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How to Build World's Most Valuable Brand? Don't Advertise! Use Inbound Marketing.

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Once again, Google has been named the world's most valuable brand in a BrandZ study - with a brand value over $86 Billion.  This probably doesn't surprise many of you.  Google is a commonplace term and is even used as a verb by many people instead of the word "search". 

The surprise is that Google does not advertise.  They use inbound marketing.

OK, now I am sure someone will leave a comment saying they once saw an ad for jobs at Google.  Or Google sponsored an event they went to, etc.  But really.  Think about it.  The other brands in the top 10 all rely on advertising that is based in interruption and distraction - TV, print, outdoor billboards, radio - as a core part of their marketing.  They are also all older brands than Google.  Some are many decades older - GE, Microsoft, Coca-Cola, IBM, Apple, McDonald's, Nokia, Marlboro.  (I did not include China Mobile on the list because this blog's audience is English speaking, but their presence says interesting things about globalization and the importance of China.)  All of these other brands have spent hundreds of millions or perhaps billions more on advertising than Google over the years. 

Sure, now that Google is big there may be an ad or two here or there, but that is not how Google built their brand.  The other companies built their brand by interrupting my enjoyment of a nightly sitcom with their 30 second TV spot.  (But now I can skip those ads using my DVR... so maybe that is why they are having a hard time increasing their brand value to keep up with Google?)

Google has laid the path for marketers of the future.

Google's brand dominance is further evidence that the traditional advertising model is broken, and companies need to shift from outbound marketing to inbound marketing.  Build a remarkable product (read "Purple Cow" from Seth Godin) and then create lots of content that is interesting to your audience and publish it on your blog.  Make it easy for your best customers to communicate with others, probably using social networks.  Help your management team engage with your target market through blogs and social networks.  Track everything you do and optimize it.  Listen to customer feedback and improve your product.  Don't buy your way in with advertising or beg your way in with PR.  Publish your own way in with a blog, videos on YouTube, a website and more. (last two lines are from marketing guru David Meerman Scott)

Big companies used to be able to have the most powerful brands because they were the only ones that could buy TV ads.  Google has proven this is no longer true.

The next move is yours.  What are you going to do to leverage the power of inbound marketing?

 

internet marketing kit


Posted by Mike Volpe on Wed, Apr 23, 2008 @ 08:49 AM

COMMENTS

This is so true. But so few people really "get it". The brands that win are going to be the ones that attract their audience to them by offering compelling tools, advice, information and value - even before any sale is made.

posted on Wednesday, April 23, 2008 at 10:27 AM by Pete Caputa


I'm not sure that google can be used as a model for everyone's business.
I don't see that as helpful. "Ah yes, just do what google did. done and done."

posted on Wednesday, April 23, 2008 at 2:37 PM by misanthropy today


@misanthropy - Certainly a small business can't do EXACTLY what Google did. However the priciples of inbound marketing actually apply more to small businesses than large ones, and those principles (optimize your website, start a blog, use social media, get smart about landing pages use some analytics) are very accessible to all companies, and are effective. it is how we have built our business at HubSpot, and we're a pretty small company.

posted on Wednesday, April 23, 2008 at 3:04 PM by Mike Volpe


@misanthropy today, you're missing the point. the point is *how* they did it - leveraging inbound marketing vs. outbound. i actually can't think of a better example.

posted on Wednesday, April 23, 2008 at 3:09 PM by todd


many great products have died on the vine waiting around for people to notice them. If you have an idea 10 other people do too. Agressive online marketing (for those who know how to do it and still hit ROI) is what breathes fire into your product: customers or users.
Google is just a "set em up and knock em down" example. Give me a better example.

posted on Wednesday, April 23, 2008 at 4:03 PM by misanthropy today


I think this was a good article. People don't want to see "in your face" marketing. They use the net to search for you, and find out about you long before they ever talk to you. Yes you still need to market yourself, but don't just stop there!
I like to think about good marketing like dating...stick with me here! Rather than wasteing time waiting by the phone, or calling, calling, calling...go out and enjoy your life, that's far more attractive! The same with marketing. Don't waste time by only focusing on outbound marketing. Publish great content, blog, social media; make people want to be a part of the "fun".

posted on Wednesday, April 23, 2008 at 4:34 PM by Melissa Manning


I praise the "Google Gods" every single day.....its the reason my entire annual marketing budget is under $900.......15 years ago, this would have been impossible because I'd have needed Yellow Pages, Bridal Fairs, and other forms of Advertising to stay afloat (in those days, you'd spend close to $12,000 per year on those marketing costs....nowadays (thanks to Google Non-Sponsored Search Results)--I can keep my PR budget at under 3% of gross revenues!
In order to stay ahead of the competition, I've just discovered the power of blogging, social networking, and ORM.

