Library > ABM vs. Demand Gen
Account-Based Marketing vs. Demand Generation
Written by Alexandra Flygare
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.
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.
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.
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!