The use of sponsored content (also known as native advertising**) is on the rise, though not many brands understand exactly what it is, how it works, or who is currently using it.
Sponsored content is content (e.g. blog posts, articles, Facebook posts, videos, tweets and Infographics) written (or co-written) by a brand (say SAP) and published on a publisher’s domain (say Forbes.com) for the purpose of acquiring new audiences.
Sponsored content is interesting, engaging, quality content NOT a marketing message. It should add value to the user’s experience (i.e. entertain, educate, enhance communication etc.), and always, always line up with the reader’s expectations on the publisher’s site.
It should also be labeled clearly as originating from the brand or sponsor and not the editorial team of the publisher. Here’s a great example of sponsored content on Forbes.
Why use Sponsored Content – The challenge
In recent years consumers have developed a severe case of “banner blindness.” The banner ads we’re used to seeing alongside regular website content are suffering from consumer suspicion, doubt and even contempt.
Hence marketers have been forced to reconsider the way they advertise since they’re not reaching the audiences they want to.
Sponsored content is more aligned with the media that today’s consumers are used to. It provides brands with an opportunity to engage with consumers using a more relevant message and without losing credibility.
- To provide a more relevant message to audiences (67%);
- To increase consumer engagement (63%);
- To generate awareness or buzz (62%);
- To create word of mouth advertising (48%);
- To combat “banner blindness” (43%).
Who uses Sponsored Content?
The Hexagram report indicates that 62% of publishers offer sponsored content opportunities to advertisers; 41% of brands use sponsored content, and 34% of agencies work on sponsored content campaigns.
Done right sponsored content can benefit both the publisher and the brand. However there’s one rule that should be followed to ensure an effective campaign.
Brands must put the needs of their audience first and avoid pitching at all costs.
This forces them to think of creative ways of relaying a brand message without resorting to old advertising tactics that consumers hate and don’t interact with anyway.
When sponsored content is done right it tells a fluent story that is highly appropriate and useful to consumers. Somewhere within the story, a brand message is “tucked in” so tactfully that the reader’s experience is not disrupted with a pitch – like this IBM article published on Forbes.
If this can be achieved then consumers will receive and engage with relevant messages, and brands will invest more with publishers.
Some Final thoughts…
Some brands are not comfortable with the concept of sponsored content – they worry about blurring the lines between editorial and paid content, which could jeopardize consumer trust. This is understandable.
But at the end of the day, as long as readers are getting the kind of content they want and not complaining like in this case, and as long as there’s transparency about the origin of content (e.g. ‘Sponsored Content’ or ‘Brought to you by…” or something similar) then brands have nothing to worry about.
What do you think? I’m interested to hear your views or experiences (both good and bad) about sponsored content.
** Editors Note: Though some people might argue that “Native Advertising” and “Sponsored Content” are two different things, ‘The State of Native Advertising 2014’ report indicates that most (53%) marketing professionals define native advertising as ‘sponsored content.’