One of the more interesting trends disrupting the traditional higher education model has been the growth in short-form, non-degree alternative offerings.
Whether it’s micro-credentials, a la carte courses, or full on certificate programs, there’s been a growing movement - both inside and outside traditional academia - to unbundle the degree and provide more accessible, consumable pathways to alternative forms of education.
This is nothing new of course, as we’ve no doubt all watched the initial wave of MOOC providers come - and in some cases go - while a more recent second wave of consumer-facing, non-traditional offerings, such as Masterclass, Brilliant, and Skillshare, have emerged.
But for all the early interest in these non-degree alternatives, there’s just one problem…
Micro-Credentials Are Great, But (For Most Of Us) They Aren’t Economically Viable
Marketers across higher education have been learning over recent years that whether you’re marketing a course or a program, a certificate or a degree, the cost of acquisition is by-and-large the same.
Platforms like paid search and paid social utilize bidding mechanics and the keywords associated with short-form content are almost always the same used to support the promotion of full-degree offerings.
So whether short-form content costs $50 or $500, the total revenue associated with the student is simply far too low to rely on standard digital marketing recruitment activities.
So How Do We Make Micro-Credential Marketing Work?
The demand for short-form content is real and likely part of a pretty seismic shift in our broader market, so ignoring this new reality would almost certainly be a disservice to our institutions.
So what can we do to navigate around the current constraints of our existing digital marketing strategies?
Here’s a few things to consider when it comes to refining micro-credential marketing:
Solve For Current State Constraints With Scale
Generally speaking, larger organizations can operate with smaller margins, making up for the difference with scale. Additionally, the larger we are the more likely we are to create a brand that can generate ongoing organic interest, decreasing the pressure on paid media to drive the majority of new student acquisition.
Coursera and Udemy are great examples of this.Increasing Lifetime Value Increases Acquisition Budget
In isolation, the revenue associated with short-form content is often too low to justify the marketing activities needed to acquire new students. That reality changes, however, if and when the student sticks around long enough to consume multiple pieces of short-form content, or perhaps even progresses and stacks what they’ve learned into a traditional degree path.
This is likely part of the strategy behind 2U’s recent acquisition of edX.Implementing Alternative Acquisition Strategies
Whether it’s B2B partnerships, brand partnership and activation, or new and emerging channels and platforms, finding opportunities for attention arbitrage is a silver bullet many are still seeking.Be Specialists, Not Generalists
For as hot as the short-form content space is, it’s hardly new. So when it comes to late arrivals, you’re almost always better served being both better and differentiated. Maven’s cohort-based course model is a great example of this.
Consider A Pick & Shovel Play
Finally, it’s worth noting that perhaps the most savvy strategy in the short-form content space isn’t in being a provider, but rather a pathway or platform.
Career Karma has built an incredible business by being the gateway to opportunity for folks looking to evaluate and engage with bootcamp content.
And platforms like Kajabi have realized unicorn status by focusing on providing a platform for short-form course content, rather than producing the content themselves.
So What’s An Institution To Do?
The reality is, it’s unlikely colleges and universities are going to be the “winners” when it comes to short-form content.
The market is experiencing significant price pressure; there’s growing competition from everything from businesses to brands and influencers; and applying the standard suite of digital recruitment strategies is proving to be cost prohibitive.
That said, standing by while the degree is unceremoniously unbundled isn’t much of a strategy either.
Colleges and universities should be exploring opportunities to specialize their offerings, engaging in partnerships with brands and platforms that can provide alternative distribution, and relentlessly leaning in to this new reality.
But as we do, we can’t forget that R&D stands for “research and development,” not “revenue driving.” Even in 2022, rolling out new micro-credential offerings should - in almost most cases - be more about innovation than about income.
Because the reality is, even though the market clearly wants micro-credentials, for the vast majority of us…
Micro-Credentials Aren’t Economically Viable
About the Author
Seth is the founder and CEO of Kanahoma, a San Diego-based education marketing agency. We offer full-service marketing support for higher education, K-12, education technology, and more.
You can learn more about who we are and what we do at www.Kanahoma.com.
Are Non-Degrees a Non-Starter?
You are Spot On! Colleges and Universities need to reexamine their business model for the future. Yes, many are flush now in this era of "you have to have a degree to check the box in HR," but that is changing. When it takes hold, it will change fast. My son spent a couple of years studying alternatives to college before the time came and eventually went with a business internship program called Praxis. It has been an amazing adventure for him that developed a large cadre of contacts and numerous opportunities to jumpstart his future. That is but ONE of the many alternatives out there. The educational world is changing. Thanks for your Substack! David