Blurred lines are good news for media and admen
CNN announced earlier this week that it is setting up a studio to create branded content for advertisers, further blurring the lines between earned and paid media.
Otto Bell, a former Ogilvy adman who will head up the studio, told The Wall Street Journal staff with “journalistic instincts” would work with advertisers to help them find “newsworthy” stories to tell.
CNN is not the first news organisation to set up a dedicated advertorial or branded arm. The New York Times has T Brand Studio, which published its first sponsored post last year. Buzzfeed’s business model relies heavily on partnered content, which is identifiable mainly by a short and, to some, inconspicuous mention of the sponsor.
These newly blurred lines come as media organisations look to diversify their revenue streams. Print readerships and TV viewership are declining, as younger readers opt for social content and digital platforms such as Snapchat move into editorial.
Whilst print still gets a sizeable chunk of total ad spend, its share is declining year-on-year. TV ad spend isn’t quite as straightforward a story as print, but its share of the total pot is also under threat.
The real disrupter that is forcing media organisations to change is the rise of digital. Snapchat, for instance, is using its young user base to tap into further ad revenue. Digital platforms are not just stealing readers; they are stealing ad revenue. This explains the rise of branded content.
But this could be good news for both media and admen. Whilst newspapers, broadcast, social media and advertisers have traditionally served distinct purposes, they can benefit from working together.
Consider, for a moment, an example from biology. There the term mutualism is used to describe a mutually beneficial relationship between two organisms of different species; the hummingbird and the plant it pollinates, or the zebra that benefits from the oxpecker eating parasites on its coat. These relationships are distinct from exploitative relationships such as parasitism, where one party benefits whilst the other suffers.
Newspapers, radio, TV, social media and advertisers make up their own, complex ecosystem. By allowing news organisations to tap into new revenue streams and creating a new route for advertisers to their target audience, both ‘organisms’ benefit.
As for other organisms, as long as journalistic ethics prevail and branded content is clearly identified, this development is unlike to harm readers. Whether closer ties between media organisations and brands will threaten the public relations industry, only time will tell.
This blog first appeared on mhpc.com