Or, we've got the managing editors themselves. Now, these are people who can hold people to task. These are the people who manage the properties themselves, the online media product. These are usually people with journalism backgrounds who understand the project management, the workflow, and the capabilities that are needed to actually stand up a content marketing property. We have an amazing one in Michele Lin who is our VP of content, who manages all of the things related to our blog. 

It has her team really working to make sure that our content sings in managing all the different content contributors who actually contribute to our blog. Also, we have content producers-- the people who make it beautiful. Now in many cases, this might be an outsourced agency for you. It may be an in-house team. It may be some combination of the above. But a producer who can actually make and align things that are beautiful-- the white paper, the infographics, the video, the photography. Then we've got chief listening officers. We think this is an important piece of a content marketing team. 

And quite frankly, we're starting to see it more in media companies. Not only someone who can actually manage the social channels, but who can manage the strategy of the emerging social channels. In other words, what should we be doing on WhatsApp or what should we be doing on Snapchat or Twitter or LinkedIn or Facebook, and developing partnerships, strategies, and abilities for us to manage the social conversation in a way that helps direct content throughout the enterprise. I like to think of these folks as the air traffic controllers. 

They're not necessarily answering the question, but they're making sure that the conversation or the question gets directed to the right part of the organization. And then finally, and you'll see that we've disconnected this piece, actually, is the content creators themselves. Because these may be C level people, they may be managing people, they may be influencers, they may be freelancers, they may be journalists. These are the people that are creating the raw content that flows into our organization and actually helps us develop a core strategy for content production, helping us reduce the amount of content we're creating and reuse it, repackage it, re- synthesize it in a meaningful way. 

So where do we start with this? Find those pockets of excellence because those people will be your key people who can fill some of these roles. 

Somebody is doing this well in your company already. Maybe somebody is a great social person, maybe somebody is great with the email newsletter. Find these pockets of excellence and build upon them in your roles. And build one house, one street, one neighborhood at a time. Ultimately this group, this team, has a remit. And it's very focused. 

Content creation management-- creating the media properties, the thematically-aligned collection of assets that we want to create as a portfolio of what we're doing in content marketing.

The other is how we're going to create a function for content, a strategy for content. Put simply, it's not a campaign. It's a process that will ultimately build content products. That is what a content marketing strategy is-- a process that helps us build content-owned media products that drive multiple lines of value for the business. 

And once we've got that function defined, which we'll start to do today, is we're going to start doing things like writing the roles and responsibilities, making those roles and responsibilities real in the organization, formalize them. Writers that write will do so as part of their job. 

Content creators who create, editors who edit, developers who develop will do so as part of their job of creating these content and marketing-oriented products. It has to be a recognized strategy. It has to be a documented strategy. It has to be something that the business does as part of its operation. Figure out those official content responsibilities. 

Make a case for the liaison to the execution of whatever it's going to be. Make a governing body. Have your boss understand that what we're building here is a function, not just a project.

So let me give you a couple of examples of this. So we have many, many frameworks that we've seen in all of our histories at the Content Marketing Institute. And a few of them have weaknesses, strengths, and pros and cons. And so we'll go through a few of them here. 

So a center of excellence framework. When we look at this, it's a central area. So this is probably the least common these days, but maybe the most popular way of thinking about a content marketing group. Think of this as the content marketing department where there's going to be a fully realized function of content marketing in the business. So the strengths of this? 

You have a high degree of control. You've got people in there who focus on creating these content marketing properties, who focus on content marketing, who focus on aligning with the business. And it's very, very clear missions and very, very clear responsibilities. Now the weaknesses here are we've got to make sure that this doesn't yet become another silo, that it's not disconnected from the other marketing functions. 

And quite frankly, this becomes very hard to scale. We can't really scale it without actually building more teams, more processes, et cetera. But it can be very, very effective if you're looking to centralize the function of content marketing in an enterprise.

Or, another one is what we call the rebel framework. The rebel framework is how many organizations start with content marketing because each line of business or each function-- PR brand, demand, generation, et cetera-- basically launches their own content marketing initiative and works in their own line of business, in their own silo, to create content marketing strategies. This in many ways can be the best way to start because in many businesses it's the only way to start. 

If we're trying to get a committee together, if we try to get all these people together, it's just not going to work. So what happens is when we start processing this and creating a function over this, it becomes loosely siloed and connected groups that are working together on best practices. So the strengths of this start are it can be entrepreneurial in nature. 

It can be focused on brand-oriented or product-oriented groups like a multi-brand, like a P&G or a Unilever, something like this. Quite frankly, it can be a very great way of operating because the audiences don't overlap that much. But the weaknesses are plentiful in this. 

There's no leverage across these silos. There's no integration and no institutional learning here, no sharing. So each one fails or succeeds in its own silo. And the organization, the enterprise, doesn't benefit from the knowledge there. And so our favorite, the way that we'd love to see our organizations begin to develop, is what we call the integrated and/or hybrid network where content marketing as a process becomes an integrated function into the marketing strategy more broadly. 

And so where we're seeing that all sorts of integrations are happening, right. Lots of ears to the ground. We can take on a centralized process for some services, but leave the lines of businesses to create subject matter expertise or content for their particular line of business where necessary. Now the weaknesses here-- they're harder to build. 

There's a lot of politics here. Knowing where best practices end and begin, and knowing where content creators end and begin, and limiting the size so that it yet also doesn't become a centralized and/or become its own silo is really, really difficult here. 

Which one of these is right for you? That's for you to determine. But this is the key-- trying to figure out what we're building a business case here for is the function. Because these roles will turn into actual responsibilities. So when we see the responsibilities of content marketing really, really working, we see a few roles. One is the chief content officer. Now despite the title of this, this doesn't necessarily mean a VP or director or even a senior-level manager. 

