Contents:

Executive Summary 1 1 Introduction 3 OVERVIEW3 Definition4 2 Strategic Overview 5 MARKET DYNAMICS AND SEGMENTATION5 Market Sectors 5 Total Industry Value and Growth5 B2B Advertising 5 Table 1: Advertising Expenditure on Business and Professional Magazines and Directories at Constant Prices (£m and %), 2003-20076 B2B Direct Marketing 6 Table 2: The Total UK Market for Direct Marketing by Channel by Value at Current Prices (£m and %), Year Ending 31st December 2006 7 Table 3: Direct Marketing by Type of Activity by Value at Current Prices (£bn and %), Year Ending 31st December 20068 Table 4: UK B2B Direct Marketing Expenditure by Channel by Value at Current Prices (£m), 2006 and 2007 8 Conferences 9 Exhibitions9 Corporate Hospitality 10 Total Value of B2B Marketing 10 Table 5: The Estimated Total UK Market for B2B Marketing by Sector by Value at Current Prices (£m), 2007 11 INDUSTRY DEVELOPMENTS 11 B2B Best Practice Alliance 11 B2B Marketing Agency Survey12 COMPETITIVE STRUCTURE12 ADVERTISING13 B2B Awards 13 The B2B Marketing Awards 13 MARKETING TRADE PUBLICATIONS14 Table 6: ABC-Audited Marketing Magazines by Net Circulation Size, 2006-2007 1 TRADE FAIRS AND CONFERENCES 16 Trade Fairs16 CMP Information 16 Technology for Marketing and Advertising 16 Reed Exhibitions 16 International Direct Marketing Fair 16 Centaur Exhibitions 16 Online Marketing Show16 Rising Media (Germany)16 Search Marketing Expo — SMX London 16 Incisive Media 16 Online Information16 Conferences 16 Centaur Conferences 17 Transforming Public Sector Communications 17 Marketing Week NMA Interactive Summit 200817 Brands Summit 200817 Marketing & the Olympic Games 17 Data Protection17 Data Training for Marketing Teams17 Haymarket Events17 B2B Marketing Success 17 Successfully Integrate Online and Offline Marketing 17 Search Marketing Conference 17 NUMBER OF UK-BASED COMPANIES 18 By Industry Group18 Table 7: Number of UK VAT-Based Enterprises by Industry Group, 2007 18 By Turnover19 Table 8: Number of UK VAT-Based Enterprises by Turnover Sizeband and Type of Business (£000, number and %), 200719 By Vertical Sector20 The Automotive Sector 20 Biotechnology and Pharmaceuticals 20 Construction21 Education and Training21 Electronic and IT Hardware21 Financial Services 22 Food and Drink 22 Household Goods, Furniture and Furnishings 22 Legal Services 23 Leisure and Tourism 23 Motorsport23 Public/Private Partnerships23 Software and Computer Services B2B 24 Telecommunications24 Mobile Telecommunications and Data 24 Internet and Broadband Services 24 Third-Generation Services 24 MARKET FORECASTS25 Economic Forecasts25 Table 9: Forecast UK Rate of Inflation (%), 2007-2011 25 B2B Marketing Forecasts26 Table 10: The Forecast UK Market for B2B Marketing by Value at Current Prices (£m), 2008-201226 3 B2B Marketing Agencies 27 BACKGROUND27 Table 11: Top 20 B2B Marketing Agencies by B2B Gross Income (£m, %, number and rank), 2006/200727 MARKET SIZE 29 INDUSTRY TRENDS29 MARKETING ACTIVITY30 Awards for B2B Marketing 30 The British Interactive Media Association Awards 30 The Connect Awards 31 The DMA Awards31 The IDM Facet Awards 31 The Marketing Society Awards for Excellence31 Precision Marketing Response