1101 Connecticut Ave. NW, Suite 300, Washington, DC 20036 P 202.756.2971 F 866.808.6585 www.hanoverresearch.com B2B Marketing – Top Spenders
MARKET EVALUATION SURVEYING DATA ANALYSIS BENCHMARKING INNOVATIVE PRACTICES LITERATURE REVIEW DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Introduction
At the request of one member, Hanover Research has prepared this report on the
top-spending industries and companies in B2B advertising. This report utilizes the list
published by BtoB Online of the Top 100 B2B Advertisers of 2008.1 This list is based
on data from TNS’ most recent report on B2B advertising, published in September
2009.
Part I profiles the top 15 companies from this Top
100 B2B Advertisers list by industry. Hanover has
assumed this list will remain largely unchanged over
the next couple of years. We have included overall
advertising budget data from 2008 as a comparison to
the amount each company spends on B2B. Where
possible, we also provide ad spend data for 2009 and
present news indicating that B2B spending may have
changed from 2008 levels. Each profile includes a
B2B channel mix chart for the company.
Part II is a side-by-side comparison of the top
industries and companies in B2B utilizing the 2009
Fortune 500 rankings.2 The comparison includes,
where available, company rank by revenue within
industry, company rank in the 2009 and 2010 Fortune
500, 2008 B2B advertising rank, annual revenue data,
and overall B2B advertising spend.
Part III utilizes information found on company
websites and in the news to determine to what extent
the top-spending B2B companies and industries focus
on the small business market.
Part IV presents some higher level data on the B2B
advertising market, including predicted channel mix
and spending levels across all industry segments.
Report Outline
Part I
Profiles of Top 15
Spenders in B2B
Advertising
Part II
Top Industry and
Company Side-by-Side
Comparison
Part III
Small Business Focus
Part IV
B2B Advertising Trends
A ppendix
Company Contact
Information
The Appendix consolidates contact data for each of the top 15 companies along
with the names and positions of relevant company executives.
“Top 100 B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009. For BtoB’s write-up of the data,
see; Maddox, Kate. “Top 100 B2B Advertisers Cut Spending 10.2%.” B to B Online. September 14, 2009.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090914/FREE/309149977/1108/FREE
2 2009 Fortune 500 rankings are based on 2008 revenue data.
1
© 2010 Hanover Research – Marketing Administration Practice 2 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Part I: Top 15 Companies in B2B Advertising
In this section, Hanover profiles the top 15 companies on BtoB Online’s 2008 B2B
Advertising list, broken down by industry. These profiles detail the observed
spending patterns of the top 15, including overall advertising spending data and B2B
spending by channel. Included are projections about future B2B spending based on
more recent advertising data and other pertinent company news.
Telecommunications
Overall in 2009, the telecommunications industry increased ad spending between 4%
and 5% while overall media spending across all industries fell 9%.3 The biggest
companies in the telecommunications industry are Verizon Communications, AT&T,
Sprint Nextel, and T-Mobile. They spent over 60% of total advertising funds on TV
last year and 12% on digital advertising.4 Through the first two quarters of 2010,
wireless companies alone have spent more than $1.3 billion on advertising.5 Verizon
Communications, AT&T and Sprint Nextel Corp. were all in the top five on 2008’s
Top 100 B2B Advertisers list. Deutsche Telekom, owner of the U.S. wireless
distributor T-Mobile, was in the top 10.6 Five other telecom companies were within
the top 100.
Verizon Communications
Verizon Communications was number one on the 2008 Top B2B Advertisers list,
maintaining its top ranking from 2007. The company spent $357.9 million on B2B
advertising, a decrease of 15.3% from 2007. Verizon Communications was second in
overall U.S. advertising spending in 2008 at $3.7 billion.7 The following is a breakdown of how Verizon spent its B2B advertising budget in 2008:
“Upwardly Mobile Ad Budgets.” Media Week, 20:18, p. 28.
http://www.lexisnexis.com/new/results/docview/docview.do?docLinkInd=true&risb=21_T9954924709&format=
GNBFI&sort=RELEVANCE&startDocNo=1&resultsUrlKey=29_T9954924714&cisb=22_T9954924713&treeMax
=true&treeWidth=0&csi=210549&docNo=4
4 Ibid.
5 “AT&T Overtakes Verizon Wireless in Ad Spending.” Telecom Brokerage, Inc. July 15, 2010.
http://www.phoneplusmag.com/news/2010/07/att-overtakes-verizon-wireless-in-ad-spending.aspx
6 “Top 100 B-to-B Advertisers,” Op. cit.
7 “Marketer Database,” Op. cit.
3
© 2010 Hanover Research – Marketing Administration Practice 3 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Verizon Communications B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Spanish-language TV
networks
Cable TV networks
Syndicated TV
Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
National spot radio
Local spot radio
Outdoor
Total ’08 spending
Ad Spending
($000)
$8,807
$17,409
$75,743
$23,008
$9,078
$37,469
$9,423
$15,263
$125
$62
$122
$4,781
$105,826
$1,336
$801
$14,997
$15,637
$18,059
$357,935
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
In 2009, Verizon Communications further increased its world-wide advertising
budget, spending $1.19 billion in the first two quarters and surpassing perennial
advertising leader Procter & Gamble Co.8 It can be said with confidence that Verizon
Communications will continue to be among the top B2B advertisers.
AT&T
Like Verizon, AT&T maintained the same place in the 2008 Top B2B Advertiser
rankings as on the list from 2007. Both years, AT&T placed second. In 2008, AT&T
spent $328.5 million on B2B, down 14.4% from 2007.9 Also in 2008, AT&T spent a
total of $3.1 billion on U.S advertising alone.10 The following is a break-down of how
AT&T spent its B2B advertising budget in 2008:
“Ad Spending 2009.” Company Town. September 16, 2009.
http://latimesblogs.latimes.com/entertainmentnewsbuzz/2009/09/ad-spending-2009-even-media-is-buying-lessmedia.html
9 “Top 100 B-to-B Advertisers,” Op. cit.
10 “Marketer Database,” Op. cit.
8
© 2010 Hanover Research – Marketing Administration Practice 4 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 AT&T B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Spanish-language TV
networks
Cable TV networks
Syndicated TV
Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
National spot radio
Local spot radio
Outdoor
Total ’08 spending
Ad Spending
($000)
$3,390
$9,975
$105,148
$21,465
$6,640
$35,960
$5,687
$11,603
$23
$0
$77
$4,747
$72,951
$168
$63
$6,476
$31,992
$12,147
$328,511
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
During the first quarter of 2010, AT&T out-spent Verizon in advertising for the first
time in six years. AT&T spent $500 million to Verizon’s $450 million.11 This may be
an indicator that AT&T intends to increase, or at least to maintain levels of
advertising spending.
Sprint Nextel Co.
In 2008, Sprint Nextel fell to fourth from its 2007 ranking at third on the Top 100
B2B Advertisers list. Sprint spent 39% less on B2B advertising in 2008 than in 2007,
spending $157.3 million.12 Sprint spent significantly less on advertising in 2008 than
Verizon and AT&T, its top competitors in the telecommunications industry. Sprint
spent $1.5 billion on U.S. advertising, less than half of the advertising budgets of the
other two companies.13 The following is a break-down of how Sprint Nextel spent its
B2B advertising budget in 2008:
“AT&T Overtakes Verizon Wireless,” Op. cit.
“Top 100 B-to-B Advertisers,” Op. cit.
13 “Marketer Database,” Op. cit.
11
12
© 2010 Hanover Research – Marketing Administration Practice 5 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Sprint Nextel Co. B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Spanish-language TV
networks
Cable TV networks
Syndicated TV
Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
National spot radio
Local spot radio
Outdoor
Total ’08 spending
Ad Spending
($000)
$4,740
$8,888
$57,122
$1,439
$7,269
$19,138
$322
$9,539
$3,553
$0
$14
$6,915
$25,592
$155
$868
$1,333
$2,061
$8,414
$157,363
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
In 2009, Sprint Nextel increased its advertising budget. Sprint increased total worldwide advertising spending by 40% in 2009, to an estimated $2.1 billion.14
Additionally, the rankings for the Top 100 Advertisers in B2B Publications in 2009
show that Sprint jumped to third place from its previous spot at number 13. It was
one of the only advertisers on the list to increase spending on print ads, spending a
total of $19.3 million, 61% more than the previous year.15
Deutsche Telekom
Deutsche Telekom, of which T-Mobile is a subsidiary, spent $115.6 million on B2B
advertising in 2008 and was ranked eighth, up from fourteenth in 2007. The company
Kharif, Olga. “Sprint Nextel’s Ad Spending Skyrockets.” Bloomberg Businessweek. January 22, 2010.
http://www.businessweek.com/the_thread/techbeat/archives/2010/01/sprint_nextels.html
15 “Top 100 Advertisers in B-to-B Publications,” Op. cit.
14
© 2010 Hanover Research – Marketing Administration Practice 6 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 posted a 16.4% increase in B2B spending for the year and was one of only three
companies in the top ten of the list to increase ad spending from 2007.16 Though it
increased spending from 2007, Deutsche Telekom still spent 67.7% less than the
leading telecom company in B2B, Verizon, and 26.5% less than its closest
competitor, Sprint Nextel. Deutsche Telekom spent the least on overall advertising in
2008 of any of the four major telecom companies. It was ranked 42nd for the year,
having spent $940.3 million on U.S. advertising.17 The following is a break-down of
how Deutsche Telekom spent its B2B advertising budget in 2008:
Deutsche Telekom Co. B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Spanish-language TV
networks
Cable TV networks
Syndicated TV
Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
National spot radio
Local spot radio
Outdoor
Total ’08 spending
Ad Spending
($000)
$4
$11,124
$27,167
$6,994
$7,214
$13,372
$8,753
$1,801
$0
$0
$0
$2,454
$23,465
$18
$0
$1,987
$10,871
$373
$115,597
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
In the first quarter of 2010, T-Mobile spent $150 million on overall advertising, an
increase of almost 42% from the prior quarter.18 While it seems as though the
company’s advertising spending is continuing to increase, the relationship between
Deutsche Telekom and its American arm, T-Mobile, is somewhat unstable. T-Mobile
has consistently struggled to compete with the leading telecom companies in the
United States due to its smaller size. In the last year, T-Mobile has become a problem
for Deutsche Telekom and the company has been feeling pressure from stockholders
“Top 100 B-to-B Advertisers,” Op. cit.
“Marketer Database,” Op. cit.
18 “AT&T Overtakes Verizon Wireless,” Op. cit.
16
17
© 2010 Hanover Research – Marketing Administration Practice 7 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 to make a decision with regard to T-Mobile’s future.19 The company has been
considering an IPO and a merger with Sprint Nextel as possible options to unload
the financial risk presented by the company.20 A merger with Sprint Nextel is not yet
feasible due to the providers’ use of different, incompatible technologies for their
networks. But as both contemplate a network change to LTE technology in the next
two to three years, the merger begins to make more sense.21 For now, Deutsche
Telekom is focusing on gaining customers for the wireless provider. They have so far
gained 160,000 customers this year but have spent $330 per new customer, $60 more
than last year, without increasing monthly revenue.22 It seems likely that the company
will make some decision about what to do with its American arm soon, and this
decision could have a huge impact on B2B advertising plans.
Commercial Banks
Two commercial banks were in the top 15 of the 2008 Top BtoB Advertisers
rankings; JPMorgan Chase & Co. was ranked ninth and Bank of America Corp. was
ranked 11th.23 The broader financial services industry, including commercial banks,
increased advertising spending across almost all media in the first quarter of 2010
following advertising spending declines in 2008 and 2009.24 Overall, there was a
10.5% increase, from $1.9 billion spent in the first quarter of 2009 to $2.1 billion this
year.25 A total of nine commercial banks were in the top 100 of the B2B spending list
in 2008.
JPMorgan Chase & Co.
