Welcome to the DemandFactor Buyer’s Guide 2025, your roadmap to navigating the future of B2B marketing. In a world where innovation is accelerating and buyer expectations are evolving, success is no longer about keeping pace — it’s about staying ahead. At DemandFactor, we’ve made it our mission to help you do exactly that.
We are on the brink of the largest technology upgrade cycle in a generation, driven by the convergence of AI, machine learning, and recent advancements in remote work, work-from-anywhere (WFA), and hybrid models accelerated by the post-COVID era. In the B2B space, this transformation is reshaping how companies engage with customers, streamline operations, and build competitive advantages. Organizations are increasingly adopting advanced platforms and capabilities to meet rising expectations for speed, personalization, and scalability. This cycle will not only accelerate innovation but also redefine supply chains, sales processes, and decision-making frameworks, fueling profound changes across industries and creating new opportunities for growth.
The insights and strategies outlined in this guide are built on a deep understanding of the trends shaping our industry, from the rise of partner ecosystems and data-driven decision-making to the increasing dominance of subscription-based models. Backed by our exclusive research and expertise, this guide offers actionable recommendations to help you adapt, innovate, and thrive in an ever-changing landscape.
2024 has taught us that agility, precision, and collaboration are more than buzzwords — they’re the foundation for sustained growth. As we move into 2025, the opportunities to build stronger partnerships, optimize marketing efforts, and unlock new levels of ROI have never been greater. Whether it’s empowering your partners, leveraging cutting-edge technologies, or adopting customer-first strategies, DemandFactor is here to support you every step of the way.
This guide is more than just a resource; it’s a call to action. The businesses that succeed tomorrow will be the ones that embrace change today. I’m excited to share these insights with you and to see how we can help you transform challenges into opportunities, and opportunities into results. Here’s to a year of growth, collaboration, and measurable success.
Senior Vice President, DemandFactor
AI isn’t just a buzzword anymore — it’s becoming the lifeblood of competitive businesses. As adoption surges, companies are scrambling to integrate AI tools that automate workflows, crunch data, and deliver the holy grail of marketing: hyper-personalized customer experiences. In today’s world, precision isn’t optional; it’s the baseline.
The numbers don’t lie. The global AI software market is on track to hit a jaw-dropping $297.9 billion by 2027, growing at a solid CAGR of 19.1%. But here’s the kicker: this growth isn’t slowing down — it’s speeding up. Market growth is accelerating from 17.8% this year to a projected 20.4% by 2027*. Generative AI, the game-changer everyone’s talking about, is expected to jump from 8% of AI software spend in 2023 to a staggering 35% by 2027. It’s not just a trend; it’s a full-on shift away from clunky legacy systems to nimble, cost-efficient SaaS models.
For marketers, this is a watershed moment. AI-powered tools are no longer “nice-to-have” but essential to staying in the game. They help brands go beyond generic campaigns, turning raw data into actionable insights and aligning every engagement to the buyer’s journey. The result? Experiences so personalized they feel like magic.
* Source: Gartner
If businesses want to thrive in this data-first world, they need to embrace AI solutions that deliver real results. Precision, personalization, and measurable impact aren’t just buzzwords — they’re the new rules of survival.
The age of the lone wolf vendor is over. By 2025, an estimated 60%** of B2B channel sales will flow through multi-partner ecosystems — think Independent Software Vendors, integrators, and other collaborative networks. Why? Buyers are gravitating toward solutions that integrate seamlessly, supported by trusted partner relationships. For companies willing to lean into this ecosystem-first approach, the payoff is massive: enhanced market reach, operational efficiency, and access to pre-established trust networks.
Channel marketing is evolving just as rapidly. A whopping 70%*** of channel leaders are gearing up to invest more in data-driven marketing strategies, signaling a shift toward accountability and measurable results. Market Development Funds (MDF) are no longer being spent on vague branding initiatives but are laser-focused on demand generation campaigns that deliver real ROI. Ecosystems aren’t just about expanding your reach — they’re about doing it smarter.
The numbers tell a clear story: ecosystems accelerate growth. Vendors leveraging these partnerships can tap into a diverse array of resources and talent, rapidly innovate, and respond to customer demands with precision. The shift from siloed operations to interconnected networks means every player in the ecosystem contributes to shared success, making the pie bigger for everyone involved.
