lead generation budgets on inbound                21% of their lead generation budgets on
   marketing.                                        inbound marketing.




   small business are only giving 14% of
   their budget to outbound,


                                                                while large business are
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                                                                allocating 33% of their budget
                                                                to outbound channels.
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                                             small businesses plan to spend dramatically more of their budgets on social
                                             media and blogs.

                                             large businesses plan to spend more of their budgets on outbound methods,
                                             including trade shows, direct mail and telemarketing.




                              average distribution of lead generation budgets,
                              smAll Vs. lARGe busINesses



                   20%                                                                                               1 to 5 employees
                            18%
                                                                                              17%
                                                                                                                     over 500 employees
                                           14%
Average % budget




                                                 11%       11%             11%                               11%
                                                                                 10%
                   10%                                                                                                    9%

                                  7%                                                                   7%                                7%

                                                                                         5%                          5%
                                                                                                                                    4%
                                                                  3%



                   0%
                          social media   seo (organic       blogs          email       trade shows   ppc (paid     direct mail   telemarketing
                                           Search)                        marketing                   Search)



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    CHapter 2



    inbound
    CHannelS
    ConVert
    leadS into
    CuStomerS

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                           Inbound channels produce
                           Higher Quality leads

                           the survey results clearly show that inbound leads cost less; but are they better quality? How
                           well do inbound channels produce customers in comparison to outbound?

                           we looked at sample of over 150 businesses using closed-loop marketing analytics, and found
                           the median lead-to-close rate of each business by the lead source. the data showed that:

                                                seo leads have a 14.6% close rate, while outbound sourced leads have a
                                                1.7% close rate.

                                                seo leads are eight times more likely to close into customers than outbound
                                                leads.

                                                Leads from inbound links (referrals) are five times more likely to become
                                                customers than outbound leads.

                                             lead-to-Customer Close % by Channel
                                                   Lead-to-Customer Close
                                                                          % by Channel

                              16%         15%                15%
Lead to Customer Close %




                              12%
                                                                                    9%
        (Median)




                               8%                                                                     7%

                                                                                                                    4%
                               4%
                                                                                                                                 2%

                               0%
                                         SEO
                           Share This Ebook!             Direct Traffic           Referrals       Paid Search   Social Media   Outbound


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23                                 the 2012 state of inbound marketing




   social media and blogs
   Generate Real customers

   the use of social media and company blogs as marketing tools not only gets your company
   better brand exposure, but it also generates leads that result in real customer acquisition.

                                          linkedIn, facebook, and twitter are becoming more useful
                                          ways to acquire customers with significant growth in 2012.
         p
                                          similarly, company blogs continue to be strong performers
                                          as 57% of companies have acquired a customer from that
                                          channel.



                              Customer acquisition by Channel

                                                                                                   2011
                                                                                                   2012
% of channel users
who Acquired A
customer through A
Specific Channel




                             company blog           linkedIn        facebook       twitter

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     frequency of blog posts directly
     correlates to customer Acquisition
     If your blog is underutilized, you are leaving customers on the table. the 2012 survey shows a
     direct correlation between blog post frequency and new customers acquired.

                               blog post frequency vs. Customer acquisition



% of blog users
who Acquired
A customer
through
their blog




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     despite the evidence showing                       frequency of blog posts
                                                        2011 Vs 2012
     that increased blogging
     correlates with increased
     customer acquisition, it has
     remained relatively steady
     between 2011 and 2012. In
     2012, 70% of respondents
     indicated they blog at least
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                      fAcebook                    is more effective for             b2c.




   lINkedIN                       is more effective for                                        b2b.




     while both b2c and b2b companies were able to acquire customers through the channels
     below, there was a strong disparity in effectiveness depending on the type of business. the
     best platform for b2b companies was linkedIn with 65% of respondents acquiring a customer
     through that channel, while 77% of b2c companies said that they had acquired a customer
     through facebook.


                               Customer acquisition by Channel
                               b2b Vs. b2c


% of channel
users who
Acquired A
customer
through that
channel




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channel effectiveness by Industry
A deeper dive into the customer acquisition results shows how the effectiveness of blogs, twitter,
facebook and linkedIn varies by industry.

