The Content Marketing Revolution

Slovenia 20th September

Content Revolution

Three audiences

• Agencies

• Clients / Brands

• Consumers

• Content Marketing

• Print

• Digital

• Mobile

• Attract spend to the customer publishing/content marketing

industry from other initiatives

• Start owning the content space

• Multichannel and integrated solution: magazines (including

posted messaging) and digital

• Prove the effectiveness of content marketing

• Inspire and educate brands

• Unite all members – power of working together

CMA Objectives

• The art of telling stories about a brand = consumer engagement

• Serialisation versus tactical campaigns• Content & convergence• Reach v. results• Clients increasing want to own the dialogue with consumers• Earned media v. paid media• Monetisation of content• Integration of content • CMO officer positions • Its all up for grabs – but only content agencies really get it

= journalism skills

Content Marketing – key trends

The Market Place

Marketing Overview – quality free content

The agency view

• Revenues are rebounding upwards

• Print aficionados become multi-media

cognoscenti

• Digital is creating industry resilience

• Genesis of advanced digital media

• Print has a place and still is healthy

(paginations, titles)

• In tough times agencies have worked more

efficiently

• A sense of cautious optimism pervades

Key findings in the report

2003 2004 2005 2006 2007 2008 2009 20101700

1800

1900

2000

2100

2200

2300

0

100

200

300

400

500

600

314344 352

420

473502

454483

GDP(in $bn)

Agency turnover (m £)

Today revenues are rebounding from a 2009 low

£m £m £m £m

Total press

Direct mail

InternetCustomer publishing

2005 6,797 2,371 1,367 3522006 6,523 2,322 2,016 4202007 6,439 2,171 2,813 4732008 5,713 2,040 3,350 5022009 4,386 1,686 3,541 4542010 4,302 1,712 4,097 483

% change 2005-10

-36.7 -27.8 200 37%

2005 2006 2007 2008 2009 20100

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Total press

Direct mail

Internet

Customer pub-lishing

In an advertising context, the sector is outperforming

Source: APA Member Survey/Mintel Research Consultancy

Digital reach: websites are updated frequently showing commitment to fresh content

One in three websites is updated daily

Source: APA Member Survey/Mintel Research Consultancy

Content is being delivered in a more integrated way than ever before

Source: APA Member Survey/Mintel Research Consultancy

Print titles are dominated by Retail/distribution

Source: APA Member Survey/Mintel Research Consultancy

Where does this leave print?

Digital will continue to grow, although no doubt print will remain an important component in the mix for a good period yet.

It is also important to note that for the time being at least there are many occasions and markets where a magazine solution remains the correct and only solution for a brand’s customer communications.

Things may change over time, but right now we know from reader surveys and consumer feedback that the vast majority of customers like to be inspired via the tactile medium of print.

Source: APA Member Survey/Mintel Research Consultancy

Digital future: A selection of verbatim

As patterns of media consumption change digital communications offer a range of ways to engage with customers. Their strengths include interactivity, immediacy and the ability to fuse different media together and personalise messages.

And of course these channels are vital to reach digital natives and those consumers for whom print has lost its pre-eminence.

The future’s digital. For clients where we publish a traditional magazine format, we are invariably also providing a digital element. We have invested a great in the digital team and expertise and have begun creating tablet apps for clients.

There’s been more of trend for clients to move to digital, not because they believe it generates a higher return, but because it saves on print and postage costs.

Brands

500 omnibus interviews with higher/Intermediate managers

who make key decisions about Marketing

---

Fieldwork dates: 06.06.2012 - 08.06.2012

---

43% of the sample were aware of the split of their marketing

budget apportioned to content marketing

The Approach

Content Marketing is multiplatform

Content Marketing works for brands

0-5%

6-15%

16-25%

26-40%

41-55%

56-70%

71-85%

86-100%

25%

22%

23%

17%

6%

6%

1%

1%

Base: All respondents aware of budget allocation (218)To the nearest per cent, what percentage of your total marketing budget is apportioned to the creation and dissemination of content?

Content Marketing spend now accounts for a fifth of total marketing budgets.

Average % devoted to content marketing: 21%

Budget split devoted to content marketing

Base: All respondents aware of budget allocation (218)Do you expect your content budget to increase over the next 12 months?

73 per cent of marketers will increase or maintain their content marketing budgets over the next 12 months

Increase significantly

Increase slightly

Stay the same

Decrease slightly

Descrease significantly

5%

17%

51%

12%

4%

73%

DK = 11%

Content Marketing revenues grow in next 12 months

Base: All respondents aware of budget allocation (218)Do you expect your content budget to increase over the next 12 months?

