Succeed Without Selling: The Rise of Content Marketing by Nicole Folgate

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Succeed Without Selling The Rise of Content Marketing

Nicole Folgate

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YYOOUURR AADDHHE ER R EE YYOOUURR AADDHHE ER R EE Succeed Without Selling: The Rise of Content Marketing

Succeed Without Selling The Rise of Content Marketing

Succeed Without Selling: The Rise of Content Marketing Copyright ÂŠ 2015 by Nicole Folgate All rights reserved. This book or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher. Printed in the United States of America.

Contents Abstract 5 Critical Paper

Research Paper

References 25

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Abstract This paper examines the rise of content marketing as a valuable and effective method of reaching consumers in a cluttered advertising environment. As consumers and buyer patterns change, traditional formats of advertising are declining in effectivity. Content marketing provides brands with a powerful tool that they can leverage to connect with their consumers on a deeper level; earning their trust and increasing the likelihood of repeat business. Content serves as a valuable business asset, is accessible, and easily shareable. As consumer behavior and buying patterns continue to shift, the necessity for content marketing will grow. Keywords content marketing, communication, advertising, audience, interactive

Succeed Without Selling: The Rise of Content Marketing

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Critical Paper Name someone who loves when a pop-up ad interrupts them while they read an online news article. What about someone who looks forward to commercials (excluding the SuperBowl, of course)? It’s hard, isn’t it? People typically dislike advertisements getting in the way of what they’re doing; whether it’s watching television, downloading an app, or reading an article. In fact, the average consumer is exposed to up to 5000 ad messages each day. In addition, the way people consume information and media is rapidly changing, making traditional advertising formats become either obsolete or ineffective. This shift is forcing marketers to adopt alternative formats to try and reach their audience. However, their efforts don’t always produce the results they’re looking for because even though advertisers are getting better at producing different types of ads, consumers are getting better at ignoring them. Ineffective advertisements and low conversion rates means less sales and wasted advertising dollars for businesses selling products and services. Moving forward, advertisers should

diversify their marketing strategy to include less traditional formats of advertising that create stronger connections with consumers and deliver better results. The strategies used in traditional advertising have been around for so long that they are becoming less successful in competing for the attention of consumers. One of the oldest formats of advertising is the print ad, whose popularity and effectiveness are declining. An increasing amount of people read news stories and magazines online, which limits the reach of print advertisements. In addition, the possibilities of print advertising don’t compare to the advantages that digital advertising formats have to offer. Its easier to track the success of a digital ad, they waste less paper, and can be easily updated. The print ad’s digital cousin, the banner ad, made its first appearance over two decades ago in 1994. Since its appearance, the banner ad has grown to command just about every square inch of blank space on a website. With that said, I believe that the banner ad is wearing out its welcome. Not only do banner

Succeed Without Selling: The Rise of Content Marketing

ads have disappointing click through rates, studies show that up to 82% of Americans ignore them altogether (Loechner). Plummeting click through rates and declining consumer interaction means that there’s a low return on investment for businesses who use banner ads. There are ways to improve the performance of banner ads, such as making them interactive, using attractive graphics, and conducting in-market testing. However, even the most well planned and dynamic banner ad can’t compete with the shifting technology that enables users to ignore advertisements. In just a few clicks, a consumer can install an ad blocking browser extension that spares them from the digital clutter that continually fills their browser screen. According to the Wall Street Journal, ad blockers threaten approximately $60 billion in the online ad space (Vranica). In fact, Apple just announced that iOS 9 will allow users to enable ad blocking— a feature that could cost mobile marketing up to $70 billion (Takahashi). Even without bannerblocking software, studies show that the average user can’t recall basic details in the advertisements they see online. This phenom-