                   Customer acquisition by Channel by industry



                                                                               linkedIn
                                                                               twitter
                                                                               facebook
                                                                               blog




                                                                                % of channel
                                                                                users who
                                                                                Acquired A
                                                                                customer
                                                                                through that
                                                                                channel




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  the major takeaways from this data include:




                 technology,
                communica
                             tions
               & media, re
                             tail &
               wholesale, e
                             ducation,
              and profess
                            ional
              services & c
                            onsulting,
             found blogg
                           ing was
                                                                                           r 50%
             highly effec                                                           d ove
                          tive.                                              ies ha
                                                                      dustr                 tome
                                                                                                 r
                                                            th ose in              in g cus
                                                     All of                  dicat
                                                                    e nts in                g.
                                                             pond                    ir blo
                                                      of res                 g h the
                                                                      throu
                                                               sition
                                                        acqui




th
th
   e retail industry
   e most success
                     experienced
                     through twitter
                                       $                                  50% of re
                                                                                      spondent
                                                                                                     s
 and facebook.                                                           from ever
                                                                                   y industry
                                                                                              ,
                                                                        except re
                                                                                  tail and
                                                                        wholesale
                                                                                  , indicate
                                                                                             d
                                                                       customer
                                                                                 acquisitio
                                                                                            n
                                                                      through l
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channel effectiveness trends
A closer look at customer acquisition trends in technology and retail & wholesale show how the
influence of social media has grown over the past year.

                    for software & biotech, customer acquisition with facebook has grown by half.

                        technology (Software/biotech)
                        customer Acquisition trends for 2011 - 2012                   2011
                                                                                      2012



% of channel
users who
Acquired A
customer through
that channel


                             linkedIn            twitter      facebook       blog

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                    Retail & wholesale saw customer acquisition growth across every channel
                    from 2011 to 2012. company blogs were especially effective with 33% year-
                    to-year growth.

                        retail and Wholesale                                         2011
                        customer Acquisition trends for 2011 - 2012                  2012

% of channel
users who
Acquired A
customer through
that channel


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29             the 2012 state of inbound marketing




    CHapter 3



    WHat’S
    important to
    marketerS?


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                    Inbound marketing channels
                    continue to Grow in Importance
                    Not only are customer acquisition trends shifting toward inbound methods, but marketers are
                    also becoming more aware of the advantages of inbound marketing.




                                       In the last six months social media, seo, and blogs all were rated as more
                                       important by over 30% of respondents.

                                       social media is continuing a strong growth trend. 62% of respondents rated
                                       it as more important which was consistent with the percentage in the 2011
                                       survey.


                                      Which sources ofof leads havebecome more
                                        Which sources leads have become MORE
                                      important to you over the last six months?
                                         important to you over the last six months?

                            62%
                  60%
                                           52%
% of Respndents




                  40%                                     36%

                                                                        20%
                  20%                                                                  14%
                                                                                                    10%             9%

                  0%
                        Social Media SEO (Organic         Blogs      PPC (Paid    Trade Shows    Direct Mail Telemarketing
                                       Search)                        Search)

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                         “        Direct mail, trade shows, and
                                  telemarketing are losing traction.
                                                                                                                  ”
                    direct mail, trade shows, and telemarketing are losing traction. they were judged less important
                    by over 30% of respondents.



                                              Which sources of leads have become leSS
                                                Which sources of leads have become LESS
                                              important to you over the last six months?
                                                  important to you over the last six months?
                   60%
                                51%

                                               39%
% of Respondents




                   40%                                         36%

                                                                            25%
                   20%
                                                                                          12%
                                                                                                         7%           7%

                   0%
                           Direct Mail    Trade Shows Telemarketing      PPC (Paid        Blogs      Social Media SEO (Organic
                                                                          Search)                                   Search)

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blogs Remain the most
Important media channel

Respondents were also asked to rank the services that they use as “critical,” “important,” or
“useful.” An impressive 25% of users rated their company blog as “critical” to their business.
81% of users rated company blogs as “useful” or better.




                                bloGGING
{
                  cRItIcAl              ImpoRtANt                  useful




                    25%                   34%                     22%
                    of users              of users                of users
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                    linkedIn, youtube, facebook and twitter were considered “useful” or better
                    by over 60%.

                    In contrast stumbleupon, yelp, and digg all had user bases where over 70%
                    considered the channel only “somewhat useful” or “not useful.”


             How important are these services to your business?


company blog

linkedIn

facebook

youtube


twitter
                                                                                     % of useRs
Google+

stumbleupon

yelp

digg



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                  businesses Increasingly Value blogs,
                  youtube, facebook and twitter
                  the results of both the 2009 and 2012 studies reveal that certain channels are gaining
                  importance over time. the graph below shows the percentage of users who rated the channel as
                  either “critical” or “important” in 2009 and 2012. the results of this comparison are displayed
                  below:




                        % respondents indicating Channel Was Critical or important
                        2009 Vs 2012

                                  60%                                                                                               2009
                  60%
                                                                                                                                   2009
                            52%                                                                                                     2012
                                                                                                                                   2012
% of Respndents




                                                 45%
                                                                                 42%
                                                                 39%
                  40%                      36%                                                  36%

                                                           26%                                                        25%
                                                                           24%
                                                                                          21%                                      21%
                  20%
                                                                                                          14% 14%           13%
                                                                                                                                          8%


                  0%
                           Company Blog     LinkedIn       YouTube         Facebook         Twitter         Flickr   StumbleUpon     Digg

                        *LinkedIn was not collected in 2009. Historical value provided is from the 2010 study.


