In today's challenging economic climate, demand generation teams face a critical dilemma: leadership expects greater pipeline contribution, yet marketing budgets are contracting. The traditional strategy of increasing spend to generate more leads is no longer viable. Activate's 9th annual State of Demand Generation report, based on insights from over 250 B2B marketers, reveals how successful teams are rewriting the rules by prioritizing precision, efficiency, and smarter execution to turn budget constraints into a competitive advantage.
Activate's 2025 State of Demand Gen report reveals a shift from budget growth to operational efficiency.
Successful teams are ruthlessly cutting underperforming channels and focusing on content efficiency.
AI is being deployed to automate tasks and provide sharper insights for pipeline generation.
The report highlights a "Content-to-Pipeline Formula" showing which content types drive SQLs and revenue.
Marketers are being pressured to connect their activity directly to revenue impact more than ever.
Success is now defined by precision and actionable insights rather than sheer volume and spend.
The report confirms that demand generation has evolved from a support function into a strategic ally for sales, with a renewed focus on proving direct impact on pipeline and revenue. With MQL targets rising while budgets stagnate or shrink, marketers can no longer rely on assumptions. Subtle shifts in performance metrics indicate that traditional tactics are losing effectiveness, and the most successful teams are those identifying these red flags early and pivoting to more data-driven strategies.
"This year's findings confirm that the strongest demand gen teams aren't waiting for bigger budgets — they're winning through sharper focus and smarter execution," said Chris Rooke, CEO of Activate. "The 2025 data shows a decisive shift: success now comes from precision over volume, from actionable insights over assumptions, and from connecting marketing activity directly to revenue. Marketers who master that balance will be the ones defining what's next in 2026."
The 2025 report provides a roadmap for navigating the current landscape, offering key takeaways that include leveraging the "upstart's advantage" of speed and precision over larger competitors. It also delves into the "Content-to-Pipeline Formula," identifying which specific content types are most effective at converting prospects into SQLs and ultimately driving closed-won revenue. Furthermore, the report details the most promising applications of AI in demand generation, showing where automation and intelligence can deliver the greatest return on effort.
The overarching theme of the report is that the paradigm for B2B demand generation has permanently shifted. The ability to do more with less is no longer a temporary challenge but a core competency. By obsessing over content efficiency, leveraging AI for automation and insight, and maintaining a ruthless focus on channels and tactics that directly influence revenue, demand gen teams can not only meet their aggressive targets but also establish themselves as indispensable drivers of growth.
Activate Marketing Services ( www.activatems.com ) provides content-powered lead and marketing services for business technology marketers, based on a unique combination of buyer insights and high-performance content. Activate develops detailed buyer personas, creates multi-platform content to engage prospects at every stage of the decision-making process, then nurtures the resulting relationships across live, mobile and digital platforms to convert prospects into customers. Founded by a team of high-tech media executives with deep expertise in editorial, marketing, and technology, Activate's formula for high-performance marketing connects messaging, marketing, and measurement to deliver bottom-line results.