posted on Wednesday, April 23, 2008 at 4:42 PM by Sacramento Wedding DJs


@misanthropy, of course, products that wait around for people to notice them die every day, no question. Inbound marketing is the EXACT opposite of this. A great example comes to mind without thinking too hard: 37Signals.

posted on Wednesday, April 23, 2008 at 5:41 PM by todd


well i'm glad i got some discussion going, but I don't agree that 37signals didn't do any outbound marketing. I remember when basecamp was being marketed all over the place, some of it socially (pay per post looking blog praise).
Anyways, I think its easy to take a success story and try to backwards engineer a solution from that for others to use, but it's of little use for those interested in online marketing protips or strategies. Because it works for so few companies its the exception and not the rule.

posted on Wednesday, April 23, 2008 at 5:48 PM by misanthropy today


Some examples of companies that built great brands without advertising - Craiglist.org, eBay (in the early days, once they got HUGE they started advertising), Starbucks (again, in the early days, once they got HUGE they started advertising). Did Amazon ever really do much advertising? I can't remember any. What about Hotmail (before being purchased by MIcrosoft)?

posted on Wednesday, April 23, 2008 at 6:16 PM by Mike Volpe


Ok, im gonna drop this one because if we aren't going to discuss this at a high level and keep our definitions tight theres no point in discussing it.
Obviously Craigslist started in a time and place of the web that we will never see again, and to a larger degree the other companies did too.
Amazon and Ebay have always had affiliate programs that paid well, thus making webmasters post their banners and advertisements on a contingency, much of that free.

posted on Wednesday, April 23, 2008 at 6:21 PM by misanthropy today


this is a good post, but i think there is more than inbound marketing vs. outbound marketing. i think the most important issue is to be there where the people is looking for, that's the main point. If we don't know how people takes decision to buy something about our products or services, we won't know what will be the most accurate and engaging way to approach them or that they approach our products or services. If we do focus in what matters for the customers, we can develop an intelligent communication for them, an appropriate inbound/outbound communication mix.

posted on Wednesday, April 23, 2008 at 6:31 PM by SebasPaschmann


Michael Arrington (editor of techcrunch) just suggested that people read Purple Cows at the Stanford Startup School only a few days ago.
The novel advice that purple cow, and presumably this blog are offering is:
have a high quality, original product.
This is advice???

posted on Wednesday, April 23, 2008 at 7:24 PM by Andy Fox


@Andy Fox - Yup, I think reading any of Seth Godin's books is good marketing advice. It is a bit more than create a "quality original product", I think being "remarkable" is pushing the envelope a bit further than that. Creating a product people really LOVE.

posted on Wednesday, April 23, 2008 at 10:47 PM by Mike Volpe


I think maybe the point misanthropy today is trying to make is that Google is the advertising firm. Why do they need to advertise YouTube when you would come to YouTube to watch advertisements? Other companies do the advertising to get you to their services for them. Google IS the advertiser. Their effective marketing is because they are in fact a marketing firm. That is how they make their money through marketing. Yes we know Google as a search company, but they don't make money through search.
Most firms aren't a gigantic marketing firm. Now I agree that any business can learn from their example, but traditional advertising is still going to need to be part of the equation for most every business.
Besides is creating a viral video or excellent piece of content that becomes popular on the web not advertised? Some of the most popular videos on YouTube are the classic TV commercials from over the years.

posted on Thursday, April 24, 2008 at 9:43 AM by Kyle James


It's an interesting arguement which you put forward. But what if i'm working on a product which is inferior, people don't know much about it, it's in a marketplace with already established names. Inbound marketing wouldn't be the wisest move then.
The choice between inbound and outbound varies with different products and services, some would benefit from a mixture of both.

posted on Thursday, April 24, 2008 at 11:05 AM by Neil


The ida of marketing is to set the sceme for easier sales. What does anyone produce, of all the 100,000,000 sites and blogs in the World.
You can't just continue to promote SEO, SMs and all the other acronyms and call it marketing.
Google is a very special tool; and good luck to them.
Who on earth do you think can create another tool like Google?
No you are way off the mark if you believe that advertising doesn't work.
But good luck to you. The Baldchemist

posted on Thursday, April 24, 2008 at 10:09 PM by the baldchemist


*shivers with excitement*

posted on Thursday, April 24, 2008 at 10:10 PM by CS Thompson


Just a little bit more; and you have to know what you are doing. The Baldchemist
Let's be clear, displaying your business in a badly written, poorly created, low budget, unattractive, same as everyone else light - guess what you get? Exactly what you pitched for! A small piece of the low budget, same as everyone else, unattractive market!
And - your prospects will suspect that if they do business with you, they will get more of the same!

posted on Thursday, April 24, 2008 at 10:13 PM by the baldchemist


You think every moment what are you doing.
I think its easy to take a success story and try to backwards engineer a solution from that for others to use.
.......................
Thusha
Get Your Full story
www.worldhistory3.blogspot.com/

posted on Monday, April 28, 2008 at 4:22 AM by Thushara


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