What is Sponsored Content: A Business Perspective for 2024

If you’re a business looking to maximize the impact of your marketing investment, sponsored content needs to be on your radar. But before spending, ask yourself two questions: What is sponsored content, and what are the proven strategies to apply in 2024?

This type of paid advertising is everywhere now. In the US, spending on sponsored social media content is expected to outpace social ad spending by approximately 3.5 times in 2023 and will continue to maintain this lead until 2025.

The success behind this type of content is due to a simple fact: when you blend your messaging into content for your target audience, who is already reading and watching, you avoid disrupting them while still sliding your brand right into their feed.

In this guide, we’ll break down the basics that every business interested in sponsoring content should know, from understanding FTC Disclosure Guidelines, what is currently trending while learning how to find the right influencer to collaborate with.

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What Is Sponsored Content?

Sponsored content is a type of paid advertising where brands pay publishers to feature their content alongside the regular content. Posts, videos, and social media that are sponsored are designed to vibe with the platform they’re on versus annoying users with banner ads.

Sponsored content blends in by offering value through useful info, tips, or entertainment instead of just shoving sales pitches into your feed. When done right, you might not even realize it’s sponsored in the first place.

Often, such content is marked with sponsored content labels to cue the user in. But the goal is for everything to feel natural and relevant, not salesy or intrusive.

Difference Between Sponsored Content, Native Advertising and Branded Content

Sponsored content, native advertising, and branded content are all forms of advertising that are designed to blend in with the content around them. However, there are some differences between them.

Native Advertising

• Umbrella term for any ad that matches the form of the platform.
• Includes sponsored content plus other seamlessly integrated ads.

Sponsored Content

• Brand pays publishers to feature their content.
• The content is usually created by the brand.
• Designed to match the look and feel of the platform.
• Usually labeled as “sponsored” or “promoted”.

Branded Content

• Created in partnership between brand and publisher.
• Fits naturally with regular publisher content.
• Often labeled “presented by” or “in partnership with”.

FTC Disclosure Guidelines for Sponsored Content

Transparency builds trust. When audiences understand the nature of sponsored content, they can actually appreciate the value it brings.

The Federal Trade Commission (FTC) has issued guidelines for social media influencers regarding their relationship with brands when endorsing products. They are aimed at ensuring that endorsements are honest and truthful, and that consumers are not misled by deceptive ads.

By requiring publishers to comply with FTC disclosure guidelines, businesses can ensure that their sponsored content is transparent and credible and protect against potential legal actions.

Here are some key points to consider:

• The main rule is such content needs to be clearly labeled in a way that’s hard to miss. That means using terms like “Ad,” “Advertisement,” “Paid Advertisement,” “Sponsored Advertising Content,” or our fave – “Brought to you by [Brand].”
• The disclosures should be placed prominently near the content and in plain language.
  For videos and social media, publishers have to disclose verbally and/or in writing at the beginning. People cannot watch half a video before realizing it’s an ad.
• Influencers also need to clearly disclose their relationships with any brands they partner with.

Best Content Types for Sponsoring in 2024

In 2024, the best types of content to sponsor are those that are engaging, informative, and personalized.

What is sponsored content that works in 2024:

Video

Video content is one of the most popular types of content on social media platforms. It is engaging, easy to consume, and can be used to tell a story or showcase a product. According to a study by Wyzowl, 91% of consumers want to see more video content from brands. Video content is also highly shareable and can help increase brand awareness and reach.

Eye on Short Video Format

Short-form videos are often designed to be attention-grabbing and engaging, emphasizing visual elements such as images, graphics, or music. They are predicted to generate more ad revenue than any other platform by 2024. Short-form videos convey messages in a fun and interactive way, making them more relatable and engaging for target audiences.

Interactive Content

Interactive content is another highly engaging type of content that will remain popular. It includes quizzes, polls, surveys, and all kinds of gamification that require user participation.

A huge upcoming trend is the integration of Virtual Reality and Augmented Reality into content. As this technology becomes more accessible, brands will incorporate into their marketing campaigns.

Influencer Marketing

Influencer marketing is another type of content that is gaining popularity in 2024. It is a separate type of content because it involves partnering with social media influencers to promote products or services. By collaborating with influencers, businesses can reach a wider audience and build trust with consumers. According to a report by Influencer Marketing Hub, businesses earn an average of $5.20 for every $1 spent on influencer marketing.