And some of the companies we've seen, the chief content officer can be a manager who comes from publishing, maybe who comes with editing skills. But this is the person who can determine and synthesize all the sort of stories that are being mined out of the organization into something that is meaningful for the audience, into something. So they're usually a great project manager, usually a visionary, usually somebody who can manage all the different personalities and lead the strategy of content marketing more broadly.

What I want to talk about is the content marketing perspective. Because in many ways, one of the things that hold us back from creating a strategic function of content marketing-- not only just the collateral that we're creating to support direct marketing with a little less logo-- but quite frankly, 

we start with, what is it we are trying to say. And guess how much the customer values what we are trying to say? Not at all. 

They don't care what we have to say. They care what they care about. They care what values to them. And so if we can fundamentally shift the pattern of marketing, and content marketing specifically, to look at what valuable customer experience are we trying to create with our content and what value are we trying to deliver to the customer, and then figure out, working backward, if we're the ones that should be delivering that to them and how we might deliver it. We can always decide that we are not the right ones. That it doesn't match our brand alignment. 

That it doesn't match our product. That it doesn't match what we're trying to say to the world. But we can't start from, what are we trying to say to the world and figure out how to retrofit that into a message that customers will resonate with. That is a fundamental change in the way that we create content and the way that we think about content. So I'm hoping you'll take that forward as we start to think about it. Because I know we feel the pressure. Just like Steve felt the pressure. 

Just like we all feel the pressure and the frustration of where it is we are with marketing and where we are with trying to deliver content. Content marketing can break that pattern, just even the beginning stages of it. We are not creating a content strategy for business. We are creating a business strategy for content. The subtle difference there is very important.

We are creating a media platform. We are creating a product, something that will provide multiple lines of value to the business. Some of them will be direct marketing, campaign-related value. Many of them, quite frankly, will be business values that supersede or transcend marketing. 

So where shall we begin? How should we even begin to start to think about this, this function, this strategic approach to content marketing? Well, as I like to say, one of the best places to start is our sales process and where does it hurt the most. Where does it hurt the most in our business right now? Or for this particular line of business or for this particular product or this brand that we're trying to create? What is it that actually hurts the most? 

One of the favorite things I like to do is I'll draw the funnel-- the idealized funnel, that is-- with awareness and consideration and customer, and then upsell, cross-sell, loyalty, and advocate at the bottom. It's like, where does it hurt the most right now? Are we really trying to get the awareness of this new business or this new product? 

Are we really needing to arm our sales guys with better leads and better content so that they can actually nurture those leads because many of them are falling out? Are we actually trying to develop more loyalty or cross seller or upsell? 

Or are we trying to get people to advocate on behalf of our brand? Where does it hurt the most? And then ask ourselves, and take an honest assessment, our we actually starting from scratch, or are we actually trying to improve something that's already working? In many cases, we are already doing something. We have an email newsletter. We have a social program. 

We have a thought leadership thing. We're trying to develop better collateral for direct marketing. But quite frankly, it's kind of content in marketing, not really content marketing. It prints out on white paper when we print out that white paper, but it's not really very thought- leader if we were completely honest. It has a little less logo, but it's not really developing that emotional story. So is it content in marketing? Or is it actually good, because we may be producing some wonderful stuff? 

And we just need to figure out how to thematically align it so that it starts building toward a subscribed audience. Are we starting from scratch? Or are we actually doing something and look for that weakest point as an area of priority that we're trying to look at. That's the place to start. And then from there, establish a vision, not an entry campaign. 

We're not talking about marketing campaigns, anymore. We're establishing an entry vision for the thing that we want to build that will solve that part of the customer's journey, add value to their lives, and add value to the business. And the key thing to remember here is facts don't change beliefs. You can go to Content Marketing World. You can attend one of our masterclasses. 

You can view all of the classes in this particular online university. And you'll come away with the same thing. All these facts, if you put them into a PowerPoint presentation, are not going to change the beliefs of your boss. They're not going to change the beliefs. You have to go appeal to their emotions. You are going to have to appeal to their beliefs that this is going to actually work. How do we do that? 

Maybe it's a pilot program. Maybe you beg forgiveness rather than permission. There are multiple ways to get there, but you're building a vision for the future, not an entry campaign, not a marketing campaign. And the business case is really only one of two questions we're going to have to answer here.

Our challenge, then, becomes how do we break the pattern. How do we write the change? In the introduction to this class, I asked you to write something on a Post-it note that says what is the one change you must make. I'm sure it's one of the many patterns that must change. But that might be our most important one. That is how we can create the content-- how can we change first and break the patterns of marketing and creating content. That is the function.

So I'm going to play the video here in a minute. And this video is Steve Jobs. And Steve Jobs was a really interesting guy and, of course, a visionary in Apple. And this is a really interesting video because it takes place in 1997. And I think it's just a perfect metaphor for where we are in marketing today. Because in 1997, as many you know, many of you who saw the movie, and certainly many of you who have seen the documentaries and all the things about Steve Jobs, Steve was in a world of hurt. He had just come back from his sort of exile for seven years at Apple. 

And he's now been coming back as the consultant and ultimately would be the new CEO of the company, again. Now, in this video that I'm going to play for you, he's not even CEO yet. 

He's still a consultant with the company. But he's decided that he wants to come to the Worldwide Developers Conference in 1997 and basically do a Reddit-style ask me anything. And so all of these developers spend the next 45 minutes peppering him with questions about his future vision for Apple. He's just about to get a question here that I think is the perfect metaphor for marketing. 