JPMorgan Chase is ranked number nine on the 2008 Top B2B advertisers list, up
from the 12th place spot in 2007 despite a reduction in B2B spending in 2008 by
0.9%.26 JPMorgan Chase spent $111.6 million on B2B in 2008.27 The same year, the
company spent $1.3 billion on U.S. advertising.28 Overall advertising expenses in
2008 were $1.9 billion, 7.5% less than ad spending in 2007.29 The following is a
“DT Ponders the Future of T-Mobile USA.” Phone +, September 15, 2009.
http://www.phoneplusmag.com/news/2009/09/dt-ponders-the-future-of-t-mobile-usa.aspx
20 Ziegler, Chris. “Deutsche Telekom Rumored to be Eyeing T-Mobile USA Spinoff.” Engadget, February 4, 2010.
http://www.engadget.com/2010/02/04/deutsche-telekom-rumored-to-be-eyeing-t-mobile-usa-spinoff/
21 Parker, Andrew and Paul Taylor. “Sprint’s 4G Move Opens Way to Merger.” Financial Times, July 12, 2010.
http://www.ft.com/cms/s/0/c4d6eb6a-8de0-11df-9153-00144feab49a.html
22 Preuschat, Archibald. “Size Matters for T-Mobile, But at What Cost?” The Wall Street Journal, August 5, 2010.
http://blogs.wsj.com/source/2010/08/05/size-matters-for-t-mobile-but-at-what-cost/?KEYWORDS=t-mobile
23 “Top 100 B-t-B Advertisers,” Op. cit.
24 Hosford, Christopher. “Financial Services Advertising Roars Back.” BtoB Online, August 16, 2010.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100816/FREE/308169986/1445/FREE
25 Ibid.
26 “Top B-to-B Advertisers,” Op. cit.
27 Ibid.
28 “Marketer Database,” Op. cit.
29 Form 10-K. JPMorgan Chase and Co. Filed February 24, 2010. Securities and Exchange Commission EDGAR
Database. http://www.sec.gov/Archives/edgar/data/19617/000095012310016029/e82150e10vk.htm
19
© 2010 Hanover Research – Marketing Administration Practice 8 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 break-down of how JP Morgan Chase & Co. spent its B2B advertising budget in
2008:
JP Morgan Chase & Co. B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Spanish-language TV
networks
Cable TV networks
Syndicated TV
Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
National spot radio
Local spot radio
Outdoor
Total ’08 spending
Ad Spending
($000)
$920
$7,603
$13,700
$14,561
$542
$8,951
$10
$3,731
$0
$9
$22
$4,253
$32,323
$738
$363
$4,709
$13,755
$5,426
$111,616
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
In 2009, JPMorgan Chase again reduced its advertising spending, this time by a
slightly lower 7.1% to $1.77 billion.30 In the first quarter of 2010, JPMorgan Chase
increased advertising spending following the larger financial services and commercial
banking trends. Michael Fusco, a spokesman for the company explains, “we were
strong during the recession and acquired Washington Mutual…We had to spend a
good amount of money marketing the Chase brand in California and Florida where
we had never been before.”31 Even with two consecutive years of reduction in 2008
and 2009, the amount that JP Morgan spends yearly on advertising together with the
30
31
Ibid.
“Financial Services Advertising Roars Back,” Op. cit.
© 2010 Hanover Research – Marketing Administration Practice 9 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 fact that it was in the top 15 of B2B advertisers in both 2007 and 2008 make it likely
that the company will remain near the top of B2B advertising.
Bank of America Corp.
Bank of America, ranked 11th highest B2B advertising spender in 2008, rose to that
spot from its year-earlier ranking of 13th. The company spent $103.6 million on B2B
advertising in 2008, 3.0% more than it spent in 2007.32 Also in 2008, Bank of
America spent $1.65 billion on U.S. advertising and $2.36 billion overall.33, 34 The
following is a break-down of how Bank of America Corp. spent its B2B advertising
budget in 2008:
Bank of America Corp. B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Spanish-language TV
networks
Cable TV networks
Syndicated TV
Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
National spot radio
Local spot radio
Outdoor
Total ’08 spending
Ad Spending
($000)
$1,962
$15,837
$10,998
$13,268
$1,693
$6,234
$208
$6,977
$851
$62
$183
$9,503
$30,503
$820
$0
$4,255
$267
$17
$103,639
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
In 2009, Bank of America reduced its advertising spending by 18.3% to $1.9 billion.35
If it follows the trend of other commercial banks, 2010 will be a better year for
“Top 100 B-to-B Advertisers,” Op. cit.
“Marketer Database,” Op. cit.
34 Form 10-K. Bank of America Corp. Filed February 26, 2010. Securities and Exchange Commission EDGAR
Database. http://www.sec.gov/Archives/edgar/data/70858/000119312510041666/d10k.htm
35 Ibid.
32
33
© 2010 Hanover Research – Marketing Administration Practice 10 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 advertising across the board and Bank of America’s B2B spend will approximate 2008
levels.
Computers, Office Equipment
Hewlett-Packard Co., Apple Computer, and Dell are all computer and office
equipment companies that placed in the top 15 for 2008 B2B spending. Three others,
Xerox, CDW Corporation and Lenovo Group made the top 100 cut.
Hewlett-Packard Co.
Hewlett-Packard was the sixth highest spender on B2B advertising in 2008. The
company spent $135.8 million in this market, a 31.6% decrease from 2007 spending.
Hewlett-Packard dropped two rankings in the year as a result of this reduction, but
even if the same decrease in spending were seen in 2009, HP would most likely still
be within the top 10 B2B advertisers in the country.36 Hewlett-Packard spent a total
of $412.1 million on overall U.S. advertising in 2008.37 The following is a break-down
of how Hewlett-Packard Co. spent its B2B advertising budget in 2008:
Hewlett-Packard Co. B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Spanish-language TV
networks
Cable TV networks
Syndicated TV
Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
National spot radio
Local spot radio
Outdoor
Total ’08 spending
Ad Spending
($000)
$29,833
$34,906
$18,596
$54
$373
$12,896
$90
$19,708
$3,216
$0
$133
$8,999
$3,004
$20
$0
$1,815
$1,934
$265
$135,840
36
37
“Top 100 B-to-B Advertisers,” Op. cit.
“Marketer Database,” Op. cit.
© 2010 Hanover Research – Marketing Administration Practice 11 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
In 2009, Hewlett-Packard made the Top 100 list for spending on ads in B2B
publications, having spent $10.2 million on the year.38 This is a decrease of 65.8%
from the amount that HP spent on business publications in 2008. This cannot
necessarily be taken as a sign that HP cut back on all B2B spending in 2009, since
trends show reductions in print ad spending across all industries.
Apple Computer
Apple came in 12th on the 2008 Top B2B Advertisers list. Apple spent $100.3 million
on B2B advertising, up 29.5% from 2007, moving it up nine places on the chart, the
most movement by any company in the top 15.39 B2B ads account for 20.6% of the
total $486 million Apple spent on all advertising in 2008.40 The following is a breakdown of how Apple spent its B2B advertising budget in 2008:
Apple Computer B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Spanish-language TV
networks
Cable TV networks
Syndicated TV
Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
National spot radio
Local spot radio
Outdoor
Total ’08 spending
Ad Spending
($000)
$1,590
$522
$74,841
$92
$0
$7,455
$0
$2,185
$179
$0
$0
$964
$11
$0
$0
$66
$1,106
$11,346
$100,354
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
“Top 100 Advertisers in B-to-B Publications,” Op. cit.
“Top 100 B-to-B Advertisers,” Op. cit.
40 Elmer-DeWitt, Philip. “Apple’s 2009 Ad Budget: Half a Billion.” Fortune, October 28, 2009.
http://tech.fortune.cnn.com/2009/10/28/apples-2009-ad-budget-half-a-billion/
38
39
© 2010 Hanover Research – Marketing Administration Practice 12 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 In 2009, Apple spent $501 million on advertising, $15 million more than in 2008.41
Dell
Dell was number 15 on the 2008 B2B ad spend rankings, having spent $83.9 million.
This was a decrease of 26.5% from 2007, causing Dell to fall four places in the
rankings. In 2008, Dell spent $538.2 million on U.S. advertising.42 That year, the
company spent $943 million on advertising world-wide.43 B2B accounted for 8.9% of
this spending. The following is a break-down of how Dell spent its B2B advertising
budget in 2008:
Dell B2B Channel Mix 2008
Ad Spending
($000)
Business Publications
$14,358
Internet
$10,615
Network TV
$12,069
Spot TV
$455
Spanish-language TV networks $0
Cable TV networks
$7,663
Syndicated TV
$3
Consumer magazines
$16,494
Sunday magazines
$4,330
Local magazines
$0
Hispanic magazines
$103
National newspapers
$8,212
Local newspapers
$9,238
Hispanic newspapers
$1
Network spot radio
$292
National spot radio
$13
Local spot radio
$20
Outdoor
$53
Category
Total ’08 spending
$83,917
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
In 2009, Dell spent $811 million on overall advertising, which was a decrease of $132
million from 2008.44, 45 Dell’s advertising expenses decreased by approximately $200
Ibid.
“Marketer Database,” Op. cit.
43 Form 10-K. Dell. Filed February 18, 2010. Securities and Exchange Commission EDGAR Database.
http://www.sec.gov/Archives/edgar/data/826083/000095012310025998/d70787e10vk.htm
44 “Apple’s 2009 Ad Budget: Half a Billion,” Op. cit.
41
42
© 2010 Hanover Research – Marketing Administration Practice 13 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 million year-over-year from 2009 to $619 million in 2010.46 In the last three fiscal
years, Dell has consistently decreased its advertising budget by upwards of $100
million per year.
Computer Software
There were five computer software companies among the Top 100 B2B Advertisers
from 2008, but only one, Microsoft Corp., was in the top 15.
Microsoft Corp.
Microsoft Corp. came in at number five on the 2008 Top B2B Advertisers rankings.
Microsoft spent $148.8 million on B2B advertising in 2008, 7% more than they spent
the year before in 2007. This raised the company two places in the rankings, from
seventh to fifth.47 Microsoft was 49th in the nation in overall U.S. advertising
spending in 2008. The company spent $802.3 million total.48 That year, Microsoft
spent $1.2 billion on worldwide advertising.49 B2B accounted for 12.4% of that total.
The following is a break-down of how Microsoft spent its B2B advertising budget in
2008:
Microsoft Corp. B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Spanish-language TV
networks
Cable TV networks
Syndicated TV
Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
Ad Spending
($000)
$45,905
$11,966
$25,884
$406
$0
$16,954
$8,154
$18,006
$354
$0
$11
$5,698
$2,060
$0
$37
Form 10-K. Dell, Op. cit.
Ibid.
47 “Top 100 B-to-B Advertisers,” Op. cit.
48 “Marketer Database,” Op. cit.
49 Form 10-K. Microsoft Corporation. Filed June 30, 2010. Securities and Exchange Commission EDGAR Database.
http://www.sec.gov/Archives/edgar/data/789019/000119312510171791/d10k.htm
45
46
© 2010 Hanover Research – Marketing Administration Practice 14 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 National spot radio
Local spot radio
Outdoor
$847
$7,770
$4,820
Total ’08 spending
$148,870
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
In 2009, Microsoft Corp. was second on the overall list of advertising spending in
B2B publications. The company spent $20.6 million on this form of advertisement.50
This was only a small portion of the $1.4 billion spent on total worldwide advertising
in 2009.51 Total ad expenditures were up again in 2010, reaching $1.6 billion for the
fiscal year.52
Diversified Financials
Only one diversified financials company, General Electric Co., was in the top 15 of
2008’s Top B2B Advertisers Rankings. GE came in at number seven. Three others
were in the top 100.
General Electric Co.
General Electric was seventh on the 2008 Top 100 B2B Advertisers ranking. GE
spent $117 million that year, up 19.3% from 2007.53 This represents the largest
increase in spending of any company in the top 10. In 2008, GE spent $2 billion on
U.S. advertising.54 The company also spent 17.3% more on measured media
advertising in 2008 than in 2007.55 The following is a break-down of how General
Electric spent its B2B advertising budget in 2008:
General Electric Co. B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Spanish-language TV
networks
Cable TV networks
Syndicated TV
Ad Spending
($000)
$19,100
$1,646
$66,514
$24
$0
$9,988
$0
“Top 100 Advertisers in B-to-B Publications,” Op. cit.
