Killing Marketing

1. Traditional marketing is dying; a new model is emerging

What if everything we know to be true about marketing is actually what's holding back our business?

Marketing is evolving. Traditional advertising and digital marketing are transforming, pointing towards a landscape where brands communicate directly with consumers. The old model of renting access to audiences through media gatekeepers is becoming less effective and more expensive. Companies are now realizing the power of building and owning their own audiences.

A new paradigm is emerging. This new model treats marketing as a profit center rather than a cost center. It focuses on creating valuable content experiences that attract and retain audiences, which can then be monetized in multiple ways. Companies like Red Bull, Johnson & Johnson, and Arrow Electronics are leading this transformation, generating significant revenue from their marketing efforts.

The shift requires new thinking. To succeed in this new paradigm, marketers must:

• Focus on building relationships rather than just selling products
• Create content that provides genuine value to the audience
• Develop new skills in content creation, audience building, and monetization
• Rethink marketing's role within the organization

2. The future of marketing is in building loyal audiences

The asset is the audience, and the content is what gets you to the asset.

Audience as the primary asset. In the new marketing model, the most valuable asset is not the product or even the content, but the loyal audience that a company builds. This audience represents a group of people who trust the brand, engage with its content regularly, and are more likely to become customers or advocates.

Content as the vehicle. High-quality, consistent content is the means by which companies attract and retain their audiences. This content should:

• Provide genuine value to the audience
• Address their needs, interests, and pain points
• Be differentiated from competitors' offerings
• Build trust and credibility over time

Long-term strategy. Building a loyal audience is not a quick process; it requires patience and commitment. However, the benefits can be substantial:

• Reduced marketing costs over time
• Higher conversion rates and customer loyalty
• Valuable insights into customer needs and preferences
• Multiple opportunities for monetization

3. Content as a business model: The new marketing strategy

Red Bull is a media company that happens to sell soft drinks.

Beyond content marketing. This new approach goes beyond traditional content marketing. It involves treating content creation and distribution as a core business function, not just a marketing tactic. Companies like Red Bull have built entire media empires alongside their product businesses.

Diverse content offerings. Successful companies in this model often develop a range of content types and platforms:

• Digital publications and blogs
• Print magazines
• Podcasts and video series
• Events and conferences
• Educational programs and courses

Integration with core business. The content business model should align with and support the company's primary products or services. It can:

• Enhance brand awareness and credibility
• Provide valuable customer insights
• Create new revenue streams
• Open up opportunities for product innovation

4. Monetizing audiences: Direct and indirect revenue streams

Once a loyal audience is developed, there are 10 distinct ways to monetize that audience.

Direct revenue streams. Companies can generate income directly from their audience through:

1. Advertising and sponsorships
2. Conferences and events
3. Premium content offerings
4. Subscriptions
5. Donations

Indirect revenue streams. The audience can also drive revenue indirectly by:

1. Increasing product sales
2. Improving customer retention
3. Enhancing cross-selling and upselling
4. Providing valuable data and insights
5. Reducing marketing and advertising costs

Diversification is key. Successful companies often use multiple monetization strategies, creating a diverse and resilient revenue model. This approach reduces risk and maximizes the value of the audience asset.

5. The marketing media savings model: Reducing costs through content

We can decrease sales costs by using content consumption as a means of helping sales have more relevant conversations with consumers.

Cost reduction opportunities. A strong content strategy can lead to significant cost savings across the organization:

• Decreased sales costs through better-qualified leads
• Reduced traditional advertising spend
• Lower customer acquisition costs
• Decreased research and development expenses
• Improved customer loyalty and reduced churn

Data-driven insights. Content engagement provides valuable data about customer interests and behaviors, allowing for more targeted and efficient marketing efforts. This can lead to:

• More effective ad targeting
• Personalized customer experiences
• Improved product development

Long-term efficiency. While initial investments in content creation may be substantial, the long-term benefits often outweigh the costs. As the audience grows and engagement deepens, the cost per customer interaction typically decreases.

6. Building a minimum viable audience: The foundation of success

Once you build your MVA, then you can start to diversify into other channels and test different monetization strategies.

Start small and focused. The concept of a Minimum Viable Audience (MVA) is crucial. It involves:

• Identifying a specific target audience
• Creating content that addresses their unique needs
• Building a loyal following before expanding or monetizing

Key indicators of an MVA:

1. Sufficient feedback and engagement from the audience
2. Organic growth through sharing and word-of-mouth
3. Clear insights into audience needs and preferences

Patience and consistency. Building an MVA takes time and requires consistent, high-quality content creation. It's important to resist the urge to monetize too early or to spread resources too thin across multiple channels.

7. Transforming marketing: Lessons from innovative companies

We are successful because of our commitment to an editorial approach.

Case studies in transformation. Companies like Zappos, Schneider Electric, and Life Time Fitness offer valuable lessons:

• Focus on delivering genuine value to the audience
• Be willing to experiment with new approaches
• Maintain a long-term perspective
• Integrate content efforts with overall business strategy

Common success factors:

• Strong executive buy-in and support
• Willingness to invest in quality content creation
• Flexibility to adapt strategies based on audience feedback
• Integration of content efforts across departments

Overcoming challenges. Transforming marketing often involves:

• Shifting organizational culture and mindsets
• Developing new skills and capabilities
• Balancing short-term results with long-term audience building
• Measuring success in new ways

8. The future of marketing: Challenges and opportunities

Marketing is definitely headed for a major transformation. If you think it has changed over the past five years, you ain't seen nothin' yet.

Ongoing evolution. The marketing landscape continues to change rapidly, driven by:

• Technological advancements
• Changing consumer behaviors and expectations
• Increasing competition for attention
• The need for more authentic and valuable brand interactions

Key challenges:

• Overcoming internal resistance to change
• Developing new skills and capabilities
• Measuring and demonstrating ROI in new ways
• Balancing short-term demands with long-term audience building

Opportunities for innovation. The new marketing model offers exciting possibilities:

• Creation of new revenue streams
• Deeper, more meaningful customer relationships
• Enhanced brand loyalty and advocacy
• Improved ability to adapt to market changes

The path forward. Success in this new era of marketing requires:

• A willingness to experiment and take calculated risks
• Investment in high-quality content creation and distribution
• A focus on building and nurturing audience relationships
• Integration of marketing efforts with overall business strategy

Last updated: September 11, 2024