Open Velocity’s latest research report, Marketing Vulnerabilities in Tech and IP-led Companies, reveals that a striking 89% of businesses are confident in achieving their 12-month growth goals.
Bethan Vincent, managing partner at York-based Open Velocity, said: “The high confidence levels we’re seeing are a testament to the ambition driving UK tech companies. However, our research has uncovered a critical gap between this optimism and the marketing foundations necessary to support it. We’ve looked under the hood of these companies, and the vulnerabilities we’ve found are concerning.”
For mid-sized scale-ups, the journey is particularly challenging. Only 12% of these businesses feel extremely confident about hitting their short-term growth targets. These companies, often caught in the transition from startup to established enterprise, face unique hurdles like rising costs, increased operational complexity and slowing growth as they exhaust initial easy marketing wins.
A pivotal finding of the report is the impact of marketing expertise on business confidence. Companies with senior marketing professionals report a 24% uplift in high confidence levels over the next three-five years compared to those without such expertise. However, the report also uncovers a critical misalignment: 69% of organisations led by senior marketers prioritise immediate results and direct returns, which can become a bottleneck to growth. This short-term focus often leads to neglecting long-term strategic initiatives essential for sustained success, such as brand building, customer loyalty and market expansion.
“Marketing expertise drives business confidence, but it’s crucial to balance short-term wins with long-term investments,” Vincent explains. “Our research highlights that while senior marketers boost confidence, their focus on immediate returns can be a double-edged sword.”
The allocation of marketing budgets further illustrates this tension. Founders and CEOs tend to invest around 40% of their marketing budgets in long-term activities, a figure that drops to c.30% when senior marketers are at the helm. This suggests a significant difference in strategic priorities, with senior marketers more focused on immediate performance metrics.
The report also highlights the disparity between B2C and B2B companies. B2C firms are more optimistic, with 48% expressing high confidence in their medium-term growth, dropping to 39% of B2B businesses. B2C companies are also more likely to invest in brand identity and messaging, recognising the long-term value of building a strong brand.
Conversely, B2B companies often lag in these areas, focusing more on immediate returns and less on strategic marketing investments. This short-term focus may explain their lower confidence levels compared to B2C counterparts.
Vincent summarises, “Our research underscores the importance of solid marketing foundations. Businesses that invest in defining their USPs, understanding their target markets and balancing short-term and long-term strategies are better positioned for sustainable growth.”