Form 10-K. Microsoft Corporation, Op. cit.
52 Ibid.
53 “Top 100 Advertisers in B-to-B Publications,” Op. cit.
54 “Marketer Database,” Op. cit.
55 “U.S. Ad Spend Down 9.2% in Q4.” Seeking Alpha, May 7, 2009. http://seekingalpha.com/article/136191-u-s-adspend-down-9-2-in-q4
50
51
© 2010 Hanover Research – Marketing Administration Practice 15 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
National spot radio
Local spot radio
Outdoor
$12,058
$0
$33
$48
$3,456
$3,060
$3
$39
$4
$24
$1,004
Total ’08 spending
$117,000
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
General Electric continued to raise its overall advertising budget in the first half of
2009, increasing spending by 5.1% to $548.3 million.56 In the first quarter of 2010,
General Electric again raised its advertising budget, this time spending 1.3% more
than the same quarter last year.57
Mail, Package and Freight Delivery
A total of two mail, package and freight delivery companies were on the Top 100
B2B Advertisers list, and both of these, UPS and FedEx, were in the top 15.
United Parcel Service of America
UPS was ranked 10th on 2008’s Top B2B Advertisers list, having spent $106.7 million
throughout the year. This was 11.1% less than UPS spent on B2B in 2007.58 The
following is a break-down of how UPS spent its B2B advertising budget in 2008:
United Parcel Service of America B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Spanish-language TV
networks
Ad Spending
($000)
$374
$31,364
$40,899
$161
$0
“Ad Spending 2009,” Op. cit.
Elliott, Stuart. “Ad Spending Turns Up in First Quarter, Tracking Service Says, After Many Quarters of Declines.”
Media Decoder, May 26, 2010. http://mediadecoder.blogs.nytimes.com/2010/05/26/ad-spending-turns-up-in-firstquarter-tracking-service-says-after-many-quarters-of-declines/
58 “Top 100 B-to-B Advertisers,” Op. cit.
56
57
© 2010 Hanover Research – Marketing Administration Practice 16 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Cable TV networks
Syndicated TV
Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
National spot radio
Local spot radio
Outdoor
$13,548
$0
$6,696
$0
$2
$34
$1,081
$903
$3
$796
$3,748
$6,913
$248
Total ’08 spending
$111,616
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
Due to the recession, UPS reported its sixth consecutive quarter of lower package
volume in the United States in July of last year, reducing its revenue and likely
reducing its advertising spending.59 UPS may have fallen again in the rankings in
2009, but due to the nature of the company, B2B advertising will always be significant
component of its advertising strategy.
FedEx Corp.
FedEx Corp. fell to 14th on the B2B Advertising chart after having been ranked 8th in
2007. The company spent $89.2 million on B2B advertising, 26.1% less than the
previous year, even though the company increased its overall advertising budget from
2007.60 In 2007, FedEx spent a total of $406 million on advertising and in 2008, the
company increased this budget by 9.6% to $445 million.61 The following is a breakdown of how FedEx spent its B2B advertising budget in 2008:
FedEx Corp. B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Ad Spending
($000)
$247
$7,816
$59,409
$629
Elliott, Stuart. “Delivering Something Extra.” The New York Times, September 23, 2009.
http://www.nytimes.com/2009/09/24/business/media/24adco.html
60 “Top 100 B-to-B Advertisers,” Op. cit.
61 Form 10-K. FedEx Corporation. Filed July 15, 2009. Securities and Exchange Commission EDGAR Database.
http://www.sec.gov/Archives/edgar/data/1048911/000095012309022417/c87681e10vk.htm
59
© 2010 Hanover Research – Marketing Administration Practice 17 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Spanish-language TV
networks
Cable TV networks
Syndicated TV
Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
National spot radio
Local spot radio
Outdoor
$0
Total ’08 spending
$89,220
$13,435
$0
$1,307
$0
$9
$295
$4,026
$1,107
$289
$0
$68
$96
$469
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
FedEx’s overall advertising budget decreased by 14.8% in 2009 to $379 million, and
again in 2010, though only by 1.3% to $374 million.62 It seems probable that FedEx
has fallen out of the top 15 in the rankings, given the fact that even in a year that the
company increased its overall advertising spending by 9.6% (2008) it decreased B2B
spending by 26.1%.
Airlines
Four airlines appear on the Top 100 B2B Advertisers list, but only Southwest Airlines
is in the top 15. This is particularly interesting due to the fact that of the four airlines,
Southwest had the lowest yearly revenue, yet spent the most on B2B advertising.
Southwest Airlines
Southwest Airlines rose to 19th on the 2008 Top 100 B2B Advertisers list from eighth
place in 2007. To earn the higher ranking, Southwest increased B2B advertising
spending by 16.4% in 2008 to $96.8 million.63 That year, Southwest also increased its
overall advertising spending by 4.18% from $191 million in 2007 to $199 million in
2008.64 The following is a break-down of how the company spent its B2B advertising
budget in 2008:
Form 10-K. FedEx Corporation. Filed July 15, 2010. Securities and Exchange Commission EDGAR Database.
http://www.sec.gov/Archives/edgar/data/1048911/000095012310065730/c03116e10vk.htm
63 “Top 100 B-to-B Advertisers,” Op. cit.
64 Form 10-K. Southwest Airlines Co. Filed July 15, 2010. Securities and Exchange Commission EDGAR Database.
http://www.sec.gov/Archives/edgar/data/92380/000119312510017191/d10k.htm
62
© 2010 Hanover Research – Marketing Administration Practice 18 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Southwest Airlines Co. B2B Channel Mix 2008
Category
Business Publications
Internet
Network TV
Spot TV
Spanish-language TV
networks
Cable TV networks
Syndicated TV
Consumer magazines
Sunday magazines
Local magazines
Hispanic magazines
National newspapers
Local newspapers
Hispanic newspapers
Network spot radio
National spot radio
Local spot radio
Outdoor
Total ’08 spending
Ad Spending
($000)
$442
$3,656
$48,100
$13,879
$7,476
$4,603
$7
$2,746
$0
$0
$151
$2,257
$2,116
$24
$1,340
$3,674
$3,458
$2,913
$96,838
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
In 2009, Southwest again increased its overall advertising spending, this time by 2.5%
to $204 million.65 Based on this, it is likely that Southwest has continued to increase
its B2B spending, though perhaps not by quite as much as in 2008.
Information Technology Services
On the 2008 list of the Top 100 B2B Advertisers, IBM Corp. is in the top 15.66 IBM
is in fact the only information technology services company in the top 100.
IBM Corp.
IBM Corp. came in at third on the 2008 B2B Advertisers ranking. In that year, IBM
spent $158.9 million on B2B advertising, which was an 11.9% drop in spending from
2007. Still, IBM increased in ranking in 2008, rising from fifth to third.67 In 2008,
IBM Corp. was 81st in the country for overall advertising spending. IBM spent $445.7
Ibid.
Ibid.
67 Ibid.
65
66
© 2010 Hanover Research – Marketing Administration Practice 19 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 million on advertising in the U.S.68 The following is a break-down of how IBM spent
its B2B advertising budget in 2008:
IBM Corp. B2B Channel Mix 2008
Ad Spending
($000)
Business Publications
$50,680
Internet
$9,313
Network TV
$33,785
Spot TV
$54
Spanish-language TV networks $0
Cable TV networks
$17,394
Syndicated TV
$36
Consumer magazines
$26,651
Sunday magazines
$0
Local magazines
$0
Hispanic magazines
$178
National newspapers
$9,505
Local newspapers
$7,347
Hispanic newspapers
$0
Network spot radio
$63
National spot radio
$1,213
Local spot radio
$166
Outdoor
$2,504
Category
Total ’08 spending
$158,889
Source: “Top B-to-B Advertisers.” BtoB Online Special Report, September 14, 2009.
In 2009, IBM Corp. decreased spending on B2B publications to $40.9 million. IBM
was still first in a 2009 ranking of the Top 100 B2B Advertisers in Print published by
BtoB Media Business and based on information from IMS (Inquiry Management
Systems).69
Part II: Side-by-Side Industry and Company Comparison Based on
Fortune 500 and Top B2B Rankings70
“Marketer Database,” Op. cit.
“Top 100 Advertisers in B-to-B Publications.” Media Business, May 2010, P. 7. For BtoB’s write-up of the rankings,
see; Maddox, Kate. “Top 100 Advertisers in B2B Publications.” BtoB Online, April 30, 2010.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100430/MEDIABUSINESS/305019997/1118/MEDI
ABUSINESS
70 This chart compares industries and companies based on both 2009 Fortune 500 rankings that use 2008 revenue
data, and the 2008 Top 100 B-to-B Advertisers list. Companies that are in the top 100 of the latter are bolded.
Industries are ordered according to the total combined B2B spend of all the individual companies.
68
69
© 2010 Hanover Research – Marketing Administration Practice 20 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE Fortune
Fortune
500 Rank
500
Fortune
B2B
Total Revenue
within
Overall
500 Rank Advertisers
Company Name
2008
Industry
Rank
201074,75
Rank 200876
($millions)77
200971
200972,73
Telecommunications: 79 companies in the Top 100 of B2B spent a combined total of $1.11 billion
1
8
7
2
AT&T
124,028.0
Verizon
2
17
13
1
97,354.0
Communications
3
64
67
4
Sprint Nextel
35,635.0
4
68
59
68
Comcast
34,256.0
5
126
116
DirecTV Group
19,693.0
Qwest
6
197
188
13,475.0
Communications
7
231
200
DISH Network
11,617.2
8
257
210
Liberty Global
10,561.1
9
338
359
Virgin Media
7,439.9
10
342
292
Cablevision Systems
7,230.1
Charter
11
385
332
6,479.0
Communications
12
405
Embarq
6,124.0
Telephone & Data
13
465
416
62
5,092.0
Systems
8
Deutsche Telekom
34
Research In Motion
Vonage Holdings
51
Corp.
Metro PCS
79
Communications
Commercial Banks:80 spent $550.30 million
1
11
5
11
Bank of America
113,106.0
Corp.
2
12
12
17
Citigroup
112,372.0
AUGUST 2010 Total B2B
Advertising
Spend 2008 ($
millions)78
328.511
357.935
157.363
24.714
26.534
115.597
47.110
31.955
20.000
103.639
78.006
From the Fortune 500 rankings released in May 2009, revenue and profit data used to determine 2009 Fortune 500
Rankings are from fiscal year 2008 and are therefore the most relevant data for comparison to the B2B list from that
year.
72See footnote 122.
73 Fortune 500. CNN Money, 2009. http://money.cnn.com/magazines/fortune/fortune500/2009/full_list/
74 From the Fortune 500 rankings released in May 2010, revenue and profit data used to determine the 2010 Fortune
500 Rankings are from FY 2009.
75 Fortune 500. CNN Money, 2010. http://money.cnn.com/magazines/fortune/fortune500/2010/full_list/
76 “Top 100 B-to-B Advertisers,” Op. cit.
77 Fortune 500 2009, Op. cit.
78 “Top 100 B-to-B Advertisers,” Op. cit.
79 “Industries: Telecommunications.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2010/industries/157/index.html
80 “Industries: Commercial Banks.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/30/index.html
71
© 2010 Hanover Research – Marketing Administration Practice 21 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Fortune
500 Rank
within
Industry
200971
Fortune
500
Overall
Rank
200972,73
Fortune
500 Rank
201074,75
B2B
Advertisers
Rank 200876
3
16
9
9
4
30
70
-
5
40
39
-
6
7
8
9
41
66
74
129
19
122
88
121
23
28
-
10
145
144
27
11
156
274
-
12
13
14
15
206
211
260
278
249
224
217
123
61
16
280
254
17
302
248
18
382
356
19
397
20
430
497
64
75
83
81
Computers, Office Equipment: spent $418.89 million
1
9
10
6
2
33
38
15
3
71
56
12
4
147
152
93
5
187
204
6
395
375
7
446
451
21
85
82
Computer Software: spent $267.41 million
Company Name
J.P. Morgan Chase
& Co.