Awards 32 DISTRIBUTION32 4 Marketing Channels 33 BACKGROUND33 Table 12: Company Telephone Numbers Registered to the Corporate Telephone Preference Service (number and %), 2004-200733 MARKET SIZE 34 Table 13: UK Estimated B2B Direct Marketing Expenditure by Channel by Value at Current Prices (£m and %), 2007 35 Table 14: Most Popular Disciplines and Services (% of respondents), 2007 35 CHANNEL PROFILE — E-MAIL MARKETING 36 Table 15: The Biggest Challenge to E-Mail Marketing (% of respondents), 200737 Table 16: Five Highest Priority Areas for E-Mail Marketing Improvement (% of respondents), 2007 37 Table 17: E-Mail Marketing Objectives (% of respondents), 2007 38 Table 18: E-Mail Usage Among E-Mail Services Provider Clients (% of respondents), Fourth Quarter 2006 39 “Top Tips for E-Mail Marketing Success39 CHANNEL PROFILE — B2B MAILINGS41 Table 19: UK B2B Direct Mail Response Rates by Industry Sector (% of mailings), 2004 and 200541 Table 20: UK B2B Response Direct Mail Rates by Action Requested (% of mailings), 2004 and 200542 Table 21: UK B2B Direct Mail Responses When Used Alongside Other Media (% of mailings), 2004 and 2005 42 CHANNEL PROFILE — DIGITAL MEDIA43 Online Advertising43 Table 22: B2B Advertising Revenue by Format (average %), 2007 44 Search-Engine Optimisation 44 SECTOR FOCUS — INTEGRATED MARKETING 45 DISTRIBUTION OF CHANNELS BY INDUSTRY49 5 Data Providers 50 BACKGROUND50 Permission-Based Marketing51 MARKET SIZE 51 COMPETITIVE STRUCTURE52 List Owners52 Table 23: Top 15 B2B List Owners by Volume of Names Traded in 2006 (million), 200752 List Brokers53 Table 24: Top 15 B2B List Brokers by Volume of Names Traded in 2006 (million), 200753 List Managers54 Table 25: Top 15 B2B List Managers by Volume of Names Traded in 2006 (million), 200754 INDUSTRY TRENDS55 DATABASE TOOLS 56 DATA SECURITY56 MARKETING ACTIVITY57 DISTRIBUTION57 6 An International Perspective 58 INTRODUCTION58 MARKET DEVELOPMENTS58 Table 26: Future Marketing Approaches (% of respondents), August 2004 and January 200659 COMPETITOR ENVIRONMENT 59 Information Sources 59 Central Intelligence Agency59 European Commission — Eurostat 60 Organisation for Economic Co-operation and Development 60 Direct Marketing Association 60 7 PEST Analysis 62 POLITICAL FACTORS 62 ECONOMIC FACTORS 63 SOCIAL FACTORS64 TECHNOLOGICAL FACTORS64 8 Industry Dynamics 65 INDUSTRY RESEARCH65 Interviewees65 Gary Brine, Chief Executive Officer/Founder, Gyro International Ltd65 Kim Cook, Product and Marketing Manager, Thomson Directories 65 Joel Harrison — Editor, B2B Marketing Magazine (also on DMA B2B Council) 65 Annette Holmes — Managing Director, Prospect Swetenhams and Market Monitor66 Iain Lovatt — Managing Director, Blue Sheep Ltd66 Shane Redding — Owner of Think Direct Ltd and Co-Founder of Cyance Ltd66 John Stanton, Chairman of Association of B2B Agencies and Joint Managing Director of Base One Group66 Questions and Answers 67 1 “What Are the Three Main Concerns Facing B2B Marketing Practitioners Today?” 67 Gary Brine 67 Kim Cook67 Joel Harrison 68 Annette Holmes68 Iain Lovatt 69 Shane Redding69 John Stanton69 2 “What Are the Three Main Trends You Are Seeing in B2B Marketing?”70 Gary Brine 70 Kim Cook70 Joel Harrison 71 Annette Holmes71 Iain Lovatt 71 Shane Redding71 John Stanton72 3 “Which Are the Leading Channels for B2B Marketing?” 