At a time when spending is on the decline in many areas, companies continue to spend on branded content. That trend will continue in 2012 as more retailers realize the impact and value that custom content and branded content can have on potential customers.
According to an eMarketer report, 39 percent of companies anticipate branded-content spending to rise in the coming year. This comes after a record year in 2011, where companies spent an average of $1.9-million on strategic content, with an estimated $450,000 going toward electronic forms of custom content. Overall, branded content represented 54 percent of the total marketing budget in responding companies.
"Content helps purchasers mitigate risk," Maria Pergolino, senior director of marketing at revenue-performance-management firm Marketo, said. "It's all about getting the person to feel comfortable as they're getting ready to buy."
The appeal of branded content is understandable as advertisements take the form of other content, such as pictures and videos, while still marketing a product or service. The main reason why businesses have turned to custom content is because they feel that branded content can educate customers about products and services. In fact, 49 percent of respondents stated that customer education was the main reason behind turning to custom-content marketing, while 26 percent of businesses turned to custom content to help retain customers.
"Content also helps build trust and consistency for your brand," Pergolino said. "When your sales team's messages match your other content—and it's all useful information—you become a reliable, trusted source of information."
The eMarketer report is based on the research of the Custom Content Council, a self-described "professional organization representing custom media professionals"and content-marketing-solutions firm ContentWise.
Reach BusinessNewsDaily staff writer David Mielach at Dmielach@techmedianetwork.com. Follow him on Twitter @D_M89.