enon is dubbed “banner blindness,” which is caused by either the overload of ads on each page or the intent of the user visiting the page. If a user visits a website with a task in mind, anything unrelated to that task (such as a banner advertisement) won’t grab their attention. To improve the chance of a consumer interacting with an ad, advertisers rely on insights to determine who should see each ad. That information comes from us—advertisers can use third-party cookies to look at an individual’s browser and purchase history, which gives them insight into the types of products the consumer will be interested in. In addition to third-party cookies tracking online activity, free services like Facebook and Google gather data from us that affects the types of ads we see. In fact, Google AdSense Advertising has a feature that gathers information about what a user interacts with online, allowing them to cater ads directly to each individual. People are concerned with how much of their information is being tracked and the amount of privacy they have online, especially since that information is being used to advertise to them. Privacy concerns lead to a negative association with digital advertising, which can also make people more likely to install ad blocking software. In the television world, reaching an audience through a commercial is growing increasingly difficult. With the option to DVR their favorite show or view on-demand, it’s easy for a viewer to fast-forward right through commercials. In addition, streaming companies like Netflix, Hulu, and Amazon Prime boast a commercial free viewing experience, often for a lower monthly price than a cable or satellite subscription. The appeal of online streaming services is pushing many consumers

Succeed Without Selling: The Rise of Content Marketing

“there are plenty of ways for them to ignore you” to “cut the cord” and cancel their cable or satellite subscriptions altogether. Online streaming will force advertisers reconsider how they approach television advertising and whether or not it’s the most effective use of their advertising budget. Though each format of advertising has its own downfalls, they do share some things in common. Beyond ad blockers, “banner blindness,” and shifting technology, there are psychological characteristics that contribute to the success or failure of an ad. One of the most important things a brand can foster with a consumer is a positive, trusting relationship. Studies show that 84% of millennials don’t like traditional advertising formats like print ads, television commercials, or banner ads because they don’t trust them (McCarthy). When they make buying decisions, they look to their friends, news stories, and online reviews rather than relying on an ad to persuade them into making a purchase. Furthermore, advertising as a whole is perceived as untrustworthy by the general population. Regardless of the format advertisers use going forward, it’s crucial that they foster a sense of trust between them and the consumer. The bottom line is that people don’t like to feel like they’re being sold to or manipulated. In addition to creating a sense of trust between brand and consumer, there needs to be an ongoing relationship between the two parties. Traditional advertising formats lend themselves to a one sided relationship: the ad attempts to persuade a consumer, the consumer either acts or doesn’t act upon the attempt, and the transaction is over. In that relationship, the brand is seeking to get something from the

WHY ARE THEY IGNORING YOU?

consumer without the consumer benefiting outside the purchase of a product or service. If brands looked to create an ongoing relationship with their consumers, there would be a stronger sense of trust between them. This would increase the consumerâ&#x20AC;&#x2122;s likeliness to purchase from that brand in the future. To improve the success of their advertising endeavors, advertisers need to reconsider the interactions that they have with consumers regardless of the format that they use. I strongly believe that without purging their marketing strategy of formats that donâ&#x20AC;&#x2122;t align with the values of their target audience, advertisers will be unsuccessful in building an ongoing and profitable relationship with consumers. Each day, their audience is bombarded with an extreme amount of advertising clutter that is vying for their attention. Going forward, they will need to implement more innovative ways break through the clutter. If a brand fails to earn the trust of a consumer and offer them value, its unreasonable to expect them to pay attention. After all, there are plenty of ways for them to ignore you.

shifting technology

FAST FORWARD

CORD CUTTERS

BANNER BLINDNESS

AD BLOCKING SOFTWARE

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Research Paper Consider the common consumption of an advertisement: a consumer is presented with an ad; then fast forwards, flips the page, or mutes it. The general population does not like the feeling of being sold to or interrupted— especially when they are being bombarded with up to 5,000 advertising messages each day (Story, 2007). Imagine what it would be like if consumers not only paid attention, but stopped and gave a brand their attention…on purpose. The reality is the advertising environment is dramatically shifting: traditional ad-

manage, and distribute it effectively for marketing purposes will affect business—its now just a matter of “how,” not “if” (p. 28). The Content Marketing Institute defines content marketing as the “marketing and business process for creating and distributing relevant and valuable content to attract, acquire, and engage a clearly defined and understood target audience—with the objective of driving profitable customer action” (Content Marketing Institute, n.d.). The glaring difference between content marketing and

vertising formats are declining in effectivity, consumers are getting smarter, and competition between brands is getting stronger. To survive in a competitive retail environment, brands are being forced to reevaluate their marketing strategy and purge it of ineffective advertising techniques like digital ads, print ads, and commercials. Content marketing has emerged as an effective way for brands to make a connection with their consumers and set themselves apart in a crowded environment. According to Robert Rose (2014), the Chief Strategy Officer of the Content Marketing Institute, “content and the ability to create,

traditional advertising formats is that the brand is not selling to the consumer outright. Instead, they take on a storyteller role by sharing insight or entertainment relevant to their target audience. Sharing content related to their area of expertise allows brands to position themselves as a force of authority and knowledge in their field, which eventually translates into increased consumer loyalty and trust. Content can be distributed in a seemingly limitless variety of formats such as blog posts, podcasts, videos, infographics, customized recipes, interactive games…the list goes on and on. The key is that each piece