We're going to play the video now. Here it comes. It's sad and clear that on several accounts you've discussed, you don't know what you're talking about. I would like, for example, for you to express in clear terms how, say, Java, in any of its incarnations, addresses the ideas embodied in OpenDoc. And when you're finished with that, perhaps you could tell us what you personally have been doing for the last seven years? You know. You can please some of the people some of the time. 

But one of the hardest things, when you're trying to affect change is that people like this gentleman are right in some areas. I'm sure that there are some things OpenDoc does-- probably even more than I'm not familiar with-- that nothing else out there does. And I'm sure that you can make some demos, maybe a small commercial app that demonstrates those things. 

The hardest thing is how does that fit into a cohesive larger vision that's going to allow you to sell $8 billion, $10 billion of product a year. And one of the things I've always found is that you've got to start with the customer experience and work backward to the technology. 

You can't start with the technology and try to figure out where you're going to try to sell it. And I've made this mistake probably more than anybody else in this room. And I've got the scar tissue to prove it. And I know that it's the case. And as we have tried to come up with a strategy and a vision for Apple, it started with what incredible benefits can we give to the customer, where can we take the customer. 

Not starting with, let's sit down with the engineers and figure out what awesome technology we have and then how are we going to market that. And I think that's the right path to take. I remember with the LaserWriter. We built the worlds first small-- Isn't that a great video? 

I mean, here's why I like that video so much and what Steve said there. There's a couple of things at play. The first is, how we actually even look at marketing more broadly, where we tend to look at things like, here's the product we want to sell into the marketplace. And how are we going to explain it in ever clever ways to convince people that it's the right product, without even discovering whether or not something that they need or not. That's a different story and for a different class.

Eduardo Conrado, who was kind enough and is the chief innovation officer at Motorola Solutions and wrote the book-- to Carla and my book, Experiences-- the Seventh Era of Marketing, said this really well. He did a really interesting thing. He said, if you're able to invest in systems of engagement, IT technology then becomes a differentiation in the marketplace. It's a really interesting point, right.

And what he did was he combined those two things. He said, sales, marketing, IT, you're actually all in the business of doing one thing-- creating a better customer experience. So guess what, you're all one department now. You're in the customer experience department. 

And as the chief innovation officer, he runs all of that. And so it unifies those groups together into a function that focuses on creating better customer experiences. Or how about Stephen Quinn, who is now the former CMO of Walmart who had created, as he said, our customers need innovation. And they need a customer focus. And so we have to focus on that. 

As he says his job is to protect the next from the now. And what he meant by that was he said he had the 70/20/10 split of investment of time, where he said 70% of the stuff we do is focused on today. 20% of the stuff we do is focused on tomorrow. And 10% of the stuff we do, the bandwidth, the hours that we spend, is focused on the future. And that's a really important thing as we start to think about how are we spending our time. 

From the way I see most marketing departments these days, 100% of our time is spent on yesterday. It's already late by the time it fits onto our desk-- that blog post, that white paper. We're already late with the social media thing. We have to get it out. We can't focus on tomorrow. We can't focus on the future. We can't event focus on making it great because it's already late. 

And that's what needs to change in the process. As Beth Comstock, who is now the vice-chairman of GE-- the vice-chair of GE-- as she said, which is so important, innovation is often deprecated at the expense of what is predictable. And we don't have to. 

Creativity doesn't have to be something that we put down. It is something we don't have to pit against the strategy of the business. And that's an important thing when we start thinking about this new thing called content marketing and how we make it an effective function in the business. 

We have to require the mental and physical space to be able to shape and smash these things to smithereens so that we can create new things. But here's the thing. 

We are still stuck in these old patterns. We still focus on reach and frequency as sort of the main drivers of content and how we use marketing strategies. We still think if a customer touches something three or four or five or six or 10 times, it's better. We do lead scoring by saying, how many times they touch a piece of content. If it's more than three, now they get a call from a salesperson. 

This is proving to be inefficient because what it's encouraging us to do is produce more content in the hope that people will touch it more, not that it means anything to their lives. The CEB actually found this out where they said it is a myth that the more that people touch your content, the more sticky or the more loyal that they become. 

And in fact, it works quite the opposite. As we create more content and then bombard our customers with more content, it adds the reason for them to become less sticky, less loyal. Without realizing it, we're adding to this information bombardment that we're putting onto our customers and suffering as a consequence. 

Hi. Welcome to Module 2 of the Content Marketing Institute's University Master Class. Module 2 here is getting to a strategic function. How do we actually start to think about a function of content marketing before we think about its form? And what I want to do there is I want to start by thinking, what holds us back. What is it that actually holds us back from using content more effectively in the business and especially for marketing purposes? And so, let's think about that for a second. 

We know that marketing is not getting any easier. So studies have recently shown that half of us, or half of the consumers, really switched services because of some poor customer experience. And I don't mean poor customer service. I mean a poor customer experience.

As I like to say, customer service is what happens when the customer experience breaks down. Half of the individuals-- consumers-- switched services. Think about how quickly now you change out your cellphone company or change out a service because you had a bad experience on their website, or you had a bad experience in their physical experience. 

We have a mandate now to create powerful customer experiences that add value to the products and services we offer. 23% of us-- only 23% of us-- feel like we have any relationship with any brand at all. Think about that for a second. Think about when you open up your refrigerator, right. You open up your refrigerator, and you look at all the different brands that are in your refrigerator. 

Or you open up the Start menu on your computer and you look at all the brands that are represented there. Think about when was the last time you went to any one of their Facebook pages and just wrote, you know what guys, I think you're doing a terrific job. You don't do that.