Morgan Stanley
Goldman Sachs
Group
Wells Fargo
GMAC
American Express
U.S. Bancorp
Capital One
Financial
Bank of New York
Mellon Corp.
State Street Corp.
SunTrust Banks
BB&T Corp.
PNC Financial
Services Group
Regions Financial
Fifth Third Bancorp
KeyCorp
CIT Group
Northern Trust Corp.
ING Group
HSBC Holdings
Barclays
Hewlett-Packard
Dell
Apple
Xerox
Sun Microsystems
Pitney Bowes
NCR
CDW Corporation
Lenovo Group
Total Revenue
2008
($millions)77
Total B2B
Advertising
Spend 2008 ($
millions)78
101,491.0
111.616
62,262.0
-
53,579.0
-
51,652.0
35,445.0
31,877.0
19,229.0
56.260
53.856
-
17,868.5
54.871
16,355.0
-
12,922.0
12,800.8
9,680.0
27.009
9,636.6
8,554.0
6,499.0
6,228.9
5,677.9
-
25.679
20.947
18.449
111,364.0
61,101.0
32,479.0
17,608.0
13,880.0
6,262.3
5,315.0
-
135.840
83.917
100.354
15.436
65.143
18.205
“Industries: Computers, Office Equipment.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/8/index.html
81
© 2010 Hanover Research – Marketing Administration Practice 22 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Fortune
Fortune
500 Rank
500
Fortune
B2B
within
Overall
500 Rank Advertisers
Industry
Rank
201074,75
Rank 200876
71
72,73
2009
2009
1
35
36
5
2
113
105
3
419
353
4
529
482
5
590
494
83
7
678
32
47
87
92
85
Diversified Financials: spent $216.58 million
1
5
4
7
2
112
81
3
140
49
4
220
54
5
232
221
6
307
298
7
331
354
8
348
288
86
Hotels, Casinos, Resorts: spent $204.77 million
16
74
1
208
213
36
2
263
264
-
3
344
360
-
4
417
438
50
687
528
-
57
-
-
-
39
Company Name
Total Revenue
2008
($millions)77
Total B2B
Advertising
Spend 2008 ($
millions)78
Microsoft
Oracle
Symantec
CA
Electronic Arts
Intuit
Citrix Systems
McAfee84
Ascentive
60,420.0
22,430.0
5,874.4
4,277.0
3,665.0
3,072.9
-
148.870
48.736
36.385
17.851
15.579
General Electric
Fannie Mae
International Assets
Holding
Freddie Mac
Marsh & McLennan
Aon
SLM
Ameriprise Financial
Blackstone Group
H Group Holding
183,207.0
22,653.0
117.0
-
18,358.9
-
12,302.0
11,587.0
8,406.0
7,689.4
7,149.0
-
78.367
21.217
12,880.0
43.697
10,127.0
-
7,208.8
-
5,907.0
32.316
4,281.0
28.625
-
42.865
Marriott
International
Harrah’s
Entertainment
MGM Mirage
Starwood Hotels &
Resorts
Wyndham
Worldwide Corp.
Intercontinental
Hotels Group
“Industries: Computer Software.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/189/index.html
83 Intuit is not ranked in the Fortune 500, but does appear in the Fortune 1000 list from the same year.
84 Formerly known as Network Associates – the company name that appears on the Top B2B Advertisers list.
85 “Industries: Diversified Financials.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/31/index.html
86 “Industries: Hotels, Casinos, Resorts.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/176/index.html
87 Wyndham Worldwide is not among the Fortune 500 of 2009, but it did make the Fortune 1000 list of that year.
82
© 2010 Hanover Research – Marketing Administration Practice 23 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Fortune
500 Rank
within
Industry
200971
Fortune
500
Overall
Rank
200972,73
Fortune
500 Rank
201074,75
B2B
Advertisers
Rank 200876
-
-
-
45
-
-
-
78
Company Name
Total Revenue
2008
($millions)77
Total B2B
Advertising
Spend 2008 ($
millions)78
-
36.898
-
20.378
81,186.0
61,251.1
26.318
-
-
72.254
30,950.7
28,946.4
19,101.0
15,366.6
11,913.6
6,521.9
4,659.2
-
21.592
53.361
25.618
51,486.0
106.770
37,953.0
89.220
21,795.6
19,166.0
10,084.0
8,541.3
7,208.5
2,937.0
-
15.153
36.802
69.914
43.189
28.752
Choice Hotels
International
Best Western
International
Health Care: Insurance and Managed Care:88 spent $199.14 million
1
21
21
63
UnitedHealth Group
2
32
31
WellPoint
Blue Cross & Blue
18
Shield Association89
3
77
63
73
Aetna
4
85
73
29
Humana
5
132
129
Cigna
6
165
146
Health Net
7
226
168
Coventry Health Care
8
381
328
WellCare Health Plans
9
494
425
Universal American
65
Kaiser Permanente
Mail, Package, and Freight Delivery:90 spent $195.99 million
1
43
43
10
United Parcel
Service
2
59
60
14
FedEx
Internet Services and Retailing:91 spent $193.81 million
1
117
102
95
Google
2
130
100
Amazon.com
3
265
227
Liberty Media
4
303
267
eBay
5
345
343
Yahoo
92
6
699
46
Expedia
19
Monster Worldwide
38
CareerBuilder
55
United Internet
Airlines:93 spent $171.58 million
“Industries: Health Care: Insurance and Managed Care.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/223/index.html
89 WellPoint is the largest provider within the Blue Cross & Blue Shield network.
90 “Industries: Mail, Package, and Freight Delivery.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/169/index.html
91 “Industries: Internet Services and Retailing.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/225/index.html
92 Expedia is not ranked in the Fortune 500 in 2009, but does appear in the top 1000 companies.
93 “Industries: Airlines.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/141/index.html
88
© 2010 Hanover Research – Marketing Administration Practice 24 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Fortune
Fortune
500 Rank
500
Fortune
B2B
within
Overall
500 Rank Advertisers
Company Name
Industry
Rank
201074,75
Rank 200876
200971
200972,73
1
104
120
59
AMR
2
111
84
49
Delta Air Lines
3
123
140
96
UAL
4
167
183
Continental Airlines
5
222
222
US Airways Group
6
246
229
13
Southwest Airlines
Insurance: Life, Health (stock):94 spent $163.82 million
1
39
51
91
Metlife
2
84
65
89
Prudential Financial
3
152
130
22
Aflac
4
270
235
Unum Group
5
271
257
Genworth Financial
6
273
266
Principal Financial
7
274
256
Lincoln National
895
537
475
26
Conseco
88
Cinergy Health
Insurance: Property and Casualty (stock):96 spent $159.72 million
1
13
11
33
Berkshire Hathaway
2
81
68
81
Allstate
Liberty Mutual
3
86
71
Insurance Group
4
99
98
82
Travelers Cos.
5
124
118
77
Nationwide
6
174
165
Leows
7
203
176
Chubb
United Services
8
207
132
Automobile
Association
9
209
161
Progressive
AIG, American
10
245
16
54
International Group
Hartford Financial
11
287
97
Services
12
299
268
69
Assurant
American Family
13
388
344
Insurance Group
Total Revenue
2008
($millions)77
Total B2B
Advertising
Spend 2008 ($
millions)78
23,766.0
22,697.0
20,194.0
15,241.0
12,118.0
11,023.0
27.391
32.400
14.958
96.838
55,085.0
29,275.0
16,554.0
9,982.3
9,948.0
9,935.9
9,905.0
4,194.4
-
16.433
16.895
57.975
54.987
17.536
107,786.0
29,394.0
47.364
19.960
28,855.0
-
24,477.0
19,848.0
14,733.0
13,221.0
18.811
20.649
-
12,912.0
-
12,840.1
-
11,104.0
29.836
9,219.0
-
8,601.2
23.102
6,431.3
-
“Industries: Insurance: Life, Health (stock).” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/183/index.html
95 Conseco was not ranked on the Fortune 500 list from 2009 but was within the Fortune 1000 that year, and does
appear on the Fortune 500 in 2010.
96 “Industries: Insurance, Property and Casualty (stock).” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/182/index.html
94
© 2010 Hanover Research – Marketing Administration Practice 25 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Fortune
Fortune
500 Rank
500
Fortune
B2B
within
Overall
500 Rank Advertisers
Industry
Rank
201074,75
Rank 200876
71
72,73
2009
2009
14
398
361
15
490
463
Information Technology Services:97 spent $158.9 million
1
14
20
3
2
153
138
3
266
215
4
401
341
5
456
452
Financial Data Services:98 spent $144.10 million
1
295
250
-
Company Name
Total Revenue
2008
($millions)77
Total B2B
Advertising
Spend 2008 ($
millions)78
First American Corp.
W.R. Berkley
6,213.8
4,708.8
-
IBM
Computer Sciences
SAIC
103,630.0
16,499.5
10,078.0
6,160.0
5,233.2
158.889
-
8,811.3
-
7,088.0
-
6,263.0
49.451
5,596.0
-
4199
24
First Data
Discover Financial
Services
Visa
SunGard Data
Systems
Western Union
MasterCard
Fiserv
Experian Group
5,282.0
4,991.6
4,873.0
-
39.252
55.413
20
42
-
Costco Wholesale
Home Depot
Lowe’s
Best Buy
Staples
TJX
Gap
Office Depot
Toys “R” Us
Circuit City Stores
BJ’s Wholesale Club
Limited Brands
GameStop
OfficeMax
Pantry
72,483.0
71,288.0
48,230.0
40,023.0
23,083.8
19,147.5
14,526.0
14,495.5
13,724.0
11,743.7
10,027.4
9,043.0
8,805.9
8,267.0
8,088.6
67.399
37.778
-
2
352
-
-
3
394
326
31
4
435
380
-
5
451
413
6
474
411
7
482
491
100
Specialty Retailers: spent $105.17 million
1
24
25
2
25
29
3
47
42
4
56
45
5
109
101
6
131
119
7
178
162
8
179
192
9
192
171
10
228
11
269
232
12
290
269
13
296
255
14
313
313
15
317
382
Affiliated Compter Srvcs
Unisys
“Industries: Information Technology Services.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/226/index.html
98 “Industries: Financial Data Services.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/227/index.html
99 The Top B2B list specifies the company name as “MasterCard International”.
100 “Industries: Specialty Retailers.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/156/index.html
97
© 2010 Hanover Research – Marketing Administration Practice 26 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Fortune
500 Rank
within
Industry
200971
Fortune
500
Overall
Rank
200972,73
Fortune
500 Rank
201074,75
B2B
Advertisers
Rank 200876
Company Name
TravelCenters of
America
17
355
314
Bed Bath & Beyond
18
380
329
AutoZone
19
384
316
Ross Stores
20
450
500
Blockbuster
21
454
428
Foot Locker
22
455
372
Barnes & Noble
23
461
389
Advance Auto Parts
24
468
393
PetSmart
25
498
436
Big Lots
26
499
397
Dollar Tree
Insurance: Property and Casualty (mutual):101 spent $96.96 million
State Farm
1
31
34
25102
Insurance Cos.
Auto-Owners
2
476
418
Insurance
Zurich Financial
40
Services Group
Automotive Retailing, Services:103 spent $87.87 million
1
182
212
AutoNation
Penske Automotive
2
225
245
Group
Hertz Global
3
305
318
48
Holdings
4
311
323
CarMax
5
337
345
Sonic Automotive
6
411
409
71
Avis Budget Group
7
428
457
Group 1 Automotive
Ashbury Automotive
8
486
Group
Enterprise Rent-A52
Car Co.
