Drawing Attention in a Distracted World: The Success of Sponsored Content

Transcription

1 Drawing Attention in a Distracted World: The Success of Sponsored Content

2 Page 2 Introduction In recent years, sponsored content has become a go-to campaign strategy for marketers, brands, and publishers alike. Its effectiveness at sifting through the noise created by the sheer volume of internet content has encouraged both advertisers and publishers to explore the limits of the medium. What makes sponsored content so appealing to brands is not just its ability to sell a product or experience; at its best, sponsored content can influence a brand s reputation and build upon the trust that comes with a publisher s audience. In an age where there s simply too much content, a partnership between brands and publishers was inevitable. In the battle against fragmented attention spans, an alliance between the two allows for the following to occur: Less content is produced, which means less competition for eyeballs $ Publishers benefit from additional resources that brands provide, whether it be manpower, money, or both, and still achieve an editorial goal publishing more high-quality content Brands overcome trust issues by taking advantage of the publisher s audience, who are already on the site waiting to be engaged or entertained

3 Page 3 What s Ahead This white paper examines some of the ways brands use different types of sponsored content: 1. Brands often work with consumers to promote a product or experience. Whether it s providing a free or discounted product, the relationship isn t without a caveat usually, the customer has to write a public product review, which brands hope will influence purchase consideration in other consumers. Brands use these types of peer reviews to inspire confidence in other customers. 2. Brands promote their products or services by working with celebrities. Celebrity endorsements can be subtle or explicit, ranging from a casual tweet to purposeful product placement. Brands benefit by gaining the attention of a celebrity s fan base. 3. Brands pay publishers for valuable digital real estate. Native advertising is, at its core, an exchange of a brand s resources for a publisher s audience. This audience comes primed to consume content. Native advertising works because the audience is ready to be engaged and is a potential win for the reader, marketer, and publisher. 4. Brands take advantage of influential consumers. Sponsored content works particularly well with influencers, whose reputation is somewhere between the average consumer and a genuine celebrity. This group of people not only engage more with sponsored content and technology in general, but they often tell their friends to try new things. Marketing targeted towards influencers is an investment in the long run since they continue to promote brands and products after hearing about them.

4 Page 4 Brands & Consumers It can be tough to distinguish between an organic product review and a sponsored one. Often, the tell-tale sign that someone was compensated in some way for receiving a product is a disclaimer made on behalf of the reviewer. Sponsored peer reviews often start or end with a disclaimer that reads: I received this item at a discounted price or for free in exchange for my honest, unbiased review. Brands use this tactic to promote their products and the experience around using said products. At the core of this type of sponsored content is the idea that the sponsored reviewer s experience of the product can be likened to a potential buyer s experience. Paid Sponsored Organic Questions of trust naturally arise in any relationship when someone is compensated to do something. Can a review ever really be honest if the reviewer was paid in some way? Do consumers notice the difference between a review that is sponsored and one that is organic? By megan k on October 23, 2015 Verified Purchase Probably the best looking case I love this phone case. It fits well and doesn t slip in my hand like other ones I ve tried do. I m not sure about the durability since I only just received it but it doesn t seem flimsy and protects the whole phone rather than just the sides. The colors on the case really pop and I ve already gotten a handful of compliments from strangers. Would buy again! By megan k on October 23, 2015 Verified Purchase Probably the best looking case I love this phone case. It fits well and doesn t slip in my hand like other ones I ve tried do. I m not sure about the durability since I only just received it but it doesn t seem flimsy and protects the whole phone rather than just the sides. The colors on the case really pop and I ve already gotten a handful of compliments from strangers. Would buy again! I received this item at a discounted price for my honest, unbiased review. In a YouGov Omnibus poll, two groups of people were shown an identical product review with one difference: one image included the text I received this item at a discounted price for my honest, unbiased review, while the other did not contain the same language.