You might engage with their content, though. And quite frankly, interestingly, 75&% of studies have shown of adults would prefer that, quite frankly, their data isn't used at all. 

So using data and extracting data from customers is only going to become more complex, not less so. Marketing is going to get more complicated, more complex. And share of experience is the new goal. There's a wonderful study being done by the Association of National Advertisers, the ANA, called Marketing 2020, where they're going across the globe, in looking at all the different ways that marketing organizations are changing, from a functional standpoint, from the way that people organize marketing, from people, process, teams, all those kinds of things. 

One of the things that they found in studying brands that actually are forward-leaning and that really get it versus those brands that are lagging, are those that really get it are helping enhance their customer experiences by delivering content-driven customer experiences. And the ones that are really forward-leaning are personalizing those experiences. 

As they say, the most important marketing metric will soon shift from a share of wallet to share the experience. This is something that we're seeing in just all kinds of ways at the Content Marketing Institute and what we see with brands. This share of experience, the share of attention that we're getting from consumers, is really much more important than trying to grab their attention and persuade them to do something in time. And we marketers, quite frankly, we're making it up as we go. 

It's really true. 94% of us feel like optimizing the digital content experiences that we have would be a great thing. It would provide higher engagement, more conversions, better leads. But only 3% of us say that we have really the existing technology, processes, and teams to be able to do that.

97%-- almost all of us-- would see a dramatic increase in the breadth of skills needed. We're all doing things that we never did before. We're all signing up for Snapchat. 

We're all signing up for Meerkat and Periscope and all these things, trying to understand these new platforms and how our consumers will behave with them, and trying to figure out all these things that we've never had to do before. 97% of us are doing things that we've never done before and seen the increase in the breadth that we need to deliver those things. 

So marketing is getting more complicated. The patterns of marketing are changing. The question is, can we change the patterns. Can we actually change ourselves, not just the technologies that support it? So it's starting to happen, right. 

And also data append. They can actually look at the content of that you've consumed through that Academy and University, and use it to optimize their website to give you the better sales opportunities, and the more relevant products that you're interested in based on your content consumption. Customers ROI. They've created increased loyalty. They understand that people who go through the Academy will stay five times as long to their subscribed technology services. 

As well as increased lifetime value. They've seen a 10% increase in the average sales price and loyalty of a customer who goes to the Academy. Why? They're educated. They know what the product offers, they know what this company offers in its full regalia. And also business ROI. 

They've actually started to think about customer events in a regional, and they can actually look at all of those regions and say, you know what? If you target Atlanta you'll get this many because-- of if you target Seattle you get this many, and optimize their location for regional events by looking at their subscriber database.

All of these create value. Look at it another way. This is a conversation I'll often have with a CMO or CEO, and I'll say if you can create an audience, 

and if you create an audience in your database, what does your database consist of now? Probably, if you're like most organizations, it's a list of email addresses? Maybe we have 5,000, 10,000, 20,000 email addresses. But what if, instead, we had not only just a list of email addresses, but we had first name, last name, address, phone number because they wanted to give it to us because the content was so valuable. 

And I asked somebody, I said, hey, Mr. CEO, can you actually envision yourself creating something so valuable that you'd get that? 

Yes, I can, he said. Great. That means, and let's assume that they don't convert any more regularly than another option or another opportunistic lead that you would get through other materials. In other words, 5% to 10% would be the conversion rate. Let's just assume that it's the same as your conversion rate. That doesn't mean that that other 90% isn't valuable. 

You can get valuable customer research from them, you can test messages, you can do all kinds of things to generate other kinds of value, other than the lead value that they may provide. I might argue that they'd be a better leader, that they might be a more loyal lead, but let's assume that they're not even that. The value we can derive from the other 90% who never convert is huge for our business.

Think of it this way. Johnson and Johnson own BabyCenter.com. They know with the 4 million subscribers they have to BabyCenter, that moms planned the first birthday for their kid when their kid turns seven months old. That is so valuable for their brand managers who are trying to sell things like Tylenol and other kinds of things that they might want to sell. 

They know, by looking at their consumer data, because they've tested it, which message, sleep through the night, sleep tonight, sleep overnight, is actually going to resonate more. They're making better effectiveness on their ad creative by looking at the content consumption that's happening to their content property. And by the way, it's a separate division. As you can see on the screen, they're selling advertising. They don't sell it to competitors, but they're selling advertising to monetize and actually create value, business value for this property while it adds other lines of value to their marketing. This is the power of a content marketing approach, building it a thematic collection of assets.

A software company built an audience. And they, like many of us, we're just doing stuff. They're creating content here. Through the first and second quarters, they created all this content. And then they said, you know what, let's pivot just a little bit. We're going to pivot and create content that thematically aligns to what? 

For them, it was a physical event. And this physical event was going to be something where they could invite people to, so they basically focused all their content to building this event. Then that gave them a couple of lines of data. Really not a lot of campaign value, because it didn't provide that many more leads, but it built all kinds of insight into what kind of event, 

which thought leaders were going to be really resonant, which kinds of sponsors they might want to attract one day, what kinds of attendees would come to this event. So then they had the event, and it was a small little customer event that they had with some thought leaders, and some speakers, and a PowerPoint and all that kind of stuff. And of course, out of that came all kinds of content. Interviews with the thought leaders, interviews with the attendees, case studies, all kinds of content coming out of that event to build toward what? 

The 24/7, 365 days a year resource that is the embodiment of that event. What did that provide? All kinds of campaign value. You missed the event? Well, you might want to sign up for this webinar. You missed the event? Maybe you should get this presentation from this wonderful thought leader. Now are providing wonderful campaigns, also getting additional insight, etc, 

and as we build the content and we start building an editorial plan toward our second year of that event, well guess what? Now we're building business value because this company started to understand that the event was going to be twice as big in the second year. Now they can start to bring in some sponsors to help them offset some of those costs of putting on the event.

