Branded Content: What It Is, How It Works, and Why It Matters

Definition, Characteristics, and Advantages

Branded content is one of the most engaging yet misunderstood tactics in modern marketing. Often confused with native advertising, influencer marketing, or social media ads, branded content stands apart with its immersive, entertaining, and educational storytelling. This approach makes it an ideal tool for fostering audience connection, driving awareness, and building brand affinity without directly promoting products or services.

What is Branded Content?

According to Wikipedia,

“Branded content is the practice of marketing via the creation of content funded or outright produced by an advertiser… designed to build awareness by associating the brand with content that shares its values.”

In essence, branded content is a collaborative effort where brands create engaging content through sponsorship or paid partnerships with media or creators, focusing on shared interests rather than direct sales.

Quote from Content Marketing Institute (CMI):

“Branded content is a content creation tactic that encourages audiences to engage with the brand based on its entertainment, information, and/or educational value.”

Characteristics of Effective Campaigns

Successful branded content campaigns share key characteristics that make them effective at fostering audience loyalty and engagement. Let’s explore these hallmarks:

1. Storytelling with Depth
   Unlike direct advertising, branded content is driven by immersive storytelling. By using rich multimedia formats such as videos, podcasts, and interactive experiences, brands create emotional connections and resonate with viewers on a personal level.
2. Shared Values Over Sales Goals
   Branded content focuses on creating content around values and topics that interest the audience, rather than explicitly promoting products. This allows brands to establish thought leadership and build trust. For instance, Honda’s Battle of the Bands celebrates Historically Black Colleges and Universities (HBCUs) through music and culture, fostering a sense of community without pushing sales.
3. Multi-Funnel Impact
   Branded content can engage audiences at various funnel stages—from initial brand awareness to consideration. A study by Advertiser Perceptions found that 31% of brands use branded content to increase product consideration, while 29% use it to drive sales.
4. Broad Distribution Across Platforms
   Effective branded campaigns are often published across multiple channels—social media, third-party platforms, and owned websites. This approach makes branded content easily discoverable and well-suited for mobile engagement, allowing consumers to interact with content on the go.
5. Collaborative Media Partnerships
   Branded content often involves partnerships with media outlets, publishers, or creators, helping brands reach new audiences and ensure higher content quality. This mutual investment strengthens the chances of a campaign’s success and provides a benefit beyond traditional advertising methods.

Examples of Notable Campaigns

Image source: Daily Utah Chronicle Barbie’ Is a Modern Masterpiece

1. Barbie: The Movie

The 2023 Barbie movie is an iconic example of branded content that bridged product and entertainment. This high-profile campaign generated massive audience engagement, revived an iconic brand, and brought in over $1 billion worldwide, blending storytelling with brand impact.

2. Murder in HR by Gympass

This fictional podcast series, produced in partnership with Caspian Studios, subtly integrates Gympass’s wellness services into a true-crime narrative. The podcast is both entertaining and relevant to HR professionals, enhancing Gympass’s brand appeal in a non-intrusive manner.

Advantages of Branded Content

• Increased Brand Recognition: By associating a brand with engaging content, branded content strengthens brand recognition and helps audiences connect with a company’s values.
• Consumer-Focused, Not Sales-Focused: Branded content is crafted to entertain and inform, reaching consumers where they are without pushing direct sales. This focus enhances consumer engagement and makes the brand more relatable.
• Scalability and Growth Potential: With the rise of digital platforms, branded content can be shared and scaled across channels, reaching a broader audience and adapting to new trends.
• Cost-Efficiency: Many branded content campaigns can leverage free or low-cost distribution channels like social media, making it a budget-friendly alternative to traditional ads.

Branded Content vs. Advertising: Key Differences

1. Focus on Story Over Product: Branded content is about sharing valuable stories, while advertising focuses on driving immediate sales.
2. Educational and Entertaining: Unlike ads, branded content is often created for audience engagement, making it more shareable and likely to go viral.
3. Accessibility and Shareability: Branded content lives on social media and online platforms where it can be easily shared by users, whereas ads are usually paid placements on third-party sites with limited shareability.
4. Long-Term Engagement: While ads often aim for short-term conversions, branded content fosters ongoing relationships, building loyalty over time.