104
Diversified Outsourcing Services: spent $79.70 million
16
332
440
-
Total Revenue
2008
($millions)77
Total B2B
Advertising
Spend 2008 ($
millions)78
7,658.4
-
7,048.9
6,522.7
6,486.1
5,287.9
5,237.0
5,235.3
5,142.3
5,065.3
4,645.3
4,644.9
-
61.343.4
55.339
4,951.8
-
-
41.625
14,288.0
-
11,917.7
-
8,525.1
35.379
8,318.8
7,488.0
5,984.0
5,703.3
22.326
-
4,785.0
-
-
30.168
“Industries: Insurance: Property and Casualty (mutual).” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/184/index.html
102 B2B ranking is specifically for State Farm Mutual Auto Insurance Co., the parent of the State Farm family of
companies according to this State Farm website
(http://www.statefarm.com/about/media/media_releases/20090928.asp).
103 “Industries: Automotive Retailing, Services.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/177/index.html
101
© 2010 Hanover Research – Marketing Administration Practice 27 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Fortune
500 Rank
within
Industry
200971
1
Fortune
500
Overall
Rank
200972,73
198
2
297
Fortune
500 Rank
201074,75
B2B
Advertisers
Rank 200876
189
-
265
-
Company Name
Aramark
Automatic Data
Processing
Accenture
Pythian Group
infoGROUP105
Total Revenue
2008
($millions)77
Total B2B
Advertising
Spend 2008 ($
millions)78
13,470.2
-
8,776.5
-
30
49.633
97
14.738
94
15.332
Entertainment:106 spent $67.17 million
1
48
82
53
Time Warner
46,984.0
30.099
2
60
57
Walt Disney
37,843.0
3
70
76
News Corp.
32,996.0
4
177
170
Viacom
14,625.0
5
186
177
CBS
13,950.4
6
372
376
CC Media Holdings
6,764.8
44
Sony Corp.
37.072
Miscellaneous:107 spent $72.24 million
1
95
106
90
3M
25,269.0
16.821
2
367
392
Mohawk Industries
6,826.3
58
Siemens
28.357
60
Samsung Group
27.065
108
Network and Other Communications Equipment: spent $44.1 million
1
57
58
35
Cisco Systems
39,540.0
44.139
2
78
110
Motorola
30,146.0
3
244
225
Qualcomm
11,142.0
4
414
391
Corning
5,948.0
5
447
371
Harris
5,311.0
109
Oil and Gas Equipment, Services: spent $43.48 million
1
141
158
Halliburton
18,279.0
National Oilwell
2
200
182
13,431.4
Varco
3
227
243
Baker Hughes
11,864.0
4
250
277
Smith International
10,770.8
“Industries: Diversified Outsourcing Services.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/193/index.html
105 Formerly known as InfoUSA – the company name that appears on the Top B2B Advertisers list.
106 “Industries: Entertainment.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/145/index.html
107 “Industries: Miscellaneous.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/168/index.html
108 “Industries: Network and Other Communications Equipment.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/209/index.html
109 “Industries: Oil and Gas Equipment, Services.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/218/index.html
104
© 2010 Hanover Research – Marketing Administration Practice 28 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Fortune
500 Rank
within
Industry
200971
5
6
7
Fortune
500
Overall
Rank
200972,73
421
438
460
-
-
Fortune
500 Rank
201074,75
B2B
Advertisers
Rank 200876
399
467
-
-
37
Electronics, Electrical Equipment:110 spent $40.60 million
1
94
117
2
133
136
3
396
469
4
429
476
-
-
-
112
Chemicals: spent $39.62 million
1
38
46
2
75
86
3
161
190
4
235
197
70
84
67
-
5
248
273
-
6
7
8
9
10
11
12
13
14
15
249
262
276
281
310
322
364
368
376
403
262
293
231
280
319
415
414
362
365
-
16
407
-
-
17
471
453
-
Total Revenue
2008
($millions)77
Total B2B
Advertising
Spend 2008 ($
millions)78
Cameron International
BJ Services
FMC Technologies
American Petroleum
Institute
5,848.9
5,426.3
5,163.4
-
-
43.484
Emerson Electric
Whirlpool
General Cable
Rockwell Automation
American Power
Conversion Corp.111
Sharp Corp.
25,281.0
18,907.0
6,230.1
5,697.8
-
-
22.350
-
18.250
Dow Chemical
DuPont
PPG Industries
Monsanto
Air Products &
Chemicals
Praxair
Huntsman
Mosaic
Rohm & Haas
Ashland
Sherwin-Williams
Eastman Chemical
Celanese
Avery Dennison
Ecolab
Hexion Specialty
Chemicals
Lubrizol
57,514.0
31,836.0
15,849.0
11,579.0
25.086
-
10,938.6
-
10,796.0
10,215.0
9,812.6
9,575.0
8,381.0
7,979.7
6,895.0
6,823.0
6,710.4
6,137.5
-
6,093.0
-
5,027.8
-
Company Name
“Industries: Electronics, Electrical Equipment.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/9/index.html
111 American Power Conversion Corp. is a subsidiary of Schneider Electric and is now known as the Critical Power
and Cooling Services Business Unit.
112 “Industries: Chemicals.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/7/index.html
110
© 2010 Hanover Research – Marketing Administration Practice 29 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Fortune
Fortune
500 Rank
500
Fortune
within
Overall
500 Rank
Industry
Rank
201074,75
71
72,73
2009
2009
113
Energy: spent $37.91 million
1
125
149
2
158
156
B2B
Advertisers
Rank 200876
99
-
Company Name
Total Revenue
2008
($millions)77
Total B2B
Advertising
Spend 2008 ($
millions)78
BASF
-
14.543
19,818.3
16,170.0
-
14,442.0
-
14,047.8
-
12,553.2
12,357.0
17.917
-
11,364.0
-
9,937.0
9,019.1
6,905.0
6,648.2
-
-
19.996
37,586.0
12,779.7
12,501.0
9,004.9
8,129.2
37.347
-
5,881.0
-
5,841.0
-
5,226.0
-
4,658.1
-
14,876.2
8,074.0
-
Constellation Energy
AES
American Electrc
3
180
172
Power
Integrys Energy
4
185
302
Group
5
214
86
Reliant Energy
6
218
276
Williams
Energy Future
7
237
246
Holdings
8
272
338
Calpine
9
291
368
Global Partners
10
363
263
NRG Energy
11
377
369
UGI
Vestas Wind
80
Systems
Semiconductors and Other Electronic Components:114 spent $37.3 million
1
61
62
43
Intel
2
212
199
Jabil Circuit
3
215
223
Texas Instruments
4
292
405
Sanmina-SCI
5
315
421
Applied Materials
Advanced Micro
6
418
390
Devices
7
423
432
Micron Technology
Freescale
8
457
Semiconductor
9
495
460
Broadcom
115
Computer Peripherals: spent $28.63 million
1
172
166
EMC
2
319
304
Western Ditigal
“Industries: Energy.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/165/index.html
114 “Industries: Semiconductors and Other Electronic Components.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/208/index.html
115 “Industries: Computer Peripherals.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/186/index.html
113
© 2010 Hanover Research – Marketing Administration Practice 30 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Fortune
Fortune
500 Rank
500
Fortune
B2B
within
Overall
500 Rank Advertisers
Industry
Rank
201074,75
Rank 200876
71
72,73
2009
2009
56
116
Forest and Paper Products: spent $25.19 million
1
97
104
2
236
379
3
379
472
4
390
383
6117
694
-
66118
Company Name
Total Revenue
2008
($millions)77
Total B2B
Advertising
Spend 2008 ($
millions)78
Canon
-
28.638
International Paper
Weyerhaeuser
AbitibiBowater
Domtar
Boise Cascade
Holdings
24,829.0
11,401.0
6,645.1
6,394.0
-
2,977.5
25.191
69,816.0
-
28,130.0
14,264.1
8,525.1
-
21.876
13,388.0
20.840
31,416.2
-
29,362.5
21,734.4
-
18,744.6
14.602
9,675.0
-
6,060.6
-
Food Production:119 spent $21.87 million
1
27
27
-
2
89
87
3
183
163
4
304
317
120
*
72
121
Waste Management: spent $20.8 million
1
201
196
76
Insurance: Life, Health (mutual):122 spent $14.60 million
1
76
64
-
2
3
82
118
90
115
-
4
135
93
98
5
279
237
-
6
409
342
-
Archer Daniels
Midland
Tyson Foods
Smithfield Foods
Pilgrim’s Pride
Cargill
Waste Management
New York Life
Insurance
TIAA-CREF
Northwestern Mutual
Massachusetts
Mutual Life
Insurance
Guardian Life Ins. Co.
of America
Thrivent Financial for
Lutherans
“Industries: Forest and Paper Products.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/11/index.html
117 Boise Cascade Holdings is not within the Fortune 500 but does appear on the Fortune 1000 list from 2009.
118 Top B2B ranking is for “Boise Cascade Products Corp.” a subsidiary of Boise Cascade Holdings.
119 “Industries: Food Production.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/197/index.html
120 Were Cargill publicly held, it would rank on the Fortune 500. As it stands, Cargill is the largest privately owned
company in the United States.
121 “Industries: Waste Management.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/161/index.html
122 “Industries: Insurance; Life, Health (mutual).” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/185/index.html
116
© 2010 Hanover Research – Marketing Administration Practice 31 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Fortune
500 Rank
within
Industry
200971
Fortune
500
Overall
Rank
200972,73
Fortune
500 Rank
201074,75
B2B
Advertisers
Rank 200876
7
441
420
-
Company Name
Total Revenue
2008
($millions)77
Total B2B
Advertising
Spend 2008 ($
millions)78
Western & Southern
Financial Group
5,391.7
-
18,018.0
-
17,970.0
11,255.0
10,661.0
14.357
-
Railroads:123 spent $14.36 million
1
142
167
-
2
3
4
143
240
256
164
259
287
100
-
Burlington Northern
Santa Fe
Union Pacific
CSX
Norfolk Southern
Part III: Small Business Focus
Almost all of the companies profiled by this report have relationships with the small
business market and offer tailored services and marketing campaigns. For this third
section of the report, Hanover examines the small business offerings of companies in
the top 15 industries on the preceding chart. As these are the industries and
companies with the highest B2B advertising spend, it follows that they may also be
the most focused on small business advertising.
Telecommunications
Small business marketing is common among telecommunications companies as the
services they offer are attractive to businesses of all sizes. In fact, it has become the
norm among these companies to offer tailored services for small businesses. Verizon
Communications has perhaps the most aggressive small business marketing strategies,
“Industries: Railroads.” Fortune 500. CNN Money, 2009.
http://money.cnn.com/magazines/fortune/fortune500/2009/industries/154/index.html
123
© 2010 Hanover Research – Marketing Administration Practice 32 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 but AT&T and Sprint Nextel also provide services specific to the small business
sector.
Verizon Communications
Verizon has a clear focus on small businesses as a part of its B2B advertising strategy.
The company offers a Freedom for Business package that it promoted via TV, print,
and online channels in 2008, and ran a TV campaign called “Fingers” to promote its
high-speed Internet specifically to small businesses.124 The small-business audience
represented approximately 1.6 million customers for Verizon in 2008.125
The company also supports a group that focuses specifically on small-business
advertising, and has a Vice President of Small-business Marketing, Monte Beck.126 In
April of 2009, Beck oversaw the relaunch of the Verizon Small Business Center, “a
portal that pools email and news,” the Verizon Collaboration Center, “a fee-based
service for video conferencing and file sharing” and the Business Link Reward
Program that offers discounts from partners like Office Depot and FedEx.127 They
advertise the Small Business Center online and in print and by offering webinars on
pertinent business issues.128 Verizon also advertises FiOS TV, FiOS Internet Service
and bundled packages to small businesses in online, radio, print and TV channels.129
AT&T
Like Verizon, AT&T has an array of small-business solutions that it markets
accordingly. 130 In May of this year, AT&T launched two new web hosting and design
plans marketed to small businesses building websites.131 AT&T also has an Executive
Vice President of Small Business Solutions, Cathy Martine, operating in the umbrella
“Top 100 B-to-B Advertisers,” Op. cit.