5 Page 5 Differences in the two groups answers were marginal; 70% of Americans say they either strongly or somewhat trust the sponsored review while 74% strongly or somewhat trust the organic review. Likewise, three in ten (30%) say they strongly or somewhat distrust the sponsored review and more than a quarter (26%) say they distrust the non-sponsored review. Slight differences in trust of sponsored and nonsponsored reviews To what extent would you trust or not trust this review if you were shopping for a phone case? % who trust product reviews Trust in nonsponsored review Trust in sponsored review Total Age was a key factor in how people responded to the two reviews. For the sponsored review, most Americans aged 18 to 34 say they strongly (25%) or somewhat (48%) trust the review. Among Americans over 55, only 9% said they would strongly trust the review, while 56% said they would trust it somewhat. Consumer trust in product review (sponsored disclaimer) To what extent would you trust or not trust this review if you were shopping for a phone case? Not trust at all Somewhat not trust Somewhat trust Strongly trust Total

6 Page 6 Results were similar when presented with the review with no disclaimer 77% of millennials say they strongly or somewhat trust the review, while 72% of those over the age of 55 said the same. Consumer trust in product review (no disclaimer) To what extent would you trust or not trust this review if you were shopping for a phone case? Not trust at all Somewhat not trust Somewhat trust Strongly trust Total The responses suggest that not only do product reviews have the potential to influence buying behaviors instilling a sense of trust in readers and potential consumers they also work as sponsored content. Consumer confidence in both the sponsored and non-sponsored product reviews is high and given the slight differences between how much people trust an organic review over a sponsored review, brands should continue to focus on promoting high-quality content in their sponsored product reviews. Organic Sponsored

7 Page 7 Brands & Celebrities According to YouGov Profiles data, nearly a third of US consumers (31%) say they enjoy watching ads that feature their favorite celebrities and about two-thirds (68%) expect the ads they see to be entertaining. Many brands have learned this lesson, working with celebrities to sponsor products and tap into the purchasing power of their fan bases. Whether it s food or skin cream, a celebrity endorsement can be a powerful driver for inspiring consumer confidence among fans. Even though 78% of consumers say that a celebrity endorsement does not have an effect on their purchasing decision, tracking a brand s metrics after a celebrity endorsement reveals the real impact of these types of campaigns. Take, as an example, Dwayne The Rock Johnson, who responded to a Twitter follower and name-dropped Neutrogena when revealing his daily skincare routine. Following the exchange, Neutrogena achieved its highest consumer perception levels in three years, according to YouGov BrandIndex data. The brand saw a spike in its Buzz score ( Have you heard anything positive or negative about this brand in the past two weeks ) among all consumers. Buzz: Neutrogena If you ve heard anything about the brand in the past two weeks through advertising, news, or word of mouth was it positive or negative? (Buzz scores range from -100 to +100) Neutrogena The Rock mentions Neutrogena in a tweet

8 Page 8 Of even more interest is the tweet s apparent impact on Neutrogena s Purchase Consideration score ( When you are next in the market to purchase beverages, would you consider buying this brand? ), a good indicator of potential future revenue. Just before the July 6th Twitter exchange, 23% of consumers said they d consider purchasing Neutrogena the next time they were shopping for skin care and cosmetics products. By July 26th, however, that percentage increased to 34%. Purchase Consideration: Neutrogena When you are in the market next to purchase beauty care products, from which of the following would you consider buying?" (Purchase Consideration scores range from 0 to 100%) Neutrogena The Rock mentions Neutrogena in a tweet While it s not clear if Neutrogena and the Rock were working together, it is apparent that a simple tweet from a celebrity is enough to have positive effects on a brand s value. It s a winning way to gain acceptance from a group of consumers who now see their favorite celebrity as a representative of the Neutrogena brand.

9 Page 9 Brands & Publishers Another way that brands appeal to audiences is through sponsored content known as native advertising. Native advertising refers to a piece of paid content which blends in with the look and format of surrounding content. This form of advertising has turned heads in the marketing world and, according to one report, spending for sponsored posts is expected to grow by 36.2% last year to reach $22.09 billion. 56% of Americans say they use an ad blocker while they re online x Native advertising really shines during a time when, according to YouGov Profiles data, more than half of Americans (56%) say they use an ad blocker while they re online. Brands need a way to get in front of consumers without employing pop-up or other intrusive ads. Native advertising is a subtler, more creative solution that improves the relationship between brands and their audiences. This improvement comes as a result of a consumer-centric experience where readers don t have to mentally brace for the impact that occurs when they see an ad. Since native advertising content seamlessly matches and integrates with a publisher s native layout, both brands and publishers benefit from this type of sponsored content since it doesn t interrupt a reader s experience.