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                                                    +
 company blogs are increasingly valued. the
 blog is the channel most frequently reported
 as critical or important, both in 2009 and
 2012.

 youtube, facebook, and twitter are
 increasingly important. facebook has shown
 the biggest gain at 18%. It is followed by
 twitter, with a gain of 15%.




-
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                                                      stumbleupon and digg, on the other
                                                      hand, have reduced in importance.




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    ConCluSion
    & additional
    reSourCeS


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    “       Businesses are transforming
            their marketing efforts to focus

                                                                               ”
            more on inbound programs.



     traditional outbound marketing techniques – including direct mail, print advertising and
     telemarketing – are becoming less effective. Buyers are not only finding ways to tune
     these messages out, but more importantly, they now have the capability to evaluate the
     products and services they need on their own.

     As a result, businesses are transforming their marketing efforts to focus more on
     inbound programs that allow customers to find them. The State of Inbound Marketing
     report shows that businesses that more aggressively practice this are capturing leads
     more effectively. Given the digital nature of inbound marketing, the marginal cost per
     customer acquisition is typically close to zero, meaning that as buyers continue to
     shift how they make purchases, the cost per lead for a given business will continue to
     decrease.

     while it is clear that businesses are gravitating towards inbound marketing, some are
     moving more aggressively than others. Those who move first are more likely to reap the
     tremendous business benefits of this new era of marketing.
Share This Ebook!



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38                  the 2012 state of inbound marketing




beCome a better
inbound marketer
learn how you can make your marketing efforts more inbound.
Request a free inbound marketing assessment with one of
Hubspot’s experts.




                                       www.HubSpot.com/ima


Share This Ebook!



www.Hubspot.com
39                              the 2012 state of inbound marketing




                                               U
Respondent Profiles

the state of Inbound marketing report is based on
surveys conducted each year from 2009 to 2012.
the 2012 results are based on responses from 972
professionals who were familiar with their business’
marketing strategy. these professionals included
marketers, business owners, entrepreneurs, and
executives at companies of various sizes.




72% of these professionals worked in business-to-business companies and the range of
industries varied greatly. Industries represented in the sample included retail, technology,
professional services, and communications & media among others.




Share This Ebook!



www.Hubspot.com
40                           the 2012 state of inbound marketing




How many full-time employees                         my business primarily sells to other
does your company have?                              businesses (b2b) or consumers (b2C)?




the 2012 state of Inbound marketing                   the 2012 state of Inbound marketing
www.Hubspot.com/soIm                                  www.Hubspot.com/soIm




What best describes your industry?                    What best describes your role?




Share This Ebook!



www.Hubspot.com marketing
 the 2012 state of Inbound                            the 2012 state of Inbound marketing
  www.Hubspot.com/soIm                                www.Hubspot.com/soIm
41                               the 2012 state of inbound marketing




sample Questions Asked
the survey was designed to collect data on the marketing practices and results for a wide range
of businesses. this is the fourth consecutive year in which this survey has been conducted.
Respondents were asked a series of questions related to their business’ marketing programs
the results they have seen. most of the questions fell within three categories:




                                                                             ?
mARketING budGet ANd souRces of leAds, INcludING:

                    what percent of your sales leads come
                    from each of your lead channels?

                    what percent of your lead generation
                    budget do you spend on each of your
                    lead channels?

                    estimate the cost per lead for each of your lead channels.




Share This Ebook!



www.Hubspot.com
42                                the 2012 state of inbound marketing




                                                                             ?
tReNds IN “ImpoRtANce” ANd “usefulNess” of
mARketING cHANNels ANd leAds, INcludING:

                    which sources of leads have become
                    moRe important to you over last six
                    months?

                    which sources of leads have become
                    less important to you over last six
                    months?

                    How useful are social media sources to your business?




                                                                             ?
focus oN bloGs ANd socIAl medIA:

                    do you publish a blog?

                    How often do you publish a post?

                    Have you ever acquired a customer from the
                    following social media / blog channels?




