Aug 05
2014

Better analytics are at the top of the agenda for marketing automation vendors, according to research released today by Raab Associates. Data from the July 2014 B2B Marketing Automation Vendor Selection Tool (VEST) shows that nearly half of features upgraded by marketing automation vendors in the past year relate to analytics, including customer analysis, content analysis, and lead scoring. By contrast, hot topics including content marketing, social media, and mobile platforms each accounted for less than 10% of the upgrades.

“With more than 200 data points on 25 B2B marketing automation systems, the VEST gives a uniquely comprehensive view of the industry,” said Raab Associates Principal David Raab. “Comparing results over time offers still deeper insight into how vendors are reacting to marketers’ requirements.”

In the current analysis, Raab Associates counted the number of vendors who had upgraded their score on each feature covered in the report in the past six months. Features were then classified by topic. Analytics features accounted for 19 of the 43 features upgraded by two or more vendors and seven of the 12 features upgraded by three or more vendors.

The analysis excludes nine new features added to the VEST study for the latest edition.

Other information based on VEST results includes:

• Industry growth remains on track to reach the $1.2 billion in 2014 vendor revenues estimated by Raab Associates in February, a 50% increase on 2013.

• Features are being added most aggressively by newer products including SimplyCast, SharpSpring, MindFire, and Microsoft Dynamics Marketing, which are filling in gaps in their offerings.

• Despite fast growth and new competitors, leading vendors in each segment defined by the report have remained the same. The segments are micro-business (under $5 million revenue, small and mid-size business ($5 to $500 million revenue) and large enterprise (over $500 million revenue). Vendor ratings are determined by a transparent scoring process, using the VEST data points and separate weights for each segment.

The VEST report is available at www.raabguide.com/vest.

About the VEST Report

The VEST helps marketers purchase a marketing automation system that matches their needs. It provides more than 200 data points about each product, narrative descriptions of vendor strengths and weaknesses, and fitness ratings for small, mid-size and large marketing departments. Products in the report include: Act-On Software, Adobe Campaign (formerly Neolane), CallidusCloud LeadFormix, eTrigue, HubSpot, Infusionsoft, LeadLife, MakesBridge, Marketo, Microsoft Dynamics Marketing (formerly MarketingPilot), MindFire Studio, MindMatrix, Net-Results, Ontraport (formerly OfficeAutoPilot), Oracle Eloqua, Redpoint Global, Right-On Interactive, Salesforce.com Pardot, SalesFUSION, SharpSpring, IBM Silverpop, SimplyCast, Teradata Applications (formerly Aprimo), TreeHouse Interactive, and Venntive.

The VEST also includes interactive quadrants showing leaders and challengers for the three industry segments. Readers can adjust the weights assigned to different product and vendor attributes and immediately see the change in vendor positions.

Other report sections provide background information on the marketing automation industry, explanation of marketing automation features and benefits, and advice on managing a successful vendor selection.

The report is provided as an Adobe Flash file, enabling full interactivity and easy access to all materials.

Information in the VEST was gathered in June and July January 2014. The report is published by Raab Associates Inc., an independent consulting firm specializing in marketing technology and analytics. Price is $795. For more information, visit www.raabguide.com/vest.

About Raab Associates Inc.

Raab Associates Inc. specializes in helping marketers to select and deploy marketing automation systems. Typical projects include needs definition, vendor selection, and performance measurement. The firm also offers industry vendors assistance in understanding customer needs and establishing thought leadership through white papers, surveys and presentations.

Feb 20
2014

Revenues for business-to-business (B2B) marketing automation systems will grow 60% to reach $1.2 billion in 2014, according to Raab Associates just-released B2B Marketing Automation Vendor Selection Tool (VEST). The 60% rate is higher than the 2013 rate of 50%.

“Revenues for B2B marketing automation vendors continue to grow as adoption increases and existing customers expand their systems,” said VEST author David M. Raab. “We also see continued extension into new industries, new features, and new vendor services.”

According to Raab, trends uncovered by the report include:

- expansion beyond email and Web channels to social, direct mail, search engine optimization, and paid search advertising.