10 Page 10 The success of native advertising suggests that people will tolerate ads if it means that they re getting equitable value in return. YouGov Profiles reveals that 58% of Americans believe that it s fair to watch ads in exchange for free content. 58% of Americans believe that it s fair to watch ads in exchange for free content This data suggests that customers understand and accept why brands advertise in the first place. A consumer s free time in exchange for a publisher s free content becomes an equitable trade and it s in that moment that brands have their chance to build trust with new consumers. Furthermore, data from YouGov Profiles reports that few Americans (4%) will ever completely ignore content if it s designated as sponsored. Instead, over a quarter of Americans (26%) say they will either read or skim sponsored content to see if it is interesting. 26% either read or skim sponsored content to see if it is interesting That suggests that branding content as sponsored does not end up alienating the reader. Native advertising as sponsored content actually engages the reader with a message of unity that the brand and publishers have aligned their values in the interest of the reader. *Sponsored *Sponsored

11 Page 11 Brands & Influencers As brands look to get the most from marketing campaigns, it s important to consider which audience responds best to sponsored content. Indicators from YouGov Profiles point to social influencers as the ideal audience. A group of consumers who have the power to affect purchase decisions due to his or her reputation in certain social circles, social influencers have the highest engagement rate with sponsored content and are also the most likely to be early adopters of new technologies. A close examination shows that 43% of social influencers will interact positively with sponsored content. Influencers tend to positively engage with sponsored content more After having read/watched sponsored content, which, if any, of the following actions do you usually take? Please select all that apply. Get more information about the advertised product Get more information about this kind of product in general Talk to friends/family about the product Buy the Product Follow the brand on social media General Public % Influencers % Engaging with sponsored content includes actions that measure whether the person: Buys the product online or offline Searches for more information about the advertised product (e.g. visit the company s website or social media pages) Looks for reviews, product tests, and information in general about the product Talks to friends/family about the product Follows the brand on social media

12 Page 12 One case study from YouGov BrandIndex demonstrates the effectiveness of targeting influencers: Spotify sponsored a post on Buzzfeed which explicitly labeled Spotify as a brand publisher. The piece explored Led Zeppelin s effect on the music industry a topic that falls right into Spotify s wheelhouse as a music streaming platform. The chart shows that thirty days after the sponsored article published, nearly double the amount of influencers visited Spotify s website. Spotify: Current Customers Have you visited Spotify s website in the past 30 days? (Current customer scores range from 0-100%) Influencers Spotify and Buzzfeed launch sponsored post General public This coincides with an increase in Ad Awareness among influencers as well. The campaign had a much more muted response among the general population. Spotify: Ad Awareness Have you seen an advertisement for Spotify in the past two weeks? (Ad Awareness scores range from 0 100%) 6 4 Influencers Spotify and Buzzfeed launch sponsored post General public

13 Page 13 And remember when The Rock casually tweeted out that he credits Neutrogena for his flawless skin? A look at influencer versus public reaction to the event shows Purchase Consideration soaring among the influencer group. Purchase Consideration: Neutrogena When you are in the market next to purchase beauty care products, from which of the following would you consider buying? (Purchase Consideration scores range from 0-100%) Influencers The Rock mentions Neutrogena in a tweet General public This group is also significantly more likely than the general public to say that they recognize sponsored content. More than four in ten (45%) influencers say they are at least slightly aware of sponsored content when they see it, compared to 33% of the general public. YouGov Profiles reports that influencers tend to be millennials (37%) and consist of slightly more men (54%) than women (46%). The group also tends to earn more per year than the average US worker, with close to a third of the group (31%) saying they make between $60,000-$150,000 a year. Ideal segment for sponsored content: Influencers Age The following groups are more likely to be influencers 77% are interested in trying the latest tech Gender Male 54 Female 46 61% 61% more likely than the general public to positively engage with sponsored content Income $60k-150k 31 60% say people ask them for advice before buying things

