Foundry, the media, data, and martech division of IDG recently released the 2024 State of Partner Marketing Study. In its fourth year, the study was conducted to better understand partner marketing efforts within the technology industry, associated benefits and challenges, and budgetary trends with the goal of providing actionable advice for partner marketers. Foundry’s Partner Marketing surveys were previously conducted in 2014, 2019 and 2022, and the results have been consistently positive.
As 68% view partner marketing as a necessary tactic that provides great value, up from 64% in 2022 and 62% in 2019, organizations are allocating more of their marketing budget towards these programs, which reinforces confidence in their potential.
“Partner marketing has become essential for scaling business reach and increasing customer value. By leveraging co-branding and joint marketing programs, companies can navigate complex marketing landscapes with increased confidence and investment.” Rick Currier, host of On the Road podcast and SVP of US Sales & Partner Marketing at Foundry.
Partner Ecosystem Grows as Budgets Increase in 2024
The value of partner marketing is increasingly recognized within organizations. On average, 37% of overall marketing budgets in the past year were spent on partner marketing activities and 62% expect this to increase in the upcoming year. To sustain and enhance the growth of partner programs and engagement, securing budget is essential.
Despite ample funding, utilizing marketing development funds and executing programs within partner funding timelines can be challenging (71%). It is crucial to maintain strong relationships to stay aligned with these initiatives and ensure successful execution.
By investing in various programs such as social media, demand generation, content development, and lead nurturing, partner marketers can enhance their efforts. To ensure these investments deliver value each year, consider leveraging agencies and digital media partners. According to the research, 80% of partner marketers agree that agree that partner marketing programs where they work with agencies yield greater results than those run in-house. The same appears true for digital media partners as 89% report that results produced when working with a digital media partner are effective or very effective. The need for digital media partners stems from wanting to improve audience engagement, expand market reach, and enhance brand awareness.
Formal vs. Informal: Comparing Benefits of Partner Marketing Strategies
Eighty-nine percent of organizations have some version of a partner marketing strategy. This year’s study finds that organizations with formal, documented partner marketing strategies tend to see more significant benefits compared to those with informal approaches, as formalized strategies provide a clearer framework for measuring success and optimizing efforts in the partner marketing ecosystem. Enterprise organizations (1,000+ company size) and global marketing teams are more likely to have a formal, documented strategy in place, with 73% having a plan compared to only 60% of those with a country-specific focus. Documented strategies are considered best practices because they ensure funding is accounted for, spending is appropriately directed, and waste is minimized.
Those with a documented, formal partner marketing strategy see increased effectiveness and ROI satisfaction within their partner programs. For example, 91% of those with a formal strategy say their events partner programs are extremely/very effective compared to only 76% for those with an informal strategy. The same applies for demand generation (89% vs. 72%) and lead nurturing (72% vs. 88%). When it comes to ROI satisfaction of partner programs, 93% of those with a formal strategy are extremely satisfied/satisfied with their lead nurturing programs compared to only 68% for those with an informal strategy.
Shifting Success Metrics: Overcoming Barriers to Measuring Partner Engagement
When asked which KPIs they use to measure the success of their partner marketing programs, the number one metric is the overall number of qualified leads generated. This jumped from the 5th determination of success in 2022 and the 4th in 2019. Additional metrics that partner marketers look at to determine their programs’ success are increase in their customer base, growth of market share, and total revenue generated from programs, which was the number one metric in 2022 and 2019.
The effectiveness of partner marketing often hinges on partner engagement, typically evaluated through metrics such as revenue growth rate, partner satisfaction surveys, and training and certification completion rates. The majority of respondents (89%) experience barriers to measuring partner engagement, and overcoming these barriers involves enabling better integration and communication.
Looking to the future, partner marketing programs will continue to adapt to market dynamics and technological advancements. The shift towards value-creation partners, the growing importance of social media in budgets, and the key role of agencies in managing these programs highlight their ongoing evolution and adaptability.
