In today’s rapidly evolving digital marketing landscape, two strategies have gained significant traction in driving business growth: demand generation and account-based marketing (ABM). While both aim to attract and convert potential customers, they differ in approach, targeting and execution. Understanding the differences between demand generation versus account-based marketing is essential for companies looking for the most effective strategy for their objectives.
This article explores the key differences between demand generation and ABM and guides US advertisers on how to leverage these strategies to improve their marketing efforts, especially in industries such as connected TV advertising, OTT advertising and performance marketing.
What is demand generation?
Demand generation is a broad, holistic marketing strategy designed to create awareness and interest in a company’s products or services. It includes various marketing tactics aimed at building a pipeline of potential customers at different stages of the buyer’s journey, from awareness to decision-making.
Key features of demand generation
- Broad audience targeting: Demand generation campaigns are designed to reach a wide range of potential customers, regardless of industry, company size, or specific account. The goal is to cast a wide net to generate leads and increase awareness of your offering.
- Lead nurturing: Once prospects enter the funnel, demand generation involves nurturing these leads through targeted content, email campaigns, webinars, and more to convert them into customers.
- Focus on the top of the funnel: Much of the demand generation activity takes place at the top of the marketing funnel, where brand awareness and education are critical. Tactics include content marketing, social media advertising, and affiliate TV advertising.
Benefits of demand generation
- Scalability: Demand generation is designed to attract a large number of leads, making it highly scalable.
- Brand awareness: It’s an excellent approach for companies looking to expand their reach and introduce their brand to a wider audience.
- Long-term commitment: This strategy allows for long-term nurturing, keeping potential customers engaged through different stages of the buyer’s journey.
What is account-based marketing (ABM)?
Account-based marketing (ABM) takes a different approach by focusing on highly targeted, personalized marketing strategies aimed at specific accounts or companies. Rather than casting a wide net, ABM focuses marketing efforts on a defined set of high-quality accounts that are most likely to convert.
Key features of account-based marketing
- Narrow, specific targeting: ABM is very focused on a small number of high-value accounts. Marketing efforts are personalized for each account, with customized content and messaging tailored to specific business needs.
- Sales and marketing alignment: ABM requires close collaboration between sales and marketing teams to ensure consistent messaging and seamless customer experiences across all touchpoints.
- Deep personalization: ABM campaigns include highly customized content, often designed for decision makers within the targeted accounts. This includes personalized emails, account-specific landing pages and even customized ads on channels such as OTT or programmatic advertising.
Benefits of account-based marketing
- Higher ROI: By focusing on high-value accounts, ABM typically delivers higher returns on investment compared to broader strategies.
- Increased efficiency: With ABM, marketers can allocate resources more effectively by focusing only on the accounts that matter most.
- Personalized approach: The deep personalization involved in ABM builds stronger relationships and trust with key decision makers.
Demand generation versus account-based marketing: key differences
Now that we’ve outlined the basics of demand generation and ABM, let’s dive deeper into the matter key differences between demand generation and account-based marketing:
1. Target group
- Demand generation: Targets a broad audience, with the aim of attracting as many leads as possible. The approach is less about individual accounts and more about casting a broad network.
- Account-based marketing: Focuses on a specific set of high-value accounts. ABM targets companies or decision makers that have already been identified as ideal customers.
2. Personalization
- Demand generation: While ask avg While some level of personalization is necessary (such as customized email campaigns), it is often generalized to appeal to a broader audience.
- Account-based marketing: ABM takes personalization to the next level, offering highly customized content, personalized ads and individualized outreach strategies.
3. Cooperation in sales and marketing
- Demand generation: In demand generation, the marketing team typically leads the effort, creating broad content, nurturing leads, and generating interest before passing qualified leads to sales.
- Account-based marketing: ABM requires close coordination between sales and marketing. The two teams must work together from the start to identify target accounts, create custom content, and engage decision makers in a cohesive manner.
4. Success measurement
- Demand generation: Success in demand generation is often measured by metrics such as website traffic, lead volume, and conversion rates. It’s a numbers game aimed at scaling and filling the sales funnel.
- Account-based marketing: ABM measures success through more account-specific metrics, such as account engagement, meetings booked with key decision makers, and revenue generated from targeted accounts.
5. Tactics and channels
- Demand generation: Common demand generation tactics include content marketing, search engine optimization (SEO), social media advertising, and affiliate TV advertising. The focus is on generating awareness and attracting leads at the top of the funnel.
- Account-based marketing: ABM tactics are more customized and personalized, such as account-specific emails, targeted programmatic ads, and even tailored events for decision makers within those accounts. Channels such as OTT advertising or direct mail can also be used to create high-impact personalized campaigns.
The role of technology in both strategies
Both demand generation and ABM benefit from technology and data-driven marketing. Here’s how:
Demand generation tools
- Marketing automation platforms: These platforms, such as HubSpot or Marketo, allow marketers to automate email campaigns, nurture leads, and track engagement across channels.
- Content management systems (CMS): Tools that enable content creation and distribution at scale are essential for successful demand generation campaigns.
ABM tools
- ABM platforms: Tools like Terminus or 6sense give marketers the ability to create and run highly personalized campaigns for specific accounts.
- Customer Relationship Management (CRM) systems: CRM systems, like Salesforce, help align sales and marketing teams by providing valuable insights into key accounts and tracking interactions.
How connected TV advertising fits into this
Connected TV (CTV) advertising can play a crucial role in both demand generation and ABM. For demand generation, CTV helps reach a broad audience by using programmatic advertising to serve ads across channels and platforms, increasing brand visibility and awareness.
CTV, on the other hand, is just as valuable in ABM strategies, where highly targeted ads can be delivered directly to decision makers within specific accounts. With advanced targeting options, businesses can reach exactly the audience that matters most, whether they’re viewing OTT content or traditional TV advertising formats.
Choosing the right strategy for your business
The choice between demand generation and ABM largely depends on your business objectives, target group and resources. Here’s a quick guide to help you decide:
Choose Demand Generation if:
- You want to scale your business quickly by attracting a large number of leads.
- Your primary goal is to build brand awareness and fill the top of the sales funnel.
- You target a broad audience across different sectors and account sizes.
Choose account-based marketing if:
- You focus on high-quality accounts that represent the most revenue potential.
- Your marketing and sales teams can work closely to personalize outreach efforts.
- You want to build deep, personal relationships with decision makers at specific companies.
Conclusion
In the world of digital marketing, both demand generation and account-based marketing offer distinct benefits. Understanding the key differences between demand generation and account-based marketing allows advertisers to choose the right approach based on their goals. Whether you use connected TV advertising for broad reach or target specific accounts with tailored messaging, these strategies provide powerful tools for business growth in today’s competitive landscape.
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