Succeed Without Selling: The Rise of Content Marketing

“instead of focusing on the sale, they thought of their consumers” of content should be developed with the intention of adding value to a consumer’s life through educating, informing, or entertaining. Though implementing strategic content into a marketing plan can produce profitable results, it is crucial to understand what makes content effective. Anyone can publish an article or post a video online; it takes precision and strategy to leverage it to capture the interest of consumers. Understanding and appealing to a defined audience is imperative to the success of content marketing. If a brand fails to define their audience, it would be very difficult to develop content that leads to consumer trust and loyalty. In addition to being relevant to the intended audience, content should fit within the expertise that the brand specializes in. This will help reinforce a brand’s authority and expertise in their field, leading to increased consumer confidence when it comes to making a buying decision. The content should also be void of any sales pitch to sell a service or product. Content marketing is more indirect than traditional advertising: its purpose is to inform, not sell.

Though the usage of content marketing is currently on an upward trend, it is not a new approach. To John Deere, it is a 118-year-old source of customer loyalty and storytelling. They launched The Furrow magazine back in 1895, which is recognized as the first time content marketing was used in business. The Furrow is a brand magazine directed towards John Deere’s primary audience that publishes articles about running a farming business, new techniques, and stories. When The Furrow was first introduced, the concept was a contrast to the farming catalogs sold at the time. Instead of selling to their consumers outright, John Deere positioned themselves as a knowledgeable source of information that farmers started to turn to when they needed new farm equipment. Their strategy worked: by 1912 The Furrow reached a readership of over 4-million subscribers (Gardiner, 2013). John Deere’s approach worked because instead of focusing on the sale, they thought of their consumers. Providing farmers with a relevant source of information and tips earned their trust and ultimately, their repeat business and

loyalty. Today, the majority of their subscribers still prefer the print version of the magazine to digital and engage in heated eBay wars to collect back issues. The rapidly expanding digital environment of today provides advertisers the advantage of hundreds more advertising channels than Deere & Company had to choose from in 1895. They can publish media on a myriad of social networks and in various forms like videos, Graphic Interchange Formats (GIFs), or podcasts. These digital formats are easier for their consumers to share with their friends and can be accessed on multiple devices. The distribution and technology used for content marketing has evolved, but the focus remains the same: creating trust and providing value through the distribution of strategic content. Today brands like P&G, Microsoft, and Cisco have added content into their core marketing strategy (Content Marketing Institute, n.d.). In the The Columbia Journalism Review, Michael Meyer (2014) reported that Coca-Cola â&#x20AC;&#x153;spends more money creating its own content than it does on television advertisingâ&#x20AC;? (p. 26). Imple-

FIG. 1 the furrow APRIL, MAY, JUNE 1897

FIG. 2 the furrow october, november 1957

Succeed Without Selling: The Rise of Content Marketing

menting content into a marketing strategy will continue to grow in popularity as brands recognize its benefits and consumer behavior changes. The retail environment and consumer behavior of today is dramatically different than it once was. People make purchasing decisions differently as well: they rely on reviews, research products, or buy from their mobile devices while they are on the go. Despite the changes in consumer behavior and purchasing, advertising has not evolved with it. According to Robert Rose (2014) of the Content Marketing Institute, â&#x20AC;&#x153;consumers have changed, but marketing patterns havenâ&#x20AC;&#x2122;tâ&#x20AC;? (p. 28). Because consumers spend more time researching products before buying, enticing them via an advertisement does not fit within their buying patterns. Googleâ&#x20AC;&#x2122;s Zero Moment of Truth reveals that the average consumer interacts with up to ten pieces of content before they decide whether or not they want to buy something (Pulizzi, Epic Content Marketing, 2013). This is exactly where content fits in. Content marketing gives brands the opportunity to inform and educate a consumer about a product or service before they buy, which goes beyond what a traditional advertisement can provide. If a brand recognizes that a consumer is researching before they buy, they can provide the content that the consumer is looking for in that stage of the buying process. If a brand can catch the attention of the consumer at this stage, the likelihood that the consumer will buy from them goes up. When considering the benefits of content marketing, costs and return on investment can come into question. If a brand runs a television