- greater integration with external systems through Application Program Interfaces (APIs) and pre-built integrations sold on vendor marketplaces.

- marketing services to help users, offered directly by the vendors and through agency partners.

- support for marketing through channel partners by distributing leads, inserting partner information into corporate marketing materials, and providing partners with marketing automation capabilities.

“The continued growth of the industry has uncovered pockets of opportunity where specialized vendors can compete successfully with established general-purpose systems,” said Raab. “We’re seeing a new generation of products emerge to claim these niches.”

Systems covered in the VEST report are used by all sizes of companies. The report defines four market sectors, each with different needs. Some B2B marketing automation systems are used across all sectors but most vendors specialize in a particular type of client.

About the VEST report

The VEST helps marketers purchase a marketing automation system that matches their needs. It provides more than 200 data points about each product, narrative descriptions of vendor strengths and weaknesses, and fitness ratings for small, mid-size and large marketing departments. Products in the report include: Act-On Software, Adobe Campaign (formerly Neolane), CallidusCloud LeadFormix, eTrigue, HubSpot, Infusionsoft, LeadLife, MakesBridge, Marketo, Microsoft MarketingPilot, MindFire Studio, MindMatrix, Net-Results, Ontraport (formerly OfficeAutoPilot), Oracle Eloqua, Redpoint Global, Right-On Interactive, RightWave, Salesforce.com Pardot, SalesFUSION, SharpSpring, Silverpop, SimplyCast, Teradata Applications, TreeHouse Interactive, and Venntive.

The VEST also includes interactive quadrants showing leaders and challengers for the three industry segments. Readers can adjust the weights assigned to different product and vendor attributes and immediately see the change in vendor positions.

Other report sections provide background information on the marketing automation industry, explanation of marketing automation features and benefits, and advice on managing a successful vendor selection.

The report is provided as an Adobe Flash file, enabling full interactivity and easy access to all materials.

Information in the VEST was gathered in December 2013 and January 2014. The report is published by Raab Associates Inc., an independent consulting firm specializing in marketing technology and analytics. Price is $795. For more information, visit www.raabguide.com/vest.

About Raab Associates Inc.

Raab Associates Inc. specializes in helping marketers to select and deploy marketing automation systems. Typical projects include needs definition, vendor selection, and performance measurement. The firm also offers industry vendors assistance in understanding customer needs and establishing thought leadership through white papers, surveys and presentations.

Oct 09
2013

Marketers looking for a better customer database can now get help from a new class of vendors, according to a new report from Raab Associates Inc.

The Guide to Customer Data Platforms describes systems that give marketers control of building a customer database to support cross-channel marketing programs. Unlike traditional marketing automation systems, these products do not necessarily deliver marketing messages. Instead, they provide shared data and analytics to coordinate and optimize messages delivered by multiple channel systems.

“Customer Data Platforms fill a critical void in today’s marketing technology landscape,” says Raab Associates Principal David M. Raab. “Most marketing automation systems have very limited database building capabilities, and most database building tools are designed for IT specialists. Marketers will only get the databases they need when they control their own systems.”

The Raab study profiles eleven vendors that load data from multiple sources, merge data relating to the same individuals, store the information in a persistent, continuously-updated database, and make information accessible to marketing execution systems. Nearly all of the vendors also provide predictive modeling and many can also recommend the best treatment for individual customers in specific situations.

The vendors fall into three subgroups, reflecting their current customers and original applications:

• B2B data enhancement systems, which use a large external database of company and individual information to enrich their clients’ own customer records. Vendors include Infer, Lattice Engines, Mintigo and ReachForce.

• Campaign systems, which integrate the clients’ own multi-source data and recommend marketing treatments. Vendors include AgilOne, NICE Causata, RedPoint Gobal, and Silverpop with its Universal Behavior feature.

• Audience management systems, which combine cookie-level data with non-cookie data to recommend treatments for Web advertising, Web site personalization, and other channels. This group includes [x+1], IgnitionOne, and Knotice.

Raab predicts that distinctions between these groups will blur over time, as each set of vendors adds features from other groups. Other trends covered in the study include greater end-user control over data management rules, more automated predictive modeling, and recommendations based on the long-term impact of marketing treatments.