14 Page 14 Influencers may also respond positively to native advertising because they are intrinsically curious; 25% say they seek out more information about a product they see, compared to 15% of the general public. And 60% of influencers say people tend to ask their advice before buying things. A crucial dimension of sponsored content is its effectiveness across multiple platforms. Along with working together with publishers, brands can use branded communications to get in front of their consumers. These channels contain less digital real estate, and therefore the consumer s attention is more focused on what s in front of them. Influencers are extremely receptive to cross-channel approaches and are more likely than the general public to say that branded communications like s (50%), social media offers (26%), and online newsletters (24%) led them to purchasing a product. Compared to other consumers, influencers are: 20% more likely to buy after seeing branded communications Influencer attitudes and behavior % of influencers who have purchased something after seeing: 50% branded s 26% social media offers 24% online newsletter 61% 52% 41% 37% are concerned they miss news stories because websites tailor content to their interests search for products on their phones after seeing an ad comment on social media ads

15 Page 15 Given that six in ten influencers say people ask them for advice before buying things, how do recommendations from an influencer stack up against a celebrity s endorsement? A look at data from YouGov Profiles reveals that people are ten times more likely to say that a recommendation from a friend rather than a celebrity endorsement (10% vs 1%) had a greater effect on their decision to buy a product. This influencer demographic appears to have even more sway in moving purchase decisions than a celebrity does. Online behavior is another distinction that sets influencers apart from other consumers. When asked which websites they frequented in the last 30 days, influencers were significantly more likely to visit social platforms like Twitter, WhatsApp, Instagram, and LinkedIn. The table below, which lists the top 10 websites among all websites currently tracked by YouGov, demonstrates the top differentiators for influencers and is organized by z-score*, a statistical measure of how Influencers: Current Customers Have you visited the following websites in the last 30 days? (Organized by z-score* compared to the general public) Rank Website Twitter WhatsApp Amazon Video Amazon Prime Groupon Instagram Apple Music LinkedIn itunes Z-score* Netflix 5.79 *A high z score shows statistical significance based on the difference in scores between the two samples while taking into account the coverage of each variable. A z score of >2 or < -2 is the threshold for statistical significance at the 95% confidence interval.

16 Page 16 Conclusion Sponsored content comes at a time when technology adoption is at its highest and many online consumers would rather close out a tab than watch an ad. To combat this, brands and publishers emulate a bit of each other; brands use their niche, industry knowledge to contribute strong editorial pieces while publishers focus on new ways to generate business and fund their sites. What occurs during this subtle role reversal is the best possible scenario for a reader who comes ready to trade his or her time for valuable content. Pop-up Pop-up It s important to note that high levels of engagement with sponsored content has less to do with whether it s perceived as editorial content or sponsored content readers don t seem to care much about that aspect. Consumers expect ads but only if the content is good, and positive engagement with a brand only occurs if they enable the publisher to provide an engaging reading experience every time. *Sponsored *Sponsored

17 Page 17 Not all readers or consumers are made equal though. Some can amplify a brand s marketing efforts and act as marketers themselves. Targeting this group of influencers is similar to getting an endorsement from a celebrity but rather than getting in front of a fan base, brands get access to an influencer s social circles. An influencer is more likely to personally know a potential consumer and since a recommendation from a friend has much more sway than one from a celebrity, an influencer s positive endorsement for a brand can be much more effective. In a content-saturated world, filled with ads and distractions, having two big entities like brands and publishers unite is a win for the reader. It means more value for less time and it improves the relationship between the consumer and advertiser as a whole. By extending the same expectations they have for their content providers to the content s sponsors, consumers remain the ones in power. Sponsored content will continue to succeed as long as that s a mission both brands and publishers can get behind. Contact us Get in touch at today.yougov.com to learn more about the data solutions that powered this report.