“ A consumer interacts with up to ten pieces of content before making a purchase.” – Google’s Zero Moment of Truth

commercial, they pay for the the amount of time it will be viewed for and what network it will appear on. Once the commercial runs for the number of times it was paid for, it typically becomes unusable. Even if the commercial makes its way to YouTube or a brandâ&#x20AC;&#x2122;s social pages, the resources that went into creating have not been utilized to their full potential. The average banner, print, and television advertisements can be considered somewhat disposable. Content marketing, on the other hand, serves as a valuable business asset for the brands that use it. When a brand develops their own unique content, they will start to amass a library of media that can be reused and re-shared. In addition, they can control where the content gets distributed and how long it is available for. Kraft Foodsâ&#x20AC;&#x2122; recipe website is an excellent example of how content can serve as a valuable business asset. Kraft has developed an extensive library of recipes, videos, and tips that utilize their products. Their audience can visit their site to use meal planning tools, browse seasonal recipes, or learn new cooking

techniques. According to their Director of Data, Content, and Media, Julie Fleischer, their content performs four times better than their targeted advertising strategies (Neff, 2014). What Kraft has created works because it is relevant to their audience and provides them value. In addition to utilizing their content on their digital platforms, they have also developed a magazine called Food & Family. Food & Family is a magazine that used to be distributed free of cost, but is now only available to paid subscribers. Kraft has used their content to create a resource that their audience pays to have delivered to their door. If their subscription based brand magazine is compared to how much effort consumers put in to ignoring other types of advertising, it seems that Kraft is onto something with their content strategy. Both Kraft and John Deere demonstrate that keeping the consumer in mind is effective in capturing the attention of their audience. One of the greatest benefits of content marketing is the potential to create a stronger relationship between a brand and their consumers. Traditional advertising formats provide

little value to consumers: its objective is to sell, not engage. When a consumer interacts with a piece of well executed content, they gain something from the interaction. When compared to the short, limited interaction that traditional advertising formats provide, its easy to recognize why consumers favor it. A study by Roper Public Affairs (as cited in Devaney, Stein, 2013) shared that, “80% of business decision-makers prefer to get information via articles, not ads” (Devaney, Stein). When a consumer reads an article, they are making their own decisions and opinions about a company or product, which is unlike the relationship they have with an advertisement that they know is trying to sell them something. When an advertiser removes the components of their marketing strategy that lead to negative associations from their consumers, it should come as no surprise that the audience will respond positively. Consumers see so many commercials, digital advertisements, and junk mail that they have grown to not trust them over time. If each interaction a

consumer has with a brand is the brand trying to sell them something, after a while the consumer will likely be skeptical of anything they say. Lack of consumer trust occurs when brand is constantly interacting with the consumer in the interest of themselves, not the other way around. Each time a brand interacts with their audience, it is an opportunity to showcase their expertise and value. Content helps a brand establish trust because it is created with the consumer in mind, rather than in the interest of making a sale. In an interview with Joe Lazauskas (2015), Seth Godin shared that, “it’s been shown over and over again to be misguided—that in a world of zero marginal cost, being trusted is the single most important way to build a business” (Lazauskas). If a consumer begins to recognize a brand as a provider of value and relevant information, they’re more likely to trust them. When a consumer gives a brand their trust, they more likely to reward the brand with their continued loyalty, purchases, and referrals. The accessibility and value of distributing content as a form of marketing gives compa-

