SIC vs NAICS Codes: What B2B Marketers Need to Know

Introduction

When it comes to the world of B2B marketing, accuracy is key. When it comes to account selection and the target marketing of accounts. It can really mean the difference between throwing money away on ill-placed ads and successfully converting expensive, high-value retarget accounts. That is why we want to highlight SIC vs NAICS codes. SIC (Standard Industrial Classification) codes and NAICS (North American Industry Classification System) codes.  Though they are often looked at as simple government classification systems, these two codes can be powerful tools for B2B marketers to improve accuracy in targeting, create improved account growth, and improve pipeline velocity.

What Are SIC and NAICS Codes?

SIC codes, or standard industrial classification codes, were formed in the 1930s to classify businesses into industries using a four-digit standard. For decades, SIC codes were useful in tracking economic activity for businesses, analysts, and government organizations alike. However, they slowly fell out of use as new industries or updated existing industries with the development of technology and services.

To fill an existing group of services from SIC codes, the NAICS code standard was introduced in 1997 for statistical purposes. The National Industry Classification System is significantly more granular than SIC codes, as it has up to six digits compared to a four-digit system. While certain software companies may fall into one general classification under the SIC code, the NAICS codes were developed separately for software publishers, cloud service providers, and custom application developers.

• SIC Example: 7372 is for Prepackaged Software
• NAICS Example: 511210 is for Software Publishers

This evolution positions NAICS as more relevant for today’s B2B marketers, although SIC codes are still used, especially in legacy databases.

Why Marketers Should Care About SIC and NAICS Codes

For most B2B marketers, codes may seem like unnecessary red tape, but they, in fact, allow for:

1. Better Account Targeting

Looking at prospects by SIC or NAICS codes enables marketers to reach organizations in only the industries they want to penetrate. This type of targeting saves them time, but supports better targeting of campaigns, which means less wasted spend.

2. Better Quality Leads

High-intent accounts often have common characteristics. Using codes will ensure your SDR team is pursuing leads that match your ideal customer profile (ICP).

3. Better Targeting

Understanding and using a prospect’s industry classification helps with relevant messaging. For example, a fintech SaaS platform may use NAICS codes to identify credit unions vs. traditional banks and adjust messaging accordingly.

4. Better Data Hygiene

Codes create standards. When everyone’s marketing and sales systems align on a standard classification, data reporting becomes less fragmented and more dimensional.

SIC vs. NAICS: Which One Should You Use?

While both codes are still in circulation, here’s how to think about them strategically:

• SIC Codes
  • Older and less detailed
  • Still widely found in legacy systems
  • Useful for broad industry segmentation 
• NAICS Codes
  • Modern, detailed, and updated every five years
  • Provides deeper industry breakdowns, especially for emerging sectors
  • Ideal for marketers using advanced ABM and intent data strategies

In summary: utilize NAICS, when possible, but be mindful of SIC if you are using a database or third-party platforms that still use SIC. 

Real-World Applications for B2B Lead Generation

Here is how best-in-class B2B marketers will take advantage of both SIC and NAICS codes: 

• Create Lists According to ICP: Before launching an ABM campaign, marketers can filter target accounts across industry classification to ensure they are in alignment with their revenue strategy. 
• Advance paid media efforts: Advertisers leveraging LinkedIn, Google Ads, and third-party syndication platforms will use SIC/NAICS codes to build audiences. By properly, efficiently, and effectively utilizing the industry-classification data to optimize targeting, B2B marketers can minimize wasting valuable, paid impressions on being discovered in other industries.
• Enhance CRM/intent data: Data providers like ZoomInfo/Clearbit typically provide SIC/NAICS codes as part of their datasets. This can assist marketers in consolidating their records across marketing automation platforms.
• Supporting Sales Enablement: When SDRs understand the industry being targeted, their outreach becomes focused. Rather than a general pitch to address any pain points, messaging can be constructed that specifically addresses an industry’s pain points.

The Future of Industry Classification in Marketing

The NAICS system is continually changing, with updates that reflect generations of specifically digital-first industries such as AI, fintech, and renewable energy. This historic separation of codes by industries allows B2B marketers to now take advantage of a higher level of targeting. 

At the same time, the emergence of a new generation of third-party intent data and AI-powered sales intelligence tools is rendering SIC and NAICS codes as merely one part of a more complicated puzzle. Rather than using classification codes as static pieces of an industry, the future of this data lies in combining classification code data with real-time buying signals, firmographics, and behavioral data.

Conclusion

SIC and NAICS codes are not just compliance labels for B2B marketers; they can be an invaluable resource in terms of smarter segmentation and targeting. SIC has historic reach, while NAICS is specific, using what’s needed in today’s data-driven market. Organizations can incorporate these codes into ABM workflows, CRM systems, and intent-based campaigns to improve lead gen and grow quickly in competitive markets.

FAQs

1. Is SIC still being used?

Absolutely. Many legacy databases and older platforms continue to reference SIC, but NAICS is the primary system of record.

2. Which systems offer a better targeted offering for B2B marketers?

NAICS has more detail and is updated regularly.

3. How often will I see updates in NAICS codes? 

NAICS codes are updated every five years; the most recent release was in 2021. 

4. May I use SIC/NAICS codes together? 

Yes. Many marketers will map SIC and NAICS codes side-by-side to account for full coverage in both systems.

5. Do advertising platforms have SIC/NAICS targeting?

Yes, they do. Many third-party data providers and programmatic ad platforms permit segmentation based on industry codes.

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