The landscape of demand generation in marketing has been a challenging one, especially for those who focus on the early stages of the customer journey. Despite a seemingly positive economy on paper, the lack of increased marketing budgets, short-term thinking from leaders, and the dominance of AI have left brand and demand-gen marketers feeling out of place.
Research conducted by CMI’s Content Marketing for Demand Generation between March and April 2024 sheds light on the current state of demand generation. The study involved 117 respondents responsible for brand awareness or demand generation in their organizations, providing valuable insights into the industry.
Pressure and Success Levels
The research revealed that more than half of marketers (56%) feel significant pressure to achieve results despite limited budgets and resources. Another 39% also acknowledged feeling pressure to some extent, indicating the uphill battle they face in meeting their objectives.
When it comes to the success of demand-generation strategies, only 24% of marketers rated their programs as extremely or very successful. The majority (63%) considered their strategies only moderately successful, with 10% admitting to not very successful outcomes and 3% reporting not at all successful results.
Content Creation Challenges
One of the key areas of concern for demand-gen marketers is their ability to create targeted content. Over half (53%) of respondents rated their organization’s targeted content as average, fair, or poor, showing a lack of confidence in this crucial aspect of marketing. While this percentage has slightly decreased from the previous year’s 58%, there is still room for improvement.
Collaboration and Integration
On a positive note, collaboration and integration within organizations seem to be improving. A significant majority (77%) of marketers agreed that their company’s demand-generation efforts are integrated with other internal marketing initiatives or departments, indicating a more cohesive approach to marketing strategies. Additionally, 90% of respondents reported being very or extremely involved in their organization’s content strategy, underscoring the importance of content in demand generation.
Effective Tactics
The research also highlighted the most impactful channels used by demand-gen marketers. SEO, organic social media, email, and in-person events emerged as the top channels utilized by over 90% of respondents. In terms of effectiveness, in-person events, email, and SEO were rated as the top three channels, with organic social media dropping to the sixth position. This discrepancy presents an opportunity for marketers to explore underutilized channels for better results.
Challenges and Budget Allocation
Budget constraints and a lack of resources were cited as the top challenges faced by demand-gen marketers, with 62% and 58% of respondents mentioning these issues, respectively. Content, audience segmentation, personalization, and understanding audiences were also highlighted as significant challenges in the industry.
Despite these challenges, demand generation continues to receive a substantial portion of marketing budgets, with 20% of respondents allocating more than half of their budget to demand generation. Looking ahead, email, in-person events, and video are areas where marketers plan to increase spending in the coming year, aligning their strategies with proven effective tactics.
The Role of AI
While AI is often touted as a game-changer in marketing, the research suggests that its impact may not be as transformative as expected. While 57% of respondents believe AI will have a significant impact on their demand-gen strategy, the reality is that AI can only amplify existing efforts. It is not a magic solution that can replace human creativity and innovation but rather a tool that complements and enhances the work done by marketers.
Moving Forward
In conclusion, demand generation remains a human-driven and challenging process that requires creativity, differentiation, and the application of innovative ideas. While AI can play a supporting role in enhancing marketing efforts, it is ultimately the ingenuity and strategic thinking of marketers that will lead to success in demand generation.
As the industry continues to evolve, marketers must adapt to changing trends and technologies to stay ahead of the competition. By focusing on collaboration, innovative strategies, and a customer-centric approach, demand-gen marketers can navigate the complexities of the marketing landscape and drive meaningful results for their organizations.