Succeed Without Selling: The Rise of Content Marketing

nies a favorable return on the valuable time and resources invested in creating unique content. Instead of hoping to catch the attention of a consumer as they browse Facebook or watch a television show, it is available whenever the consumer wants to view it. In addition, it is extremely difficult for an advertiser to anticipate exactly where their target audience will be, what channel they will be watching at a particular time, or what magazine they will buy. Content marketing offers them the opportunity to have consumers approach their content, rather than having the brand actively pursue the consumer via a commercial or banner advertisement. When a consumer is in the position to consume media on their own time, they are less likely to view it negatively or try to ignore it. Instead of spending additional money circulating advertisements, content is infinitely shareable. If a brand creates relevant, interesting content their audience is more likely to share it with their friendsâ&#x20AC;Śfor free. In traditional advertising, advertisers actively seek out ways to force people to consume their advertising, whereas

content marketing can make them want to consume it. Because content marketing is typically executed through a brandâ&#x20AC;&#x2122;s own channel, they have complete ownership and control of the platform and content. Free social media services can change their rules at any time, which has proved to be a risky investment for brands. Take Facebook, for example. All of the brands who spent extensive amounts of time and resources building a Facebook audience now have to pay to ensure their audience can see the content they share. If a brand publishes their own content via their website or a blog, they have complete control of the rules and can control what happens with the media they share with their audience. With all of the merits that content marketing offers, one might wonder where the profit and benefits come in. After all, crafting quality content can be expensive and it is typically distributed free of cost to consumers. The success of traditional advertising can be measured in impressions, click through rates, and conversions, but measuring the success

of content is more difficult. Rather than measuring the success of content like a traditional marketing experience, it should be measured in the amount of consumer trust and loyalty gained overtime, which is often more valuable than understanding the number of impressions or engagement. Content marketing is often referred to as a process, not as a singular campaign or short term marketing effort. Marketing techniques are in a constant flux as consumers and technology changes, which raises the question about the future of content marketing. Large corporations are currently implementing content into their marketing strategies in bigger ways, which could change how other advertising formats evolve over time. In Epic Content Marketing, Joe Pulizzi (2013) shared that Coca-Cola plans to evolve their content marketing strategy over time with the goal of using their media to “earn a disproportionate share of popular culture” and make a “commitment to making the world a better place” (p. 51). Their strategy extends beyond selling their beverage products and into some-

Content is measured in the amount of trust and loyalty gained over time.

Succeed Without Selling: The Rise of Content Marketing

thing that can create meaningful impact to society. In addition to seeing big corporations utilize content in more powerful ways, content will continue to become more mainstream and accessible for smaller businesses toâ&#x20AC; implement into their marketing plans. With that said, the future of content is not only dependent on how its usage evolves, but also on how the strategy behind creating it evolves to meet the needs of the shifting consumer environment over time. In conclusion, content marketing serves as a viable way for brands to shift their marketing strategy to meet the demands of the changing digital environment. The decline in effectivity with traditional advertising formats will increase the necessity of publishing content to reach an audience. Not only does content create a stronger connection with consumers, it also builds trust and helps gain consumer loyalty over time. A brand that utilizes content is able to control its distribution, availability, and audience reach. Using resources to create and distribute content is a better investment than the disposable quality

of television commercials, print advertisements, and digital ads. In the future, content will continue to grow as it is adopted more by small businesses and utilized in more meaningful ways across larger corporations. Content marketing serves as a consumer first approach that focuses more on sharing and providing value, which will continue to perform better than methods that take a sales oriented approach. Going forward, it will be difficult to ignore the value of communicating with content as a consumer first method that can be used to succeed without selling.

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Critical Paper References Loechner, Jack. Four of Five American Consumers Ignore Online Ads Most Frequently. Retrieved from: http://www.mediapost.com/publications/article/220101/four-of fiveamerican-consumers-ignore-online-ads.html McCarthy, Tami. Engaging Millennials: Trust and Attention Survey. Retrieved from: http:/ themccarthygroup.com/what-we-do/millennials_survey/ Takahashi, Dean. Ad blocking in Appleâ&#x20AC;&#x2122;s iOS 9 highlights rift over ads with app publishers Retrieved from: http://venturebeat.com/2015/09/04/ad-blocking-in-apples-ios 9highlights-rift-over-ads-with-app-publishers/. Vranica, Suzanne. Ad Blocking Is a Hot Topic for Marketing, Media Executives. Retrieved from:http://www.wsj.com/articles/ad-blocking-is-a-hot-topic-for-marketing-media executives1443259981

