As many of you know, Robert Rose and I have been recording the PNR (Pulizzi and Rose): This Old Marketing podcast every week for three years now. At the end of every episode, we cover a content marketing case study. Some of the case studies are just a few years old, while other examples are well over 100 years old.
A few weeks back, our amazing blog manager Lisa Dougherty told Robert and me that she’d been listening to the podcast as sort of a “stock screener” to find companies to invest in. And from that one email from Lisa, the PNR15 stock portfolio was created.
Now before I dig into what exactly this is, I need to detail a few important points.
First, I am not a certified stock professional and am not recommending that anyone purchase these stocks. If you happen to buy any of these investments, it’s on you.
Second, no one can prove a direct causal relationship between content marketing and stock prices. I hope to show, though, that delivering valuable, consistent communications to customers over time often corresponds to increases in the overall value of a brand.Delivering valuable, consistent communications often corresponds to increases in brand value @joepulizzi. Click To Tweet
Third, none of what you are about to look at is scientific in any way. These company examples (and now stocks) have been curated from CMI’s community, from the #ThisOldMarketing listenership, and from Robert and me.
Long story short, this is a first pass. I believe that the way a brand communicates does affect the value of the enterprise, often in ways we can’t measure. Looking at a public company’s stock price and market capitalization is one significant way to measure long-term value for shareholders. My hope is that, with further scrutiny at a later date, we can field a scientific study based on this simple concept.
The 2017 Content Marketing Framework: 5 Building Blocks for Profitable, Scalable Operations
Do public companies that consistently deliver valuable communication to customers perform better in stock markets than the average public company?
The PNR15 Stock Portfolio
The PNR15 is made up of 15 publicly traded companies listed on one of the major U.S. stock exchanges. After reviewing over 150 examples over three years, we limited the companies based on these criteria:
- Must be a large enterprise with at least a $5 billion market cap
- Must have at least two years of content marketing activity as defined by CMI
From there, we ended up with 15 fairly diverse companies, covering both B2B and B2C brands in a variety of industries including manufacturing, consumer packaged goods, financial, travel and tourism, technology, and health care. The companies included in the index are as follows:
|de||Deere & Company|
|jnj||Johnson & Johnson|
Overall, the PNR15 outperformed both the S&P 500 Index and Dow 30 in a one-year and a three-year period. One-year PNR15 returns (Oct. 26, 2015, to Oct. 20, 2016) were 5.1% (compared to 3.2% for the S&P and 2.9% for the Dow). Three-year PNR15 returns (Oct. 28, 2013, to Oct. 20, 2016) were 21.6% (compared with 17.7% for the S&P and 13.2% for the Dow).
Under the hood
Below we list each brand in the portfolio, its PNR15 performance, and when it was mentioned on the This Old Marketing podcast or on CMI.
TD Ameritrade (AMTD)
Arrow Electronics (ARW)
American Express (AXP)
Deere & Company (DE)
General Mills (GIS)
Johnson & Johnson (JNJ)
Marriott International (MAR)
Procter & Gamble (PG)
Should we expand the PNR15? What companies should we be talking about on the This Old Marketing podcast? Please let me know in the comments.
And again, invest at your own risk.
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Cover image by Joseph Kalinowski/Content Marketing Institute