What exactly is the much-discussed content marketing?

Content marketing is drawing intense attention. We interviewed key figures from the Dentsu Group to explore the background behind this approach's prominence, its differences from traditional methods, and the questions it raises. We examine the new world emerging from these insights.

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"Content marketing," now gaining global attention, is a marketing technique that has started to draw interest in Japan around this year.

Akiko Gunji of Dentsu Inc.'s iPR Bureau, who led the translation team for the guidebook 'Epic Content Marketing' (published by McGraw-Hill Education, distributed by Nikkei Publishing) by Joe Pulizzi, a leading authority in content marketing with numerous major clients in the US, states: "It's one of the areas we're focusing on most right now. As Pulizzi mentions in his book, its origins can be traced back to the 1800s, so the approach itself is not new. However, with the rise of digital media and the development of social media, a different kind of marketing communication is now required – one suited to interactive, real-time media. This means sincerely engaging with consumers' immediate needs and reactions. That is the fundamental concern underlying content marketing. It may seem obvious, but in today's environment, the longer you persist, the more data accumulates, allowing you to refine the precision of your communication with consumers. Therefore, those who start even one day sooner will reap the rewards. Conversely, I believe those who fail to adopt this approach will be completely left behind by the times."

Content Marketing Demanded by Changes in Information Flow and Social Context

What exactly is "content marketing"? The aforementioned book defines it as: "Content marketing refers to the marketing and business methodology of creating and distributing valuable and compelling content to attract, acquire, and engage a target audience. Its purpose is to drive customer actions that lead to revenue." It also states: "It's about owning your own media, not borrowing others'." In summary, it can be described as building positive relationships with customers by disseminating information primarily through one's own media ( ≈ owned media ), thereby encouraging actions that lead to revenue.

The growing expectation for this approach stems from a paradigm shift in information distribution driven by the proliferation of digital media. It also arises from marketing demands prompted by significant societal changes, such as declining birthrates, an aging population, and population decline. This shift challenges the very nature of advertising itself.

The traditional information distribution model assumed a structure where information was primarily disseminated by companies and mass media, with consumers essentially acting as recipients. While this framework still functions, the ease of information dissemination via the internet, the ability to obtain precise information through search engines, and the active exchange of information among consumers facilitated by the penetration of social media are compelling the creation of new forms of information distribution.

If consumers can now access, share, and exchange information whenever they want, in whatever quantity they desire, then when conducting marketing activities, companies must not only prepare various anticipated scenarios but also provide owned media and content as spaces where consumers can easily access information anytime. Content marketing proposes doing this very basic thing.

The declining birthrate, aging population, and shrinking population—now recognized as social issues—indicate that traditional market expansion is no longer feasible. Consequently, content marketing is also expected to shift focus beyond acquiring new customers to reevaluating and strengthening relationships with existing ones.

Mr. Gunji states, "Dentsu Inc.'s iPR Bureau was established two years ago with the mission of responding to a new trend in corporate communication: 'continuously building warm relationships between companies and customers, primarily through social media.' We place significant emphasis on content marketing as a key means to realize this new approach."

The reason we've touched on the meaning of content marketing in such detail up to this point is that the term is often directly associated with "marketing utilizing commercial content" like movies, sports, anime, and music.

Content marketing encompasses:
・Expanding brand awareness
・Cultivating brand fans
・Product development through co-creation
・Handling inquiries
・Crisis response
・Announcing corporate news
・Driving foot traffic to stores
・Promoting repeat business

and other diverse marketing communication challenges faced by companies. The means of expression used encompass a wide variety, including news releases, white papers, webinars, e-learning, apps, and e-books.

Furthermore, continuously building warm relationships between companies and customers can be rephrased as creating dialogue with consumers and driving revenue-generating shifts in customer attitudes. The nature of these attitude shifts isn't limited to direct consumption. The essence of content marketing lies in the fact that finding the information sought through search, or sharing and exchanging information via social media, ultimately becomes the most direct path to consumption.

What is content marketing asking?

Here, I'd like to introduce an approach to content marketing from a slightly different angle: the case of Nextedge Dentsu Inc.

This company, established in May 2013, is a digital marketing consulting firm funded by Dentsu Digital Inc. and Cyber Communications. It handles serviceslikesearch enginemarketing (SEM),display advertising, and SEO (search engine optimization), serving clients in e-commerce, finance, real estate, and other sectors.

"We undertake advertising initiatives to drive traffic to our clients' e-commerce sites or sites for requesting materials. We manage the clients' budgets, operate them, and focus our efforts on generating results—specifically, product sales, securing applications, or obtaining material requests," explains President Tomohiko Sugiura.

Sugiura describes this work as akin to simultaneously being a fund manager and trader for an investment trust, operating in a world where delivering results is rigorously demanded. He cites two reasons for the growing demand for content marketing in this field.

