The current fixation on lead generation metrics in B2B marketing contradicts fundamental marketing principles and hampers the development of awareness into active demand.

B2B marketing has become excessively preoccupied with quantifiable measurements and attribution, presenting itself as more of a science than an art. The expectation for marketing growth to be measurable, predictable, and projectable has permeated throughout investors, boards, and leadership.

However, the reality is that marketing is not a rigid science. Experiments are not replicable, and playbooks cannot be universally applied across different companies. While benchmarks and leading indicators can provide guidance, the variables influencing outcomes are unique to each company, industry, and audience.

What's more concerning than this fixation on measurement are the behaviors it has instigated. The belief that B2B digital marketing diverges from general marketing principles has led to actions that defy marketing theory.

The Obsession with Lead Generation Marketing is inherently a long-term endeavor, yet it has been increasingly burdened with short-term accountability. Particularly in organizations with a sales-centric approach, results must be visible on a dashboard within a quarter to satisfy leadership. Traditional "vanity metrics" like site traffic and ad engagement no longer suffice; marketing now needs to demonstrate ROI promptly.

For various reasons, lead generation has emerged as a predominant strategy for B2B marketing teams to meet this demand for rapid results. It offers tangible outcomes that can be used to craft compelling marketing narratives and provides a straightforward attribution path to revenue, initially appeasing sales teams.

When a strategy aligns with your dashboard metrics, it becomes the focal point of investment. Marketers allocate a significant portion of their budgets to lead generation, but the outcomes conceal a concerning shift that has occurred over time.

At its essence, lead generation should entail attracting individuals interested in your solution, category, or pain point, in that order. These leads vary greatly in their level of intent and convert into revenue at disparate rates. Broadly, we can categorize them as follows:

Brand interest – Bottom of the funnel (BOFU)
Category interest – Middle of the funnel (MOFU)
Pain point interest – Top of the funnel (TOFU)
Naturally, the number of prospects at the bottom of the funnel is the smallest yet highly coveted by sales due to their high conversion rates. However, most of the marketing budget is now allocated to top-of-funnel efforts to meet volume demands, resulting in a pool of leads that require nurturing to progress through the funnel.

This approach overlooks marketing fundamentals, neglecting how brand awareness evolves into active demand and misallocating budget resources as a consequence.

The Gap in Marketing Fundamentals The process of acquiring leads at the top of the funnel and guiding them towards the bottom is mechanistic and disregards the organic development of brand awareness into active demand. This budget allocation prevents the progression of this natural marketing evolution.

The Demand Generation Curve Contrary to popular belief, demand generation is primarily about fostering brand awareness rather than creating demand. The prevailing narrative in marketing that we generate demand is flawed.

Demand and needs must preexist within the buyer; our role is to heighten awareness of our solution as the optimal choice to fulfill that need. This awareness increases over time, illustrated by the "demand generation curve."

Brand recognition: Recognizing your logo, which stems from consistent exposure in pertinent contexts.
Brand understanding: Comprehending not just who you are but what you offer and for whom.
Brand recall: Being top-of-mind when considering solutions to a specific pain point.
Brand preference: Being perceived as the ultimate leader in the minds of buyers.
Brand awareness evolves as understanding and affinity for your brand deepen. However, due to the focus on lead generation, efforts are concentrated on attracting individuals at the nascent stages of this awareness curve, if they are even on it at all.

Contrary to expectations, this journey cannot unfold in an email drip campaign over a few weeks or months – a reality supported by industry lead-to-revenue conversion rates.

Who Is Responsible for Increasing Awareness? With the predominant emphasis on generating leads, the responsibility to educate and persuade the audience is increasingly delegated to sales, which is an unsustainable approach. Engaging with a prospect after their consideration set has been established poses significant challenges.

A more effective approach is to cultivate awareness long before prospects enter the market. However, this doesn't occur neatly within marketing dashboards; it requires consistent, relevant messaging that resonates with the audience.