Oil and natural gas companies constantly find themselves in hot water for one reason or the other. Sometimes it’s an oil spill in the middle of the ocean leading to the killing of endangered aquatic species; sometimes they are caught in a media storm due to climate activists; and sometimes it’s war and strife that endangers their supply network.
This is a niche industry with limited players and it has to adjust itself accordingly to steer clear of controversies. One way to stay away from detractors and build a positive image is to engage an energy marketing agency.
Shifts in the oil and natural gas industry
The oil and natural gas industry is going through rapid shifts in the 21st century with significant developments in the field of alternative energy. The following three shifts have been the most notable:
- Near unanimous public opinion on the phasing out of fossil fuels
- Governments taking gradual steps for clean energy supply
- Energy companies pressing for an active digital presence to stay relevant
The last point has assumed a large importance in the last few years and it’s a crucial part of their corporate strategy. These companies have understood the need for marketing and identifying proper marketing channels to rake in new clients and keep converting the existing ones. Engaging a B2B marketing company has been an essential part of this strategy.
A look at the business model of energy companies
But before we look at the branding plan of an energy marketing agency, it’s important to understand the business model of energy companies. Here’s the traditional business model of a hydrocarbon or energy company:
1. Upstream business:
The upstream business model relates to exploration and production. The E&P companies extract crude oil and natural gas from the ground as well as the ocean depths. They sell the crude hydrocarbon products to other stakeholders.
2. Midstream business:
These are companies that are not involved in hydrocarbon exploration. They deal with the raw materials extracted by the upstream companies instead. They supply crude oil and petroleum to refineries where the final developments take place.
3. Downstream business:
This business comes with a B2C component. They consist of refineries, crude oil and gas stations as well as residential and commercial distributors. They deliver energy products to their end customers.
Elements that influence the energy market
There are factors that influence the energy market, some more than others. These factors have to be taken into consideration before building an appropriate marketing strategy. So, let’s take a look at the elements here:
1. Position:
While crude oil markets are globalised, natural gas markets tend to be more localised. The geographical position of the energy source matters with respect to its transportation and cost. An energy marketing agency will take this into account to figure out the client outreach priority.
2. Barrel price:
Hydrocarbon products are sold in barrels and the price is determined per barrel. The profit margin is also measured on a per-barrel basis. The marketing strategy thus has to factor in the pricing to get the maximum ROI for the company.
3. Commodity market:
Oil and natural gas are traded in global financial markets as commodities. Commodity F&O are traded in large volumes. This market is quite volatile to say the least. The movement in the commodity index in turn affects the price of hydrocarbons.
Role of an energy marketing agency in bolstering sales
The main purpose of hiring a B2B marketing company by energy companies is to bolster sales and spruce up the supply chain. They play a specific role in strengthening supply networks.
Here’s how they are preparing energy companies in the digital phase of the industrial revolution:
- Online ad campaigns: Carving a space for a new company is hard in this industry as there are costs associated with shifting to new suppliers. Online advertising has become crucial in this regard.
- SEO strategies: Digital marketing is essential in this day and age. No oil and gas company can be left behind in digital campaigns. Keyword research and SEO optimisation are crucial to improve SERP results.
- Email and LinkedIn marketing: SEO strategies, though important, may not give you the desired conversion rate. A personalised marketing campaign is needed here. Regular email and LinkedIn outreach campaigns greatly increase conversion prospects.
- Social media marketing: Social media is the last frontier to cover in the digital realm. Companies that stay active on social media have better visibility and gain massive trust points.
- Exhibitions and trade shows: A B2B marketing company is adept at handling reputation with exhibitions and trade shows. They expand the company’s network through these means that lead to sales conversion.
Key Takeaway
The hydrocarbon market has undergone a massive shift in recent years. The digital age and the increasing public scrutiny it has brought in its wake have made the industry more conscious of its image. The traditional oil and gas industry has understood that it needs a rebranding now more than ever. This need can only be fulfilled by an energy marketing agency.