Demand Creation vs. Demand Capture in B2B—Key Differences and Why They Matter

What Is The Difference?

In the simplest terms, the difference between Demand Creation and Demand Capture lies in their approach to the market. Demand Creation is about generating new interest or awareness in your products or services, often targeting audiences who may not yet realize they have a need for what you offer. It’s about planting seeds and nurturing them. On the other hand, Demand Capture focuses on attracting customers who are already in the market for your type of product or service. It’s less about education and more about convincing them that your solution is the one they should choose.

Introduction

In the high-stakes world of B2B marketing, demand is more than just a buzzword—it’s the lifeblood of any successful business. Whether you’re a startup looking to make a splash or an established company aiming to scale, understanding how to generate and capture demand is crucial. But here’s the kicker: not all demand is created equal.

In the marketing community, two terms often get thrown around—Demand Creation and Demand Capture. While they may seem similar, they serve different purposes and require distinct strategies. So, what’s the difference, and why should you care?

This comprehensive guide aims to demystify these concepts, offering actionable insights and practical examples to help you decide which approach—or perhaps a blend of both—is right for your business. We’ll delve into the nitty-gritty of each, from the strategies and tools you can employ to real-world applications that have proven successful.

So, buckle up as we embark on this journey to decode Demand Creation and Demand Capture, helping you make informed decisions that can propel your business to new heights.

What is Demand Creation?

Demand Creation is more than just marketing jargon; it’s a strategic approach that aims to generate interest and awareness in a product or service. Unlike Demand Capture, which focuses on “low-hanging fruit,” Demand Creation is about planting seeds in fertile ground and nurturing them until they’re ready to bear fruit.

Definition and Importance

At its core, Demand Creation is about stimulating interest in what you’re offering. It’s not just about getting your product in front of people; it’s about getting people to think differently to recognize a need they didn’t know they had. This is especially crucial in B2B marketing, where the sales cycles are longer, and the stakes are higher. A well-executed Demand Creation strategy can position your brand as a thought leader, build strong relationships with potential customers, and ultimately drive long-term growth.

Strategies for Demand Creation

Content Marketing

Content is king, and in the realm of Demand Creation, it wears the crown. High-quality, valuable content can educate your audience, solve their problems, and guide them through the buyer’s journey. Whether it’s blog posts, whitepapers, or webinars, content marketing is a powerful tool to establish authority and build trust.

SEO

Search Engine Optimization (SEO) is the unsung hero of Demand Creation. By optimizing your content for search engines, you increase the visibility of your brand. This is a long-term game, but the payoff is worth it. When potential customers search for solutions to their problems, your content should be what they find.

Posting on LinkedIn

LinkedIn isn’t just for job hunting; it’s a goldmine for Demand Creation. Regularly posting insightful content, sharing industry news, or even just commenting on relevant posts can build your authority over a topic. It’s a fantastic way to engage with your audience, especially in the B2B space, and subtly create demand for your services without overtly selling.

Podcasting

Don’t underestimate the power of the spoken word. Podcasting has emerged as an incredible tool for Demand Creation. It allows you to dive deep into topics, interview industry experts, and provide valuable insights in an easily digestible format. Podcasts can position you as a thought leader in your industry and give you a platform to connect with potential customers on a more personal level.

Creating a YouTube Channel

Visual content is a compelling way to create new demand. A YouTube channel allows you to showcase your expertise, offer tutorials, and even give behind-the-scenes looks at your company. It’s an excellent platform for educating your audience and creating a community around your brand, which in turn generates new interest and demand.

What is Demand Capture?

While Demand Creation is about generating new interest and awareness, Demand Capture is the art of seizing existing demand in the market. It’s about identifying those ripe opportunities where potential customers are already looking for a solution and guiding them towards your offering.

Definition and Importance

Demand Capture is the tactical counterpart to the more strategic Demand Creation. It focuses on immediate results, targeting individuals and businesses that are already in the market for a product or service like yours. In the fast-paced world of B2B marketing, where every lead counts, Demand Capture is essential for short-term growth and quick ROI.

Strategies for Demand Capture

PPC Advertising

Pay-Per-Click (PPC) advertising is a quintessential Demand Capture strategy. It allows you to place your offering directly in front of people who are actively searching for it. With the right keywords and ad copy, PPC can be a highly effective way to capture demand and convert it into sales.

LinkedIn Ads Lead Gen Forms

LinkedIn Ads with lead gen forms are a powerful tool for Demand Capture. They allow you to target professionals based on various criteria like industry, job title, and company size, ensuring that your message reaches the right audience.

