POV

Beyond Leads: Why Demand Generation Matters More Than Ever in B2B Marketing

By: Marc Cooper, CM

Demand generation isn’t new. Smart marketers have always understood the importance of building awareness and trust long before prospects are ready to buy. But in today’s uncertain economic environment, shifting more of your marketing investment toward demand generation, rather than relying too heavily on lead generation, is more critical than ever.

The Right Mix: Why Demand Gen Should Take the Lead

Many B2B companies still prioritize lead generation, spending the bulk of their marketing budget on capturing prospects who are already in-market, those actively searching for a solution. But research from the Ehrenberg-Bass Institute shows that up to 95% of potential buyers aren’t in-market at any given time. That means most of your audience isn’t looking to buy today, but they will be in the future.

Marketing effectiveness experts Les Binet and Peter Field recommend a 60/40 split between brand building (demand generation) and sales activation (lead generation) to maximize long-term success. Their research, which spans various industries, shows that businesses investing more heavily in brand building tend to see more sustainable growth and lower acquisition costs over time. While this ratio isn’t an absolute rule, it serves as a valuable benchmark for balancing short-term results with long-term brand equity. And yes, brand building is not exactly the same thing as lead generation, but more on that in a minute.

Building on Past Insights

Nearly a year ago, we discussed the significance of adopting a Business-to-Human (B2H) approach in B2B marketing, emphasizing the power of emotional connections and brand building in our blog post Shift the Focus: Why B2B Brands Should Invest More in Business-to-Human Brand Building. Building upon that foundation, it’s now more crucial than ever to focus on demand generation strategies that not only create awareness but also ensure our brand remains top-of-mind as market dynamics evolve.

Is This Just the Brand vs. Sales Debate? Not Quite.

At first glance, the tension between demand generation and lead generation sounds a lot like the classic marketing debate: brand building vs. short-term sales activation. While the two concepts overlap, there’s a key distinction:

  • Brand building is about shaping long-term perceptions of your company in the market.
  • Demand generation is about creating and capturing future demand, ensuring that when prospects are ready, they think of you first.

Both require ongoing investment, but demand generation is more than just brand awareness, it actively nurtures interest in a way that short-term sales tactics cannot. But because of their similarities I believe the 60/40 rule still applies, at least as a starting point.

How to Shift Toward Demand Generation (Without Ignoring Leads)

A healthy mix of 60% demand gen / 40% lead gen ensures that marketing supports both immediate revenue needs and long-term growth. Here’s how to shift your strategy:

  1. Create Educational, Shareable Content
    • Focus on ungated resources (blog posts, reports, videos) that build trust before a lead ever enters your pipeline. 
    • Consider multi-channel content distribution, including digital, social, and select high-value Direct Mail campaigns, to reinforce brand expertise.
  2. Leverage Multi-Touch Marketing
    • Use organic social, LinkedIn, podcasts, video, and other offline tactics to stay in front of future buyers. 
    • Integrate both online and offline efforts to create a seamless engagement experience.
  3. Measure the Right Metrics 
    • Instead of just tracking MQLs, measure brand search volume, direct traffic, and social engagement—signs that your demand gen efforts are working. 
    • If using offline channels like Direct Mail, consider tracking engagement through QR codes, personalized URLs, or follow-up responses.
  4. Align Sales & Marketing Around Pipeline Readiness
    • Sales teams should nurture prospects over time instead of only chasing those who are immediately ready to buy. 
    • Ensure marketing efforts are designed for long-term awareness and relationship-building to create future demand.

Final Thought: The Long Game Wins

Demand generation isn’t about abandoning lead gen, it’s about setting up your business for long-term success. With economic uncertainty on the horizon, brands that continue investing in demand today will be the winners when conditions improve. So, is your company stuck in a lead gen trap? Maybe it’s time to rethink your marketing mix.