Share This Ebook!



www.Hubspot.com

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The 2012 State of Inbound Marketing

  • 1. 1 the 2012 state of inbound marketing the 2012 State of inbound marketing 2012 Report on Inbound marketing practices & trends Blogging Social media A publication of Share This Ebook! www.Hubspot.com
  • 2. 2 the 2012 state of inbound marketing iS tHiS book rigHt for me? Not quite sure if this ebook is right for you? see the below description to determine if your level matches the content you are about to read. introduCtorY Introductory content is for marketers who are new to the subject. this content typically includes step-by-step instructions on how to get started with this aspect of inbound marketing and learn its fundamentals. Read our Inbound marketing Glossary to review all the terms and definitions that can make you a marketing rockstar. intermediate This ebook! Intermediate content is for marketers who are familiar with the subject but have only basic experience in executing strategies and tactics on the topic. this content typically covers the fundamentals and moves on to reveal more complex functions and examples. After reading it, you will feel comfortable leading projects with this aspect of inbound marketing. adVanCed Advanced content is for marketers who are, or want to be, experts on the subject. In it, we walk you through advanced features of this aspect of inbound marketing and help you develop complete mastery of the subject. Read our online marketing opportunity Report by Industry for more advanced information on inbound Share This Ebook! marketing trends. www.Hubspot.com
  • 3. 3 the 2012 state of inbound marketing Hubspot’s All-IN-oNe mARketING softwARe U q leAd GeNeRAtIoN bloGGING & socIAl medIA Hubspot brings your whole marketing world together in one, powerful, integrated system. get found: Help prospects find you online Convert: Nurture your leads and drive conversions analyze: measure and improve your marketing. more: see marketplace for apps and integrations M s emAIl & AutomAtIoN seARcH optImIzAtIoN Request A demo Video overview g Y leAd mANAGemeNt mARketING ANAlytIcs Share This Ebook! www.Hubspot.com
  • 4. 4 the 2012 state of inbound marketing ContentS tHe State of marketing CoStS & budgetS /8 inbound CHannelS ConVert leadS into CuStomerS /21 WHat’S important to marketerS? /29 ConCluSion & additional reSourCeS /36 Share This Ebook! www.Hubspot.com
  • 5. 5 the 2012 state of inbound marketing five key takeaways this report is based on a January 2012 survey of 972 professionals familiar with their business’ marketing strategy. the key takeaways are: INbouNd mARketING bRINGs low-cost leAds 1 Inbound marketing channels are maintaining their low-cost advantage. Inbound marketing-dominated organizations experience a cost per lead 61% lower than outbound marketing-dominated organizations. moRe speNdING oN INbouNd cHANNels 2 the distribution of marketing budgets continues to shift to inbound channels. the difference between inbound and outbound marketing expenditures grew by 50% from 2011 to 2012. socIAl medIA GRowtH 3 2012 saw growth in social media use across the spectrum. 62% of companies said that social media had become more important as a source of leads in the past six months. Share This Ebook! www.Hubspot.com
  • 6. 6 the 2012 state of inbound marketing tHe RIse of GooGle+ 4 Google+ has started to affect social media marketing. within six months of its launch, over 40% of marketers consider it “useful,” “important” or “critical.” It’ll be interesting to see how Google+ affects marketers in the future. INcReAsING VAlue of bloGGING 5 businesses are increasingly aware their blog is highly valuable. 81% of businesses rated their company blogs as p “useful,” “important” or “critical.” An impressive 25% rated their company blog as “critical” to their business. Share This Ebook! www.Hubspot.com
  • 7. 7 the 2012 state of inbound marketing overview of Inbound marketing this report is designed to help businesses and marketers understand the current usage and results of inbound marketing. inbound marketing is a set of marketing strategies and techniques focused on pulling relevant prospects and customers towards a business and its products. Inbound marketing is becoming widely accepted because it complements the way buyers make purchasing decisions today—they are using the Internet to learn about the products and services that best meet their needs. Inbound marketers offer their audiences useful information and tools to attract people to their site, while also interacting and developing relationships with these potential customers. Inbound marketing tools include blogging, content publishing, search engine optimization and social media. Inbound marketing contrasts with traditional outbound marketing, where businesses push their messages at consumers. with techniques that include direct mail, telemarketing and trade shows, outbound marketing has become less effective over time as buyers have behaviorally and technologically (e.g., dVR, spam filters, ‘do-not-call’ lists) tuned these interruptive campaigns out. Share This Ebook! www.Hubspot.com
  • 8. 8 the 2012 state of inbound marketing CHapter 1 tHe State of marketing CoStS & budgetS Share This Ebook! www.Hubspot.com