73 Gary Brine 73 Kim Cook73 Joel Harrison 73 Annette Holmes73 Iain Lovatt 74 Shane Redding74 John Stanton74 4 “How Has This Changed Over the Past 5 Years?” 74 Gary Brine 74 Kim Cook75 Joel Harrison 75 Annette Holmes75 Iain Lovatt 75 Shane Redding75 John Stanton76 5 “Are There Any Differences in the Way Different Vertical Sectors Use B2B Marketing Channels?” 76 Gary Brine 76 Kim Cook76 Joel Harrison 76 Annette Holmes76 Iain Lovatt 77 Shane Redding77 John Stanton77 6 “How Can B2B Marketers Address the Problems That Exist Between Marketing and Sales and Marketing and Procurement?” 78 Gary Brine 78 Kim Cook78 Joel Harrison 78 Annette Holmes78 Iain Lovatt 79 Shane Redding79 John Stanton79 7 “What Are the Three Main Functions of B2B Marketing (eg Lead Generation, Brand Awareness, Relationship Development, etc)?”80 Gary Brine 80 Kim Cook80 Joel Harrison 80 Annette Holmes80 Iain Lovatt 80 Shane Redding81 John Stanton81 8 “To What Extent is B2B Marketing Addressing Environmental Issues?” 81 Gary Brine 81 Kim Cook81 Joel Harrison 82 Annette Holmes82 Iain Lovatt 82 Shane Redding82 John Stanton82 9 Company Profiles 83 OVERVIEW83 BASE ONE INTEGRATED MARKETING COMMUNICATIONS LTD83 Corporate Strategy83 Strengths and Weaknesses83 New Product Development83 Brand Development 84 Innovations 84 New Research84 Appointments 84 Future Company Developments 84 BLUE SHEEP LTD85 Corporate Strategy85 Strengths and Weaknesses85 New Product Development85 Brand Development 85 Innovations 85 New Research86 Appointments 86 Future Company Developments 86 CYANCE LTD87 Corporate Strategy87 Strengths and Weaknesses87 New Product Development87 Brand Development 87 Innovations 87 New Research87 Appointments 87 Future Company Developments 88 GYRO INTERNATIONAL LTD88 Corporate Strategy88 Strengths and Weaknesses88 New Product Development88 Brand Development 88 Innovations 89 New Research89 Appointments 89 Future Company Developments 89 THE MISSION MARKETING GROUP PLC 90 Corporate Strategy90 Strengths and Weaknesses90 New Product Development90 Brand Development 91 Innovations 91 New Research91 Appointments 91 Future Company Developments 91 PROSPECT SWETENHAMS LTD/MARKET MONITOR LTD 92 Corporate Strategy92 Strengths and Weaknesses92 New Product Development93 Brand Development 93 Innovations 93 New Research93 Appointments 93 Future Company Developments 94 SILVER BULLET PUBLISHING LTD 94 Corporate Strategy94 Strengths and Weaknesses94 New Product Development94 Brand Development 94 Innovations 94 New Research95 Appointments 95 Distribution95 Future Company Developments 95 10 The Future 96 MARKET DEVELOPMENTS96 MARKET FORECASTS97 Table 27: The Forecast UK Market for B2B Marketing by Channel by Value at Current Prices (£m), 2008-2012 98 11 Glossary 99 12 Further Sources 107 Associations107 Publications107 Government Sources 109 Other Sources109 Bisnode Sources 110

Companies Mentioned

SILVER BULLET PUBLISHING LTD PROSPECT SWETENHAMS LTD/MARKET MONITOR LTD THE MISSION MARKETING GROUP PLC GYRO INTERNATIONAL LTD CYANCE LTD BLUE SHEEP LTD BASE ONE INTEGRATED MARKETING COMMUNICATIONS LTD