Yesterday TechCrunch published an article about how Hubspot failed to go public after reporting massive losses of over $17M so far this year. The inbound marketing platform is designed to help large companies and agencies distribute and track content in order to generate new clients online. As a response to these failures, and in an attempt to raise capital to continue operations, they are turning to public markets rather than private investors to raise money. Their massive growth in 2009-2012 was the result of being one of the earliest providers of digital marketing solutions, capitalizing on a combination of content marketing, social media distribution and tracking systems to help their clients. While the philosophy of marketing is similar between Marketeering Group and Hubspot, Marketeering Group is not susceptible to the same systemic problems that has resulted in Hubspot’s bright and apparently quick burn.
1. The target markets of Hubspot and Marketeering Group are much different. Hubspot requires either a large firm or an agency that has someone who understands the tools to control and manage their marketing systems. Ideally that would be a team that has adopted and been trained in their technology and produces and distributes content using their platform. Marketeering Group, on the other hand, assumes that most businesses do not have this bandwidth and works directly with its clients to produce the written and visual content needed for distribution. Because of this, our focus is not on the tools for distribution or tracking, but rather on the actual content production on behalf of the clients.
2. Hubspot outdates itself by nature in two ways. First, they have a problem updating their systems fast enough to properly track the ROI on content. This is because the APIs of 3rd party platforms (IE. Google, Facebook, Twitter, Pinterest, etc.) are changing constantly. For example, Pinterest released new analytics systems for small businesses this morning. To incorporate this into their system requires constantly upgrading their systems takes time. Marketeering Group is not tied to internal reporting systems, but has the flexibility to change reporting tools and thus having a much more affordable and accurate understanding on the return on investment.
Second, the very act of using the Hubspot tools trains a their clients to produce the content without Hubspot. This means that the platform basically outmodes itself from an HR perspective. As team gets better at the content production and distribution, they will naturally out grow the training wheels of Hubspot. On the other hand, the difficult part of content marketing is the actual production of the content itself. By out sourcing that side of the marketing plan to Marketeering Group, the relationship grows stronger with time rather than weaker.
3. Marketeering Group is far more flexible to work with a wider verity of businesses. Hubspot is best fit for a client that is seeking to find business to business clients. Not only does this restrict their potential market, but it makes their solutions far more frustrating when a more diverse set of businesses attempt to use Hubspot to grow. The result is that a business to consumer type organizations might feel they are a round peg being forced into a square hole. Marketeering Group assists each client in the implementation of any technology in an affordable way. This allows for far greater flexibility in the types of clients Marketeering Group can take on, and increases retention after a system is set in place.
While some might say that comparing Hubspot to Marketeering Group is like comparing apples to oranges, it’s important to do so because of certain similarities between the two companies. Both companies are high-growth marketing firms serving businesses in the utilization of social media and content marketing. It is important to understand the fundamental difference is that Marketeering Group believes that no business can institutionalize by technical means a way to engage with the digital economy. Rather, it is the flexibility that having a fundamentally relationship based approach that allows for greater client satisfaction and growth potential.
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