  • 9. 9 the 2012 state of inbound marketing “ Inbound consistently delivers a cost per lead dramatically lower ” than outbound. survey participants were asked to report the distribution of their spending and their average cost per lead. Respondents who spend more than 50% of their lead generation budget on inbound marketing channels report a significantly lower cost per sales lead than those who spend 50% or more of their budgets on outbound marketing channels. cost/ for outbound-dominated the average $346, leAd businesses was cost wHIle inbound businesses $135 on average. reported their leads Share This Ebook! www.Hubspot.com
  • 10. 10 the 2012 state of inbound marketing Inbound marketing-dominated organizations experience a 61% lower cost per lead than outbound marketing dominated organizations. average Cost per lead INbouNd Vs. outbouNd 61% lower cost per lead outbound marketing dominated Inbound marketing dominated 2010 2011 2012 the 2012 state of Inbound marketing www.Hubspot.com/soIm This finding is remarkably consistent from year to year. The previous studies showed strikingly similar results: the 2010 survey and 2011 survey showed that inbound marketing-centric organizations experienced a 60% and 62% lower cost per lead respectively. Share This Ebook! www.Hubspot.com
  • 11. 11 the 2012 state of inbound marketing the three Inbound marketing channels cost less than Any outbound channel when asked to classify each lead generation category as “below average cost,” “near average cost,” or “above average cost,” businesses consistently ranked inbound marketing channels as having costs lower than outbound channels. blogs, social media and organic search maintained the top slots as least expensive. below average Cost perPer Lead, Below Average Cost lead, % RespoNdeNts by leAd cHANNel 60% % Respondents by Lead Channel 52% 45% % of Respondents 40% 38% 34% 33% 28% 19% 20% 0% Blogs Social Media SEO (Organic Direct Mail Telemarketing PPC (Paid Trade Shows Search) Search) the 2012 state of Inbound marketing www.Hubspot.com/soIm Share This Ebook! www.Hubspot.com
  • 12. 12 the 2012 state of inbound marketing blogs had the highest instance of being reported as “below average cost.” 52% of companies who blog indicated leads from this channel were “below average cost.” trade shows, direct mail, and telemarketing were most frequently ranked as more expensive. 52% of companies who bloG indicated leads cost from this channel below AVeRAGe. above average Cost per lead, Above Average Cost Per Lead, % RespoNdeNts by leAd cHANNel 46% % Respondents by Lead Channel 40% % of Respondents 26% 26% 25% 20% 14% 14% 10% 0% Trade Shows Direct Mail Telemarketing PPC (Paid SEO (Organic Social Media Blogs the 2012 state of Inbound marketing Search) Search) www.Hubspot.com/soIm Share This Ebook! www.Hubspot.com
  • 13. 13 the 2012 state of inbound marketing many businesses Are Increasing their ? Inbound marketing budgets the survey asked, “How does your 2012 Inbound marketing budget compare to your 2011 budget?” and “If your 2012 inbound marketing budget changed from your 2011 budget, what drove that decision?” the data shows that a large percentage of businesses are consistently increasing inbound marketing budgets. 47% of those surveyed are increasing { their inbound marketing budGets. How does your inbound marketing budget for the current year compare to your budget for the previous year? 89% are either maintaining or increasing their inbound marketing budgets. Among the 47% of respondents with No change Higher 42% increased inbound marketing 47% budgets, the most commonly cited reason was “past success with inbound marketing.” Share This Ebook! Lower 11% the 2012 state of Inbound marketing www.Hubspot.com www.Hubspot.com/soIm
  • 14. 14 the 2012 state of inbound marketing Why businesses are increasing inbound budgets? Among the 47% of respondents with increased inbound marketing budgets, the most commonly cited reason was “past success with inbound marketing.” the 2012 state of Inbound marketing www.Hubspot.com/soIm Why businesses are decreasing the majority of businesses inbound budgets? attributed their decreasing budgets to the “economic conditions” (62%) or “a change in management” (21%). Share This Ebook! the 2012 state of Inbound marketing www.Hubspot.com www.Hubspot.com/soIm
  • 15. 15 the 2012 state of inbound marketing distribution of budgets continues to shift to Inbound channels we asked survey respondents what percentage of their lead generation budgets would be spent on each of the following nine marketing channels: blogs trade shows social INbouNd outbouNd direct media cHANNels cHANNels mail seo telemarketing (organic search) Not ppc email clAssIfIed (paid search) marketing Share This Ebook! www.Hubspot.com
  • 16. 16 the 2012 state of inbound marketing the results show that: the average portion of budGet dedicated to increased from 32% in 2011 to 35% in 2012. INbouNd the gap between inbound and outbound grew by 50% and continues to widen. Inbound marketing had an 8% greater share of the lead generation budget in 2011 in comparison to a 12% greater share in 2012. lead generation budget average distribution, 2011 Vs 2012 outbound Inbound 2011 2012 the 2012 state of Inbound marketing www.Hubspot.com/soIm Share This Ebook! www.Hubspot.com
