This post is part of our finance series at Axonn and comes from Peter Burnside, a finance specialist here at Axonn. Read our previous finance posts on How banks can use content marketing to build trust, How financial institutions can use seasonality in their marketing and Surviving the compliance minefield in content marketing.
The world of banks, brokerage firms, and other financial institutions all know of the inherent value in facilitating the use of technical analysis (TA) with their clients by sending them reports. But are these businesses actually, and quite cleverly, getting their clients on board with content marketing?
Content marketing is often used to do one of three things:
Generate brand awareness;
Promote brand advocacy;
Or to boost your reputation as an industry expert.
When looking at a number of TA reports we can see they already cover a couple of these bases.
It’s quite a nifty trick, as people willingly look for updates on the market from experts in order to inform their next investments and trades. And a great case study is Saxo Bank with its Trading Floor website that aggregates a number of reports, news and tweets in one handy page.
For instance, take a look at this recent Saxo report from John Hardy.
Here we have a classic example of content designed to cement Saxo’s position as an industry expert. Furthermore, if we look around the page, there’s a host of other links that can lead you to either more news and opinions, or even to a learning academy for the novice.
From what we’re seeing so far, it seems that TA research notes are really just content marketing in disguise. However, there’s a little more to it than that.
The real use of TA by traders is as a tool to second-guess financial markets. It uses charts of past price movements in order to suggest where the price will go in the future. The theory behind it is based around mass psychology, as past movements in the price are a signal about the psychology and sentiment of a market, which can then be used to give forecasts.
There are many critics of TA, however, enough people are using it now that, despite the theory coming under attack, the masses believe in it and thus it becomes a self-fulfilling prophecy. So there is an actual use for TA, despite the naysayers, and it seems like it’s here to stay. But I believe businesses have cottoned onto its potential as a form of content marketing.
Lots of little updates are sent out to clients and are usually shared around with others, which will likely generate interest while boosting brand advocacy - classic forms of content marketing.
Not to mention, most of these reports often include pictures of charts with lots of patterns hidden throughout them that you can search for, much like a puzzle - falling windows, head and shoulders, three black crows, and many more. These break up the walls of text and give the reader something to study while the information sinks in.
Perhaps more could be done to generate the initial interest in a brand with novices and people that are unfamiliar with TA, like with this City Index report - which is purely targeting the audience that is already knowledgeable with the industry. However, that would be a different form of content then, more blog post and less report.
It seems that content marketing and TA go hand in hand, benefiting both the consumer and the business. Everyone’s a winner here, at least, until stock markets enter another recession. But hey, if we’re using TA, we should see that coming... right