In this episode, Robert and I look at the ridiculous valuation of the Snap Inc. IPO — can it be sustained? And will advertisers buy in? We wonder whether media companies truly have a problem with trust, and debate whether their next big opportunity will lie in the hands of brands. Then, we discuss the MarTech industry and why its leaders need to unite to conquer Facebook, Amazon, and Google. We share rants and raves on BuzzFeed’s Tasty brand and McKinsey; then we wrap up with a spicy example of the week on Chili Klaus.
This week’s show
(Recorded live on March 6, 2017; Length: 1:04:44)
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1. Notable news and upcoming trends
Snap Inc. shares begin trading (10:35): The Wall Street Journal reports on Snap’s trading debut last week, which valued the company’s IPO at $24 billion — 93 times its revenues. We both agree that its stock prices will have to come back down to earth, eventually; but will Snap turn out to be a successful long-term play? Robert is cautiously optimistic, but says they will need to evolve the “camera company” idea into a viable business model fairly quickly, as they won’t be given the same leeway Facebook had during its IPO.
Media companies may no longer control distribution, but they do control trust (21:17): A new post on MediaShift uses the decline in consumer trust to support an argument that media companies should be trying to compete with social media at the business-model level, not the content-model level. The article contends that producing content solely supported by online advertising is no longer sustainable for media companies; however, traditional media does have one advantage worth exploiting: trust. The big takeaway I see here is that every piece of content either side produces needs to be truly valuable — a position that Robert and I are certainly no strangers to championing.
Why MarTech companies should be terrified of Facebook, Google, and Amazon (32:21): An article on Contently ponders whether the MarTech industry will soon face the same growing pains that have impacted online advertising, where revenue rose by 21%, year-over-year, but 90% of those gains were attributed to the industry’s “duopoly” of Facebook and Google (according to the IAB). Robert agrees with the majority of Scott Brinker’s assertions that MarTech vendors will be battling industry behemoths like Amazon and Google rather than competing amongst themselves, though he sees it happening for an altogether different reason.
2. Sponsor (41:08)
Content Marketing Institute’s 2017 Events: Whether you are just getting started with content marketing or are looking to take your expertise to the next level, CMI’s portfolio of events has you covered. Enrollment is now open for the new semester of Content Marketing University. We’ve launched an all-new program for 2017, but the spring session is limited to 500 learners, so don’t wait to secure your slot. Use the code PNR100 to get a $100 discount on registration. Time is also running out to sign up for our strategy-focused Intelligent Content Conference taking place on March 28–30 in Las Vegas. And don’t forget to send in your submissions for the Content Marketing Awards. The entry period runs from now until April 21, so don’t delay.
3. Rants and raves (45:35)
Joe’s rave: This month, Fast Company magazine released its annual issue focused on the year’s most innovative companies. This is one of my favorite issues of all time; it’s a must-read for anyone who cares about content marketing and content strategy, since many of the examples relate to the business model of content. For example, BuzzFeed, which came in at No. 18, was recognized for launching Tasty: The Cookbook — a hard-copy collection of recipes that are completely customizable — which sold 100,000 copies in just a few weeks.
HANDPICKED RELATED CONTENT: The 4th Reason for Content Marketing: A Profit Center
Robert’s rave: Robert has become a self-proclaimed “geeky fanboy” of McKinsey of late, in part due to articles like this one, which talks about just how important marketing at the top of the funnel is becoming. According to McKinsey’s ongoing research, even the most ardent of brand fans are increasingly shopping around, which means marketers need to place more emphasis on engaging consumers who are forming an initial consideration set and providing them with distinctive value through content and media-driven experiences.
HANDPICKED RELATED CONTENT: Top 5 Lead-Generating Ideas for Your Content Marketing
4. This Old Marketing example of the week (55:24)
As part of my research for Content Inc. in early 2015, I interviewed Chili Klaus — one of the best-known celebrities in Denmark who rose to fame, in part, because of his love of chili peppers. Klaus parlayed his pepper passion, plus his prowess at performance art, into a booming business opportunity. Klaus once likened eating chili peppers to the experience of wine tasting; however, it is his humorous involuntary reactions to the heat factor in his favorite pepper varieties that have proven to be the intoxicating ingredient in his recipe for a YouTube channel. Based on the tremendous popularity of these videos, Klaus has been able to launch dozens of chili-related products under his personal brand. By finding a unique content niche and using it as the basis of his business, Chili Klaus serves as a This Old Marketing example of the week that has plenty of kick.
For a full list of PNR archives, go to the main This Old Marketing page.
Cover image by Joseph Kalinowski/Content Marketing Institute
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