  • 17. 17 the 2012 state of inbound marketing A more granular view of the data shows that: marketers are allocating more of their lead generation budgets to social media and company blogs. inbound lead generation budget average distribution, 2009 - 2012 seo blogs & social media 2009 2010 2011 2012 the 2012 state of Inbound marketing www.Hubspot.com/soIm the average budget spent on company blogs and social media increased from 9% in 2009 to 21% in 2012. much of this growth can be attributed to social media. In 2010, blogs were 7% and social media was 8% of total marketing budget; in 2012, they were 8% and 13%, accordingly. Share This Ebook! www.Hubspot.com
  • 18. 18 the 2012 state of inbound marketing the outbound lead generation budget, on the other hand, has been steadily decreasing over the last four years. by taking a more granular look at the different outbound channels, we notice that the largest drop has been in relation to telemarketing. In 2009, telemarketing was 10% of the total marketing budget on average. In 2012, it half of what it used to be. outbound lead generation budget average distribution, 2009 - 2012 telemarketing trade shows direct mail 2009 2010 2011 2012 the 2012 state of Inbound marketing www.Hubspot.com/soIm Share This Ebook! www.Hubspot.com
  • 19. 19 the 2012 state of inbound marketing small companies continue to spend more of their budgets on Inbound marketing In a continuation of a trend identified in previous reports, small businesses are attempting to level the playing field by focusing on lower-cost inbound lead generation techniques. smAll busINesses lARGe busINesses In 2012, small businesses (1 to 5 In comparison, large businesses (500 employees) plan to spend 43% of their or more employees) only plan to spend lead generation budgets on inbound 21% of their lead generation budgets on marketing. inbound marketing. small business are only giving 14% of their budget to outbound, while large business are Share This Ebook! allocating 33% of their budget to outbound channels. www.Hubspot.com
  • 20. 20 the 2012 state of inbound marketing small businesses plan to spend dramatically more of their budgets on social media and blogs. large businesses plan to spend more of their budgets on outbound methods, including trade shows, direct mail and telemarketing. average distribution of lead generation budgets, smAll Vs. lARGe busINesses 20% 1 to 5 employees 18% 17% over 500 employees 14% Average % budget 11% 11% 11% 11% 10% 10% 9% 7% 7% 7% 5% 5% 4% 3% 0% social media seo (organic blogs email trade shows ppc (paid direct mail telemarketing Search) marketing Search) the 2012 state of Inbound marketing www.Hubspot.com/soIm Share This Ebook! www.Hubspot.com
  • 21. 21 the 2012 state of inbound marketing CHapter 2 inbound CHannelS ConVert leadS into CuStomerS Share This Ebook! www.Hubspot.com
  • 22. 22 the 2012 state of inbound marketing Inbound channels produce Higher Quality leads the survey results clearly show that inbound leads cost less; but are they better quality? How well do inbound channels produce customers in comparison to outbound? we looked at sample of over 150 businesses using closed-loop marketing analytics, and found the median lead-to-close rate of each business by the lead source. the data showed that: seo leads have a 14.6% close rate, while outbound sourced leads have a 1.7% close rate. seo leads are eight times more likely to close into customers than outbound leads. Leads from inbound links (referrals) are five times more likely to become customers than outbound leads. lead-to-Customer Close % by Channel Lead-to-Customer Close % by Channel 16% 15% 15% Lead to Customer Close % 12% 9% (Median) 8% 7% 4% 4% 2% 0% SEO Share This Ebook! Direct Traffic Referrals Paid Search Social Media Outbound the 2012 state of Inbound marketing www.Hubspot.com/soIm www.Hubspot.com
  • 23. 23 the 2012 state of inbound marketing social media and blogs Generate Real customers the use of social media and company blogs as marketing tools not only gets your company better brand exposure, but it also generates leads that result in real customer acquisition. linkedIn, facebook, and twitter are becoming more useful ways to acquire customers with significant growth in 2012. p similarly, company blogs continue to be strong performers as 57% of companies have acquired a customer from that channel. Customer acquisition by Channel 2011 2012 % of channel users who Acquired A customer through A Specific Channel company blog linkedIn facebook twitter Share This Ebook! the 2012 state of Inbound marketing www.Hubspot.com/soIm www.Hubspot.com
  • 24. 24 the 2012 state of inbound marketing frequency of blog posts directly correlates to customer Acquisition If your blog is underutilized, you are leaving customers on the table. the 2012 survey shows a direct correlation between blog post frequency and new customers acquired. blog post frequency vs. Customer acquisition % of blog users who Acquired A customer through their blog the 2012 state of Inbound marketing www.Hubspot.com/soIm despite the evidence showing frequency of blog posts 2011 Vs 2012 that increased blogging correlates with increased customer acquisition, it has remained relatively steady between 2011 and 2012. In 2012, 70% of respondents indicated they blog at least Share This Ebook! weekly. the 2012 state of Inbound marketing www.Hubspot.com/soIm www.Hubspot.com
