Content Marketing vs. Traditional Advertising
According to the Custom Content Council, in 2012, 68% of CMO’s will be increasing their budget for content marketing. While big and small companies alike are seeing the shift, smaller companies are devoting a higher percentage of allocated budgets toward content marketing:
- 34% of a company’s advertising budget with ten or less employees goes toward content marketing.
- 26% of the advertising budgets of companies with 1,000 or more employees is going to content marketing.
There are numerous reasons for this shift, and one of them is that technology has changed consumer behavior. Consumers today aggressively search out information about your industry online. According to Ryan Northover of Hatchd.com, before making a purchase decision, consumers now search out 10.4 sources of information vs. 5.3 back in 2010, when just 30% of consumers had Smartphones. This is rapidly changing the face of marketing and creating the necessity for content systems that engage, inspire, educate and inform information seeking consumers.
Here are 5 compelling reasons why you need a clear and robust content marketing strategy today, in comparison to traditional media advertising :
A Nielsen survey of OECD consumers found:
- Only 10% said they trusted messages from display advertising.
- However, 90% said they trusted brand recommendations from friends or users they trusted online.
2. More Lead Conversions
Traditional advertising methods are generally directed to a broader audience, while content marketing’s ‘narrowcasting’ strategy focuses on a smaller, core group of potential, high quality consumers. As a result:
- Content marketing can convert 30% more organic traffic into high quality sales leads, according to MarketingSherpa (See case studies here)
- Content marketing is aimed at high value customers who will return for more content.
- Content marketing produces 3 times more leads per dollar than SEM and costs 30% less, according to Kapost & ELOQUA (ebook here)
3. Greater Influence Over Consumer Decision Making
A study by McKinsey Consulting shows that consumers are already well along in the sales process when they engage directly with a brand. Traditional advertising aiming for brand recognition may occur far too early in the sales process to make a difference at a critical juncture in the decision process. Additionally, heir search is more focused, targeted and active. According to a Roper Public Affairs study cited in Forbes:
- 80% of business decision makers prefer to access company information via a series of articles over advertisements.
- 70% of decision makers said content marketing made them feel closer to the brand.
- 60% said content marketing helped them make better purchasing decisions.
4. Enhanced SEO and Social Media Effectiveness
Search engines are steadily improving in delivering the right information to seekers of content. And as today’s search engines heavily weight relevance, social sharing and link buzz, the more engaging, shareable and targeted your content is, the better your SEO rankings will be.
Content is also the basis of social media strategy, because compelling content is what drives consumers to engage with your brand on social networks.
5. Greater ROI
Expensive paid advertising campaigns typically only run a few weeks. Content can last for a much longer time, which enhances your return on investment. Revisions in content marketing can keep it relevant even longer. Content marketing can also generate earned media because users and media outlets may share your content to many more users, potentially producing millions of dollars in free brand exposure.
“Content Is Queen”
Because good content marketing aims to help, inform, inspire and entertain a more skeptical, engaged and demanding audience, it is not experienced as a pressure pitch or disruptive. This is why major brands are heavily investing in content marketing. This helps brands capture mind share and position themselves as leaders in their category.
But if content is queen, it also demands to be treated as one. Content strategy requires many months of planning and strategic development to build the most effective content platforms, inventory and engagement streams.
Overcoming the Challenges
According to a Marketing Profs & Content Marketing Institute study in 2012, the top 5 reported challenges are:
- Producing enough content: 29%
- Producing the kind of content that engages: 18%
- Lack of budget: 14%
- Lack of buy-in / vison: 7%
- Lack of knowledge, training, and resources: 6%
Overcoming these challenges requires ownership, consistency and measurement.
1. Ownership: Some committed organizations have appointed a Content Marketing Officer to drive these efforts and to be accountable for their success. As companies are slowly but surely becoming their own media, they will have to appoint an Editor in Chief responsible for overseeing this part of Marketing, and managing internal as well as outsourced resources.
2. Consistency: It takes consistent efforts to build a captive audience through the creation of a body of content worthy of the attention of search engines and of your target audience. Understanding what content types and what channels create the most engagement and generate leads takes consistent effort and experimentation. Generating interest and engagement for your brand, products and services requires a commitment to sustained and continuous investment in producing various types of content on a regular basis. By way of illustration:
- A HubSpot study demonstrates that at least 6 to 8 blog posts are required to be published every month for a website to start seeing a leap in the amount of traffic and leads generated.
3. Measurement: Naturally, the defined success metrics (KPIs) will vary according to the market, media and product. However, the ROI of content marketing is generally defined not by generic Web activity metrics, but by a sales conversion funnel.
A typical conversion funnel could look like:
Step 1: user lands on homepage
Step 2: user reads a blog post
Step 3: user reads a product or service page
Step 4: user fills in a contact form
Defining performance in terms of web activity such as overall visitors and pages views of a website won’t reflect performance as much as much as measuring how many users start at step 1 (arrive on a landing page) and progress to step 4 (conversion).
Takeaways: As shown above, the realities of today’s markets demand that a very focused and robust content marketing effort is put in place for an organization to position themselves as a thought leader, differentiate themselves in a crowded market space, and reach the buyer at the critical stage in the purchase decision process to make a difference and drive conversions. Since companies are struggling beneath the weight of the sustained effort needed to become thought leaders through content marketing, investment in dedicated resources is increasingly recognized as indispensable.