ABM vs Demand Generation: Why Smart B2B Companies Do Both
The B2B marketing world loves false choices. ABM or demand gen? Quality or quantity? Enterprise or SMB? Here's the truth: the fastest-growing B2B companies use both. They just know when to use which.
The B2B marketing world loves false choices. ABM or demand gen? Quality or quantity? Enterprise or SMB? Here's the truth: the fastest-growing B2B companies use both. They just know when to use which.
The Great B2B Marketing Debate Settled
Let's end this debate once and for all with real data:
Companies Using Only Demand Gen:
Average growth rate: 15-25% YoY
CAC: £2,500-4,000
Sales cycle: 3-6 months
Win rate: 8-12%
Companies Using Only ABM:
Average growth rate: 12-20% YoY
CAC: £12,000-20,000
Sales cycle: 6-12 months
Win rate: 20-30%
Companies Using Both Strategically:
Average growth rate: 40-60% YoY
Blended CAC: £4,000-6,500
Sales cycle: 2-4 months (demand gen), 4-8 months (ABM)
Win rate: 12-18% (demand gen), 25-35% (ABM)
The winners don't choose. They orchestrate.
When to Use ABM vs Demand Generation
Use ABM When:
Deal sizes exceed £80K ACV
You have 6+ stakeholders in the buying process
Your total addressable market is under 10,000 companies
Sales cycles typically run 6+ months
You need to displace incumbent vendors
Use Demand Gen When:
Deal sizes are under £40K ACV
You have 1-3 stakeholders
Your TAM exceeds 50,000 companies
Sales cycles are under 90 days
You're creating a new category
Use Both When:
You have multiple product lines
You're expanding from SMB to enterprise (or vice versa)
You need short-term revenue AND long-term growth
You want to dominate your market
The Hybrid Playbook: How to Run Both
Layer 1: Foundation (Months 1-3) Start with demand generation to:
Build brand awareness
Generate quick wins
Fund ABM investments
Learn what resonates
Layer 2: Expansion (Months 4-6) Add ABM for high-value targets:
Identify top 50-100 accounts
Use demand gen learnings for messaging
Coordinate sales and marketing efforts
Track account engagement
Layer 3: Optimisation (Months 7+) Integrate both approaches:
Use demand gen to identify ABM targets
Use ABM insights to improve demand gen
Create account-based demand generation
Measure blended metrics
Real Examples of Hybrid Success
Example 1: Marketing Tech Company
The Situation:
Selling to both SMBs (£15K ACV) and enterprises (£150K ACV)
Limited budget to choose one approach
Needed quick revenue and long-term growth
The Strategy:
Demand gen for SMB segment (70% of budget)
ABM for top 100 enterprise accounts (30% of budget)
Used SMB wins as case studies for enterprise
The Results:
200 SMB customers in year 1 (£3M ARR)
10 enterprise customers in year 1 (£1.5M ARR)
Enterprise case studies accelerated SMB sales
Year 2: Flipped ratio to 50/50 as enterprise scaled
Example 2: Cybersecurity Startup
The Situation:
Competing against established vendors
Needed to build category awareness
Also needed flagship enterprise clients
The Strategy:
Demand gen for security teams (education focus)
ABM for Fortune 500 CISOs
Content strategy serving both audiences
The Results:
3,000 qualified leads from demand gen
15 enterprise opportunities from ABM
2 Fortune 500 logos in year 1
Used enterprise logos to accelerate demand gen
The Metrics That Matter for Each
Demand Generation Metrics:
Cost per lead (CPL)
Lead velocity rate
Marketing qualified leads (MQLs)
Content engagement rates
Pipeline velocity
ABM Metrics:
Account engagement score
Stakeholder coverage
Account penetration rate
Deal velocity by account
Revenue per target account
Blended Metrics (The Real Gold):
Customer acquisition cost by segment
Lifetime value by acquisition channel
Revenue mix (land vs expand)
Market share growth
Net revenue retention
Common Mistakes When Running Both
Mistake 1: Separate Silos
ABM team doesn't talk to demand gen team
Different messages to market
Competing for same budget
Solution: Weekly alignment meetings
Mistake 2: Wrong Resource Allocation
90% budget on ABM for 10% of revenue
Or 90% on demand gen when enterprise is the growth path
Solution: Match investment to revenue potential
Mistake 3: Measuring Wrong Metrics
Judging ABM by lead volume
Judging demand gen by enterprise logos
Solution: Fit metrics to strategy
The Tech Stack for Hybrid Success
Core Platform:
CRM (obviously): Salesforce or HubSpot
Marketing automation: Marketo or Pardot
ABM platform: 6sense or Demandbase
Demand Gen Tools:
Content management: WordPress
SEO: Ahrefs or SEMrush
Paid advertising: Google Ads, LinkedIn
Email: Outreach or Apollo
ABM Tools:
Intent data: Bombora or G2
Personalisation: Mutiny or Intellimize
Direct mail: Sendoso
Account intelligence: ZoomInfo or Clearbit
Measurement Layer:
Attribution: Bizible or Attribution
Analytics: Google Analytics + Tableau
Account scoring: MadKudu or Infer
Your Hybrid Implementation Roadmap
Quarter 1: Demand Gen Foundation
Launch content engine
Build email nurture flows
Start paid acquisition
Generate initial pipeline
Quarter 2: ABM Pilot
Select 25 target accounts
Develop account-specific content
Coordinate sales plays
Measure engagement
Quarter 3: Integration
Use demand gen to identify ABM targets
Create account-based content
Implement multi-channel orchestration
Unified reporting
Quarter 4: Scale
Expand successful programmes
Kill what's not working
Plan next year's mix
Optimise resource allocation
The Bottom Line on ABM vs Demand Gen
It's not about choosing between ABM and demand generation. It's about using each where it works best. The fastest-growing B2B companies have figured this out:
Demand gen fills the funnel
ABM lands the whales
Together they dominate markets
Stop debating. Start orchestrating. Your competitors already are.
Ready to build a hybrid strategy that accelerates growth? Let's design your custom playbook.
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