The Guide to Customer Data Platforms is available at www.raabguide.com/cdpguide. It is priced at $795.

About Raab Associates Inc.

Raab Associates Inc. helps marketers to select and deploy marketing technology. Typical projects include needs definition, vendor selection, and performance measurement. The firm also offers industry vendors assistance in understanding customer needs and establishing thought leadership through white papers, surveys and presentations.

Jul 29
2013

July 30, 2013 — Acquisitions have changed the face of the B2B marketing automation industry, according to a new study released by Raab Associates Inc.

“Just eighteen months ago, none of the major B2B marketing automation vendors was part of a public company, compared with seven of the 23 vendors in our latest report,” said Raab Associates Principal David M. Raab.  “Given the tendency of public firms to focus on selling to large enterprises, we believe this opens a new opportunity for smaller vendors to grow their sales to small- and mid-sized marketing departments.”

The new report, B2B Marketing Automation Vendor Selection Tool (VEST), provides detailed information, vendor rankings, and industry background on systems designed to help business marketers to capture new prospects, nurture relationships, and coordinate lead treatments with sales departments.  It is the latest in a series of Raab Associates reports tracking the industry since 2008.

“No new vendor has become a top-three industry leader since Pardot in 2011,” Raab said.  “But we are now seeing year-on-year client growth in the 60% to 100% range from companies including Act-On, Right-On, eTrigue, and LeadFormix, which almost surely is faster than the current leaders are moving,”  He cautioned that the current leaders stopped releasing client counts when they became part of larger public firms, so estimates of market position are less accurate.

Act-On in particular, with more than 1,600 clients, may have approached or even exceeded the client count of Pardot, whose last reported count was 847 in January 2012, eighteen months ago.  However, Pardot’s higher prices probably ensure that its total revenue is still substantially higher.

The two largest remaining private vendors, Infusionsoft and HubSpot, reported client growth rates of 63% and 24% respectively, concentrated among smaller businesses.

Other trends apparent in the report include:

  • more activity in selling to very small businesses, illustrated by inclusion of two new small business vendors, Optify and Venntive, and by growth rates above 50% for all five vendors concentrated in that category.
  •  expanded service offerings aimed at helping clients make full use of their systems, provided through vendors’ own professional services, agency partners, and app marketplaces.  These are concentrated in the small and mid-size business segments.
  • expansion of social marketing features, including Facebook forms, social sign-on, and capturing social behavior in personal profiles.

About the VEST Report

The VEST Report is based on nearly 200 data points covering features, technology, services, and resources of each marketing automation vendor.  The report uses these to prepare separate suitability ratings for very small, mid-size, and large businesses, using weights that reflect the different needs of each group.  Buyers can also apply their own weights to identify which vendors best fit their own needs.  The VEST is available at www.raabguide.com/vest and priced at $795.

Feb 05
2013

Revenues for business-to-business (B2B) marketing automation systems will grow 50% to reach $750 million in 2013, according to Raab Associates just-released B2B Marketing Automation Vendor Selection Tool (VEST). The 50% rate is lower than the 2012 rate of 54%, although the dollar increase is substantially higher: $250 million vs. $175 million.

“B2B marketing automation continues to grow at a very healthy pace,” said VEST author David M. Raab. “But some of the larger firms are reporting a lower growth rate, and, unlike previous years, we haven’t seen enough growth by industry challengers to raise the industry total.”

The revenue estimates include sales by B2B marketing automation specialists and sales to B2B marketers by other marketing automation systems. Raab Associates estimates that the specialist vendors account for $525 million revenue, or 70% of the total, while non-specialists account for $225 million. The top four specialist vendors – Eloqua, Marketo, Infusionsoft, and HubSpot – are projected to account for $380 million or just over half of all revenues.

Systems covered in the VEST report are used by all sizes of companies. The report defines four market sectors, each with different needs. Some B2B marketing automation systems are used across all sectors but most vendors specialize in a particular type of client.

