Where the money goes for brand content

A company that implements a content strategy, and had the money to invest in it, usually has to address this question: should the produced content be its own brand creation, or should be it sponsored content?

The rise in opportunities to create content for a mobile device-using audience makes this question relevant.

A recent report from the native advertising firm Sharethrough sheds some light on the direction companies are headed. Sharethrough’s report shows that in the first quarter of the year, companies allocated almost 70 percent of their editorial media budget to content, like corporate blogs and branded content, on their owned sites.

Owned sites took in the largest share of advertising dollars in the first quarter of 2014, Sharethrough’s report says, up 31 percent from the last quarter of 2013.

Sponsored content represents just 29 percent of total spending for editorial content, while earned media – content that a company does not need to pay for – took in only 3 percent of spending.

Corporate blogs grab 46 percent of the total owned media spending. In contrast, corporate sites and branded editorial sites each claim just 23 percent.

Sharethrough’s report also reveals that nearly half of the total spending for brand content, 46 percent, goes to corporate blogs.

But branded content is more than blogs. It should be a comprehensive strategy that educates consumers and drives the brand to make them want more. It builds customer loyalty and drives consumer engagement.

Consider this when it’s time to set up your content budget.

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