** Source: Gartner
*** Source: Forrester
If you’re not building strong partnerships within these ecosystems, you’re already behind. In a market driven by integration and collaboration, long-term growth will belong to the companies that prioritize ecosystem relationships, invest in partner enablement, and measure their impact with precision. The future is ecosystem-driven — are you ready to play?
We’re in the middle of the biggest tech upgrade since the dawn of the internet, and the ripple effects are everywhere. From how businesses operate to how data flows, this fourth wave of transformation is changing the game. Think of it as the next evolutionary leap following mainframes, personal computing, and the internet — but this time, the impacts are stacking up faster and hitting harder. Unlike its predecessors, this cycle is cumulative, building on the advancements of past revolutions while driving widespread transformation across industries.
The acceleration of this cycle is also challenging organizations to rethink their technology stacks, moving away from outdated legacy systems in favor of flexible, future-ready platforms.
Here’s What’s Driving the Revolution:
1
Cloud Everything: Forget clunky on-prem systems. Cloud platforms are scaling businesses faster and cheaper, making agility a default feature, not a luxury.
2
Cybersecurity as a Priority: With breaches making headlines weekly, companies are doubling down on privacy and security tech to protect their data and their reputations.
3
ERP Overhauls: Legacy systems are out. Flexible, modern ERP platforms are the new backbone of efficiency and growth.
4
Data as the New Oil: Analytics isn’t just a buzzword — it’s the fuel powering smarter, faster decision-making across industries.
5
Wireless Tech on the Rise: Interconnectivity is taking over. Advanced wireless networks are enabling real-time processing and IoT applications that would’ve been sci-fi just a few years ago.
This isn’t just a tech upgrade; it’s a foundational shift. Companies that embrace these innovations are setting themselves up for market dominance, while those that hesitate risk falling off the map. The future is faster, smarter, and more connected — and it’s happening now.
Millennials have officially moved from buzzword to boardroom.
As they step into leadership roles and take charge of B2B buying committees, they’re reshaping how businesses make purchasing decisions — and your sales tactics need to keep up. Forget cold emails and hard sells. This new generation of buyers demands transparency, proof, and self-service.
Here’s what millennial buyers expect:
Self-Service Research:
They don’t want to wait for your sales pitch. They’re doing their homework on their own time, on their own terms, and they expect you to have the resources ready when they need them.
Cold Emails Are Out:
Disruptive outreach isn’t just ineffective — it’s a turnoff. Millennials are tuning out the noise, forcing sellers to rethink their approach to engagement.
Your Brand’s Purpose Matters:
This group wants to know what you stand for. Authenticity and values-driven messaging are no longer optional — they’re a key part of why they’ll even consider engaging with you.
Proof or It Didn’t Happen:
Forget promises; millennials need proof. Case studies, testimonials, and demos are essential to get past their “show me” mentality.
This shift is more than just a generational change — it’s a complete overhaul of the buying journey. Sellers that adapt to these new expectations will build trust and win deals. Those who stick to old-school methods risk being left behind. It’s time to meet millennial buyers where they are — on their terms, with their priorities in mind.
Channel marketing in 2024 is at a turning point. With tech innovation surging, budgets under scrutiny, and buyer expectations evolving, businesses are rethinking how they empower and engage their channel partners. The playbook has shifted to prioritize collaboration, advanced technology, and data-driven strategies to stay ahead in a hyper-competitive market.
In partnership with the Channel Marketing Association, DemandFactor sponsored a comprehensive survey uncovering the challenges and opportunities defining this fast-evolving space. The findings are clear: businesses that double down on innovation and strategic partnerships will dominate.
1. Budget Efficiency is the New Normal
With 38% of companies increasing budgets but nearly half holding steady, it’s clear that efficiency is everything. Businesses are prioritizing high-impact investments like Partner Relationship Management (PRM) systems, Account-Based Marketing (ABM), and AI-powered tools to stretch every dollar.
Breakdown of the budget plans for FY25
2. Collaboration is King
“To” and “through” marketing strategies are no longer buzzwords — they’re necessities. A quarter of channel budgets are now dedicated to co-branded campaigns and enablement programs that directly empower partners. Trust and collaboration are driving results, proving that partners want more than just tools — they want shared success.