User-Generated Content

User-generated content (UGC) is any content created by users of an online platform. In 2024, UGC created by Gen Z is expected to increase in popularity. Brands will be able to leverage UGC to grow their follower count, community, brand awareness, and engagement rates.

It is also predicted that TikTok will continue to grow in popularity, and LinkedIn will no longer be just about jobs and professional content.

Longer Content Forms

Many marketers prefer short-term content to attract and engage, but ignoring longer-form content could be a mistake.

Long-Form Blogs

Long-form content like blogs, ebooks, or webinars is great for SEO and building backlinks. According to a study by Backlinko, long-form content (articles with more than 3,000 words) receives an average of 77.2% more referring domain links than short articles and blog posts.

Long-Form Live Videos

A senior Google executive believes that 40% of young people use TikTok and Instagram to search for places to go out for lunch instead of using Google Maps. Creating videos that showcase places can help engage and drive people to your website or brand. LinkedIn Live also is becoming more accessible to host professional webinars and conversations within the platform.

Podcasts

Podcasts are another type of content that will remain popular in 2024. They are easy to consume and can be listened to while doing other activities such as driving or exercising. Podcasts are also highly engaging and can help build brand awareness and loyalty.

According to a report by Edison Research, 78% of podcast listeners say they don’t mind podcast ads because they know it supports the show they love.

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5 Key Principles for Crafting Compelling Sponsored Content

Creating standout content takes strategy and skill. Yes, it’s an ad, but it shouldn’t feel that way.

Here are 5 principle rules to follow:

1. Focus on value, not sales. Resist the urge to make your content just a sales pitch for your product. Instead, provide value to your audience through useful information, how-tos, entertainment, etc. Think about how your product or service can actually help make lives easier.
2. Know your audience. Do your research to understand who your target audience is and what resonates with them. Figure out their pain points and interests. Know which influencers or platforms they engage with. Get a sense of their cultural references, humor and slang. With this, you can create messages and format specifically tailored to them. Your sponcon should feel like it was made just for them.
3. Be authentic. Sponsored content should align seamlessly with your brand’s voice, tone and messaging. It shouldn’t feel different from the content you’d normally publish. Stay true to your brand’s identity while also matching the style of the platform you’re sponsoring on. Authenticity builds trust.
4. Follow each platform’s best practices. Study what type of content performs best on the platform you’re sponsoring on. The ideal format, style and messaging differs hugely between Instagram, TikTok, YouTube, Twitch and so on. Lean into the specifics of each, both in your content style and your distribution strategy. When in doubt, model what’s already working from top creators.
5. Bring creative talent onboard. Producing compelling content often requires creative skill sets beyond just standard marketing. Hire talented copywriters, designers, video producers, animators, influencers or other creatives who can craft something engaging that aligns with your brand and target audience.

5 Tips to Finding the Right Publishers

The right publisher has an audience that overlaps with yours and has a content style that fits your brand. Taking the time to thoroughly vet publishers will pay off.

Here are 5 tips to follow:

1. Look closely at their audience demographics. Don’t just glance at the publisher’s description of their audience. Dig deeper into reader/viewer gender, age range, location, interests, purchasing habits and other defining metrics. Ensure there is significant overlap and alignment with your target audience. You want your sponcon to reach people who would genuinely be interested in your brand.
2. Evaluate engagement metrics thoroughly. High view counts or follower numbers alone don’t tell the whole story. Look at average view duration, comments, shares, likes, click-through rates and other engagement metrics. These indicate an audience that actively pays attention to and interacts with content. Prioritize publishers whose followers truly connect with your style.
3. Consider content style, tone and format. Review multiple examples of content from the publisher across platforms. Make sure the general style, production quality and messaging tone is a natural fit for your brand. Your sponsored content will perform best when it aligns with the publisher’s normal content in look, feel and tone.
4. Understand all the requirements upfront. Don’t just look at rates. Ask a lot of questions. Have detailed conversations to grasp content submission processes, disclosure policies, promotional obligations, reporting, etc. Knowing the full picture will prevent surprises and ensure a smooth partnership.
5. Look for content amplification opportunities. Seek publishers who will amplify your sponcon across their platforms and networks. Cross-promoting content expands reach and engagement. Amplification demonstrates true commitment to the partnership.

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Wrap Up

In 2024, sponsored content will play an important role in helping businesses gain visibility and engagement. Staying updated with trends is crucial if you want to effectively reach your target audience, build brand awareness, and drive growth. Don’t miss out on the opportunity to stay ahead in this competitive landscape.