"When directing traffic to a site via various ads, the typical conversion rate—where consumers actually make a purchase or take similar action—is only a few percent. However, when you provide compelling content to consumers and then implement strategies, the effectiveness can increase severalfold. That's the first reason. The second reason is that advertising-driven traffic has its limits. Generally, ads can only drive about 30-50% of visits; the rest come organically through search engines. Advertising is a world with established theories—spend the budget and follow the standard playbook to get results. But that becomes too costly. So, wouldn't it be effective to use content marketing to expand that remaining 50-70% of traffic?"

Let's take a travel site as an example. Even if a consumer wants to go to Hawaii, they might only be looking for flight tickets or hotel reservations, or they might be searching for an appealing tour. Furthermore, the ways to enjoy Hawaii are diverse, including shopping, marine sports, golf, and more.

Even if a consumer casually visits the site, having content that conveys Hawaii's appeal can trigger an attitude shift toward "deciding to travel to Hawaii," leading to travel product sales. Furthermore, preparing high-quality content improves search engine rankings, naturally creating pathways that attract people and fostering a positive spiral.

It may seem like a roundabout way, and there might be times when it's unclear if results are being achieved. However, ultimately, it increases consumer satisfaction and leads to revenue. This is the story content marketing aims to tell.

This is also not unrelated to the fact that traditional digital marketing is at a crossroads.

" Google frequently revises its algorithms. Going forward, superficial SEO tactics will become a risk. We believe sites that genuinely provide valuable information to consumers will be recognized as competitive enterprises. We aim to leverage the Dentsu Group's strengths in creative power and content production to offer valuable proposals to our clients," said Mr. Sugiura.

Taking the earlier Hawaii example, Sugiura notes that a key strength is the ability to collaborate with clients in different fields to propose not just travel information, but also music to enjoy in Hawaii and gadgets for listening to that music. He also reflects, with a note of self-reflection, that the very purpose of advertising professionals is being questioned.

"Working in this field, I've come to deeply realize that marketing using digital media leaves no room for deception. The fundamental challenge is whether we can sincerely engage with consumer reactions. We face our clients daily, keeping in mind that advertising must not end as mere creative work."

Content marketing, demanded by the changing times, suggests that companies, advertising agencies, media, and other stakeholders need new perspectives.

"Is what we're offering truly what consumers want? Perhaps it's about consciously questioning that. It's not about fearing consumer reactions, but about consciously choosing to face them, to observe those reactions, and to actively seek comments about the company through posts. Doing so creates a new relationship with consumers. This trend is irreversible; we cannot return to the past. To navigate it, steady, persistent effort and unwavering motivation are crucial. Those who resolve to start activities and persistently continue them will surely reap rewards. That is what content marketing is all about." (Mr. Gunji)

Content marketing simultaneously presents immense potential and new questions.

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Content
In content marketing, "content" is understood as "beneficial and persuasive information for customers and potential customers." It also encompasses the methods and platforms used to distribute this content. It is not limited to the areas typically associated with "content," such as video or music.
　

Owned Media
Various media owned by the company itself. The core elements have shifted from company newsletters and catalogs to digital media such as the company's website. In content marketing, this serves as the core, integrated with paid media (various advertising media owned by other companies) and earned media (social media) to form a comprehensive strategy.
　

Webinars, e-learning
Webinars are online seminars used to present new products, strategies, and other topics. E-learning is utilized for product explanations and operational instructions. Both are considered valuable for content marketing and are regarded as content.
　

Listing Ads, Display Ads
Search ads are keyword-based advertisements that appear alongside search results. Display ads utilize images or videos embedded within web pages. Yahoo's Brand Panels and website banner ads are also examples of this type.
　

SEO
Measures to make specific information easier for search engines to find. By extension, it also refers to techniques ensuring specific web pages appear higher in search engine results. When content matching the user's intent is provided, the webpage is considered valuable content.
　

Google's Algorithm
Google continuously refines its proprietary algorithm (calculation method) and rolls out updates to display high-quality search results. Content deemed thin or low-quality is reportedly removed from top search rankings. Articles from trusted media outlets and authoritative writers are likely to be reevaluated.

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Influencer Wire is a newsletter distribution site for bloggers operated jointly by Agile Media Network and Dentsu Inc. iPR Bureau. Dentsu Inc. has begun expanding its content marketing efforts to deliver information not only to mass media outlets but also to bloggers.
influencerwire.com/

Joe Pulizzi, a leading authority on content marketing, authored " Epic Content Marketing " (McGraw-Hill Education / Nikkei Publishing). This practical textbook covers specific planning and operational aspects of content marketing.

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Navigating the Content Marketing Era

As mentioned in the main text, dialogue—meaning communication—is now emerging between product providers and consumers. This builds trust, sometimes leading to purchases. Even if a purchase doesn't happen immediately, a positive impression may encourage actions that benefit the company. Capturing and executing on these multifaceted possibilities is the core of content marketing.

Considering that the word "advertisement" originally meant "to direct people's interest" before evolving into terms like "advertising" and "promotion," it inherently assumes an audience. If methods to capture interest are no longer just one-way but can be two-way, we should seize that opportunity.