The Rapid Growth of Marketing Outsourcing

January 26, 2012 9 Comments
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According to a recent study by CMOSurvey.org, Marketing Outsourcing - outsourcing of marketing is growing fast.  (Click the link to read the original post, including the downside of outsourcing.)

This study, by Christine Moorman, Director of The CMO Survey and the T. Austin Finch, Sr. Professor of Business Administration, The Fuqua School of Business, Duke University, wanted to determine how much marketers were outsourcing. “I asked top marketers to report how much they expected their companies to outsource marketing in the next 12 months.”

The findings were interesting.

This percentage has grown over time as shown in Figure 1. In fact the last measurement, taken in August 2011, grew by over 100% over the prior year!

Figure 1: Percentage of Company Outsourcing of Marketing Expected in Next 12 Months

Wow! In just 6 months, the percentage of companies saying they were outsourcing marketing grew from 1.8% to 9.3%. What will 2012 hold? Will it grow to 25% or more?

The author pointed out some reasons companies choose to do outsourcing.

Why do companies outsource marketing?

  1. Companies don’t have the expertise to perform key marketing tasks.
  2. Companies don’t think the benefit of building knowledge and skills is better than the value they get from an expert partner performing that same task.
  3. Companies can’t produce the same function at the same low price as they can buy it in the open market because the provider has scale, scope, and experience (and perhaps cheap labor?).
  4. Companies prioritize other strategic areas more highly than doing marketing internally.
  5. Companies want a new point of view. It is easy to stop learning when you are stuck listening to the same colleagues every day. An external partner can offer important insights.
  6. Companies don’t understand the value of marketing.

This bodes well for B2B demand generation companies like Find New Customers. After all, Find New Customers helps companies rapidly grow revenue by transforming the ways they attract, engage and win new customers. Please check out our How We Help You page too – especially our Lead Generation Assessment Service. (This is the service most firms start with.)

What do you think? We love comments and those who share.

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  • Nelida Garrote

    Jeff, thanks for sharing. A tremendous post, mostly when you see how opposite views (5 vs 4 and 6) can converge to the same decision.
    Think that statements 1-3 are the expectable ones. Obviously, as a marketer and as a consultant, I feel encouraged by the stats – at the same time, point 6 might be demotivating … Anyhow, there is a challenge there and I take it !!

    • http://www.findnewcustomers.com Jeff Ogden

      Thanks for your comment, Nelida. I think marketing outsourcing is going to continue to grow and grow, as companies look to bring in expertise from the outside. I also have learned tons from the many experts I’ve interviewed on Mad Marketing TV. (http://www.youtube.com/madmarketingtv)

      Jeff

      • http://www.findnewcustomers.com Jeff Ogden

        Think about what a company has to do to hire marketing talent – job description, solicit resumes, sift through hundreds, cut to 2-3, phone interview, in person interview, offer letter, pray…..

        In contrast, outsourcing involves finding a good company, writing a check and starting.

        No wonder why outsourcing is growing so fast!

  • Georina

    Thanks for posting this, Nelida. Outsourcing had really a big help in marketing industry. This only shows that business will be more progressive in this way. And it will continue to grow in this 2012.

    • http://www.findnewcustomers.com Jeff Ogden

      Thanks. I agree that more and more companies will outsource in the future. One CMO I spoke with advised companies to focus on core competencies and outsource the rest.

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  • http://www.findnewcustomers.com Jeff Ogden

    Thanks so much for your comment, Daniel. Glad you enjoy this blog and I agree that companies need to turn to outside experts more and more.

    Jeff Ogden, the Fearless Competitor
    Find New Customers

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