Ibid.
126 “Monte Beck, VP-small-business Marketing, Verizon Telecom.” BtoB Online, October 26, 2009.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091026/FREE/310269997/1068/best2008
127 Ibid.
128 Ibid.
129 Ibid.
130 “Small Business Services.” AT&T. http://www.att.com/gen/general?pid=7464
131 Lee, Justin. “AT&T Launches New Small Business Hosting Plans.” Web Host Industry Review, May 12, 2010.
http://www.thewhir.com/web-hostingnews/051210_ATT_Launches_New_Small_Business_Hosting_Plans?utm_source=feedburner&utm_medium=feed
&utm_campaign=Feed:+thewhir+(theWhir.com+-+Daily+Web+Hosting+News)
124
125
© 2010 Hanover Research – Marketing Administration Practice 33 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 department, “Business Solutions.”132 Ronald E. Spears is the President and Chief
Executive Officer of AT&T Business Solutions.133
Sprint Nextel
In its annual 10-K filing, Sprint explains one facet of its relationship with small
business customers: “We use a variety of sales channels to attract new subscribers of
wireless services, including:…indirect sales agents that primarily consist of local and
national non-affiliated dealers and independent contractors that market and sell
services to small businesses and the consumer market, and are generally paid through
commissions.”134 Like the other Telecom companies profiled by this report, Sprint
offers an array of small-business services.135 Sprint Nextel has a generalized “Business
Markets” division, the president of which is Paget L. Alves.136 There does not appear
to be a division on this level focused on small business alone.
Deutsche Telekom
Deutsche Telekom, based in Germany, does target small businesses with certain
programs and partnerships. Most recently, the International Carrier Sales &
Solutions division of Deutsche Telekom partnered with CommuniGate Systems to
deliver the “MyCommsuite” offering to carriers looking to do business with SMB
customers.137 MyCommsuite provides carriers with a suite of SMB applications that
minimizes carrier investment and allows carriers to offer individual telecom solutions
under their own brand.138 T-Mobile, the American wireless company owned by
Deutsche Telekom does not, however, offer any special packages or deals for small
businesses.139
Commercial Banks
Commercial banks are also uniquely situated to cater to the small business market,
offering tailored loans, credit cards, and other such services.
JPMorgan Chase and Co.
“Cathy Martine.” SBA National Small Business Week 2010.
http://www.nationalsmallbusinessweek.com/index.php?pID=142
133 Form 10-K. AT&T. Filed February 25, 2010. Securities and Exchange Commission EDGAR Database. p. 10
http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000732717&type=10k&dateb=&owner=exclude&count=40
134 Form 10-K. Sprint Nextel Corp. Filed February 26, 2010. Securities and Exchange Commission EDGAR
Database. p. 3 http://www.sec.gov/Archives/edgar/data/101830/000119312510042491/d10k.htm
135 Sprint Nextel. http://www.sprint.com/business/
136 Form 10-K. Sprint Nextel Corp., Op. cit., p. 24
137 “CommuniGate Systems Parners with Deutsche Telekom International Carrier Sales & Solutions (ICSS) to
Deliver Secure Unified Communications as a Service and White-Label BlackBerry Style Services to Carriers.” TMC
News, August 16, 2010. http://www.tmcnet.com/usubmit/2010/08/16/4957925.htm
138 Ibid.
139T-Mobile. http://www.t-mobile.com/
132
© 2010 Hanover Research – Marketing Administration Practice 34 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 JPMorgan Chase consistently markets credit cards for small businesses. The most
recent of these, Ink, comes with a new advertising campaign featuring real-life Ink
customers.140 Ink has also been promoted via television, print, newspaper, online,
events, public relations, and direct marketing.141 JP Morgan Chase has also recently
offered lower interest rates on loans to small businesses that make new hires.142
Bank of America Co.
Bank of America also has programs and opportunities marketed specifically towards
small businesses. The bank made a commitment to increase lending to small and midsized businesses by $5 billion in 2010 and is so far surpassing that goal.143 Bank of
America also supports a small business online community.144 The company’s 10-K
refers to the breadth of its small business support: “We offer industry-leading support
to approximately four million small business owners.”145 The company has a
President of Consumer, Small Business and Card Banking, Joe L. Price.146
Computers, Office Equipment
Technology companies see small and medium businesses as a way to continue sales
growth even in times of economic stress. They also serve as new markets once the
bigger companies have been saturated with technological products.147 Therefore,
many technology companies have specific programs and campaigns targeted at small
businesses. Apple’s new small business campaign and Dell’s distinct SMB business
unit are the stand-outs in this category.
Hewlett-Packard Co.
At Hewlett-Packard, interactions with small businesses are not always direct but
sometimes occur through a series of distributors and resellers. However, HP does
have a designated unit in its company to consolidate these dealings: “PSG [Personal
“Ink from Chase Launches New Advertising Campaign Featuring Real-Life Ink Business Card Customers.”
JPMorgan Chase &Co., June 30, 2010.
http://investor.shareholder.com/jpmorganchase/releasedetail.cfm?releaseid=484027
141 “Chase Unveils New Marketing Campaign to Support Small Businesses.” SmartBrief, October 1, 2009.
http://www.smartbrief.com/news/aaaa/industryBW-detail.jsp?id=83BFB06A-22DD-47E6-BDE3-80A91A91F764
142 Rubin, Courtney. “JP Morgan Offers Discount to Small Businesses That Hire.” Inc. June 30, 2010.
http://www.inc.com/news/articles/2010/06/jpmorgan-encourages-small-businesses-to-borrow-and-hire.html
143 Prial, Dunstan. “Bank of America Increases Loans to Small Businesses.” Fox Small Business Center, July 27, 2010.
http://www.foxsmallbusinesscenter.com/finance/2010/07/27/bank-america-increases-loans-small-businesses/
144 Small Business Online Community. Bank of America Co.
http://smallbusinessonlinecommunity.bankofamerica.com/index.jspa
145 Form 10-K. Bank of America Corp., Op. cit., p.1
146 Ibid, p. 12
147 Sherman, Erik. “Why Dell’s Small Business Growth Strategy Could Backfire.” BNet, March 30, 2010.
http://www.bnet.com/blog/technology-business/why-dell-8217s-small-business-growth-strategy-couldbackfire/3149
140
© 2010 Hanover Research – Marketing Administration Practice 35 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Systems Group] manages SMB customer relationships and commercial reseller
channels…In addition, PSG manages direct online sales through the Consumer
Exchange and the Small Business Exchange.”148 HP also maintains an SMB Advisory
Council, made up of executives from HP’s resellers and partner companies, to sustain
relationships with these companies and with the small and medium-sized businesses
they reach.149
Apple
Like the rest of the technology companies considered in this report, Apple markets
technology solutions specific to businesses of all sizes.150 On its business website,
Apple also highlights solutions for start-ups and business news articles published by
other outlets, such as Computerworld’s article, “Apple’s Mac Mini server ‘ideal’ for the
small office.”151 Apple’s website advertises Mac product and software solutions for
marketing a small business.152 An article published by The Wall Street Journal in July of
this year reports Apple’s recent push to expand their small business customer base.153
The article explains, “Apple is targeting smaller, local businesses that it can reach
through its chain of nearly 300 retail stores.”154 Each of these stores already has one
salesman dedicated to local business accounts, and Apple is hiring new engineers in a
dozen of these retail stores to work on computer systems engineered specifically for
small businesses.155
Dell
Dell is one technology company that is particularly focused on the small business
market. They offer several products that are tailored to small business needs such as
the Vostro line of notebook and desktop computers and the Dell Download Store.156
Dell is one of the few companies profiled that has designated a specific business
sector for small business work: SMB, or Small and Medium Business, is one of the
four main business segments of the company.157 The President of Consumer, Small
and Medium Business, Stephen J. Felice, leads this business segment in its dealings
with Dell’s more than 72 million small and medium-sized business customers around
Form 10-K. Hewlett-Packard Co. Filed December 17, 2009. Securities and Exchange Commission EDGAR
Database. http://www.sec.gov/Archives/edgar/data/47217/000104746909010806/a2195472z10-k.htm
149 “SMB Advisory Council Bios.” HP Channel News.
http://www.hp.com/hpinfo/newsroom/press_kits/2010/partnerone/50.html
150Apple Business. http://www.apple.com/business/
151 Faas, Ryan. “Apple’s Mac Mini Server ‘Ideal’ for the Small Office.” Computerworld, March 16, 2010.
http://www.computerworld.com/s/article/9168678/Apple_s_Mac_Mini_server_ideal_for_the_small_office
152 Apple. Small Business Marketing. http://www.apple.com/nz/business/basics/marketingsales.html
153 “Apple Seeks Growth Beyond Consumers,” Op. cit.
154 Ibid.
155 Ibid.
156 Form 10-K. Dell, Op. cit., p. 5
157 Ibid, p. 22
148
© 2010 Hanover Research – Marketing Administration Practice 36 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 the world.158 In 2010, SMB brought in 23% of Dell’s total net revenue, and the
divisional operating income was 9% of revenue, making it the second-highest
performing business unit in the company.159 Dell has recently adopted new programs
to encourage small business spending, such as offering interest-free deals to those
businesses that purchase $25,000 or more worth of products.160
Computer Software
As with computers and office equipment, computer software is in high demand at
businesses of all sizes. It behooves companies such as Microsoft to cater to all
manner of clientele, including small businesses, however Microsoft is the only
computer software company on the 2009 Fortune 500 that is also a top B2B spender.
Microsoft Corporation
Microsoft offers a small business online Startup Center with information on how to
start a small business and embedded advertisements for Microsoft products.161
Microsoft’s 2010 10-K report explains that sometimes the work of contacting small
businesses is contracted out:
Although each type of reselling partner reaches organizations of all sizes,
LARs [large account resellers] are primarily engaged with large organizations.
Distributors resell primarily to VARs [value-added resellers] and VARs
typically reach the small-sized and medium-sized organizations…some of our
largest resellers include CDW, Dell, Insight Enterprises, and Software House
International.162
Other Computer Software Companies
The other computer software companies on the Top 100 B2B Advertisers list also
cater in some way to small businesses. Intuit is a software company established
specifically for small businesses. Intuit provides personal finance software for small
businesses in addition to providing webhosting, marketing, and payroll services for
these clients.163 Citrix Systems offers a secure remote access software solution to small
and mid-size businesses called XenApp Fundamentals.164 McAfee has a dedicated
small business store and a small business support website.165,166
Ibid, p. 11
“Why Dell’s Small Business Growth Strategy Could Backfire,” Op. cit.
160 Ibid.
161 Microsoft Startup Center. http://www.microsoft.com/smallbusiness/startup-toolkit/marketing-strategy-forstartups.aspx
162 Form 10-K. Microsoft Corporation, Op. cit., p. 11
163 Intuit. http://www.intuit.com/
164 “Simple, Secure Remote Access for Small and Medium Businesses.” Citrix Systems.
http://www.citrix.com/English/ps2/products/subfeature.asp?contentID=2300436
165http://shop.mcafee.com
158
159
© 2010 Hanover Research – Marketing Administration Practice 37 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Diversified Financials
Diversified financial companies may also have an interest in small businesses, as they
may offer loans or financing programs tailored to business size. Oftentimes though
these companies are more interested in dealings with larger businesses where the
profit margins are higher. On its finance website, General Electric offers the example
of how a small business in Dallas, TX used GE capital to weather the recession.167
GE is the sole diversified financials company on the Top B2B Advertisers list that
advertises to small businesses on its website.
Hotels, Casinos, and Resorts
Of this industry, hotels are the companies most involved in B2B advertising, and
therefore most focused on small businesses. Hotels market to small businesses for
the same reasons that they market to large businesses: any business that requires
employees to travel for conferences or meetings will need to rent hotel rooms or
conference rooms for those purposes. It is highly common for the hotels on the Top
100 B2B Advertisers list to include small businesses in marketing materials intended
to attract business travelers.