About the VEST report
The VEST helps marketers purchase a marketing automation system that matches their needs. It provides more than 200 data points about each product, narrative descriptions of vendor strengths and weaknesses, and fitness ratings for small, mid-size and large marketing departments. Products in the report include: Act-On, Eloqua, eTrigue, Genius, HubSpot, Infusionsoft, LeadFormix, LeadLife, MakesBridge, MarketingPilot, Marketo, MindMatrix, Neolane, Net-Results, OfficeAutoPilot, Pardot, Right-On Interactive, SalesFUSION, Silverpop, and TreeHouse Interactive.

The VEST also includes interactive quadrants showing leaders and challengers for the three industry segments. Readers can adjust the weights assigned to different product and vendor attributes and immediately see the change in vendor positions.

Other report sections provide background information on the marketing automation industry, explanation of marketing automation features and benefits, and advice on managing a successful vendor selection.

The report is provided as an Adobe Flash file, enabling full interactivity and easy access to all materials.

Information in the VEST was gathered in December 2012 and January 2013. The report is published by Raab Associates Inc., an independent consulting firm specializing in marketing technology and analytics. Price is $795. For more information, visit www.raabguide.com/vest.

About Raab Associates Inc.

Raab Associates Inc. specializes in helping marketers to select and deploy marketing automation systems. Typical projects include needs definition, vendor selection, and performance measurement. The firm also offers industry vendors assistance in understanding customer needs and establishing thought leadership through white papers, surveys and presentations.

Aug 07
2012

Revenues for business-to-business (B2B) marketing automation systems will grow 60% to reach $525 million in 2012, according to Raab Associates just-released B2B Marketing Automation Vendor Selection Tool (VEST). The 60% rate is even higher than the 2011 growth of 50%.

“The accelerated growth shows that marketing automation is becoming a standard tool for B2B marketers,” said VEST author David M. Raab. “The industry has overcome initial hurdles to adoption and is now moving to more mature stage where the benefits of these systems are widely accepted.”

The revenue estimates include sales by B2B marketing automation specialists and sales to B2B marketers by other marketing automation systems. Raab Associates estimates that the specialist vendors account for $365 million revenue, or 70% of the total, while non-specialists for $160 million. The top four specialist vendors – Eloqua, Marketo, Infusionsoft and HubSpot – themselves account for $270 million or just over half of all revenues.

Systems covered in the VEST report are used by all sizes of companies. The report defines four market sectors, each with different needs. Some B2B marketing automation systems are used across all sectors but most vendors specialize in a particular type of client.

Estimated installation counts and revenues by sector are shown below. Although nearly 80% of installations are in the micro and small business sectors, these account for just one-third of industry revenue. The remaining two-thirds comes from mid-size and large companies:

Estimated 2012 Revenue -  B2B Marketing Automation Specialist Vendors
sector

installations

revenue/ installation

revenue

% installs

% revenue

micro

17,476

$3,600

$63 million

62%

17%

small

4,595

$12,000

$55 million

16%

15%

mid-size

4,796

$30,000

$144 million

17%

40%

large

1,426

$70,000

$100 million

5%

28%

total

28,292

$362  million

100%

100%

source: Raab Associates B2B Marketing Automation Vendor Selection Tool

About the VEST report
The VEST is designed to help marketers purchase the right marketing automation system for their needs. It provides more than 200 data points about each product, narrative descriptions of vendor strengths and weaknesses, and fitness ratings for small, mid-size and large marketing departments. Products in the VEST include: Act-On, Aprimo, Eloqua, eTrigue, Genius, HubSpot, Infusionsoft,LeadFormix, LeadLife, MakesBridge, Manticore Technology, MarketingPilot, Marketo, Neolane, Net-Results, OfficeAutoPilot, Oracle, Pardot, Right-On Interactive, SalesFUSION, Silverpop, and TreeHouse Interactive.

The report also includes interactive quadrants showing leaders and challengers for the three industry segments. Readers can adjust the weights assigned to different product and vendor attributes and immediately see vendors change positions in the quadrants.

Other report sections provide background information on the marketing automation industry, explanation of marketing automation features and benefits, and advice on managing a successful vendor selection.

The report is provided as an Adobe Flash file, enabling full interactivity and easy access to all materials.