  • 25. 25 the 2012 state of inbound marketing fAcebook is more effective for b2c. lINkedIN is more effective for b2b. while both b2c and b2b companies were able to acquire customers through the channels below, there was a strong disparity in effectiveness depending on the type of business. the best platform for b2b companies was linkedIn with 65% of respondents acquiring a customer through that channel, while 77% of b2c companies said that they had acquired a customer through facebook. Customer acquisition by Channel b2b Vs. b2c % of channel users who Acquired A customer through that channel Share This Ebook! the 2012 state of Inbound marketing www.Hubspot.com/soIm www.Hubspot.com
  • 26. 26 the 2012 state of inbound marketing channel effectiveness by Industry A deeper dive into the customer acquisition results shows how the effectiveness of blogs, twitter, facebook and linkedIn varies by industry. Customer acquisition by Channel by industry linkedIn twitter facebook blog % of channel users who Acquired A customer through that channel Share This Ebook! the 2012 state of Inbound marketing www.Hubspot.com/soIm www.Hubspot.com
  • 27. 27 the 2012 state of inbound marketing the major takeaways from this data include: technology, communica tions & media, re tail & wholesale, e ducation, and profess ional services & c onsulting, found blogg ing was r 50% highly effec d ove tive. ies ha dustr tome r th ose in in g cus All of dicat e nts in g. pond ir blo of res g h the throu sition acqui th th e retail industry e most success experienced through twitter $ 50% of re spondent s and facebook. from ever y industry , except re tail and wholesale , indicate d customer acquisitio n through l Share This Ebook! inkedIn. www.Hubspot.com
  • 28. 28 the 2012 state of inbound marketing channel effectiveness trends A closer look at customer acquisition trends in technology and retail & wholesale show how the influence of social media has grown over the past year. for software & biotech, customer acquisition with facebook has grown by half. technology (Software/biotech) customer Acquisition trends for 2011 - 2012 2011 2012 % of channel users who Acquired A customer through that channel linkedIn twitter facebook blog the 2012 state of Inbound marketing www.Hubspot.com/soIm Retail & wholesale saw customer acquisition growth across every channel from 2011 to 2012. company blogs were especially effective with 33% year- to-year growth. retail and Wholesale 2011 customer Acquisition trends for 2011 - 2012 2012 % of channel users who Acquired A customer through that channel Share This Ebook! linkedIn twitter facebook blog www.Hubspot.com the 2012 state of Inbound marketing www.Hubspot.com/soIm
  • 29. 29 the 2012 state of inbound marketing CHapter 3 WHat’S important to marketerS? Share This Ebook! www.Hubspot.com
  • 30. 30 the 2012 state of inbound marketing Inbound marketing channels continue to Grow in Importance Not only are customer acquisition trends shifting toward inbound methods, but marketers are also becoming more aware of the advantages of inbound marketing. In the last six months social media, seo, and blogs all were rated as more important by over 30% of respondents. social media is continuing a strong growth trend. 62% of respondents rated it as more important which was consistent with the percentage in the 2011 survey. Which sources ofof leads havebecome more Which sources leads have become MORE important to you over the last six months? important to you over the last six months? 62% 60% 52% % of Respndents 40% 36% 20% 20% 14% 10% 9% 0% Social Media SEO (Organic Blogs PPC (Paid Trade Shows Direct Mail Telemarketing Search) Search) Share This Ebook! Inbound marketing the 2012 state of www.Hubspot.com/soIm www.Hubspot.com
  • 31. 31 the 2012 state of inbound marketing “ Direct mail, trade shows, and telemarketing are losing traction. ” direct mail, trade shows, and telemarketing are losing traction. they were judged less important by over 30% of respondents. Which sources of leads have become leSS Which sources of leads have become LESS important to you over the last six months? important to you over the last six months? 60% 51% 39% % of Respondents 40% 36% 25% 20% 12% 7% 7% 0% Direct Mail Trade Shows Telemarketing PPC (Paid Blogs Social Media SEO (Organic Search) Search) the 2012 state of Inbound marketing www.Hubspot.com/soIm Share This Ebook! www.Hubspot.com
  • 32. 32 the 2012 state of inbound marketing blogs Remain the most Important media channel Respondents were also asked to rank the services that they use as “critical,” “important,” or “useful.” An impressive 25% of users rated their company blog as “critical” to their business. 81% of users rated company blogs as “useful” or better. bloGGING { cRItIcAl ImpoRtANt useful 25% 34% 22% of users of users of users Share This Ebook! www.Hubspot.com
  • 33. 33 the 2012 state of inbound marketing linkedIn, youtube, facebook and twitter were considered “useful” or better by over 60%. In contrast stumbleupon, yelp, and digg all had user bases where over 70% considered the channel only “somewhat useful” or “not useful.” How important are these services to your business? company blog linkedIn facebook youtube twitter % of useRs Google+ stumbleupon yelp digg the 2012 state of Inbound marketing www.Hubspot.com/soIm Share This Ebook! www.Hubspot.com
