Defining Branded Content: An Evolving Industry

Brands and marketers have long struggled to pin down a concrete definition for branded content, mainly because the industry is perpetually evolving. At Pressboard, we define branded content as any published media that a brand has played a role in producing. This encompasses content created specifically for publication with a premium publisher, such as NBCUniversal, USA Today, or Bustle. By leveraging the trust, expertise, and extensive reach of these publishers, brands can connect with new, highly targeted audiences.

Keeping Up with an Evolving Industry

Branded content has transcended being a mere buzzword; it has become a cornerstone of modern advertising. This form of marketing has dramatically transformed since the early days of advertorials, with an increasing number of publishers and advertisers investing in it. Whether you’re a startup aiming to disrupt an industry or a Fortune 500 company like IBM or JP Morgan Chase trying to build relationships with new generations of customers, both small and large businesses are seeking innovative ways to engage with audiences. The best way to do that is through stories, not traditional ads.

The Financial Impact on Publishers

Branded content is proving to be a solution to long-term sustainability concerns by becoming a significant revenue stream for many publishers. The biggest names in the business have overhauled their teams to make branded content an essential part of their digital ad revenue. This shift is not just about keeping up with trends but about creating a sustainable business model that leverages the power of storytelling to drive engagement and revenue.

Banishing the Banner Ad

Traditional advertising, particularly banner ads, is becoming increasingly ineffective. Data shows that approximately 25% of internet users employ ad-blockers, and between 2014 and 2018, Netflix, which is ad-free, grew from 50 million to 125 million subscribers. This trend underscores a simple truth: people don't like ads, and they are willing to pay to avoid them. Marketers must therefore provide content that communicates brand values in a way that genuinely resonates with consumers.

The Appeal of Branded Content

Consumers prefer branded content because it focuses less on selling products and more on providing value. According to Ascend Integrated Media, 70% of consumers want to learn about products through content and respond positively to brands that offer thoughtful subject matter expertise. Branded content is designed to build relationships intentionally. It serves the reader without interruption, communicating what the brand stands for and the stories it champions. This approach aligns with the preferences of 21st-century consumers.

The Effectiveness of Branded Content

Why are more companies investing in branded content? It’s not just a vanity tool—although having your byline on Fast Company or The Wall Street Journal is indeed gratifying. Branded content is the most effective way to capture attention and build trust with new audiences. As all marketers know, attention is invaluable and directly translates into monetary gain.

Branded content is often a premium product, with prices ranging from $1,000 to $50,000 and beyond, depending on partners and campaign size. Consequently, more teams are committed to proving the effectiveness of branded content. Beyond being a powerful awareness tool, branded content can directly translate into increased traffic to a brand’s website and higher sales.

The Future of Branded Content

The future of branded content lies in its ability to evolve with consumer preferences and technological advancements. As artificial intelligence (AI) and other technologies become more integrated into marketing strategies, branded content will continue to adapt. AI can help identify the right influencers, monitor performance metrics, and optimize content creation processes. However, human creativity and authenticity will remain at the core of successful branded content campaigns.

Conclusion

In summary, branded content is not just a trend but a fundamental shift in how brands engage with audiences. It provides a way to communicate brand values, build relationships, and drive revenue in a manner that traditional advertising cannot match. As the industry continues to evolve, brands that embrace branded content and invest in high-quality storytelling will be well-positioned to capture the hearts and minds of their target audiences. Whether you are a startup or a well-established corporation, integrating branded content into your marketing strategy is essential for long-term success.