The marketing budgets in Germany are coming under pressure due to the COVID-19 pandemic: Almost every second marketing manager is already expecting a sharp reduction in the budget. These are the results of the bvik study “B2B Marketing Budgets 2020”.
Marketing budgets in Germany are coming under pressure as a result of the COVID-19 pandemic: Live events and trade fairs have so far made up around a third of total business-to-business communication (B2B) spending. However, by the end of 2020, almost all important trade fair events have been canceled. This forces a rethink when it comes to spending on B2B marketing. Almost every second marketing manager is already expecting a significant reduction in the budget. These are the results of the study “B2B Marketing Budgets”, the ninth edition of which was published by the Bundesverband Industrie Kommunikation eV (bvik).
“The year 2020 is an ‘annus horribilis’ with far-reaching consequences for all providers and players involved in trade fairs and live events,” says Dr. Andreas Bauer, bvik board member. “The downward trend of the past few years continues in internal and external B2B marketing spending.”
Red pencil for B2B marketing in Germany and worldwide
As the study shows, the external B2B marketing expenditure in 2020 fell – mostly without the corona effect – by an average of three percent compared to the previous year. This also affects the global budgets for externally purchased marketing and communication services with a decrease of around two percent. In 2019, international activities went against the general trend.
Due to the pandemic, a total of 46 percent of the experts surveyed expect a decline in marketing budgets within Germany – 30 percent with significant savings and 16 percent with slight savings. According to the opinion of 61 percent of the experts, the budget will be reduced worldwide: 34 percent are expecting major and 27 percent of slight cuts. Combined internal and external B2B marketing expenses had already declined in the previous year and recorded a decrease of 23 percent from 2018 to 2019.
Outlook for 2021
Management and sales are looking for alternatives to compensate for the canceled trade fairs and live events. While digital sales and communication channels were important before the pandemic, they are receiving unprecedented acceptance during the crisis. This development increases the importance of marketing experts who develop and implement new online formats.
Science expects digital opportunities
“As market observers, we assume that B2B marketing in Germany will have to adjust to tough times,” says Prof. Dr. Carsten Baumgarth from the University of Economics and Law (HWR) in Berlin and scientific director of the bvik study. “Burying your head in the sand is not an option. New topics such as ´Digital Marketing Leadership´, ´Purpose Orientation´ or ´New Brand Management´ are three important future topics that offer new opportunities. Despite all budget restrictions, decision-makers should invest in the skills and abilities of their own employees. The lean, agile and innovative years will come. “
Industry visits trade fairs online
Many operating companies have responded to the COVID-19 rejections with virtual trade fairs and have already gained initial experience with the digital format: 36 percent of industrial companies (n = 173) state that they have had good to very good experiences with virtual trade fair visits – more just under 47 percent were at least not dissatisfied and only around 17 percent rate the digital offering as inadequate. This was the result of a bvik survey on digitization in B2B marketing. Among the advantages of the virtual event, more than 70 percent name the cost and time savings in the first place. On the negative side, almost 70 percent also mention a lack of contact. In addition, the participants lacked real experience with the products – say 62 percent. For the future, almost all industrial companies and trade fair companies agree that virtual trade fairs will complement real events.
Further information on the bvik studies
• Results “B2B Marketing Budgets 2020”
• Results “Digitization Boost 2020 in B2B Marketing”
The detailed results are available to bvik members free of charge.
Non-members can obtain the detailed results for a nominal fee of 250 euros plus VAT at the bvik office at [email protected] to order!
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