Which is more effective? Content marketing or native advertising? The difference between the two is that websites charge sponsors to place native advertising that looks like editorial content whereas websites accept and publish content marketing pieces as an actual part of their editorial content at no charge. In both cases, the publishers reserve the right to make or request changes in content before they publish the material.
Many consumers and some professionals have trouble distinguishing content marketing and native advertising, since both deliver editorial-like content to targeted audiences. The Federal Trade Commission, however, now requires that native advertising be prominently labeled as paid advertising. The labeling reduces the effectiveness of native advertising, many marketing professionals claim.
Many digital marketing experts believe content marketing is a preferable alternative for most brands. Why? Viewers are less engaged with native advertising than editorial content. Advertising typically receives fewer shares and less reach. A study by Fractl and Moz, which involved a survey of over 30 content marketing agencies and cost data from more than 600 digital publishers, concluded that content marketing furnishes a better overall return on investment.
Different Goals and Metrics
Native advertising and content marketing differ in their goals and performance metrics. While both are intended to increase brand awareness, the goal of content marketing is to increase conversions, while goal of native advertising tends more toward social engagement, the study states. Content marketing is more effective largely because of its more measurable goal.
Their key performance indicators differ. For content marketing, it’s leads generated. For native advertising, it’s engagement metrics and impressions.
To create successful content marketing campaigns, PR and marketing teams must create high-quality content that is valuable to the target audiences and does not appear to be promotional.
“You can’t simply push through a mediocre, thinly veiled advertorial. Content marketing puts the brand and the consumer on equal footing, and in the process necessitates the brand elevate the content they are creating,” Kelsey Libert, partner and vice president of marketing at Fractl, told SocialTimes.
Unfortunately, the reality is that poorly conceived content marketing is all too prevalent. Examples of well-done native advertising abound.
Brands face more difficulty publishing native ads that will be highly shared because of the FTC’s new disclosure guidelines, Libert says. Native advertising does have strengths, she says, noting that it is predictable and scalable.
In addition, native advertising can deliver all of the sponsor’s messaging; content marketing is more limited in being able to deliver the full messaging package.
Patience and Commitment Needed
While Content marketing definitely provides superior ROI, it requires patience and a commitment to a long-term investment, says Michael Brenner, CEO of Marketing Insider Group.
“Content marketing is a commitment, not a campaign,” he stresses.
“Content is more of a long-term plan,” agreed Brian Becker, vice president of content marketing for JPMorgan Chase, speaking a Social Media Week panel discussion, Direct Marketing reported. “So, ultimately, you want to measure long-term relationships, not instant gratification. Use content to connect all of the different points where someone discovers you.”
Despite assurances from digital marketing experts, some companies remain unconvinced of the ROI value of content marketing. “The industry is still struggling with that,” said another panelist, Lindsay Nelson, global head of brand strategy at Vox Media. “Success metrics used to be page views, social shares, and time on site. But those don’t work, because content takes different time and tools to consume.”
Publishers should employ more reliable metrics tied to business goals, he said.
Bottom Line: Content marketing is more effective than native advertising, digital marketing experts assert. New research says content marketing achieves higher ROI. The challenge is to secure the necessary long-term commitment from brands.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
