Sponsored content, also called branded content, promoted content and native content, hit $14 billion in revenue last year. A 20% increase from the previous year. (Business Insider)
Let’s put that in perspective…
The total digital ad spend for the entire industry was $58.61 billion in 2015. That means almost 25% of that was sponsored content. And this year, it will be 25% of the digital ad spend.
Why so much? Because it works.
Brands love sponsored content because of
- Proximity and Placement
- Clarity of meaning
Proximity and placement
Sponsored content falls natively right where people are reading. In fact, people enjoy reading sponsored content. It gets in front of more people and people tend not to zone it out like display ads.
Simply put, you notice it. You can’t help but notice it.
Sponsored content is generally offset. It will clearly state that is sponsored, generally, with the logo of the advertiser, it will have the wonderful FTC disclosure and hove social media icons.
Clarity of Meaning
People know why that sponsored content is there, but they still click on it. The average click-through rate is three times higher than that of display ads. 0.31% vs. 0.1%.
In short, whatever you call sponsored content. If you’re not doing it, you’re losing out.