Library > ABM vs. Demand Gen
Account-Based Marketing vs Demand Generation: Strategies, Differences, and When to Use Each
Written by Alexandra Flygare, Junior Content Marketing Manager
Last Updated: September 2025
What's the difference between Account Based Marketing (ABM) and Demand Generation? And if you're a marketer trying to decide which way to go, how do you know which one is right for you?
The answer involves a bit more than just picking one and running with it.
Demand Generation is great for building awareness and filling your funnel, but it’s a slow burn. ABM, on the other hand, is more targeted and precise, but it requires a lot of time, attention, and alignment between sales and marketing teams.
So which should you choose? Or can you actually use both, and get the best of both worlds?
Let’s get into it.
TL;DR
Demand Generation is a broad, "one-to-many" marketing strategy focused on creating awareness and capturing a large volume of individual leads at the top of the funnel.
Account-Based Marketing (ABM) is a targeted, "one-to-one" strategy that focuses combined marketing and sales efforts on a specific list of high-value accounts.
The key difference is the focus: Demand Generation seeks a quantity of leads, while ABM seeks a quality of accounts. The two strategies are not mutually exclusive and can be used together effectively.
What is Demand Generation?
Demand generation (or demand gen, if you're on a first-name basis) is the holistic, data-driven approach to creating and nurturing interest in your products or services.
It’s the digital equivalent of casting a wide net in the hopes of capturing leads who might not yet know they need what you’re offering.
In practice, demand generation can look like a well-executed content marketing strategy: blog posts, white papers, webinars, social media campaigns, and SEO. All with the goal of attracting a broad audience, getting them interested, and gradually guiding them toward a purchasing decision.
Demand gen thrives on volume—more leads, more engagement, and ultimately, more opportunities to convert these prospects into paying customers.
What is Account-Based Marketing?
Account-based marketing (ABM) is a more focused approach where sales and marketing teams concentrate resources on a carefully selected set of target accounts rather than an entire market.
In essence, it’s about quality over quantity.
Crafting personalized content, webinars, and meetings tailored to the needs and challenges of just a handful of companies is ABM. This process involves researching key accounts, identifying decision-makers, and creating bespoke campaigns that address their pain points directly.
Demand Generation vs. ABM - what’s the difference?
The difference between Demand Generation and ABM comes down to scope, content strategy, alignment, and metrics.
Demand generation is all about building a wide funnel, casting a broad net to attract as many leads as possible, and nurturing them until they're ready to make a decision. In contrast, ABM is more concise; it involves identifying specific high-value accounts and focusing all your efforts on converting them.
In the context of content, demand generation aims for a broad audience, solving common problems and building thought leadership. ABM, however, requires highly personalized content tailored to the specific challenges of each target account, which can be more resource-intensive but often more effective for closing large deals.
While both strategies benefit from sales and marketing collaboration, ABM demands it, requiring both teams to work hand-in-hand to create a cohesive, customized experience for each account.
Finally, in terms of metrics, demand generation focuses on general engagement indicators like website traffic, lead volume, and click-through rates, whereas ABM zeroes in on account-specific engagement, interactions, pipeline velocity, and account revenue. These differences directly impact how marketers measure success and prove Marketing ROI.
Where Demand Generation and ABM Overlap
Interestingly, demand generation and ABM are not mutually exclusive.
In fact, elements of demand generation can fuel your ABM efforts. For example, content marketing that raises brand awareness and attracts inbound leads can help identify potential high-value accounts to target with ABM. This is supported by the 95:5 rule, which suggests that 95% of B2B buyers are out-of-market at any given time. A broad demand generation strategy ensures your brand stays top-of-mind with this 95%, so when those buyers eventually enter the market, they can be identified and moved into a targeted ABM campaign.
Similarly, insights gained from ABM campaigns—like the content that resonates with specific accounts—can inform your broader demand generation strategy.
Choosing Between Demand Generation and ABM - Do You Have To?
Here’s the kicker: it’s not necessarily about choosing one over the other.
For a lot of B2B marketers, a hybrid approach can work wonders. Demand generation can help you fill the top of your funnel, attract new leads, and build brand awareness. Meanwhile, ABM enables you to strategically pursue the highest-value prospects with personalized campaigns designed to convert them into long-term customers.
The real question should be: where do you want to focus your resources? If you’re an early-stage company looking to build a name for yourself and gather a broad pool of prospects, demand generation is likely the way to go. It’s cost-effective and can help you build brand equity while filling your sales pipeline.
However, if you’re a more established business with a well-defined market, you might find more value in concentrating your efforts on a smaller group of high-potential accounts. ABM can lead to larger deal sizes and higher customer lifetime value where your deep relationships with key clients, “potentially can turn them into your best marketers”.
You can read more about unconventional ABM tactics from our interview with Vladimir Blagojevic.
Conclusion
Ultimately, choosing between demand generation and ABM comes down to your business goals, resources, and target market.
Start by figuring out where your company is in its growth and the type of clients you want to attract. Do you need to build broad awareness, or are you ready to zero in on high-value accounts?
For most B2B marketers, a mix works best: use demand generation to cast a wide net while deploying ABM to strategically pursue your top leads.
Whichever path—or combo—you choose, at least now you know which is which. And hey, that’s half the battle!
FAQs
Can Demand Generation and ABM use the same content assets?
Yes. A single white paper, webinar, or case study can support both approaches. For demand gen, it attracts a wide audience at the top of the funnel. For ABM, the same asset can be repurposed or tailored to address the specific needs of target accounts.
How does budget allocation differ between Demand Generation and ABM?
Demand gen budgets are often spread across multiple channels to maximize reach. ABM budgets, on the other hand, concentrate resources on fewer, higher-value accounts; meaning you invest more heavily per account but with higher potential ROI.
Which approach is better for early-stage startups?
Early-stage companies often benefit from demand generation because it builds awareness and fills the pipeline quickly. However, layering in light ABM tactics (such as targeting a handful of dream accounts) can accelerate credibility and larger deal wins.
How do sales teams adapt differently to Demand Generation and ABM?
With demand gen, sales teams handle larger volumes of leads, requiring qualification processes to filter quality. In ABM, sales teams work in lockstep with marketing from the start, collaborating on strategy and messaging for a small set of accounts.
What metrics can reveal if a hybrid approach is working?
Key metrics include:
For Demand Gen: lead volume, cost per lead, brand awareness growth.
For ABM: account engagement, pipeline velocity, deal size.
If both improve without resource conflict, it’s a strong indicator that your hybrid model is performing.
Author
Alexandra Flygare is a junior content marketing manager at Dreamdata. Before transitioning to B2B marketing, Alexandra worked as a music journalist, developing her expertise in storytelling and cultural analysis. Her background spans both creative and technical writing, allowing her to bridge the gap between complex technology concepts and accessible content.