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Account-Based Marketing vs Demand Generation: Key Differences

ABM vs demand generation comparison guide for B2B companies. Learn when to use each strategy and how to combine them for comprehensive revenue growth.

Account-Based Marketing vs Demand Generation

Account-based marketing (ABM) focuses on highly personalized campaigns targeting specific high-value accounts, while demand generation takes a broad awareness approach to create pipeline at scale across your entire target market.

Quick Overview

Account-Based Marketing (ABM)

  • Approach: Highly targeted
  • Focus: Specific high-value accounts
  • Strategy: Personalized campaigns per account
  • Team: Marketing + sales working together
  • Timeline: Longer, relationship-focused
  • Best for: Enterprise B2B

Demand Generation

  • Approach: Broad awareness
  • Focus: Entire target market
  • Strategy: Create awareness at scale
  • Team: Marketing-led
  • Timeline: Create pipeline broadly
  • Best for: SaaS growth

Key Differences

| Factor | ABM | Demand Generation | |--------|-----|-------------------| | Scope | 10-100 accounts | 1000+ accounts | | Personalization | Highly personalized | Standard messaging | | Sales involvement | High | Low-Medium | | Timeline | 6-12+ months | 3-6 months | | Cost | High (EUR 50K-500K/month) | Medium (EUR 10K-100K/month) | | Goal | Close large deals | Generate pipeline |

When to Use ABM

ABM is the right choice when you have:

  • Enterprise B2B sales motion
  • High contract values (EUR 500K+)
  • Complex sales cycles with multiple stakeholders
  • Few target accounts to pursue
  • Well-aligned sales team ready to collaborate

When to Use Demand Generation

Demand generation works best when you have:

  • SaaS growth objectives
  • Lower contract values
  • Faster sales cycles
  • Large target market to address
  • High volume pipeline goals

Hybrid Approach

Best-in-class B2B companies leverage both strategies together:

  1. Broad demand generation to fill top of funnel with awareness
  2. ABM for high-value accounts that warrant personalized attention
  3. Sales team focus on pipeline conversion across both motions

This combined approach ensures you're building brand awareness broadly while also pursuing your most valuable opportunities with precision.

Conclusion

Demand generation drives broad pipeline growth, while ABM closes high-value deals. Use both for comprehensive revenue growth. The key is matching the right strategy to your deal size, sales cycle complexity, and available resources.

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