3. Data Needs to Work Harder
Measurement remains a pain point for 74% of respondents. The problem? Disconnected systems, siloed data, and misaligned KPIs. To tackle this, companies are investing in integrated reporting tools that turn raw data into actionable insights. Because if you can’t measure it, you can’t optimize it.
Organization's measurement of channel marketing activities
4. Partner Enablement
is Non-Negotiable
87% of businesses are leaning into enablement, providing sales training, certifications, and marketing resources to keep partners ahead of the curve. This isn’t just nice to have — it’s a key to unlocking stronger, more productive relationships.
5. Digital Channels Dominate
Email campaigns? Still effective. Paid search and social ads? Amplifying reach like never before. But the real game-changer? Personalized, multi-channel approaches that engage today’s buyers where they are—on their terms. Platforms like Google, LinkedIn, and Facebook continue to lead the charge.
By 2025, 80% of new IT spending will be subscription-based.
What It Means: The shift to recurring revenue models is unstoppable. Partners need to pivot now, aligning their offerings with SaaS solutions to deliver the flexibility and value customers demand. The playbook is clear: subscriptions equal stickier relationships and predictable growth.
60% of B2B channel sales will flow through multi-partner ecosystems.
What It Means: Ecosystems aren’t just a buzzword — they’re a game-changer. Companies that lean into these networks will unlock broader market reach, deeper collaboration, and happier customers. Integrated, multi-partner strategies are the secret weapon for scaling success in 2025.
70% of channel leaders plan to supercharge investments in data analytics by 2025.
What It Means: Performance and ROI tracking are no longer optional. To stay competitive, businesses need systems that turn raw data into actionable insights. Knowing what’s working (and what isn’t) will separate the winners from the rest.
The channel marketing landscape is evolving fast, and partners expect more than transactions.
Businesses that embrace innovation and collaboration will unlock massive opportunities:
Trusted partnerships fuel revenue and expand market reach.
Collaboration and tailored support deepen relationships and retention.
Staying ahead means adopting SaaS models, leveraging data, and tapping into ecosystem power.
Channel marketing in 2024 is all about adaptability, innovation, and delivering measurable results.
Companies that double down on partner collaboration, smart tech investments, and data-driven strategies are setting the stage for long-term success. But let’s not sugarcoat it: challenges around alignment, reporting, and resource allocation remain — and cracking these is key to unlocking ROI.
The winning formula? Efficiency meets innovation. Businesses that harness data, strengthen their partner ecosystems, and prioritize transparency will stay ahead of the pack. The future of channel marketing isn’t just about doing more — it’s about doing it smarter. Collaborative, customer-first, and relentlessly measurable — that’s where the game is heading.
At DemandFactor, we don’t just generate leads — we help businesses find their next customers and drive measurable growth. With access to a global audience of over 220 million B2B decision-makers, we specialize in delivering high-quality, first-party leads through cutting-edge, data-driven demand generation and performance marketing strategies.
Our mission is simple: to align with your goals and deliver results you can count on. By eliminating guesswork and focusing on predictable success, we’re here to ensure every campaign drives real, measurable outcomes.
So, what makes us so confident in our promises?
Unlike others relying on patchy third-party aggregators, we own our database. That means our leads are accurate, transparent, and compliant — no guessing, no gaps, no shortcuts.
Whether you’re building awareness at the top of the funnel or converting prospects at the bottom, we tailor programs to meet your needs at every stage of the buyer's journey. From first touch to closed deals, we’ve got you covered.
With a 99.9% lead acceptance rate, we’re not just promising results — we’re delivering them. Our results-driven model ensures your ROI is front and center, making us the partner you can trust to maximize growth.
DemandFactor isn’t just a service — it’s your competitive edge. By focusing on precision, personalization, and proven strategies, we help businesses turn opportunities into success stories. Ready to find your next customers? Let’s grow together.
As the B2B landscape evolves, staying ahead requires bold strategies, innovative tools,
and trusted partnerships. At DemandFactor, we’re committed to helping you achieve measurable results, strengthen your relationships, and transform opportunities into lasting success.
Whether you’re looking to optimize your channel marketing efforts, deepen partner engagement, or leverage data to unlock new possibilities, we’re here to guide you every step of the way.
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DemandFactor is revolutionizing performance marketing and demand generation by adding in the missing piece:
We align our success to the success of our leads and our clients.