So a wonderful, multiple approaches to developing value using a content marketing platform to do so. What if we began with the end in mind? 

We begin with the end in mind. The most amazing resource center, the most emotional story, the most useful tool, a platform with the goal of building or retaining an audience. That is the business case for content marketing. 

That is your powerful means of reasoning for developing something that's going to add value to your business. So next up, in our next module, is going to be creating the strategic function. Once we've created a business case, now let's make sure that we're making a business case for the function, not just the form. And that will be coming up next.

How can we help those customers use our products more effectively? How can we give them how-tos, instructions for how they will become more loyal and advocate on our behalf. And ultimately, how can we provide physical business value? 

How can we create the decrease of customer service costs, or the decrease of media costs, or the decrease of anything that we're trying to do by offsetting that with revenue? We look at Red Bull, you look at Kraft, you look at some of these companies that are actually drawing revenue from the content that they're creating because it's valuable enough to do so, that's business value. 

An integrated approach to using content marketing to make everything we're doing in marketing better. And that's really it. Is it happening? Of course, it's really happening. As I mentioned, Kraft in Food and Family magazine, providing lines of value all across the business. 

Everything from campaign value, what they've been able to do there is using this content to help them serve programmatic advertising. 

Of course, they're doing digital ad buys, this is a huge piece of what they do for marketing and advertising. They've been able to create a 4x return on that programmatically ad buy, by using the data to target those ads to more people who consume content.

Data ROI. The audience that they're understanding better is actually enabling their brand managers to no longer have to buy external research. Their brand managers now cannot have to buy external research from research companies, because quite frankly, the data that Kraft has on that audience is better than they can actually get on the open market. 

So they can decrease their research costs by understanding their customer more intimately. Customer ROI. The subscription data that they have actually have been able to prove that they can create higher brand loyalty for those that actually consume the online recipes database and the Kraft Food and Family magazine, from those who don't. 

So looking at what subscribers do versus what subscribers don't do, they've been able to show that they convert coupons more, that they stay loyal to the craft brand longer, and they create customer ROI as a portion of that, and business ROI. They're getting revenue from it. They're actually making money from producing Kraft print mag-- Food And Family magazine, that gets in people's doorsteps.

Or how about a B2B company? A B2B company created multiple lines of value by creating an Academy, a university, a differentiated resource center. What did they do? They created campaign ROI. They've looked at their marketing database, and the customers that actually come through and go through that Academy, go through the pipeline two times as fast as a customer who doesn't go through the Academy. So it's actually creating a higher velocity of leads through their pipeline. 

Are they creating data ROI? Absolutely, they are. They're paid media and they're doing mostly Google ad buys. They're creating a 25% effectiveness in those Google ad buys by using the retargeting network to target people who are in or have done the university itself, getting a 25% more targeted, effective click-through and consumption for other kinds of marketing materials, using it to target subscribers to this particular content.

 So can we change? Can we actually change and transform the process of content into something different? What if we began with the end in mind? 

What if we began with the most amazing resource center, something that's differentiated. Think of a library, if a library was merely a collection of books with no organization and they were organized by a hardback, paperback, and audio, it would be a useless building. But instead, a library has an organization, 

what if our resource center had an organization, so we would know what would be better if I read every piece of content in that resource center, differentiate it. Or what about the most emotional story we could tell? Customer stories that create emotional insight and illuminate our shared values with those customers? Or what about the most useful tools, the most differentiating industry-defining tools that we could create, 

calculators. Not just something that copies somebody, but differentiates it, with the goal of building or retaining an audience. What if we could do that? What if we could create the properties, the thematic magic collection of assets like you saw that has value? 

What if we could do that for our business? And work to create an asset, that audience. Working from backward, we create that differentiated asset and then work backward to understand what the tent pole pieces are. What are the four or 10 or 15 assets that need to go into the creation of this thing to make it worth subscribing to, to make it the most differentiated resource center or the most emotional story?

And then, we can actually repurpose content around that. Yes, of course, the infographic. Yes, the blog post. Yes, the social post. Yes, all of the white papers. We can build multiple ideas around a few big ideas. This is the heart of what Jay Baer would call the digital dandelion strategy, a few big ideas that are promoted and used with smaller ideas that surround them. 

And then, of course, marketing. Of course, we have to support marketing for campaign-based value. Campaign-based value, in time, with marketing campaigns, and website redesigns, and all the things that we'll do. 

And guess what? If we're creating content that is so valuable for our customers toward building a greater asset, they inherently make direct marketing campaign based valuable assets. They just do. They'll make great campaign assets. 

That wonderful white paper, that ebook, they will make wonderful assets to support campaign-based marketing as collateral. But then if the sales guy, or the demand generation people or somebody goes, you know what? 

We need more calls to action, we need more sales, we need more products mention in this. You can go, you know what? That's great, we're going to do that. We're going to create special versions of this asset just for you, just to support this one line of value campaign-based value.

Ultimately, what we're trying to do here is build an integrated strategy for content marketing and how it can help other elements of the business provide integrated value. 

And so, thinking of how we're building that asset to provide, yes, campaign-oriented value, how can we shorten the time of getting the product or service into the customer's arms? How can we help promotion? How can we help develop more leads? But also, how can we use the building of an audience to give us insight into that audience? How can we use the data we can glean from the consumption of content that's valuable to them to help us understand how to market better, how to create better advertising, how to create better products for our particular customer set?

