Marketers to Emphasize Branded Content Campaigns

Marketers know they have to spend significantly more money to acquire new customers than to retain existing ones. So they need cost-​effective ways to educate and maintain contact with customers. At many companies, branded content like newsletters commands a healthy percentage of the marketing budget and delivers an solid return on investment.

A new study released by the Custom Content Council indicates that large marketers spent an average of $1.36 million on content development in the past year. About 29% of the total marketing/​advertising/​communication budget has been devoted to branded content and this percentage has been increasing. Over 2/3’s of businesses say branded content is more effective than simple direct mail. The primary goal of these expenditures is to educate customers (54%) and retain customers (23%).

Marketers use the following methods to distribute their content:

  • Print 43%
  • Electronic 35%
  • Other 12%

Keith Sedlak, Chair of the Custom Content Council and Chief Marketing Officer with Meredith Integrated Marketing, notes that “there was a 20% increase in companies surveyed this year versus last year that plan to grow their branded content budgets.” Overall, 31% of surveyed marketers will increase content spending in 2011. While 61% of marketers say a moderate shift in their ad and marketing spending is underway, 7% say this shift has been aggressive. For the most part, marketers are moving funds from traditional forms of advertising to initiatives like branded content and social media.

[Source: Marketers Deem Branded Content Superior. Custompublishingcouncil​.com. 29 Nov. 2010. Web. 4 Jan 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.