Cold Email Marketing

Cold email is a potent tool for Demand Capture. It targets individuals who are already in the market for a solution, offering them a direct path to what they need. The key is to personalize the message and provide immediate value, making it easier for the prospect to take the next step.

The 1-6% Dilemma: Why Both Demand Creation and Demand Capture are Crucial

In any given market, only about 1-6% of potential customers are actually “in-market” for your product or service. These are the individuals and businesses actively looking for a solution, and they are the primary targets of Demand Capture strategies. The remaining 94-99% are not ready to buy now, but that doesn’t mean they won’t be in the future.

The Limitation of Focusing Solely on Demand Capture

Many marketers make the mistake of focusing all their efforts and budgets on this 1-6%, often through Google Ads and other Demand Capture activities. While this can yield quick wins, it’s a short-sighted approach. True scale and long-term growth come from being part of the buyer’s journey before they’re ready to make a purchase.

The Power of Demand Creation

Demand Creation is about being there for potential customers when they’re just researching solutions. It’s about educating them on the available options and becoming a part of their consideration set long before they’re “in-market.” By the time they are ready to buy, your brand is already top of mind, giving you a significant advantage.

A Real-World Example: Philip Ilic on LinkedIn Ads vs. Google Ads

As the founder of http://www.kiin.co, a Linkedin Ads agenc, I often create content argueing that CMOs should allocate more budget to paid social, specifically LinkedIn Ads, to capture the larger 94-99% of the market that’s not yet ready to buy. Google Ads are great for capturing the 1-6% who are in-market, but LinkedIn Ads allow you to engage potential customers much earlier in their journey.

For instance, by creating content that convinces a CMO to shift more budget towards LinkedIn Ads, I’m not just capturing existing demand; I’m creating new demand for my services. The CMO, influenced by my content, might decide to hire my company, kiin.co, because I helped shape their strategy.

The Synergy Between Demand Creation and Demand Capture

While Demand Creation and Demand Capture may seem like two separate entities, they are, in fact, two sides of the same coin. Understanding how to leverage both can result in a balanced, effective marketing strategy that covers all bases.

Why You Need Both

In a perfect world, you’d capture all the existing demand while simultaneously creating new demand. But we don’t live in a perfect world, and resources are often limited. That’s why it’s crucial to strike a balance between these two approaches. Ignoring one in favor of the other can lead to missed opportunities and stunted growth.

How They Complement Each Other

Demand Creation is your long game, building brand awareness and relationships that will pay off in the future. Demand Capture, on the other hand, is your quick win, converting those who are ready to buy now. When used together, they create a marketing ecosystem where you’re always engaging with potential customers, whether they’re ready to make a purchase or not.

Examples of Synergistic Strategies

1. SEO + PPC: Use SEO to build long-term brand visibility and PPC for immediate results.
2. Content Marketing + LinkedIn Ads Lead Gen Forms: Create valuable content to educate and nurture your audience while using LinkedIn Ads to capture those who are ready to take action.
3. Podcasting + Cold Email: Use podcasting to establish thought leadership and cold email to directly engage with prospects who are in-market.

The Ultimate Goal: A Balanced Marketing Ecosystem

The end game is to create a balanced marketing ecosystem where Demand Creation and Demand Capture coexist. This ensures that you’re not just fishing in a small pond but casting a wide net to engage with as many potential customers as possible.

The Messy Reality of the Buyer’s Journey

The buyer’s journey is rarely a straight line. It’s more like a web, with multiple touchpoints and channels that potential customers interact with before making a decision. This underscores the importance of being present on multiple platforms and offering various types of content to engage with your audience at different stages of their journey.

Why a Multi-Channel Approach is Essential

In today’s digital landscape, buyers have more options than ever. They’re not just going to find you through a single channel or piece of content. They’ll likely interact with your brand multiple times, in multiple ways, before they’re ready to make a purchase. That’s why it’s crucial to have a multi-channel approach that combines both Demand Creation and Demand Capture strategies.

A Real-World Example: The Complexity of Multi-Channel Interactions

Speaking from personal experience, as someone who runs a LinkedIn ads agency, I always ask how buyers end up on a sales call with me. The answers are far from straightforward.

For instance, someone might initially discover me on YouTube, then connect with me on LinkedIn. They’ll follow my posts for a few months while also being retargeted by my LinkedIn ads, which mostly offer helpful content. One day, they’ll Google my company name and sign up for a call through my website.