So, what needs to change? Because something needs to change in the way-- here's the way we see, most often, content marketing getting rolled out into a business, and maybe this will ring true for your particular business. 

So what happens is, we have this thing called marketing, and we're all in marketing, right? We start in marketing, maybe we report into marketing, maybe marketing is something that we have to deal with. But there's this thing called marketing, and it provides advertising and brochures and all kinds of different ways to persuade customers that our solution is best. 

And then somebody goes to a conference or they hear Joe Pulizzi talk, or they hear something and they go, hey, this content marketing idea might be something we want to explore. 

So we go great, we're going to create a content marketing team, or we're going to create a content marketing approach within our marketing group.

And then here's what happens. Marketing says I have a campaign, and I'm going to create this wonderful campaign. And they say we need assets, Mr. Content Marketing Person and the content marketing team goes, OK well, we'll create some assets for you. 

We'll create a blog post, we'll create a white paper, we'll create an info-graphic, we'll have the agency do that. And they create those assets to support that campaign. And then what happens is the marketing team says, hey, we're going to build a new website. 

We need assets, content marketing team. And the content marketing team says, OK well we'll create some more blog posts, and we'll create this interview with a customer, and we'll create this calculator that the agency's been bugging me to do all this time. 

We'll create these assets for you to support the new website design because it'll look pretty in the new section of the website. And then the marketing team says, hey we're going to do this other campaign in the third quarter, we need some assets. And the content marketing team goes, 

OK, and they're tired at this point. They say, OK, well we'll create this wonderful blog post, because we need to create another blog post, and we'll create yet another white paper, 

and we'll create this e-mail thing that we try and create, and maybe we'll do this weird thing with the cloud or something like that. And everybody goes, yay, that's going to support the campaign in the third quarter.

And then by the time the fourth quarter campaign rolls around, everybody is really tired, and so we'll say OK, we'll create two more white papers, and we'll create another blog post, and we'll create an interview with the CEO, and that's our year. And so look at what you have on the screen there, what is it? 

This is what we've done. We've submitted and basically supported campaign-based marketing, and created what? A disconnected pile of assets. None of them are connected, because why? We just haven't been able to connect them. The one white paper we created in the first quarter, it was really good. The rest, not so much. The blog that we created? Yeah, it was good. But it was one blog post, and we never reran it. There's no strategic effect. 

There's no strategic effect. And the reason is, is because it's not a program. It's merely a different way of producing different kinds of marketing collateral for our organization. So, therefore, it's not a program, and thus it's not a process, and thus we find difficulty in measuring it. This is the reason that most content marketing initiatives fail, is because we look at it as an alternative form of sales and marketing collateral rather than an approach to build an asset or an audience.

And what do we do with all those assets? Well quite frankly, if we're in B2B, we put them into a resource that's neither. It's neither resource nor really a center of anything. 

We build this, right? We put all those assets in because we have a CMS system, we dump them all into a resource center. And this resource center is quite lovely in fact. It's got a guy who's leaning back, because of course you have to have a stock footage image of a guy leaning back in his chair, and you-- we are the experts, you have to have a call to action in this resource center because sales want a call to action in the resource center. 

And of course, we have resources and it conforms to our website design, and basically, we organize it by content type. Check out our white papers. You need to check out our white papers, they're not sales at all, 

and our webinars are like minutes long, and all of that, and we don't know why we have a link to the social channels, but the social people will be mad if we don't have a link to the social channels, so we put one in there and we make it orange because, you know, for the honor of Joe or something like that. And then because we can, we pull in the content from the blog into an RSS feed, and we put it in the right rail because that will look way better from a design perspective. And this is the way we approach content marketing, and it's not working.

It's not working, because what does it do? It leaves us with questions. Questions such as, should we gate and ungate our content? 

If you're asking yourself if you should gate or ungate content, you do not have a content marketing strategy. You have a collateral strategy in which you're trying to figure out how much of your content is worth extracting data from, and you're probably struggling with that decision. And we're asking ourselves, why do we have a blog? What is it even for? Is it good, is it adding value? 

We're asking ourselves does social matter? We're asking if anything is working? What's the ROI, we're saying to ourselves, what is the ROI of this particular program, and it's not a program. And so what if we can change-- and by the way, B2C is no different. 

B2C doesn't have the resource center, what they have is the microsite, the campaign microsite, where, yay, we're storytellers now. And if you're looking for our TV ads, yeah, so are we, our agency hasn't told us where it is. We're trying to figure out what's connected. How do we connect these microsites to a bigger story? How do we create purpose? How do we actually measure what we're doing? Again, the same question that B2B is asking, which is where's the ROI?

What's the value of Willet Blend's Blend Series? That's a wonderful, wonderful thing for Blendtec, where the CEO creates consistently, over the last eight years, videos about what will blend in a blender. 

If you haven't seen the one, by the way, the one with Shia LeBeouf, which is what I'm showing you on the screen here, you've got to see it. It''s just really, really great. But what's the value of that series, if we look at its audience, as a series, or as a comedy series or something like that? Or how about if we look at Yiska Bank? 

Now Joe, in another module down the road here, is going to be telling you about Yiska Bank in the case study, so I don't want to spoil his thunder here, but Yiska Bank has created an entire 24/7 broadcast media studio to produce news-oriented content around financial education. 

So what's the value of that as a TV network? Or finally, what's the value of Indium, and again Joe's going to tell you a little bit about that in another module, but what is the value of Indium, who is, creates industrial soldering equipment, and there from one engineer to another engineer blog series, where they've created just so many more leads, so many more values for their particular company as a blogging network that's now produced in multiple languages. What would that be? What would the value of those be?