Digital clearly the future for content marketing, but 1 in 4 advertisers will still be looking to customer magazines as a key way to connect with

consumers

Content-led websites

Branded mobile / tablet apps

Customer magazines

Email newsletters

Branded games

Branded TV

Mobile enabled websites

Content-led microsites

Tablet content

Branded Radio

Content led e-tail/m-commerce

Branded video/viral

E-zines

37%

30%

25%

22%

15%

13%

13%

9%

9%

8%

6%

5%

3%

Share of mentions:Digital: 76%Mobile: 30%

Traditional: 23%

Note: Mobile included in digital %

Digital growing, but magazines still holding firm

• Over 20% of budgets will be devoted to content marketing

• With this amount likely to increase year on year

• Digital is a clear driver of new activity, but magazines will still

have a vital role to play for a large number of advertisers

• Five per cent of marketers think their content budget will

increase significantly in 2013

• The industry is on track to meet Mintel’s prediction to reach

£1 billion by the end of the year

Key conclusions

Key conclusions

Content Marketing helps the client

Consumers

• 1049 interviews with UK Adults aged 16+ conducted

by PanelBase

• Fieldwork dates: 06.06 - 08.06.2012

• Quotas set to ensure the sample is nationally

representative

• 49% Male / 51% Female

• 31% 16-34 / 34% 35-54 / 35% 55+

The Approach

Content marketing helps the consumer

Does the concept of content marketing make sense to

consumers?

---

Do people consume content marketing?

---

Do people find content marketing appealing?

---

Does content marketing have any impact?

Four key areas to cover

Two thirds of consumers see content marketing as a natural approach for brands to engage with consumers

64% agree 9% disagree

Source: PanelBase / Base: UK Adults 16+ (1049)Thinking of content produced by brands in general, can you tell us if you agree with these statements comparing it to conventional advertising?

‘It makes sense for brands to speak to consumers and tell stories via specially created content’

Content marketing felt to be logical approach for brands to take

Three quarters of adults believe content is a strong platform for brands to highlight key elements of their product portfolio.

73% agree 6% disagree

Source: PanelBase / Base: UK Adults 16+ (1049)Thinking of content produced by brands in general, can you tell us if you agree with these statements comparing it to conventional advertising?

‘Creating interesting content is a great way for brands to promote specific products and services’

And is felt to be a great way to showcase what a brand has to offer

To give me up-to-date product news

To improve my knowledge of the brand

To provide advice to make my life easier

To entertain me*

None of the above

71%

50%

50%

40%

8%

58%

45%

45%

39%

13%

Visual content

Articles / features

Only 8% of UK adults do not want to be communicated to by brands in any of the ways outlined below

Source: PanelBase / Base: UK Adults 16+ (1049)How do you want brands to talk to you …?

66% of 18-34 Adults want to be entertained

by visual content

A wide range of ways to communicate with consumers

Over 4 in 5 enjoy relevant content that is delivered to them from brands

‘I like reading content from brands when it is relevant to me’

Source: PanelBase / Base: Monthly print readers (612)We'd like to know whether you agree with these statements regarding magazines that you buy at newsagents and those that are produced by brands.

82% agree 3% disagree

Above all, relevance is vital to enhance relationships

70% of UK adults consume at least one piece of content marketing on a monthly

basis

Source: PanelBase / Base: UK Adults 16+ (1049)How often would you say you read these types of titles / visit these type of websites / use or play these??

Over 2 in 3 UK adults consume content marketing every month

38%

20%

12%

14%

16%

38% consume print and digital each month

20% consume print only each month

12% consume digital only each month14% consume less often

Only 16% never consume

70%

58% of UK adults consume content marketing via print every month / 50% consume content marketing

digitally every month

Source: PanelBase / Base: UK Adults 16+ (1049)How often would you say you read these types of titles / visit these type of websites / use or play these?

Consumed across a range of different platforms

Source: PanelBase / Base: Monthly content marketing consumers (737)Would you say that when reading content produced for you buy a brand you are more likely to be considering purchases / products than if you were reading 'regular' non-branded content?

72% of content marketing

consumers feel they are more likely to consider

purchases when reading compared to non-branded content

The nature of the content predisposes consumers into a consideration mindset

4 out of 5 content marketing consumers recommend products and services to others – extending the footprint of the activity

Source: PanelBase / Base: Monthly content marketing consumers / non-consumers (620 / 221)In general, how often do you recommend products and services to friends / family / colleagues?

42% of non-consumers recommend to others

80% of content marketing consumers recommend products to others

Index = 190

And are more likely to recommend to others

‘It has a positive impact upon my purchase

decisions’53%

agree

8% disagr

ee

‘Makes me want to buy products from the featured

brand’

Playing a dual role of increasing brand equity and driving awareness of new products and services

Source: PanelBase / Base: Monthly content marketing consumers / non-consumers (727)Thinking about content produced by brands, which of the following would you say applies to you as a consumer?

55% agree

10% disagr

ee

...and has a major role influencing purchase decision making

Consumers – printed content

32%

Mean % of overall magazine reading time spent with titles published by a brand

Source: PanelBase / Base: Monthly print readers (612)Thinking of all of the time you spend reading magazines, what percentage of that time is spent reading magazines published by a brand?

Strong showing for share of media time

59%

are more likely to notice products and promotions in a magazine produced by a brand

compared to a single advert in a 'normal' magazine

Source: PanelBase / Base: Monthly print readers (612)We'd like to know whether you agree with these statements regarding magazines that you buy at newsagents and those that are produced by brands.

