Digital marketing is one of the best ways to ensure that your oil and gas company is gaining the correct customers that it needs to succeed in terms of sales and revenue.
The oil & gas sector is long utilized to volatility concerning prices, technologies, and geopolitics. The industry is facing significant subsistence challenges. With the Coronavirus outbreak and important policy upheavals, the sector has been crippled by a drastic demand slump. Over the years, as the environmental impacts of fossil fuel are being contested, there is a noticeable change in energy demand from traditional resources, to more sustainable forms. As a result, the social and fiscal well-being of the oil & gas sector is at stake.
As predicted by the International Energy Agency, the World’s primary energy demand for oil & gas will dwindle by 1 percent during the next 20 years (oil demand will slip down by 4% and gas demand will go up by 3 percent in 2040, compared to 2017 amounts ). Under these conditions, it is critical that alongside other corrective measures, oil & gas businesses implement up-to-date digital marketing strategies also, to regain market shares in the long run. To gauge the effects of digital advertising on the oil & gas industry, it is vital to have a sneak peek into the marketing strategies followed by the industry, as of now.
The Scenario So Far
Until now, the oil & gas sector has lagged behind others in adopting requisite digital marketing trends — be it social media marketing, content management, or using simple analytical tools. Statistics indicate that oil & gas firms normally have a very negligible marketing budget (a mere 7 percent).
For years together, the sector has largely depended on conferences and trade shows, for product showcasing and has thus faced too long sales cycles.In a contemporary fast-paced business environment, these outdated marketing strategies fail to highlight the competitive benefits of B2B companies.The solution lies in developing a unique buyer-supplier interface digitally, that can be used to the advantage of both. Research shows, innovation-friendly oil & gas companies, which have adopted the latest digital marketing methods, have generated a well-deserved niche for themselves. Here comes the demand for digital marketing and there cannot be a better time for implementation than now!
Digital marketing enables:
- Precise data analytics
- Target marketing
- Inexpensive Advertising
- accessibility to new E&P markets
- Digital branding
- Marketing without geographic barriers
Oil & Gas Needs to Adopt Digital Marketing in 2021
Digital marketing reduces costs, streamlines business processes, enhances efficiency, and enables better decision-making.The principal strength of electronic marketing lies in its ability to run real-time campaigns that achieve long-term development targets for organizations.
Digital marketing can benefit the oil & gas sector in myriad ways:
Suppliers will need to practice digital advertising to pave their way to the top. Running SEO-optimized websites and regular customer interaction through social networking platforms, helps leverage competitive advantage.
Reach — B2B Gas and Oil buyers nowadays rely heavily on online research for making buy decisions. Around 91 percent of them want a hassle-free user experience on the internet. Readily accessible websites from the providers’ end, backed up with top-notch content, guarantee a better client reach.
Personalization — B2B customers find mass marketing frustrating. Personalization is the key to impressing modern clients. With digital technologies, companies are making personalized marketing a reality.
Customer Churn -Digital marketing through automated processes helps check the rate of attrition for B2B companies.
Product Knowledge — Strategically placed contact us’ forms on business sites, e-newsletters, etc. provide sufficient product information to prospective buyers.
E-mail marketing — E-newsletters are sent out to current and prospective clients to keep them updated about the latest happenings of the company or the industry at large.
Lead Generation & PPC –– This one-of-a-kind mode of advertising helps companies channelize marketing budgets on a particular audience, wishing to learn more about them. PPC advertisements can be conducted on social media channels targeting prospects based on shared interests, demography, or area.
Gated Content –– HIgh-value articles (case studies, white papers, or sector-specific technological innovations) can be guarded through a gateway (subscription/contact details). To access the content, customers will need to share email IDs and other business details.
Social Media –– The International Data Corporation says that over 75 percent of B2B buyers rely on social media platforms for making purchase decisions. Oil & gas companies will need to pick the right platforms — Facebook, LinkedIn, or Twitter, based on the professionals they need to target.
Multichannel Access — SEO, email marketing, PPC, work simultaneously to attract prospective clients to the site, and boost revenue generation.As stated earlier, email marketing, social media marketing, etc. are a few of the popular digital marketing strategies which are taken up by B2B businesses for improved market penetration.Discussed here are a few of the methods oil & gas companies can practice escalating their growth procedure.Creating targeted keyword-rich content and backlinks are important aspects businesses should take note of.
Increased Efficiency Levels and Revenue Production in Oil & Gas
“By investing in digital marketing, companies can improve their financial performance, and not simply by a percentage point or two. Rather, the B2B companies that master these regions are generating 8% more shareholder returns and a revenue compound annual growth rate (CAGR) that is 5 times larger than the rest of the area” — McKinsey & Company
Revenue Impact — A McKinsey & Company case study indicates that the oil & gas companies, with proper use of electronic technology, can increase revenue by 1.2 percent.
Total Impact — This sector, by enabling automated marketing and distribution strategies can maximize pricing models and handle the supply chain more efficiently. These efforts will cut down overall cost by 10 percent and increase revenue levels by 3% roughly for the oil and gas sector.
The Way Forward
The oil & gas industry can’t ignore the significance of digital marketing technologies in boosting ROI and the overall development of the sector.Process automation generates a huge pool of data through the Internet of Things (IoT). You have to consider expert services from an experienced B2B sales and marketing consulting firm to know. How oil and gas companies translate this information to digital marketing, which in turn would decide their success or failure in the long run.