Image Sources Page 11: Microchip Icon created by Rabee Balakrishnan from the Noun Project. Retrieved from: https://thenounproject.com/search/?q=microchip&i=63762. Licensed under Creative Commons. Altered color from original. FIgure 1 (Page 15): The Furrow: April, May, June 1897. Retrieved from: https://contently/ com/strategist/2013/10/03/the-story-behind-the-furrow-2/ Figure 2 (Page 15): The Furrow: October/November 1957. Retrieved from: http://vizeumuk. trafficstaging.com/2013/05/The-Furrow-Magazine-1957.jpg

Succeed Without Selling: The Rise of Content Marketing

Research Paper References Content Marketing Institute. (n.d.). What Is Content Marketing? Retrieved October 1, 2015, from Content Marketing Institute: http://contentmarketinginstitute.com/what-is contentmarketing/ Devaney, T., Stein, T. (2013, January 23). Use Content Marketing to Boost Your Business. Retrieved October 25, 2015, from Forbes: http://www.forbes.com/sites/cap talonespark/2013/01/23/tell-dont-sell-use-contentmarketing-to-boost-your business/ Gardiner, K. (2013, October 3). The Story Behind “The Furrow.” Retrieved October 15, 2015, from Contently: https://contently.com/strategist/2013/10/03/the-story-behind-the furrow2/ Godin, Seth (2009, February). The Tribes We Lead. [Video file]. Retrieved from: https://www. ted.com/talks/seth_godin_on_the_tribes_we_lead/transcript?language=en Huber, M. (2015, September 1). Why you Need a Content Marketing Budget for 2016. Retrieved October 9, 2015, from Vertical Measures: http://www.verticalmeasures. com/contentmarketing-2/why-you-need-a-content-marketing-budget-for-2016/ Jutkowitz, A. (2014, July 1). The Content Marketing Revolution. Retrieved October 25, 2015 from Harvard Business Review: https://hbr.org/2014/07/the-content-marketing revolution Kraft Heinz Company. (n.d.). Kraft Recipes. Retrieved October 29, 2015, from Kraft Recipes: http://www.kraftrecipes.com/ Lazauskas, J. (2015, February 6). Transcript from ‘You Need Editors, Not Brand Managers’: Marketing Legend Seth Godin on the Future of Branded Content. Retrieved October 10, 2015, from Contently: https://contently.com/strategist/2015/02/06/you-need-editors-not brand-managers-marketing-legend-seth-godin-on-the-future-of-branded-content/

Meyer, M. (2014, November/December). The Wolf at the Door. Columbia Journalism Review, 53 (4), p. 24-29. New York, NY: Columbia Journalism Review. Neff, J. (2014, September 10). How Kraft Uses Content to Drive Its Broader Marketing Effort Retrieved October 10, 2015, from Advertising Age: http://adage.com/article/best practices/kraft-content-drive-broader-marketing-effort/294892/ Pulizzi, J. (2013). Epic Content Marketing. United States: McGraw Hill. Pulizzi, J. (2012). The Rise of Storytelling as the New Marketing. Publishing Research Quarterly, 28 (2), 116-123. New York, NY: Springer Science+Business Media, LLC. Rose, R. (2014, November). Content Marketing Forecast. EContent Magazine , 37 (9), p. 28. Rowley, J. (2008). Understanding digital content marketing. Jounal Of Marketing Management 24 (5/6), 517-540. Oxfordshire, OX: Routledge. Scott, D. M. (2013). New Rules of Marketing and PR: How to Use Social Media, Online Video, Mobile Applications, Blogs, News Releases, and Viral Marketing to Reach Buyers Directly (4th ed.). Somerset, New Jersey: John Wiley & Sons. Sheldrake, P. (2011). Business of Influence: Reframing Marketing and PR for the Digital Age. Hoboken, New Jersey, United States: John Wiley & Sons. Story, L. (2007, January 15). Anywhere the Eye Can See, Itâ&#x20AC;&#x2122;s Likely to See an Ad. Retrieved October 25, 2015, from New York Times: http://www.nytimes.com/2007/01/15 business/media/15everywhere.html?

Succeed Without Selling: The Rise of Content Marketing