Information in the VEST was gathered in June and July 2012. The report is published by Raab Associates Inc., an independent consulting firm specializing in marketing technology and analytics. Price is $795. For more information, visit www.raabguide.com/vest.

About Raab Associates Inc.

Raab Associates Inc. specializes in helping marketers to select and deploy marketing automation systems. Typical projects include needs definition, vendor selection, and performance measurement. The firm also offers industry vendors assistance in understanding customer needs and establishing thought leadership through white papers, surveys and presentations.

Feb 03
2012

New challengers continue to reshape the marketing automation landscape, according to data in Raab Associates’ just-released 2012 B2B Marketing Automation Vendor Selection Tool (VEST).

Neither of the two fastest-growing vendors, Act-On Software and Pardot, began the year among the top three in client count (Eloqua, Marketo, and Genius). By year’s end, Pardot had taken over third place in the industry rankings and Act-On had added 464 new clients, second only to Marketo in client growth.

The report also shows that larger vendors continue to separate themselves from smaller competitors. The combined growth rate for the top five vendors was 75%, compared with 40% for all other competitors. One key difference is funding: all of the top five except Pardot are backed by venture capital. None of the others is.

B2B Marketing Automation Client Growth, 2011-2012
clients as of Marketo Eloqua Pardot Genius Act-On All other
Jan 2012 1,575 1,100 847 700 610 1,564
Jan 2011 860 900 400 450 146 1,116
Growth 715 200 447 250 464 448
% growth 83% 22% 112% 56% 318% 40%
Venture funds $107.5 million $41 million 0 $40 million $16 million 0
Source: Raab Associates 2012 B2B Marketing Automation Vendor Selection Tool www.raabguide.com

The VEST is designed to help marketers purchase the right marketing automation system for their needs.  It provides detailed information on 21 products, including systems sold primarily to small businesses (HubSpot, Infusionsoft and OfficeAutoPilot) and to large enterprises (Aprimo, Neolane, and Oracle).  The entry for each product offers nearly 200 data points of product and vendor information, narrative descriptions of vendor strengths and weaknesses, and fitness ratings for small, mid-size and large marketing departments.

The report also includes interactive quadrants showing leaders and challengers for the three industry segments.  Readers can adjust the weights assigned to different product and vendor attributes and immediately see vendors change positions in the quadrants.

Other report sections provide background information on the marketing automation industry, explanation of marketing automation features and benefits, and advice on managing a successful vendor selection.

The report is provided as an Adobe Flash file, enabling full interactivity and easy access to all materials.

Information in the VEST was gathered in December 2011 and January 2012.  The report is published by Raab Associates, an independent consulting firm specializing in marketing technology and analytics.  Price is $795.  For more information or to purchase, visit www.raabguide.com/vest.

About Raab Associates Inc.

Raab Associates Inc. specializes in helping marketers to select and deploy marketing automation systems.  Typical projects include needs definition, vendor selection, and performance measurement.  The firm also offers industry vendors assistance in understanding customer needs and establishing thought leadership through white papers, surveys and presentations.

Jul 15
2011

The B2B marketing automation industry will reach $325 million revenue in 2011, according to a study released today by Raab Associates Inc.  This represents a greater than 50% increase over the previous year, which itself doubled revenue from the year before.

The figures are contained in the Raab Associates B2B Marketing Automation Vendor Selection Toolkit (VEST), which provides detailed product information designed to help marketers select the best system for their needs.  Information was provided by vendors in May and June 2011 and presents the most detailed and comprehensive data available on the B2B marketing automation industry.

“Industry growth is strong, even though the percentage increase is lower because it comes on a higher base,” said Raab Associates Principal David M. Raab.  “We’re a bit concerned because the net number of new installations seems to have dropped compared with the previous six months.  There’s a risk that growth will stall if vendors cannot sell outside of the high tech industry and business services industries, which still compromise the bulk of B2B marketing automation clients.”

