If you’ve ever tried to make the switch between B2B and B2C marketing, advertising, or product - you know that what I’m about to say is true: B2B and B2C are apples and oranges. Maybe even apples and hamburgers, or whatever different food types you prefer. Sure, they're both food, but really different.
What’s the difference between B2B and B2C?
While a lot of people will tell you that what’s different is the audience, they’re a bit off the mark. The audience is people in either scenario, but the motivation, intent, and decision making authority are where we diverge.
When I get an ad for a B2C product, let’s say it’s new running shoes, I can buy those shoes immediately without asking for budget (my spouse groans), checking with other people who might need to wear the shoes (gross), or signing up for a running shoe subscription (but hey, there’s an idea!).
But for B2B products and services… Yikes. Let’s say I need an SEO platform. I’m probably going to have to spend time doing an RFP or a demo. If I need an accounting firm to do my books - time to start interviewing and making sure they know my industry.
There are similarities too, like reviews being really important for both B2C and B2B - and increasingly important across almost every channel. But let’s move on to why B2B needs their own media platform.
How traditional media buying platforms work
Most media buying platforms use a process that was built for B2C users. There are several reasons for this, including the traditional sales process for B2B products and targeting needs. Let’s explore each of those a bit, because they are part of the fundamental reason that B2B ended up with the short end of the media stick.
B2B products have typically had a higher starting price point than consumer goods. Consumer goods, ranging from candy and cereal to cars and televisions, can also have buyers from a variety of locations who may have different jobs and lifestyles. Creating buyer segments is important in both B2B and B2C but tends to look very different when applied to marketing outputs.
B2B products (anything from software and hardware to equipment and janitorial services) are going to have a starting cost that is more than a pack of gum. Add to the pricing issue the fact that the purchasing company has to justify the money they spend up the corporate ladder, that others may use the product or service selected, or that it needs to integrate with other parts, tools, or teams - and you’ve got yourself a complicated situation.
Most ad platforms have a few things in common:
- Cost. They tend to start pricing above $10,000 per month. If that doesn't sound like a budget you're willing to gamble with as you hone your marketing mix, then you're probably out of the online ad game already.
- Targeting. Because traditional ad platforms were built with B2C brands in mind, they aren't good at targeting B2B businesses. This leads to an average of more than 95% of impressions wasted for business ad spend... And while impressions aren't expensive, wasted impressions are.
- Scale. Most media platforms and agencies are dealing with the two issues mentioned above, and that means it's costly for them to work with businesses too. So their overhead goes up and the barrier to entry is so high that the prospect of increasingl spend is daunting for most B2B companies.
So most of us in B2B marketing leave digital media out of our mix. Instead, relying on email marketing, SEO, content marketing, social media, forums, and other lead generation and list building tactics that do work - but would work better with the awareness generation that advertising creates. One of the best things about contextual advertising, for all of you content marketing fans, is that you can target the articles and content that appear for the topics and keywords you're trying to rank for, and display your ads on other ranking pages. This makes your busienss appear to be everywhere, while only paying to be exactly where your audience is.
If you’ve ever tried to make the switch between B2B and B2C marketing, advertising, or product - you know that what I’m about to say is true: B2B and B2C are apples and oranges. Maybe even apples and hamburgers, or whatever different food types you prefer. Sure, they're both food, but really different.
What’s the difference between B2B and B2C?
While a lot of people will tell you that what’s different is the audience, they’re a bit off the mark. The audience is people in either scenario, but the motivation, intent, and decision making authority are where we diverge.
When I get an ad for a B2C product, let’s say it’s new running shoes, I can buy those shoes immediately without asking for budget (my spouse groans), checking with other people who might need to wear the shoes (gross), or signing up for a running shoe subscription (but hey, there’s an idea!).
But for B2B products and services… Yikes. Let’s say I need an SEO platform. I’m probably going to have to spend time doing an RFP or a demo. If I need an accounting firm to do my books - time to start interviewing and making sure they know my industry.
There are similarities too, like reviews being really important for both B2C and B2B - and increasingly important across almost every channel. But let’s move on to why B2B needs their own media platform.
How traditional media buying platforms work
Most media buying platforms use a process that was built for B2C users. There are several reasons for this, including the traditional sales process for B2B products and targeting needs. Let’s explore each of those a bit, because they are part of the fundamental reason that B2B ended up with the short end of the media stick.
B2B products have typically had a higher starting price point than consumer goods. Consumer goods, ranging from candy and cereal to cars and televisions, can also have buyers from a variety of locations who may have different jobs and lifestyles. Creating buyer segments is important in both B2B and B2C but tends to look very different when applied to marketing outputs.
B2B products (anything from software and hardware to equipment and janitorial services) are going to have a starting cost that is more than a pack of gum. Add to the pricing issue the fact that the purchasing company has to justify the money they spend up the corporate ladder, that others may use the product or service selected, or that it needs to integrate with other parts, tools, or teams - and you’ve got yourself a complicated situation.
Most ad platforms have a few things in common:
- Cost. They tend to start pricing above $10,000 per month. If that doesn't sound like a budget you're willing to gamble with as you hone your marketing mix, then you're probably out of the online ad game already.
- Targeting. Because traditional ad platforms were built with B2C brands in mind, they aren't good at targeting B2B businesses. This leads to an average of more than 95% of impressions wasted for business ad spend... And while impressions aren't expensive, wasted impressions are.
- Scale. Most media platforms and agencies are dealing with the two issues mentioned above, and that means it's costly for them to work with businesses too. So their overhead goes up and the barrier to entry is so high that the prospect of increasingl spend is daunting for most B2B companies.
So most of us in B2B marketing leave digital media out of our mix. Instead, relying on email marketing, SEO, content marketing, social media, forums, and other lead generation and list building tactics that do work - but would work better with the awareness generation that advertising creates. One of the best things about contextual advertising, for all of you content marketing fans, is that you can target the articles and content that appear for the topics and keywords you're trying to rank for, and display your ads on other ranking pages. This makes your busienss appear to be everywhere, while only paying to be exactly where your audience is.
What is next for B2B lead generation?
At Catalytics, what's next is a platform that was designed just for B2B marketers. Founded by a team of B2B marketers, advertising agency leaders, and experienced technology strategists - Catalytics was what we wanted when we were marketing our own platforms and brands. Whether you're interested in Catalytics or not, if you're a B2B marketer, there's no doubt you're battling for the same space as the rest of us. That means a multi-channel approach - amazing SEO, a good nurturing process and things that help you stand out in a crowded industry.
One of the reasons digital media is such a great addition to the B2B marketer's toolkit is it has the ability to stand out on articles and content where most B2B companies aren't focusing. You can get highly targeted topic focus through longtail keywords, and integrate your SEO, paid search, and content marketing with paid media that makes your brand feel like a powerhouse inside the walls of your target prospects without paying for placements that you don't need.
If you want to learn more about Catalytics, schedule a demo or check out the platform.
