Often misused interchangeably, Account-Based Marketing and Demand Generation are vital to a marketer’s playbook. While demand generation is used to drive awareness and purchase intent at the beginning of the customer journey, ABM concentrates efforts on a set of pre-identified target accounts.
Overdrive CEO Harry J. Gold discusses the key differentiators between Demand Gen and ABM and how they can be incorporated into a full-funnel marketing campaign.
What is Demand Generation?
Demand generation is a marketing approach focusing on creating brand awareness and generating interest among a broad audience. It typically involves using content and content syndication to target individuals based on their firmographics and demographics. In demand gen campaigns, the precise identity of the target audience may be known later, as the primary objective is to attract potential customers who fit specific criteria. The emphasis lies on casting a wide net to capture the attention of a broader group of prospects.
What is Account-Based Marketing (ABM)?
ABM, on the other hand, is a strategy that operates within the sales funnel, one step ahead of demand gen. ABM involves targeting specific companies or accounts and tailoring marketing efforts to engage and nurture them. Unlike demand gen, ABM takes a more focused approach, directing resources towards a predetermined list of ideal prospects.
Key Targeting Methodologies in ABM
Two crucial targeting methods in ABM are intent targeting and custom audiences.
- Intent Targeting: Intent targeting in ABM involves leveraging insights from ABM platform providers like Demandbase and 6sense to identify individuals who exhibit buying intent. This method goes beyond traditional search intent and examines patterns of content consumption. For example, consuming multiple pieces of content related to databases, data visualization, and dashboards suggests a potential interest in solutions like Tableau, Power BI, or Sisense. These individuals are categorized as having surging intent and become prime targets for ABM campaigns, allowing marketers to tailor their messaging to the specific needs and interests of the prospects.
- Custom Audiences: ABM enables marketers to proactively identify and engage with their desired audience by leveraging custom audiences. Unlike demand gen or search engine marketing (SEM), which focuses on generating net new leads, ABM often starts with a pre-existing database of prospective buyers. By uploading names and email addresses of these prospects to platforms like LinkedIn, Google, and various ABM platforms, marketers can target ads specifically to these individuals. The goal is to encourage engagement, foster sales escalation, and deepen the relationship with the target audience.
Differentiating Demand Gen and ABM
The key differentiator between demand gen and ABM lies in their approach to targeting and lead generation:
- Targeting: Demand gen primarily targets individuals based on content and, to some extent, intent. In contrast, ABM combines intent targeting with the advantage of knowing the specific identities and companies of the target audience.
- Lead Generation: Demand gen focuses on generating net new leads, aiming to expand the reach and awareness of a company’s offerings. ABM, however, concentrates on generating engagement and sales pipeline growth within a predetermined target audience. The objective is to nurture existing prospects, escalate lead scores, and deepen relationships rather than acquire new leads.
In summary, demand generation and account-based marketing are two distinct strategies within the broader marketing landscape. Demand gen casts a wider net to generate awareness and interest among a broader audience, utilizing content and demographic targeting. Conversely, ABM narrows its focus to specific accounts or companies, leveraging intent targeting and custom audiences to engage and nurture ideal prospects. By understanding the differences between demand gen and ABM, marketers can choose the most appropriate strategy based on their
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