While not a new concept, content marketing is a fairly new term and there is a reason it is all the rage these days.
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Couldn't agree more with this argumentation by Susan Tucker but I'll add another thing: content marketing scales better for SMB's.
As I already commented here, paying for traffic can rapidly becoming a huge financial constraint. And most of the time, they face diminishing returns from advertising.
Content Marketing is not free either but it can be done under a fixed cost model and - through lean content marketing techniques - within a budget.