At its hyperbolic best, branded content on TV was supposed to save an interruption advertising model in terminal decline. Here was something that promised consumer engagement, brand exposure in an accepting environment and - for those on the receiving end - a new revenue stream. In Western markets, in particular, brands plunged in.
Asian companies followed, but the forecast stampede has barely materialised. Instead, media executives in this part of the world note that the segment is stagnating. So, while TV viewership remains very strong in Asia, it appears that integrating brands into programming is facing a slew of problems.
1 The biggest problem, it appears, is a fundamental disconnect between the relevant parties involved. Media owners believe that they should hold the rights, while watching the brand fund the programme. Marketers, on the other hand, believe they should hold the rights, and thus revenue.
Agencies and production companies are caught squarely in the middle. Ravi Kiran, Starcom Media-Vest Group’s CEO, specialist solutions, Asia, says: “There is a huge gap in what everyone expects. When returns are measured against what they expect, realistically, it’s tough to deliver. This is the single biggest reason branded content on TV is struggling.”
2 As ever, cost is an issue, and a potentially prohibitive one in the world of TV. Fragmentation of media, particularly into the digital space, has caused brands to head elsewhere to try more cost-effective executions. Ponds China, for example, in conjunction with MindShare’s ESP unit, opted for a less-expensive online reality TV series for its Deep Cleansing Mud brand.
“There is a much lower level of investment; it’s low risk and you can gauge audience interest more easily. If it flies, you can always upscale your investment,” explains Mike Rich, CEO, GroupM content division.
3 Amplifying these problems is a lack of expertise and creativity from media agencies. Long held as the intermediary between the opposing factions, they boast strong relationships with the people that count, but sometimes offer little in the way of creativity, which has traditionally been the domain of their creative counterparts.
“There are few agencies that can do branded content well. Most often have a very simplistic view of how it works. We need a different kind of people, who are fundamentally creative risk takers - something media agencies have traditionally not been,” says Kiran.
4 In fact, it appears creative shops are doing the job just as well - JWT Japan, for example, was behind Kit Kat’s unprecedented success at the Asian Marketing Effectiveness Awards for a largely music-based campaign, scooping not just gold in the Best Idea and Most Effective Use of Branded Content categories, but also taking the Platinum.
“Creative agencies, while they might not have the relationships, are better at ideas, and that’s the most critical part of branded content - not the execution,” says one creative executive who declined to be named.
5 A lack of metrics is also cited by most as a reason branded content is finding it hard to shake the ‘not cost-effective’ tag. US measurement companies - namely Nielsen, Intermedia Advertising Group and iTVX - have been trying for years to come up with an ROI model, but at best, it’s regarded as an inexact science.
“The absence of performance metrics - spot buys have been tracked using GRPs, for example - for brand mentions, placements and all elements of branded content makes it difficult to justify its effectiveness,” observes Navonil Roy, GM of Media Prima’s creative -marketing group.
6 Still, there is hope, thanks to high consumer engagement levels with content if it’s well-targeted and entertaining. “If we’re going to talk to consumers at a higher level, it has to be something they engage in,” says MEC COO Stephen Li.
“We’re investing a lot of time in it, and if anything, the area will grow as opposed to shrink, and to all of our peril if we ignore it.” Coca-Cola Singapore spokesperson June Kong agrees. “You get a chance to tailor something that aligns with your brand, and it checks the boxes in terms of aligning with your audience, as well as fitting the brand architecture. It gives brands a chance to be innovative and take a leadership role,” she observes.
What it means for…
Advertisers
Done properly, branded content offers the chance to engage consumers, rather than interrupt them.
For now. brands need to be realistic in terms of gauging the ROI that branded content can provide.
Marketers also need to be aware of the various logistical difficulties and costs involved in the process.
Media owners
While it is undoubtedly a useful way to diversify revenue, media owners need to promote their content offerings better to clients.
Backing a realistic metrics model would also benefit everyone involved.
Media agencies
Agencies need to fundamentally change the way they approach branded content. It’s not enough to simply focus on the numbers - either ROI, cost of production and buy-in - it’s the creative idea that counts.