  • 34. 34 the 2012 state of inbound marketing businesses Increasingly Value blogs, youtube, facebook and twitter the results of both the 2009 and 2012 studies reveal that certain channels are gaining importance over time. the graph below shows the percentage of users who rated the channel as either “critical” or “important” in 2009 and 2012. the results of this comparison are displayed below: % respondents indicating Channel Was Critical or important 2009 Vs 2012 60% 2009 60% 2009 52% 2012 2012 % of Respndents 45% 42% 39% 40% 36% 36% 26% 25% 24% 21% 21% 20% 14% 14% 13% 8% 0% Company Blog LinkedIn YouTube Facebook Twitter Flickr StumbleUpon Digg *LinkedIn was not collected in 2009. Historical value provided is from the 2010 study. the 2012 state of Inbound marketing www.Hubspot.com/soIm Share This Ebook! www.Hubspot.com
  • 35. 35 the 2012 state of inbound marketing + company blogs are increasingly valued. the blog is the channel most frequently reported as critical or important, both in 2009 and 2012. youtube, facebook, and twitter are increasingly important. facebook has shown the biggest gain at 18%. It is followed by twitter, with a gain of 15%. - Share This Ebook! stumbleupon and digg, on the other hand, have reduced in importance. www.Hubspot.com
  • 36. 36 the 2012 state of inbound marketing ConCluSion & additional reSourCeS Share This Ebook! www.Hubspot.com
  • 37. 37 the 2012 state of inbound marketing “ Businesses are transforming their marketing efforts to focus ” more on inbound programs. traditional outbound marketing techniques – including direct mail, print advertising and telemarketing – are becoming less effective. Buyers are not only finding ways to tune these messages out, but more importantly, they now have the capability to evaluate the products and services they need on their own. As a result, businesses are transforming their marketing efforts to focus more on inbound programs that allow customers to find them. The State of Inbound Marketing report shows that businesses that more aggressively practice this are capturing leads more effectively. Given the digital nature of inbound marketing, the marginal cost per customer acquisition is typically close to zero, meaning that as buyers continue to shift how they make purchases, the cost per lead for a given business will continue to decrease. while it is clear that businesses are gravitating towards inbound marketing, some are moving more aggressively than others. Those who move first are more likely to reap the tremendous business benefits of this new era of marketing. Share This Ebook! www.Hubspot.com
  • 38. 38 the 2012 state of inbound marketing beCome a better inbound marketer learn how you can make your marketing efforts more inbound. Request a free inbound marketing assessment with one of Hubspot’s experts. www.HubSpot.com/ima Share This Ebook! www.Hubspot.com
  • 39. 39 the 2012 state of inbound marketing U Respondent Profiles the state of Inbound marketing report is based on surveys conducted each year from 2009 to 2012. the 2012 results are based on responses from 972 professionals who were familiar with their business’ marketing strategy. these professionals included marketers, business owners, entrepreneurs, and executives at companies of various sizes. 72% of these professionals worked in business-to-business companies and the range of industries varied greatly. Industries represented in the sample included retail, technology, professional services, and communications & media among others. Share This Ebook! www.Hubspot.com
  • 40. 40 the 2012 state of inbound marketing How many full-time employees my business primarily sells to other does your company have? businesses (b2b) or consumers (b2C)? the 2012 state of Inbound marketing the 2012 state of Inbound marketing www.Hubspot.com/soIm www.Hubspot.com/soIm What best describes your industry? What best describes your role? Share This Ebook! www.Hubspot.com marketing the 2012 state of Inbound the 2012 state of Inbound marketing www.Hubspot.com/soIm www.Hubspot.com/soIm
  • 41. 41 the 2012 state of inbound marketing sample Questions Asked the survey was designed to collect data on the marketing practices and results for a wide range of businesses. this is the fourth consecutive year in which this survey has been conducted. Respondents were asked a series of questions related to their business’ marketing programs the results they have seen. most of the questions fell within three categories: ? mARketING budGet ANd souRces of leAds, INcludING: what percent of your sales leads come from each of your lead channels? what percent of your lead generation budget do you spend on each of your lead channels? estimate the cost per lead for each of your lead channels. Share This Ebook! www.Hubspot.com
  • 42. 42 the 2012 state of inbound marketing ? tReNds IN “ImpoRtANce” ANd “usefulNess” of mARketING cHANNels ANd leAds, INcludING: which sources of leads have become moRe important to you over last six months? which sources of leads have become less important to you over last six months? How useful are social media sources to your business? ? focus oN bloGs ANd socIAl medIA: do you publish a blog? How often do you publish a post? Have you ever acquired a customer from the following social media / blog channels? Share This Ebook! www.Hubspot.com