Or sometimes, they’ll first find me through a LinkedIn post, binge-watch my YouTube videos, and then DM me on LinkedIn to initiate a conversation.

In another scenario, they might stumble upon an article I’ve written that shows up in Google search results. Intrigued by the content, they’ll notice my LinkedIn link next to my name in the article, connect with me, and eventually send a direct message.

The Takeaway: Be Everywhere, But Be Relevant

The key takeaway is that you need to be everywhere your potential customers are, but you also need to be relevant. It’s not just about casting a wide net; it’s about casting a smart net that captures attention at the right time and in the right context.

Measuring the Effectiveness of Demand Creation and Demand Capture

So you’ve implemented a multi-channel approach, blending Demand Creation and Demand Capture strategies. But how do you know if it’s working? Measurement is the cornerstone of any successful marketing strategy, and it’s crucial for understanding the ROI of your efforts.

Key Performance Indicators (KPIs)

Understanding the right KPIs to track is essential for gauging the effectiveness of your strategies. For Demand Creation, focus on metrics like brand awareness, engagement rates, and customer lifetime value. For Demand Capture, look at conversion rates, cost-per-acquisition (CPA), and immediate ROI.

KPIs for Demand Creation

• Brand Awareness: Social media impressions, website visits, and mentions.
• Engagement Rates: Likes, shares, and comments on your content.
• Customer Lifetime Value (CLV): The total value a customer brings over the entire relationship.

KPIs for Demand Capture

• Conversion Rates: The percentage of leads that turn into paying customers.
• Cost-Per-Acquisition (CPA): The cost to acquire a new customer.
• Immediate ROI: The immediate return on investment, often measured within a short time frame like a month or a quarter.

Tools for Measurement

There are various tools available to help you measure these KPIs. Google Analytics is excellent for tracking website metrics, while platforms like HubSpot can provide a more comprehensive view of customer interactions across multiple channels.

The Importance of A/B Testing

Never underestimate the power of A/B testing. It allows you to compare two versions of a campaign to determine which is more effective. This is particularly useful for Demand Capture strategies like PPC and LinkedIn Ads, where small tweaks can result in significant improvements.

The Unseen Impact: Dark Social and Measurement Challenges

While metrics and KPIs are essential for understanding the effectiveness of your strategies, it’s crucial to acknowledge the limitations of these measurements. One significant blind spot in analytics is “Dark Social,” the untraceable sharing and engagement that happens outside of conventional social platforms.

What is Dark Social?

Dark Social refers to the social sharing of content that occurs outside of what can be measured by web analytics programs. This includes links sent via email, private messaging apps, and even word-of-mouth recommendations.

The Challenges of Measuring Dark Social

Because these interactions are not easily trackable, they often go unnoticed in your analytics dashboard. However, they can have a significant impact on both Demand Creation and Demand Capture. For example:

• YouTube Channels: People might be watching your YouTube videos without ever interacting with them, making it difficult to measure the true reach and impact.
• Podcasts: Listeners might share your podcast episodes in private messages, leading to new audience members you can’t easily track.
• LinkedIn Posts: Someone might screenshot your LinkedIn post and share it in a Slack group, prompting a manager to reach out to you without your knowledge.

Why Dark Social Matters

Ignoring Dark Social means underestimating the full scope of your marketing efforts. While you may not be able to measure these interactions directly, being aware of their existence can help you tailor your strategies to encourage more visible forms of engagement.

LinkedIn Ads: A Dual Tool for Demand Creation and Demand Capture

LinkedIn Ads offer a unique advantage in the world of B2B marketing. Not only can they be used to capture existing demand, but they’re also incredibly effective for creating new demand. Let’s break down how you can use LinkedIn Ads for both purposes.

LinkedIn Ads for Demand Creation

The 180-Day Retargeting Layer

One of the most effective strategies for Demand Creation on LinkedIn is the use of a 180-day retargeting layer. This allows you to continually engage with users who have interacted with your brand, keeping you top of mind over an extended period.

Ungated Content and Content Distribution

LinkedIn Ads are perfect for distributing ungated content to a laser-focused target audience. By using LinkedIn’s robust targeting options, you can guarantee that your content reaches your Ideal Customer Profile (ICP), thus creating new demand.

LinkedIn Ads for Demand Capture

Bottom-of-Funnel Ads

When it comes to capturing existing demand, LinkedIn Ads can be incredibly effective, especially with bottom-of-funnel ads. These are ads that directly ask the user to take a high-commitment action, like requesting a demo or scheduling a sales call.

Here is an example of a Single-Image Ad with Call-To-Action (CTA):