Which ultimately delivers more than conventional advertising

Consumers – digital content

72% agree

7% disagre

e

Source: PanelBase / Base: Monthly digital users (526)We'd like to know whether you agree with these statements below regarding websites that are produced by brands?

‘I trust content on a website if I know the

brand involved’

71% agree

6% disagre

e

‘I'm positive towards brands that deliver relevant content to

me online’

44% agree

17% disagre

e

‘The content on websites produced by brands is of similar quality to 'normal'

websites’

Quality digital content

59%

are more likely to recall products and promotions on a website produced by a

brand compared to a normal online advert

Source: PanelBase / Base: Monthly digital users (526)We'd like to know whether you agree with these statements below regarding websites that are produced by brands?

Which ultimately delivers more than conventional advertising

Consumers – mobile content

• 952 users interviewed using survey software on their iPad

• 48% from Europe, 35% from North America

• 19% 15-24 / 47% 25-39 / 30% 40+

• Fieldwork conducted between 18 March – 8 April

Source: Dres Consulting

Research approach

• Over a third are considering buying another Tablet PC in the next 12 months

• Brand Loyalty: 70% wouldn’t even consider swapping their iPad for an new alternative tablet brand for free

Source: Dres Consulting - Base: All Respondents (952)

• 79% of those would consider buying an iPad2

Users are committed to their iPad

4%

8%

18%

30%

27%

9%

Less than 5 minutes

5-14 minutes

15-29 minutes

30-59 minutes

1 – 2 hours

2 – 4 hours

5 – 8 hours

Over 9 hours

95% use their iPad at least once a day

Average usage of 2h 17m each day

Source: Dres Consulting - Base: All Respondents (952)

Once you’re hooked

26%Mean % of overall online / time

using apps spent with sites / apps published by a brand

Source: PanelBase / Base: Monthly digital users (526)Thinking of all of the time you spend online or using apps what percentage of that time is spent reading magazines published by a brand?

Strong showing digitally

Games

News

Social Networking

Books

Utilities

Productivity

Entertainment

Music

Lifestyle

Magazines

Newspapers

Travel

Photography

Sports

Medical

85%

76%

69%

67%

67%

63%

62%

58%

54%

51%

50%

45%

41%

34%

22%

55%

35%

32%

31%

23%

19%

19%

18%

16%

16%

12%

11%

11%

10%

4%

Like Best Have

The range of genres shows the versatility of the iPad as a communication tool

Source: Dres Consulting - Base: All Respondents (952)

Apps: Play, Inform, Communicate

• 84% of users have 10% or less of their apps in association with brands

• Over 1 in 4 do not own a ‘branded content’ app

• 67% would like brands to produce more interesting or exclusive content for their iPads

Source: Dres Consulting - Base: All Respondents (952)

Opportunity – The branded content ‘gap’

Lifestyle

Games

Entertainment

Productivity

Utilities

Sports

News

Social Networking

Magazines

Music

Travel

Games

Newspapers

Books

Photography

Medical

39%

38%

27%

23%

22%

22%

22%

20%

19%

18%

15%

14%

14%

11%

9%

7%

The key to success is to create content that is relevant, fun and informative

Which areas should brands get involved in when creating new apps?

Source: Dres Consulting - Base: All Respondents (952)

Where should brands get involved?

As a result of using an app users have...

• have recommended an app to family/friends (61%)

• visited the developer’s/brands website (33%)

• considered buying a product or service (29%)

Source: Dres Consulting - Base: All Respondents (952)

Driving future actions

iPad users are committed enthusiasts and brand loyal

Once you’re hooked... 57% use their iPad for at least an hour every day

Content is King: Willing to pay for apps but would rather have free branded apps with no advertising

Presents great opportunity for brands to produce free branded apps with relevant, fun and entertaining content

Brands can maximise on the powerful word of mouth association with a positive and creative app

Source: Dres Consulting

Tablet summary

… reaches a mass audience70% coverage of UK Adults each month

---… works across a number of different platforms

Both print and digital deliver incremental reach (alongside building frequency)---

… is a natural route for brands to takeSeen as a logical route for brands to reach consumers

---… is appropriate environment for brands

Felt to be a great way to promote brands and services---

… is consumed in depth by consumersBoth print and digital take up significant chunks of consumers media time

---… meets key objectives for readers approval

Trust and relevance is vital to deliver engaging content across all platforms---

… delivers beyond the normContent marketing is more memorable than conventional advertising

Content Marketing...

… provides a purchase mindsetConsumers are more likely to consider purchases when engaged with content

marketing---

… drives recommendations80% of content marketing consumers recommend brands to others

---… broadens a brands footprint

Regular content marketing consumers are 62% more likely to follow brands on social networks

---… increases brand favourability

61% of content marketing consumers agree it increases brand positivity ---

… influences purchase decisionsOver 1 in 2 content marketing consumers says it has a positive impact upon

purchase decisions

Content Marketing...

The Content Marketing Association

julia.hutchison@the-cma.com

www.the-cma.com