Ultimate Guide to Account-Based Marketing vs Demand Generation

What is account-based marketing vs demand generation?

Account-based marketing (ABM) and demand generation are two B2B marketing strategies, but they target audiences and achieve goals in different ways. Here’s a breakdown of the key differences:

Focus:

• ABM: Targets a specific set of high-value accounts. It’s a quality-over-quantity approach, where customization and personalization are key.
• Demand Generation: Casts a wider net to generate interest and leads from a larger audience. It focuses on quantity to create a pool of potential customers.

Approach:

• ABM: Highly personalized and strategic. Marketing and sales teams work closely to tailor messaging and outreach to the specific needs and challenges of each target account.
• Demand Generation: Uses broader tactics like content marketing, social media, and webinars to create awareness and educate a larger audience about the product or service.

Content Strategy:

• ABM: Content is highly targeted and speaks directly to the pain points and goals of each account. This might include case studies, white papers, or webinars tailored to the specific industry or company.
• Demand Generation: Content is more general, designed to appeal to a wider range of potential customers at different stages of the buyer’s journey.

Metrics:

• ABM: Focuses on metrics like account engagement, pipeline contribution from target accounts, and conversion rate for those accounts.
• Demand Generation: Tracks metrics like number of leads generated, cost per lead, and sales cycle length.

Ideal Use Cases:

• ABM: Suitable for high-value enterprise deals where there are multiple decision-makers involved.
• Demand Generation: Effective for creating initial awareness and interest in a product or service, especially for companies with a broad target market.

The Takeaway:

ABM and demand generation can be complementary strategies. Demand generation can be used to identify and qualify target accounts for ABM initiatives. ABM, in turn, can provide valuable insights to inform broader demand generation campaigns.

The Importance:

Understanding the difference between account-based marketing (ABM) and demand generation is crucial for B2B marketers because it allows you to:

• Optimize Resource Allocation: ABM is resource-intensive due to its personalized nature. By understanding the strengths of each approach, you can strategically allocate your budget and personnel to the tactics that will yield the best results for your specific goals.
• Align Marketing and Sales: ABM requires close collaboration between marketing and sales teams. A clear understanding of both strategies helps both departments work together seamlessly to identify target accounts, nurture leads, and ultimately close deals.
• Measure Success More Effectively: Each strategy uses different metrics. Knowing the key metrics for ABM and demand generation allows you to accurately measure the success of your campaigns and make data-driven decisions for improvement.
• Craft a Comprehensive Marketing Strategy: Many companies benefit from using both ABM and demand generation. Understanding the differences helps you create a well-rounded marketing strategy that targets high-value accounts while also generating broader brand awareness and interest.

In short, a clear grasp of ABM vs. demand generation empowers you to make informed decisions about your marketing efforts, leading to a more efficient use of resources, improved collaboration, and ultimately, higher ROI.

What are the pros and cons of account-based marketing vs demand generation?

Account-Based Marketing (ABM) vs. Demand Generation

Feature	Account-Based Marketing (ABM)	Demand Generation
Target Audience	Highly specific, pre-defined accounts	Broader audience with potential interest
Marketing Approach	Hyper-personalized, one-to-one outreach	Scalable, broader messaging
Content Strategy	Tailored content specific to each account’s needs	General content relevant to industry or product
Sales & Marketing Alignment	High – close collaboration to target specific accounts	Moderate – marketing generates leads, sales qualifies
Lead Generation	Focuses on converting existing high-value accounts	Broad lead generation for nurturing and qualification
Sales Cycle	Can shorten sales cycles with targeted outreach	May have longer sales cycles due to lead nurturing
Cost	Potentially higher cost due to personalization and resources needed	Generally lower cost per lead due to broader targeting
Return on Investment (ROI)	Can deliver higher ROI with focus on high-value accounts	ROI can be more difficult to track with broader audience
Scalability	Less scalable due to focus on specific accounts	Highly scalable for reaching a large audience
Best suited for	B2B companies with high-value accounts	B2B and B2C companies with a broad target market

Pros of ABM:

• Increased personalization
• Improved ROI
• Shortened sales cycles
• Stronger sales & marketing alignment

Cons of ABM:

• Higher cost
• Less scalable
• Requires significant research and planning

Pros of Demand Generation:

• Scalable
• Lower cost per lead
• Broad reach
• Easier to track ROI

Cons of Demand Generation:

• Less personalization
• Longer sales cycles
• May generate lower quality leads

Choosing the Right Approach:

The best approach for your company depends on several factors, including your target market, product/service value, and sales cycle length. Consider using a combination of ABM and demand generation for optimal results.

What are examples of account-based marketing vs demand generation?

Real-World Examples of ABM vs. Demand Generation

Account-Based Marketing (ABM):

• GumGum and T-Mobile: GumGum, a computer vision company, wanted to land T-Mobile as a client. They researched the CEO’s interests and discovered he was a Batman fan. So, they created a custom comic book featuring “T-Man and Gums” to showcase their services in a personalized and memorable way. This unique approach grabbed attention and helped initiate a conversation with T-Mobile.

Effectiveness: This campaign demonstrated the power of personalization in ABM. It showed a deep understanding of the target and used a creative format to break through the noise and stand out.

• Salesforce and Dreamforce: Salesforce, a CRM software company, uses ABM for high-profile accounts. Their annual Dreamforce conference is a prime example. They invite key decision-makers from target accounts and tailor experiences to their specific needs and interests. This allows for deeper relationship building and showcases Salesforce’s solutions in a relevant context.

Effectiveness: Dreamforce showcases the power of events in ABM. By personalizing the experience for key accounts, Salesforce fosters stronger connections and positions itself as a valuable partner.

Demand Generation:

• HubSpot’s Blog: HubSpot, a marketing platform company, publishes a wide range of informative blog posts and articles on marketing, sales, and customer service. This content attracts a broad audience with an interest in these topics. HubSpot can then nurture leads through email marketing and targeted calls to action, converting them into paying customers.

Effectiveness: HubSpot’s blog is a great example of using valuable content to generate leads. It establishes HubSpot as a thought leader and attracts potential customers who are actively researching solutions.

• Webinar on Cybersecurity by Palo Alto Networks: Palo Alto Networks, a cybersecurity company, might host a webinar on the latest cyber threats. This webinar would target a broader audience of IT professionals interested in cybersecurity. Attendees would register with their information, allowing Palo Alto Networks to nurture them as leads and promote their security solutions.

Effectiveness: Webinars are a common demand generation tool. They allow companies to educate a large audience efficiently and capture leads who are actively seeking information.

These are just a few examples, and both ABM and demand generation can be highly effective when used strategically. The key is to choose the right approach for your target market and business goals.