So you look at this sort of universe of content, the universe of media properties being produced by different kinds of companies, what's the value?

Well interestingly, we actually happen to know a little bit now, because what's starting to happen is we're starting to see some acquisitions in this space. So you look at somebody like SurfStitch, they acquired two online magazines, The Stab, and Magic Seaweed. 

They acquired those companies for $14 million. Those two magazines, they've now created what the CEO calls a content network, with a retail business layered over the top of it. 

That's a really interesting evolution, right? Here's an e-commerce company that sells all sorts of fashion for beachwear, that has now acquired two very focused online digital magazines for their subscribers and for the content to create those properties, to create, as he says, a content network with a retail business associated with it. Very, very different. 

Now he acquired those for $14 million Australian dollars, I should be clear, and those two magazines get about two million visitors per month combined, or about what Kraft does. Now is Kraft Food and Family magazine property worth $14 million? I don't know, but we're starting to at least start to set some baselines of business value associated with a media property.

Or how about Arrow Electronics, which just this last year, 2015, acquired United Technical Publishing? That's 16 magazines, newsletters, websites, one million subscribers. 

Now they're both private companies, so we don't know the amount of the acquisition, but here's a company that provided a meaningful investment in the acquisition of content for a million subscribers across all sorts of different niches in the electronics business. 

And the website that you see there is their electronic products website, which actually is very, very focused on those kinds of electronics. So they're looking to get really niche with different web and content properties across all those different subscribers and acquiring their way into that. Or this last year toward the end of 2015, we saw IBM buy The Weather Company for $2 billion. 

Now, why did they buy the weather company? Well, it wasn't for the Weather Channel, it was for the data. They wanted to be able to use data and the things that subscribers and the weather provide are in the way of data, to provide contextual optimization for all the different things that they're doing. How can they make e-commerce servers provide their customers with the ability to say, if people are shopping for umbrellas while it's raining, they're featured on the home page of their website?

They can start to do that now by acquiring the audiences, as well as the content in the data that the weather company provides. So, here's the key thing that I want you to come away with this with, is that in each and every successful content marketing experience, it is the collection of assets, not anyone in particular, 

that provides the strategic value. I'm going to repeat that. It is the collection of assets that provides strategic value, not anyone. Nobody ever said that the strategic value of my business is my blog post, or that it's this particular white paper, or this info-graphic really just killed it. 

It is the collection, the thematic collection of assets. Look back at the slide that we just looked at, and you'll see, all of those are thematic collections of assets. A digital magazine, a resource center, an actual TV network in some cases, a print magazine, there are collections of assets, not anyone.

So we know the value of advertising, or at least we think we do, right? From John Wanamaker, going back to Arch Shaw days, where he says I understand that half of my advertising is working, I just don't know which half, to today when John Wanamaker might say, well I understand the value of advertising, I just don't know which half is blocked. But what are-- we know the value of advertising, we can measure it, we can understand how it's helping our sales funnel. 

We think we know the value of all the different kinds of marketing content, but what is the value of content marketing? Well, let's look, let's actually asked the question. And it's a really interesting pattern starts to emerge.

So if we start thinking, what is the value of Kraft's Food and Family magazine? Now Kraft's Food and Family magazine comes in a couple of different flavors. 

One is their online recipe database, where they have 3 and 1/2 million opt-in subscribers to that online recipe database. They also have about 3 million print subscribers, who pay revenue to actually receive this magazine on their doorstep. 

So here's a company that's creating content where consumers are actually paying in real money to receive the magazine, and also paying with rich data to have access to the online recipes database and subscribe to that. What's the value of Kraft's Food and Family magazines simply as a media property, simply is something that we would buy as a company in and of itself?

Or how about Red Bull? We often talk about Red Bull in content marketing. What is the value of Red Bull's Media House? 

Red Bull spends about 30% of its revenue, and they make a lot of money, on marketing, but a very small percentage of that is actually paid media. The rest of it, Red Bull Media House, which itself makes money by syndicating content, by subscriptions to Red Bulletin magazine, to all kinds of ways that they monetize and sell advertising through their content. 

They're actually making money with Red Bull Media House as they help market their own products. So what's the value of that? 

Or CMO.com from Adobe. 18,000 senior-level marketers, CMOs, in their database, that they can use for ways to research, to monetize, to offer events registration to, all those kinds of things. What's the value of CMO.com, purely as a media property? 

What would we value that as, if it was just a website on its own? Or how about Robert Half's Salary Guide? 3 and 1/2 million downloads of that salary guide every single year, every single year that they've been producing it, and they've been producing it now for almost 25 years.

It has become the de fact to standard guide when we want to understand what the salary ranges are for any particular job across the United States. What's the value of that as just a media property, if somebody were to launch that.

Or Content Marketing Institute? I actually know the value of Content Marketing Institute, I'm not telling you. But what's the value of the Content Marketing Institute as a media property? 

We have spent a sum total of about $35 to $40,000 in the existence of content marketing on paid media, everything else has been generated around content. What's the value of the Content Marketing Institute?

Marketing would be providing insight into the business to produce and improve the production process. Then he talked about insight utility. 

We would think of this, really, as market research today, into the ways that consumers use our products and services to make their lives better. So what can we do to help the consumers use products? What kind of features should we be adding? What kind of benefits of Content Marketing? How should we design the product? Basically, insights from market research to how do we make our products better, how do we improve the products themselves.

Then there's time utility. 

This is probably the one that we would recognize the most as marketers today, which is how do we actually shorten the time between a marketer creating, and a business creating, a product to put into the marketplace, and the time that a consumer can get his or her hands on it. 

