Pauline E. Ranger Initial reports indicate in 2020 that the combination of COVID-19 with EU trade changes brought about by Brexit will likely cripple and threaten the most resilient markets and national and global economic development.
Experts predicted that the industries that would be able to mitigate the pandemic’s impact in 2021 wouldn’t likely do as well due to an increase in trade barriers expected after Brexit.
This version of reality, however, is far from the findings of IBA’s primary research, which was conducted in August 2020 and addressed the situation for B2B companies working across multiple vertical market segments. The study focused on New Zealand, Australia, and North America and found that businesses are more optimistic.
Businesses have refocused their attention on new opportunities
The research revealed that B2B companies are using their downtime as a way to pivot their PR and marketing strategies, which is part of their Business Continuity Plans.
Many B2B companies in the UK are still hoping for international opportunities, even with Brexit. This is especially true if there are low tariffs and favorable free trade agreements.
To broaden their demographics, 54% look to “new markets” and “new geographical areas to ensure economic growth.” Another 86% plan to adapt their “products, services and tactic to meet current and potential customer needs.”
What are the costs of traditional B2B agencies?
In spite of the business optimism, this environment has led to budget reductions in B2B companies, with up to 45% admitting that they have reduced costs over the last year. This is a trend that has caused businesses to rethink their marketing and PR campaigns.
The IBA Research focused on marketers who spend, on average, $5-20k per month on marketing support. Over 50% of companies said that they felt their agency fees were too high. Some businesses reported that they thought there were not enough B2B agencies available at an affordable price.
A little under half of marketers said that they struggle to find a B2B agency that is affordable and able to work in multiple countries. This is bad news for those looking to expand their campaigns to new markets.
Only 11% of marketing managers are satisfied with their current agency. This shows that traditional B2B agencies have a number of problems.
The traditional B2B marketing agencies have ‘lost touch.’
A total of 88% of B2B companies reported that they felt a large portion of their agency spending was wasted. When asked for more details, the organizations criticized traditional agency attitudes and practices.
24% of marketing directors, for example, said that agencies prioritize their biggest spenders and leave their smaller accounts feeling unappreciated by junior staff. This statistic is in line with claims made by 20% of managers, who claim that their budget was wasted because agencies failed to start projects.
Marketing managers also said that their budget was wasted by the agency staff spending too much of their time on status meetings instead of achieving measurable outcomes. Another 21% of marketing managers said that senior management pressures them to work with agencies with “big names” even if they don’t match campaign goals.
Some B2B agencies miss the mark
40% of marketing managers admit to having difficulty evaluating the contribution their PR and marketing agencies make to the business.
When asked why this is, 41% said that their agencies focus too much on media engagement metrics and familiar media contacts rather than content placement metrics. And 34% said they place content in the same limited selection of media.
Agile and scalable solutions are required to meet the new market needs.
The research shows that B2B agencies must adapt their strategies in order to keep up with the ever-changing market and industry needs. This means that they need to demonstrate their value to a cost-conscious world. B2B companies should seek out agencies that can shift their focus to targeted PR and marketing with an emphasis on affordability and scalability.
A central hub is a great way to meet these requirements and become a leader in the field, no matter where you are. A central hub allows an outreach team to generate content, such as whitepapers, leadership articles, and customer stories, and deliver thought leadership, social networking, and new geographies.
Localized content can also be created using a central hub so that marketers don’t have to spend money on hiring agencies for each new geography. It is also possible to make flexible adjustments in order to align with the new markets.
This approach will allow B2B companies to get multiple placements of each piece of generated content and increase brand awareness, allowing for further campaign expansion.
B2B agencies need to reconnect with their client’s needs
B2B marketing and PR agencies are experiencing a shift in their relationship. Businesses are seeking B2B agencies to support their expansion during a period of economic recovery.
Budget cuts and disruptions in the market are obstacles that businesses must overcome to achieve their ambitious expansion plans. They can do this by adopting a cost-effective, results-driven strategy.
