So far this year, sponsored content has skyrocketed in popularity; in fact, the term "native advertising" has hit the top 40 buzzwords list for marketing lingo and has been trending on Google since last summer. Is it right for your brand? That depends. There are pros and cons associated with the practice. Check out the facts and ideas below before jumping into the world of sponsored content advertising head-first.
It's Fairly New
While the practice has been trending since the middle of 2013, it's still relatively new in terms of Internet marketing practices. This can be considered both a pro and a con.
New things appeal to a wider audience. This is the case for sponsored ads. Because users are not accustomed to the practice, the ads that are displayed have high click-through rates. A recent Forbes study revealed that sponsored content delivers a 41% brand lift for those that engage in the practice.
Here's the con: users catch on to advertising trends quickly. When sponsored content hits their radar, they may be more likely to ignore it when they understand that it's not sponsored by their friends, a brand they follow or the site on which they're browsing. While its novelty is advantageous at this point, its effectiveness could take a downturn in the future when we get tired of catchy headlines and start tuning them out like banner ads and other forms of advertising.
It Does Not Boost SEO Rankings
Unlike organic marketing tactics and link building, sponsored content does not boost search engine rankings. If this does not make a difference in your marketing scheme, and your goal is traffic and conversions through advertising, not searches, this may not matter. However, if you're looking for ways to increase traffic from a variety of sources, longer-term content marketing initiatives might be a better fit for your business.
Its Cost Is a Double-Edged Sword
Unlike PPC campaigns that allow brands to place bids on advertising spots starting at a relatively low price, with a capped daily budget that could be as low as a dollar per day, sponsored ads are a more expensive option.
Because of the prime real estate they occupy on large networks, the average cost of a sponsored ad comes in around $25 per click; depending on the platform, this cost can rise to $80-90 per click or $50-75,000 per monthly campaign. Because of the cost, important factors like bounce rates and the average profit per visit should be explored before committing to the practice.
Target Audience Matters More Than Ever
Because of the way sponsored ads are displayed inside of social networks and other websites, it's important to consider the target market you're trying to reach with your advertising efforts. If you're a large Ford Mustang parts dealer like CJ Pony Parts whose target audience is male car enthusiasts in their 30s and 40s, BuzzFeed is probably not an ideal place to start. Instead, you'll want to look into sponsored content opportunities on a site more tailored to a passion for cars, like Autoweek.
No advertising method is a perfect fit for every brand. There are many factors to consider, and sponsored ads are no different. While they are expensive, they are effective; although that effectiveness depends upon your desired results and the amount you have to budget toward the endeavor. Think about the pros and cons listed above and do some research to decide if sponsored content advertising is right for your brand.
Author Bio
Adrienne Erin is a freelance writer and designer obsessed with social media and developments in the online marketing world. You can see more of her work by following @adrienneerin on Twitter.
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