This is what we think of as campaigns, promotions, advertising, marketing brochures, really persuading people to buy our product or service, and shortening the time, by the time it's going to sit on the shelf before it gets into a customer's hands. We know this utility really well these days.

And then finally there's possession utility, which for Arch Shaw was really the idea of how do we enable consumers to use our products better? How do we give them how-tos? 

How do we instruct them? How do we get them to use the most, and get the most, out of the products and services that they're buying for us? 

We might even think of this is what Jay Baer would call utility content. Utility content, where we can teach our customers how to use our products in the most optimal way, that they become loyal, that they become advocates for our particular brand.

So those are the four marketing utilities. Now what I want to do here is reset. I want to reset to today's language. 

How would we actually think about this in today's language? Well, let's look at it. So the first one is business value. Business value, how can we create, as marketers, benefits that help the business operate more efficiently or more effectively? 

That's a key piece of what we can add value today as marketing. Or how about data value? The idea of how we can create data that helps us understand how we can market more effectively, advertise more effectively, decrease customer service costs, understand the consumer and what they need at a more intimate, intricate level, and how to sell our products more effectively.

Or when we look at campaign value, what he would call the different ways of shortening that time between product or service. What we would look at is, how do we create optimal campaigns, optimal direct marketing efforts, that help shorten that time, that help promote our product, and sell more of it, quite frankly? And then, customer value. 

How do we create value with customers, so that they care about us? So that they're loyal, so that they advocate for our behalf on the social media channels that we're trying to become so prevalent on. So those are the four values really, reset to today's language. And if we look at that, that becomes the basis of an integrated marketing strategy, something we can really use to generate value for marketing.

So, OK. So now we've set this, right? We've set this wonderful experience up, and this is how we should be structuring marketing more broadly. Well, how does that even relate to content marketing? I believe the content is really the one thing, the only thing, quite frankly that supports every single one of those categories. We can develop multiple lines of value using content that speaks directly to our customers' needs and directly create all of that value for the business. We typically only focus on one, we typically focus on the campaign value. But how can we start to create content that creates multiple lines of value, and becomes much more strategic in our business?

So OK, so what is content? Let's reboot that whole idea, right? We think of content, and marketing content, and advertising, and catalogs, and all the wonderful kinds of things that we create from a content perspective, but what is content when it comes to content marketing, and how do we understand it? 

Hi, welcome to Module One of Content Marketing University. This is content marketing evolved. So, what we're going to talk about over the next half hour or so is really building a strong business case for content marketing in your organization, and I hope something that's really stronger for you as you move forward with whatever your plans are with content marketing.

So I'm going to start by rebooting here, and I'm going to say what is marketing? And I want to push reset a little bit on the value that marketing actually has in the business. 

And the way I want to do that is I want to take it all the way back in history to a guy by the name of Arch Shaw and introduce you to this guy. So Arch Shaw was a really interesting guy.

He was an entrepreneur, first and foremost, office supplies actually, in Chicago. He had a whole company that basically created office supplies, from furniture to the different kinds of supplies that you would need to operate a business. He was also, by the way, a professor, one of the very first marketing professors, although they didn't even call him that in those days, at Harvard Business School, which was a new school at the time.

And he also was, by the way, the first editor of a little publication there called the Harvard Business Review. 

But as an entrepreneur, before he was actually a marketing and business professor at Harvard, as an entrepreneur, he was a really interesting guy, because he was trying to figure out a way to move his business forward, how to sell more office supplies. And so interestingly, he came up with this idea of creating a magazine. And the magazine he called System, the magazine of business. 

And this magazine talked about all kinds of things, the news of business, whether it was best practices, of how to create a financial operation or a sales operation, and it really helped businesses become better businesses. 

And that was what System the magazine of business was all about. Now interestingly, I can almost make a case that content marketing precedes even what we think of as direct-make or campaign-based marketing today.

I won't make that case here today, but I'm just going to say that the first thing that Arch Shaw did before he even started to talk about the practice of marketing, was to create something valuable for consumers. And that, in this case, was his System, magazine of business.

And that's a really interesting idea here. As a side note, he had this writer that was writing for him at the time by the name of Edgar Rice Burroughs, who was-- just hated writing marketing drivel, as he put it, so he actually went off and created this little book called Tarzan.

Just a little side note there for you. Anyway, so Arch created all kinds of content for businesses, everything from sales materials, to how to be better office managers, to how to be better financial managers, all kinds of books. And of course, System, the magazine of business, was a huge hit, a huge hit. It went the 1920s equivalent of viral, really. 

And then Arch Shaw actually went off, and he was a professor of business, and professor of marketing at Harvard Business School, where he would introduce a number of the things that we look at today as marketing scholar worthy.

And he would of course, as I mentioned, become the editor of the Harvard Business Review. Now interestingly, when Arch Shaw retired, he actually sold his magazine, System, the magazine of business to McGraw Hill in 1929 for a very big sum of money, and it actually-- they renamed it to The Business Week, which of course these days, we know as a little magazine called Business Week. 

So here we are a hundred years later almost, and Business Week is now the legacy that Arch Shaw leaves us in creating value for subscribers. So a wonderful, wonderful story, but interestingly, what I want to tell you really about with Arch is his marketing utilities. 

It's something that really precedes even what we think of as the four P's of marketing, classically taught in university if you went to university for marketing. So the four marketing utilities as Arch Shaw described them were one, physical utility. The physical utility were inputs to help the production of the product in business. 

What he meant there was basically, how do we provide insight into the business to help us where to put product? Whether we should be shipping it to the west coast, whether we should be offering it in the street, how we should be producing it in mass quantities, how much of it should we be producing?