Marriott International
Marriott specifically mentions the small business clientele in the Meetings & Events
section of its website.168 Marriott International offers a broad range of hotels and
brands in order to cater to the varied needs of its customers, including small business
travelers. One such brand, Fairfield Inn & Suites, launched a “Small Business Roadto-Success Challenge” in 2010 to attract small business travelers. Ten small business
owners will be awarded 15 free nights’ stay to facilitate travel, and at the end, one
small business will be awarded a grand prize of $20,000 by the judging panel.169
Other Hotels
Like Marriott International, Intercontinental Hotels Group offers a variety of brands and
hotels, and markets them to different customers. Crowne Plaza Hotels & Resorts are
advertised on the website as, “the ideal upscale hotel choice for small-to-medium-
www. mcafee. com/ us/ small/ support/
“Finance- Business.” Products & Services. GE. http://www.ge.com/products_services/finance_business.html
168 “Why Meet at Marriott?” Marriott International. http://www.marriott.com/meetings/business-meeting.mi
169 “Fairfield Inn & Suites Launches Small Business Road-to-Success Challenge – Offers $20,000 Grand Prize to Top
Small Business Traveler.” Marriott International, July 22, 2010. http://news.marriott.com/2010/07/fairfield-innsuites-launches-small-business-roadtosuccess-challenge-offers-20000-grand-prize-to-top.html
166
167
© 2010 Hanover Research – Marketing Administration Practice 38 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 sized business meetings.”170 Wyndham Worldwide Corp. advertises the “flexible meeting
space” at Wyndham Garden hotels to small business events.171
Health Care: Insurance and Managed Care
Insurance is another industry where advertisement to small businesses seems logical.
Small businesses, by their nature, are not as profitable for insurance companies as
large corporations as they have to buy fewer policies and are often not required to
provide health insurance depending on the number of employees and the salaries
paid. They still make up a significant portion of the business market for insurers, as
evidenced by the tailored services offered by Top B2B companies such as Aetna and
Kaiser Permanente.172,173
Mail, Package and Freight Delivery
United Parcel Service of America
UPS has a business solutions section on its website that allows businesses of different
sizes to search their options.174 This virtual tool allows customers to specify business
size, type, and the particular business process for which they are seeking UPS
services.175 UPS does not appear to have a business unit dedicated solely to small
businesses, or to small and medium-sized business.
FedEx Corp.
Like UPS, FedEx provides customized shipping solutions for various business sizes.
FedEx even has a center dedicated specifically to small businesses on its website.176
FedEx conducted its third-annual survey of 500 small business owners in early April
of this year to determine how they plan to grow their businesses, and whether printed
marketing tools like those offered by FedEx Office would remain in demand.177
FedEx is interested enough in attracting small business customers that the company
“IHG Lodging Brands.” Intercontinental Hotels Group.
http://www.ichotelsgroup.com/h/d/6c/1/en/c/2/dec/6c/1/en/ob.html
171 “Wyndham Garden.” Wyndham Hotel Group.
http://hotelfranchise.wyndhamworldwide.com/portfolio/wyndham_garden/
172 “Small Business: 2-50 Eligible Employees.” Aetna. http://www.aetna.com/employer-plans/smallbusiness/small.html
173 “Plans for Employers.” Kaiser Permanente.
https://members.kaiserpermanente.org/redirects/landingpages/highlights/employerplans.htm
174 UPS Business Solutions. http://www.ups.com/bussol
175 Ibid.
176 FedEx Small Business Center. http://fedex.com/us/smallbusiness/index.html
177 McGee, Matt. “Small Business Owners Adopting Social Media in 2010.” Small Business Search Marketing, May 21,
2010. http://www.smallbusinesssem.com/small-business-owners-adopting-social-media-in-2010/3264/
170
© 2010 Hanover Research – Marketing Administration Practice 39 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 is participating in the 2010 Enterprise Council on Small Business Summit along with
AT&T, Bank of America, Capital One, CDW, Cisco, Dell, Discover, FedEx, Google,
Hewlett-Packard, Intuit, Marriott, MasterCard, Microsoft, Research In Motion,
Sprint, Staples, UPS, Verizon, Visa, and Wells Fargo from among the companies on
the Top 100 B2B list.178
Internet Services and Retailing
The most important thing for internet services companies is the amount of time users
spend on their sites, as this relates to their ad revenue and overall profit. Therefore, if
a company has services that can be advertised to a relevant user population or can
develop niche services to expand their reach, this will usually be profitable. Expedia,
for example, has a Business Travel page with deals and packages targeted towards
business travelers.179
Google
Google continuously develops new products and services to target diverse
populations of users and dominate their time spent on-line. For small business
internet users, Google has developed a Small Business Network, through which
subscribers can list their business online, share creative business uses of Google
Apps, target customers with AdWords, and receive updates on public policy issues
that may affect their business.180
Airlines
Businesses of all sizes make up a huge market for airlines. The highest B2B spending
airlines have initiatives to attract business travelers and to facilitate scheduling and
booking for businesses.
Delta Air Lines
Delta offers a SkyBonus program to small and medium sized businesses. The
program allows companies that book travel for employees to earn and accumulate
points that can be put towards business travel rewards.181
Southwest Airlines
“2010 Enterprise Council on Small Business Summit.” Enterprise Council on Small Business: Marketing to Small
Business. https://www.smbm.executiveboard.com/Public/2010Summit.aspx
179 Expedia Business Travel. http://www.expedia.com/daily/business/default.asp
180 “Small Business Network.” Google. http://www.google.com/smallbusinessnetwork/
181 “The New World of Sky Bonus.” Delta SkyBonus.
http://skybonus.delta.com/mainMenu.sb?Region_Code=NA&POS_Country_Code=US&Actor=Corporate&Code
=BIZ&Language=EN
178
© 2010 Hanover Research – Marketing Administration Practice 40 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Southwest maintains a website specifically for its business traveler customers.182 This
website is set up for company travel so that companies can specify travel preferences
for their employees, and costs can be reported directly. There do not appear to be any
initiatives targeting travelers from small businesses specifically at this time.
Insurance: Life, Health (stock)
As was earlier described for the Health Care: Insurance and Managed Care industry,
insurers can benefit by targeting small businesses that are looking to buy insurance
policies for their companies. In this category, MetLife and Cinergy Health both actively
advertise plans specific to small businesses on their websites.183,184
Insurance: Property, Casualty (stock)
Like larger businesses and corporations, small businesses will be in the market for
property insurance, including renters insurance and auto insurance, among other
things. Allstate offers plans and support specific to small business owners.185,186
Travelers’ small business insurance offerings are even more comprehensive.187
Information Technology Services
In North America, small businesses are expected to spend $310.8 billion on
information technology this year, and $328.3 billion in 2011.188 This is a growing
market for information technology services companies like IBM.
IBM
IBM offers a Smart Business system to small businesses that integrates email, system
security, and calendar management. This comes with Smart Market, a web-based
marketplace for collaboration and application download, and Smart Desk, a webbased dashboard that manages it all.189
Financial Data Services
Southwest Airlines. http://www.swabiz.com/
“Small Business.” MetLife. http://www.metlife.com/business/benefit-products/group-benefits/smallbusiness/index.html
184 “Limited Benefit Health Insurance.” Cinergy Health. http://www.cinergyhealth.com/health-insurance-plans/LMplan.asp
185 “Asset Protection.” Allstate. http://www.allstate.com/about/product-overview.aspx
186 “Understand Your Business Risks and Liabilities.”
187 “Small Business.” Travelers. http://www.travelers.com/business-insurance/small-business/index.aspx
188 Sherr, Ian. “Apple Seeks Growth Beyond Consumers.” The Wall Street Journal, July 21, 2010.
http://online.wsj.com/article_email/SB10001424052748704684604575381432625378108lMyQjAxMTAwMDIwMTEyNDEyWj.html
189 Eaton, Kim. “IBM Follows Apple’s Model to Help Small Business’ Tech Needs.” Fast Company, May 19, 2009.
http://www.fastcompany.com/blog/kit-eaton/technomix/ibm-follows-apples-model-help-small-business-techneeds
182
183
© 2010 Hanover Research – Marketing Administration Practice 41 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Visa, MasterCard and Experian, classified in the financial data services industry, offer
diverse services to the small business market.
Visa
Visa supports a specific small-business-focused website that advertises a credit card
tailored for small business owners, spending reports, the Visa Business Network to
connect with small business owners, and discounts with participating merchants.190
MasterCard
MasterCard also offers solutions for small businesses, including cards, MasterCard
Easy Savings at participating merchants, and online business resources.191
Experian Group
Experian powers BusinessCreditFacts.com, a website targeted towards small
businesses that allows companies to access their own credit reports and gives tips on
how to establish and improve credit scores.192
Specialty Retailers
The specialty retailer industry includes several companies that have very little
motivation to market to small businesses, such as Bed Bath & Beyond or Toys “R”
Us. Staples and Office Depot, the two specialty retailers present on the 2008 Top
100 B2B Advertisers list, do however have cause to market to small business
customers.
Staples
Columns on the Staples website advertise Staples products contextually. For
example, just below the index of “Tax Tips & Advice” columns including the article,
“Federal Taxes for Small Businesses,” there is an advertisement for $700 in software
savings with the purchase of tax software.193 Staples also conducts an annual survey
of small businesses to determine what challenges these customers are currently facing
Visa.
http://usa.visa.com/business/goforward/index.html?ep=v_sym_smallbusiness&symlinkref=http://www.google.co
m/url%3Fsa%3Dt%26source%3Dweb%26cd%3D1%26ved%3D0CBcQFjAA%26url%3Dhttp%253A%252F%252
Fvisa.com%252Fsmallbusiness%26rct%3Dj%26q%3Dvisa%2520and%2520small%2520business%26ei%3DixR8TM
PPIIOB8gbO07zqBg%26usg%3DAFQjCNHNvAnMFanEjSK1ssGuprUdN4GSfg%26sig2%3DndDixqFKFndNjw
rnYand_Q
191 MasterCard Small Business. http://www.mastercard.com/us/business/en/smallbiz/
192 Experian Business Credit Facts. http://www.businesscreditfacts.com/
193 Weltman, Barabara. “Help for Small Businesses with Federal Taxes.” Staples.
http://www.staples.com/sbd/cre/marketing/centers/tax_06/taxfedsbusiness.html
190
© 2010 Hanover Research – Marketing Administration Practice 42 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 and has recently launched Staples Technology Solutions to help small businesses with
their IT needs.194195
Office Depot
Through its online Business Resource Center, Office Depot offers all manner of
services to small business customers, including services outside of office supplies that
are provided by Office Depot’s partners.196 Office Depot conducts a monthly survey
of small businesses called “The Office Depot Small Business Index.”197
Part IV: B2B Channel Mix Trends
Overall Trends for 2010
Outsell’s “Annual Advertising and Marketing Study 2010” collected data from 1,008
U.S. advertisers and found that B2B advertising and marketing spending will increase
this year by 0.8% to $129 billion.198
BtoB Online’s “2010 Outlook: Marketing Priorities and Plans” survey relates the
marketing goals of 376 B2B marketers for 2010. Of these, “73.4% plan to increase
194“Free
Shipping a Must for Small Business Online Purchases.” Staples, August 4, 2010.
http://investor.staples.com/phoenix.zhtml?c=96244&p=RssLanding&cat=news&id=1456280
195 Cardona, Mercedes. “Staples Expands into IT Outsourcing for Small Businesses.” Daily Finance, February 16,
2010. http://www.dailyfinance.com/story/company-news/staples-expands-into-it-outsourcing-for-small-businessesembarg/19357342/
196 “Business Resource Center.” Office Depot. http://www.officedepot.com/a/business-resource-center/
197 “Office Depot Survey Reveals That ‘Saving Money’ and ‘Economic Issues’ Continue to be at the Forefront of
Small Businesses.” Office Depot Media Relations, August 19, 2010.
http://mediarelations.officedepot.com/phoenix.zhtml?c=140162&p=irol-newsArticle&ID=1461533&highlight=
198 “B2B Marketers Up Social Spend.” eMarketer. March 17, 2010.
http://www.emarketer.com/Article.aspx?R=1007572
© 2010 Hanover Research – Marketing Administration Practice 43 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 their online spending; 38.0% plan to increase direct mail; 35.7% plan to boost events;
and 19.8% say they will increase print advertising.”199 Other plans are visually
represented below:
2010 Plans for B2B Marketing
Maddox, Kate. “Nearly 40% of Marketers Plan to Boost Budgets.” B to B Online. November 16, 2009.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091116/FREE/311169986
199
© 2010 Hanover Research – Marketing Administration Practice 44 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Source: http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091116/FREE/311169986
A detailed break-down of the spending patterns for B2B advertising in 2008 is
presented by BtoB Online based on ad spending data from TNS Media Intelligence’s
most recent report:200
200
“Top 100 B2B Advertisers Cut Spending 10.2%,” Op. cit.
