ITSMA’s latest annual budget and trends study documents the continuing transformation of marketing across the world’s leading B2B technology and services firms. Modest growth in overall budgets and staffing conceal more dramatic changes below the surface. Even with near-flat budgets, the scope of marketing responsibilities is growing, digital first is finally becoming a reality, aggressive recruitment for new skills is pervasive, and top performers are putting customer insight, data analytics, and marketing performance measurement at the top of their lists. From an investment perspective, services marketing budgets will grow slightly in 2016, to about 1.5% of total services revenue. The increases will lag expected growth in services revenue, however, putting yet more pressure on marketers to expand scope and performance with only minimally additional resources. Specific areas of increased investment include staffing, content development, digital, account-based marketing, and analytics. One clear sign of alarm: Amid expanding scope and the search for new marketing skills, companies are allocating a mere three days to staff training and development. More broadly, marketing leaders seem committed to increasing organizational agility – adopting the principals of agile to programs and planning – but few believe they have yet achieved this to any meaningful degree. In all, this year’s survey points to seven key areas of focus for marketing leaders in 2016: • Continue to prioritize the development of new roles, skills, and talent • Continue to invest in and optimize the digital marketing infrastructure • Accelerate the development of agile processes • Expand investment in deep customer insight • Continue to expand the focus on account-based marketing precision • Increase the emphasis on sales and SME enablement • Accelerate the focus on data-driven decision making ________________________________________ Overview Services Marketing Budgets and Benchmarks: 2015 Budget Allocations and Trends, a PowerPoint-style report, delivers a detailed look at the state of the services marketing profession as it exists in early 2016. It provides data on services marketing budgets, budget allocations, and marketing priorities from a range of companies across the technology and professional services industries. Topics covered in the report include: • Size of the Marketing Budget • Marketing Staffing • Agency Relationships • Services Marketing Budget Allocation • Marketing Programs and Campaigns • Online/Digital Marketing Spending • Account-Based Marketing Budget and Spending Plans • Marketing Tools Budget Allocation • Marketing Priorities and Challenges • Marketing Organization Perception and Scope

1. 2016 Services Marketing
Budget Allocations and Trends
Julie SchwartzSeniorVice President,Research and ThoughtLeadership,ITSMA
Abbreviated Summary|January2016

2. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 2
Abbreviated
summary
The 2016 Services Marketing
Budget Allocations and Trends
survey documents the continuing
transformation of technology
services marketing—with essential
data on services marketing
budgets,allocations,and priorities.
Topics covered in the report include:
• Size of the Marketing Budget
• Marketing Staffing
• Services Marketing Budget Allocation
• Marketing Programs and Campaigns
• Online/Digital Marketing Spending
• Account-Based Marketing
• Marketing Tools Budget Allocation
• Marketing Priorities and Challenges
• Marketing Organization
services
budget allocations

3. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 3
Modest spending growth in 2016 conceals
more dramatic changes under the surface:
• The scope of marketing
responsibilities is growing
• Aggressive recruitment for
new skills is pervasive
• Digital first is finally becoming
a reality
• Top performers prioritize
customer insight,analytics,
and measurement
© 2016 ITSMA. All rights reserved. Reproduction of this document is prohibited.

4. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 4
50%
12%
38%
Increase
Decrease
Stay the
Same
43%
17%
40%
Marketing budgets and staff continue to grow,
although many still struggle with resource constraints
In FY2016, do you expect your marketing budget to
increase, decrease, or stay the same when compared
to FY2015?
Increase
Decrease
Stay the
Same
% of Respondents (N=42)
Source: ITSMA, 2016 Services Marketing Budget Allocations and Trends
2016 B2B
Services
Marketing
Budget
Growth:
3.8%
What changes do you anticipate in your marketing
staff in FY2016?
2016 B2B
Services
Marketing
Staff
Growth:
6.1%
New roles, skills,
and talent

5. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 5
Changes in buyer behavior and technology
are forcing marketers to adapt
• Marketing’s mission is evolving from its original
focus on reputation and brand communications
to encompass driving revenue growth,and now,
customer engagement
• Marketing is increasing its precision with new
marketing tools and approaches such as
marketing automation (MA) and
account-based marketing (ABM)
• And marketing is taking on more roles and
strategic responsibilities: customer experts,
storytellers,data miners,technologists,
omnichannel conductors,and revenue growth
drivers
Marketing
is becoming
the central
nervous
system of the
company

6. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 6
Online
marketing
Offline
marketing
Online marketing has reached the tipping point,now
accounting for more than half the programs budget
Source: ITSMA, 2016 Services Marketing Budget Allocations and Trends
How do you anticipate the components of your Marketing
Programs and Campaigns spend changing in FY2016?
% of Respondents (N=38)
How was/will your Marketing Programs and Campaigns spend
be allocated across the following categories?
Mean % (N=32)
Online
marketing
Offline
marketing
47%
53%
FY2016 (est.)
82
18
0
-29
Increasing
Spend
Decreasing
Spend
Digital
infrastructure

7. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 7
For high growth companies,
customer insight
is the #1 marketing priority in 2016.
For all others, it ranked 20th.
One-third of the companies in the study are growing
faster than their closest competitors
Customer
insight
Source: ITSMA, 2016 Services Marketing Budget Allocations and Trends

8. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 8
In Services Revenue
7% 5% 7%
10%
26%
45%
Less
than
$100M
$100–
249M
$250–
499M
$500–
999M
$1–5B Greater
than
$5B
Study Methodology
From December 2015 through January 2016,ITSMA
conducted an invitation-only,web-based survey with
42 responses from 41 leading B2B technology and
services companies.
Industry Subsector
Which of these
categories best
describes
your industry
subsector?
% of
respondents
(N=42)
How large is your services business?
% of respondents (N=42)
Organization Size
Type of Company
55%
45% We sell
both
products
and
services
We primarily
sell services
Which of the
following best
describes your
company?
% of
respondents
(N=42)
36%
21%
14%
12%
5%
5%
7%
Professional
services firm
(consulting,
outsourcing,
systems
integration,
managed
services)
Software
solutions
provider
Computer systems and
solutions provider
Telecommunications
services provider
Other
Network systems
and solutions
provider
Other hardware systems
and solutions
Source: ITSMA, 2016 Services Marketing Budget Allocations and Trends

9. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 9
ITSMA analyzed the survey
data set as a whole and in
three additional ways:
• By performance:
High Growth compared to Average
or Below Growth
• By size of company:
Less than $1B comparedto equal
or more than $1B annual services
revenue
• Type of company:
Product and Services Company
comparedtop primarily a Services
Company

10. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 10
Study participants
Enterprise Solutions

11. 2016 Services Marketing Budget Allocations and Trends | Abbreviated Summary | B027A © 2016 ITSMA. All rights reserved www.itsma.com 11
Slide
Executive summary 3
Survey methodology and demographics 21
Size of the marketing budget 31
Marketing staffing 39
Services marketing budget allocation 47
Marketing programs and campaigns budget allocation 50
Online/digital marketing budget allocation 55
Account based marketing budget and spending plans 58
Marketing tools budget allocation 61
Marketing priorities and challenges 64
Marketing organization perception and scope 69
Crosstabs
By performance 75
By size of company 113
By type of company 152
Appendix: ITSMA budget taxonomy and definitions used in
this report
191
Table of contents for 2016 Services Marketing Budget
Allocations and Trends
For More Information
Julie Schwartz
Senior Vice President
Research and Thought Leadership
ITSMA
Email: jschwartz@itsma.com
Phone: +1-781-862-8500, Ext. 112
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