Strategy and brand

What is ABM (account-based marketing)

Also known as: account-based marketing, key account marketing

Rodrigo Fávaro, founder of ROO3
Rodrigo Fávaro Founder of ROO3
Published
The acronym ABM in large letters on a dark background, with the address roo3.co/marketing
Short answer

ABM, short for account-based marketing, is the B2B strategy in which marketing and sales jointly choose a group of high value companies and treat each one as a market of its own, with messages, content and actions made for it. The term was coined in 2003 by Bev Burgess at ITSMA, the Information Technology Services Marketing Association.

Hypothetical example

A hospital software company picks 40 hospitals that fit its ideal customer profile. For each one, it maps who decides: leadership, IT, clinical staff and purchasing.

Instead of advertising to the whole sector, it runs LinkedIn ads only those companies see, sends each hospital a study with data from its region and invites decision makers to a technical breakfast. In six months, it opens conversations with half the list, and those opportunities are worth far more on average than the ones from open ads.

ABM and lead generation marketing

Two different logics
Lead generationABM
Starting pointA broad audienceA closed list of accounts
MessageBy segmentBy account, sometimes by person
Main metricLead volumeEngagement, opportunities and revenue per account
TeamsMarketing delivers, sales receivesMarketing and sales plan together

The tiers of ABM

How to get started

How to measure it

When ABM does not pay off

ABM takes work per account, and that effort only pays off when each contract is worth a lot. In markets with thousands of small, low ticket customers, volume lead generation is usually more efficient. Many companies combine both: ABM for large accounts, volume marketing for the rest.

Frequently asked questions

What is ABM?

Account-based marketing: marketing and sales choose high value companies and treat each as a market of its own, with tailored messages and actions.

Who coined the term ABM?

According to Wikipedia, it was coined in 2003 by Bev Burgess at ITSMA, the Information Technology Services Marketing Association.

What is the difference between ABM and inbound?

Inbound attracts a broad audience with content and qualifies whoever arrives. ABM starts from a closed list of chosen accounts and goes after them with personalized actions.

Does ABM work for small businesses?

It does when the business sells to a few high value accounts, even if it is small. It does not pay off with low tickets and fragmented markets.

How do you measure ABM results?

Per account: decision maker coverage, engagement, meetings, opportunities, revenue and cycle length, not lead volume.

Related terms

Sources
Rodrigo Fávaro

Rodrigo Fávaro

Founder of ROO3, a marketing and technology agency in São José do Rio Preto, Brazil. Builds AI products running in production (Tobia, gerar.app, Pense Mercado) and maintains the AI Benchmark, a public ranking of AI models.

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