Account-based marketing (ABM) and demand generation are two approaches that support B2B growth, but the purposes differ. Demand generation focuses on broad awareness while ABM locks in on specific high-value accounts. In most cases, using a mix of both is the key to success, but it depends on the market, deal size, and sales motion.
What Demand Generation is Built for
Demand generation spreads awareness across a broad market. It helps potential customers learn about your brand before they’re ready to speak to your sales team. For large audiences, it generates a scalable pipeline. Whenever you need to cast a wide net instead of focusing on highly specific targets, demand generation is ideal.
What ABM is Built for
ABM avoids broad targeting and instead locks in on a few high-value accounts that your brand doesn’t want to miss. It targets named accounts with high revenue potential and engages multiple stakeholders inside a buying committee. Focusing on ABM helps support enterprise sales, strategic accounts, and account expansion.
The Main Differences Between ABM and Demand Generation
There are three key areas where ABM and demand generation differ: audience, motion, and measurement.
| ABM | Demand Generation | |
| Audience | Specific and named high-value accounts | Broad audience across an entire industry |
| Motion | Targeting sales and marketing plays to close deals | Scalable campaigns that build the pipeline |
| Measurement | Account engagement, opportunities, and revenue | Lead and pipeline volume |
When to Use Demand Generation
Demand generation is perfect for situations where you need to cast a wide net, such as when:
- The market is broad and buyers are actively researching
- The goal is awareness, education, and inbound demand
- Sales can manage a higher volume of leads or enquiries
Trials, free tools, and educational webinars are some common demand generation use cases because they focus on long-term brand awareness for a wide audience rather than quickly capturing sales.
When to Use ABM
If you need to target a smaller account list, that’s when ABM comes in handy. This often occurs when:
- Target accounts are high-value and clearly defined
- The buying process is complex or involves multiple stakeholders
- Sales needs help opening, progressing, or expanding specific accounts
ABM works great when you need to connect with hard-to-reach enterprise clients, increase revenue for existing customers, and accelerate pipeline velocity.
When to Use Both Together
In most cases, the best approach is to use both ABM and demand generation. You can build market awareness with demand generation and then use ABM to focus on the highest-value accounts within that market. Consider repurposing strong demand generation content for specific campaigns, personalising it as needed.
For example, if a company is selling product management software, demand generation could host webinars to spread awareness. Then, ABM approaches can create personalised videos to connect with specific accounts.
How to Choose the Right Approach
The right approach depends on who you’re trying to reach and what you’re marketing. While most brands use a mix of the two, some might want only broad marketing or only highly specific marketing. Every B2B business is different, and you know your brand best.
Here are some tips to help you decide:
- Consider your deal size, market size, sales cycle, buying complexity, and growth goals
- Select demand generation if reach and education matter most
- Select ABM if focus, account quality, and sales alignment matter most
- Decide based on pipeline quality and revenue impact
Common Mistakes
It’s normal for mistakes to occur when trying a new marketing strategy. To ensure your approach goes smoothly, avoid these common mistakes:
- Thinking you must choose between ABM and demand generation
- Focusing on ABM without clear account selection or sales alignment
- Measuring demand generation by only lead volume
- Running the two together without a shared view of pipeline quality
How xGrowth Thinks About ABM and Demand Generation
As a B2B growth marketing agency, xGrowth cares deeply about finding an approach that works for your business. We make sure brands use the right mix of ABM and demand generation based on the company’s market, accounts, and sales motion.
Then, we connect the two approaches through ICP, messaging, campaign planning, and sales alignment. Throughout the process, we focus on pipeline quality, account progression, revenue impact, and ROI to measure success and help you adjust your strategy as needed.