© 2010 Hanover Research – Marketing Administration Practice 45 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Source: http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090914/FREE/309149977/1108/FREE
© 2010 Hanover Research – Marketing Administration Practice 46 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Overall Print Ad Spend
The same study by Outsell mentioned earlier found that for the first time, in both
consumer and B2B advertising, advertisers will spend more on digital than on print:
“Of the $368 billion marketers plan to spend this year, 32.5% will go toward digital;
30.3% to print.”201 However, “Ad spending for magazines will rise this year by 1.9%,
to $9.4 billion. That number reflects a spending boost of 4.2% for consumer titles
and 1% for B2B.”202 “Magazines” as a category includes more publications than just
the business-to-business publications mentioned above.
Data from American Business Media’s Business Information Network shows that
total ad pages for business-to-business publications fell “4.7% from 51,010 in April
2009 to 48,609 in April 2010, while total revenues fell 4% to $606 million.”203 The
decreases were then examined by category or industry: “transportation and logistics
pages fell 35% in April; computing, software and telecom, down 25%; building,
engineering, and construction, down 22%; movies, radio, TV and video, down 19%;
and travel, business conventions, and meetings, down 17%.”204
The rate of decline in B2B publication ad spending has, however, been evening out:
“A disastrous 2009 saw ad pages tumble 28% compared to 2008, B2B ad pages
dropped another 15.3% in January, 9.4% in February, and 5.7% in March.”205
Overall Digital Ad Spend
Overview of Online B2B Marketing
Online advertising accounted for 7% of the B2B marketing mix in 2008 and is
expected to increase to 12% of the mix by 2013.206
The Internet market research company eMarketer reports the online digital marketing
spending in 2010 by category:207
201Smillie,
Dirk. “Digital Lift-Off.” Forbes. March 8, 2010. http://www.forbes.com/2010/03/07/advertising-webads-digital-business-media-outsell.html
202 Ibid.
203 Sass, Erik. “ABM Downbeat: B2B Ad Pages Decline.” Media Daily News. June 29, 2010.
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=13114
204 Ibid.
205 Ibid.
206 Holden-Bache, Adam. “28 Awesome B2B Social Media Statistics.” Social Media B2B, August 4, 2010.
http://socialmediab2b.com/2010/08/b2b-social-media-statistics/http://socialmediab2b.com/2010/08/b2b-socialmedia-statistics/
207 “The State of Online B2B Marketing: What Lies Beneath.” Zimbio, August 11, 2010.
http://www.zimbio.com/B2B/articles/lz67k6zhmRD/State+Online+B2B+Marketing+Lies+Beneath
© 2010 Hanover Research – Marketing Administration Practice 47 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Source: http://www.zimbio.com/B2B/articles/lz67k6zhmRD/State+Online+B2B+Marketing+Lies+Beneath
Strategy consulting firm AMR international also makes predictions as to B2B
spending in online marketing: “Social media spending is forecast to rise the most
dramatically during the next three years, with a 21% compound annual growth rate.
Other individual B2B marketing sectors with predicted growth rates higher than the
overall rate of 12% include lead generation websites (17%) and online marketing
services (15%). One sector, online directories, is expected to undergo negative
compound annual growth of 2%.”208
“B2B Online Marketing Holds Strong Growth Potential.” Marketing Charts.
http://www.marketingcharts.com/direct/b2b-online-marketing-holds-strong-growth-potential-11862/
208
© 2010 Hanover Research – Marketing Administration Practice 48 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Within the interactive marketing category, there have been varying increases in B2B
marketing spending for different tactics:209
Source: http://www.emarketer.com/Article.aspx?R=1007572
Social Media
eMarketer predicts that advertisers will spend $1.68 billion on ads on social
networking sites this year.210 This represents a 20.3% increase in spending in this
channel from last year. By 2011, social ad spending will increase another 24.2% to
$2.09 billion.211
eMarketer also predicts that in the next five years, one-fifth of marketing budgets will
go to social media:212
Source: http://www.emarketer.com/Article.aspx?R=1007540
“B2B Marketers Up Social Spend.” Op. cit.
“Study says social ad spending to reach $1.68 billion this year.” B to B Online. August 16, 2010.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100816/FREE/100819932/1001
211 Ibid.
212 “Marketing Budgets Spiral Toward Social.” eMarketer. March 2, 2010.
http://www.emarketer.com/Article.aspx?R=1007540
209
210
© 2010 Hanover Research – Marketing Administration Practice 49 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Source: http://www.emarketer.com/Article.aspx?R=1007540
In March 2010, digital marketing firm White Horse conducted a survey of 104
corporate marketers across a range of businesses. They generated data relating to B2B
marketers’ level of social media engagement, level of executive sponsorship of social
media and breakdown of social media tactics:213
“B2B Marketers Have Little Social Media Engagement.” Marketing Charts.
http://www.marketingcharts.com/direct/b2b-marketers-have-little-social-media-engagement-13036/
213
© 2010 Hanover Research – Marketing Administration Practice 50 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Source: http://www.marketingcharts.com/direct/b2b-marketers-have-little-social-media-engagement-13036/
Source: http://www.marketingcharts.com/direct/b2b-marketers-have-little-social-media-engagement-13036/
© 2010 Hanover Research – Marketing Administration Practice 51 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Source: http://www.marketingcharts.com/direct/b2b-marketers-have-little-social-media-engagement-13036/
Interestingly, the reported level of engagement varies widely from actual usage. The
same survey found that 86% of B2B marketers use social media, though only 32%
describe themselves as being daily engaged.214
Mobile Marketing
Forrester Research predicts that B2B spending on mobile marketing will quadruple
before 2014, rising to $106 million. Michael Greene, analyst at Forrester Research
says, “Mobile is still nascent. Nonetheless, over this five-year time span, mobile will
become real, especially for B2B marketers.”215
“New Survey Finds B2B Marketers Gaining Ground in Social Media.” White Horse.
http://www.whitehorse.com/_templates/t_press_release.aspx?id=1523&terms=b2b
215 Butcher, Dan. “B2B Mobile Marketing Spend will Reach $106 M in 2014: Forrester.” Mobile Marketer. March 8,
2010. http://www.mobilemarketer.com/cms/news/research/5589.html
214
© 2010 Hanover Research – Marketing Administration Practice 52 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Appendix: Contact Information
1.
Verizon Communications
Contact Information
Address:
140 West Street
New York, New York 10007
212-395-1000
Phone Number:
People
Executive Director of Marketing
Vice President, Small-business
Richard Williams
Monte Beck
2. AT&T
Contact Information
Address:
Phone Number:
People
Senior Executive Vice President and Global
Marketing Officer
President and Chief Executive Officer,
AT&T Business Solutions
Executive Vice President of Small Business
Solutions
208 S. Akard St.
Dallas, Texas 75202
210-821-4105
Catherine M. Coughlin
Ronald E. Spears
Cathy Martine
3. IBM
Contact Information
Address:
Phone Number:
People
Senior Vice President, Marketing and
Communications
Senior Vice President IBM Global Business
Services
914-499-1900
Jon C. Iwata
R. Franklin Kern
4. Sprint Nextel Corp.
Contact Information
Address:
Phone Number:
People
President, Business Markets
Vice President, Small Business and Alternate
Channels
© 2010 Hanover Research – Marketing Administration Practice 6200 Sprint Parkway
Overland Park, Kansas 66251
800-829-0965
Paget L. Alves
Judy Train
53 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 5. Microsoft
Contact Information
Address:
Phone Number:
People
President, Microsoft Business Division
Corporate Vice President, Worldwide Small
and Midmarket Solutions and Partners
Group
Vice President of Small and Medium
Business & Distribution for the Worldwide
Small and Midmarket Solutions and Partners
Group
Senior Vice President of North America
Sales & Marketing
Corporate Vice President of the Business &
Marketing Organization in the U.S.
1 Microsoft Way
Redmond, Washington 98052
425-882-8080
Stephen A. Elop
Vahè Torossian
Birger Steen
Robert Youngjohns
Allison Watson
6. Hewlett-Packard Co.
Contact Information
Address:
Phone Number:
People
Executive Vice President, Personal Systems
Group
Executive Vice President, HP Enterprise
Business
Senior Vice President of Worldwide
Marketing, HP Enterprise Business
Vice President of Marketing, HP
Networking
3000 Hanover Street MS 1050
Palo Alto, California 94394
650-857-1501
R. Todd Bradley
Ann M. Livermore
David J. Shirk
Mike Banic
7. General Electric, Co.
Contact Information
Address:
Phone Number:
People
President and CEO GE Home & Business
Solutions
Senior Vice President and Chief Marketing
Officer
© 2010 Hanover Research – Marketing Administration Practice 3135 Easton Turnpike
Fairfield, Connecticut 06828
203-373-2211
Charlene Begley
Beth Comstock
54 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 8. Deutsche Telekom
Contact Information
Address:
Friedrich-Elbert-Allee 140
53113 Bonn, Germany
9. JPMorgan Chase & Co.
Contact Information
Address:
270 Park Avenue
New York, New York 10017
212-270-6000
Phone Number:
10. United Parcel Service of America
Contact Information
Address:
Phone Number:
People
Senior Vice President, Worldwide Sales and
Marketing
55 Glenlake Parkway, N.E.
Atlanta, Georgia 30328
404-828-6000
Alan Gershenhorn
11. Bank of America Corp.
Contact Information
Address:
Phone Number:
People
President of Consumer, Small Business and
Card Banking
Bank of America Corporate Center
100 N. Tryon Street
Charlotte, North Carolina 28255
704-386-5681
Joe L. Price
12. Apple Computer
Contact Information
Address:
Phone Number:
People
Senior Vice President, Worldwide Product
Marketing
Senior Director, Direct Marketers
© 2010 Hanover Research – Marketing Administration Practice 1 Infinite Loop
Cupertino, California 95014
408-996-1010
Philip Schiller
Michael Pinkman
55 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 13. Southwest Airlines
Contact Information
Address:
Phone Number:
People
Senior Vice President Marketing & Revenue
Management
Director of Marketing and Communications
P.O. Box 36611
Dallas, Texas 75235
214-792-4000
Davis S. Ridley
Dana Williams
14. FedEx Corp.
Contact Information
Address:
942 South Shady Grove Road
Memphis, Tennessee 38120
901-818-7500
Phone Number:
People
Executive Vice President, Market
Development and Corporate
Communications
Vice President of Marketing, FedEx
Vice President of Marketing, FedEx Office
T. Michael Glenn
Karen Rogers
Randy Scarborough
15. Dell
Contact Information
Address:
1 Dell Way
Round Rock, Texas 78682
512-728-4737
Phone Number:
People
President; Consumer, Small and Medium
Stephen J. Felice
Business
Senior Vice President and Chief Marketing
Erin Nelson
Officer
Global Vice President of Dell Consumer and Paul-Henri Ferrand
Small-Medium Business Marketing
© 2010 Hanover Research – Marketing Administration Practice 56 DISTRICT ARDMINISTRATION HANOVER ESEARCH PRACTICE AUGUST 2010 Project Evaluation Form
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© 2010 Hanover Research – Marketing Administration Practice 57