The VEST report breaks the industry into four segments, serving mico-busineses (under $5 million revenue), small business ($5 million to $20 million revenue), mid-size business ($20 million to $500 million revenue) and large enterprises ($500 million revenue and higher).   For each segment, it provides current client counts for the vendors included in the report, who represent an estimated 80% of the industry total, estimated 2011 revenue for the entire industry.  These figures are:

Segment Installations,

mid-2011

Share of Installations Revenue, 2011 Share of Revenue
Micro-business 12,000 60% $60 million 18%
Small business 2,900 15% $45 million 14%
Mid-size business 3,800 19% $150 million 46%
Large enterprise 1,200 6% $70 million 22%
total 19,900 100% $325 million 100%

The VEST contains a database of nearly 200 data points on 18 B2B marketing automation products, including Eloqua, Marketo, Pardot, HubSpot, Infusionsoft, Genius, Aprimo, Neolane, Oracle, Manticore Technology, TreeHouse Interactive, SalesFUSION,  Silverpop, OfficeAutoPilot, MakesBridge, Right-On Interactive, LeadFormix, and Net Results.  Each system is scored against criteria for micro-business, small-to-mid-sized business, and large enterprises.  Results are plotted on dimensions for product fit and vendor fit, creating three matrices to identify leaders, contenders, and outliers for each type of company.

Readers can use the interactive features of the VEST to define their own weights to create custom scoring systems, directly compare up to three vendors in detail, and view explanations of the scoring criteria.

The report also includes an overview of the marketing automation industry, a methodology for selecting the right vendor, and explanations of key marketing automation concepts.

The VEST is published by Raab Associates Inc., a consultancy specializing in marketing vendor selection and marketing analysis.  For more information, see www.raabguide.com/vest.

Apr 25
2011

April 25, 2011 — Raab Associates will advise marketers on the preparations needed for a successful system deployment at the DemandCon conference in San Francisco May 18-19. DemandCon is the world’s first conference dedicated to managing the complete sales funnel, top to bottom. It features thought leaders, academics, consultants and leading practitioners from around the world.

The Raab presentation, “How to Avoid a Marketing Automation Train Wreck”, will walk through a step-by-step process of identifying goals, defining the resources needed to reach them, and tracking preparations to ensure your organization is fully prepared when your system is deployed. Detailed are available in a post on the MathMarketing blog.

Feb 08
2011

February 8, 2011 — Raab Associates Inc. has identified the leading B2B marketing automation solutions for different types of marketers in a comprehensive study.

The B2B Marketing Automation Vendor Selection Tool (VEST) is based on nearly 200 data points gathered about 18 marketing automation systems.  Each product is scored on its fit with product and vendor requirements for small, mid-size and large marketing organizations.   Different weights are applied to the scores for each group to reflect each group’s unique needs.  “Leaders” are firms with the highest vendor and product fit scores.  In each category, a different set of top candidates emerged:

- Small business leaders include OfficeAutoPilot, Infusionsoft and HubSpot.  These are easy-to-use systems with functions not found in other marketing automation products, such as built-in sales automation and order processing tools.  These features are most important to small businesses, which lack the resources to integrate separate systems for each function.

- Mid-size business leaders are Eloqua and Marketo.  These products offer extensive capabilities that can be operated by non-technical users with a minimum of training and on-going support.  The middle tier is the largest segment of the B2B marketing automation industry and contains the most competitors.

- Large business leaders are Aprimo and Neolane.  These systems offer special features needed to coordinate large marketing departments where different users manage programs for different products and media, often out of different offices.  These products are the most technically powerful, designed to operate on dedicated marketing databases that may or may not be synchronized with a sales automation system.

“The new B2B Marketing Automation VEST goes beyond static reports to provide marketers with an interactive tool to identify the products that best meet their company’s individual needs,” said  Raab Associates Principal David M. Raab.  “Marketers can adjust the weights applied to categories such as lead generation, campaign management and usability, and to individual items within those categories.  This makes it easy to rank products and to the differences that each buyer feels are most important.”

The VEST is available in two editions.  The non-interactive Basic Edition that provides general rankings of vendors in each of the three buyer categories and detailed profiles of each vendor.  The Interactive Edition lets marketers dynamically adjust scoring weights and drill into the item-level details behind the product scores.

For more information, visit www.raabguide.com.