Although you are not exactly part of a marketing team, marketing in the oil and gas industry is still relevant to your role as an accountant because the ROI of those marketing efforts directly relates to a company’s financial health.
More oil and gas companies than ever are embracing the power of marketing, particularly in the digital space, to position themselves so that they remain competitive while generating demand and growth.
Marketing and ROI in the Oil and Gas Industry
As stated above, many firms are seeking out ways to position themselves favorably in the market by utilizing digital marketing. Why? Using digital marketing strategies and technology is providing big returns for many businesses.
Marketo reports that companies who embrace and excel at the process of nurturing leads digitally generate 50 percent more sales-ready leads at a 33 percent lower cost.
The Annuitas Group found that digitally nurtured leads make 47 percent larger purchases than non-nurtured leads.
Why does this work so well? A well-thought out marketing campaign in the digital space allows companies to find their target market and engage with those potential customers at that lower cost. Through this form of marketing, a company is able to develop relationships with their target audience at every stage of the sales funnel and generate these high-quality leads.
Think of it this way. Let’s say an oil and gas company chooses to heavily rely on getting the bulk of their business by networking at trade shows. Although this definitely is effective, they pay for a booth, banners and signage, printed brochures and one sheets, travel expenses for sales teams, freebies like pens, stress balls, etc., and much more. Those costs can really add up, especially if the company goes to multiple trade shows a year.
Trade shows are beneficial for getting new business and companies should continue to utilize them, but many companies stop there.
McKinsey conducted a study of more than 100 cases on oil and gas companies and how digital marketing distribution reduced expenditures. Their research indicates this sector could reduce capital spend by up to 20 percent by enabling marketing and distribution with digital technologies. This type of adjustment allows companies to optimize pricing models and manage supply chains more efficiently because more funds can be reallocated to other areas. It was found that these efforts can lower costs by up to 10 percent and increase revenue by 3 percent.
Oil and Gas Marketing in the Digital Age
Buyers have access to information about companies from around the world at their fingertips. With that much competition, it would be nearly impossible to reach target audiences with traditional messages.
It is important that oil and gas accountants have an understanding of marketing in their industry to facilitate professional development and align costs.
Marketing digitally allows companies to:
- Stay competitive in a volatile market: Target the right audience and lower your cost per lead.
- Build trust with an audience: Be seen as an industry expert by those engaging with your company in the digital space.
- Differentiate from the competition: Craft and hone your messaging to stand out from your competitors.
Target Audiences in Oil and Gas
Retailers: Responsible for the sale of branded gasoline, diesel, (or heating oil) directly to consumers and those that sell fuel through their own service stations.
End Users: This audience includes airline companies, utility and chemical plants. They generally receive deliveries from a refiner in large quantities directly into their storage tanks.
Resellers: Resellers are also called “Distributors” and are considered middlemen because they purchase refined petroleum products and resell them. Branded resellers handle the products of a single refiner. Unbranded resellers get the oil wherever they can and sell it under their own independent brands.
Utilizing things like email marketing, search engine optimization (SEO), paid ads, social media, and more allow you to reach the most appropriate audience and generate valuable leads.
COPAS Energy Education offers a variety of live classroom (Group Live) and webinar classes (Group Internet Based). All courses are taught by expert faculty with decades of industry experience, and courses cover a range of topics that will bring in-depth knowledge to accountants in the oil and gas industry. Click below to learn more!