Diversifying your revenue streams can be a smart move. It helps build a stronger, more flexible business model and you won’t rely too heavily on a single way of making money. This can help protect you when the advertising market changes. It also gives you the flexibility to test new ideas and adapt to change. One option worth considering is sponsored content, which can provide you with additional monetization options beyond just regular ads.
What is sponsored content?
Sponsored content is a form of native advertising that is written or produced to resemble the publisher's regular editorial content. Unlike traditional ads that focus on selling a product or service, sponsored content subtly promotes a brand while providing valuable information to readers.
Sponsored content can take various forms, including articles, videos, lists, infographics, social posts, and more. The advertiser typically provides the content or assists in its creation.
TIP: If you're not comfortable with advertisers directly influencing your editorial content, you have another option - underwritten content. Underwritten content provides an alternative to sponsored content, as the advertisers have no control over the creation of the content itself. This gives publishers more editorial independence while still diversifying their revenue streams.
Content reigns supreme
To ensure the success of your sponsored content, you need to understand what kind of content your audience will find engaging. Take an audience-centric approach and focus on meeting the needs of your readers.
Here are some strategies to help you create high-quality sponsored content:
Do audience surveys
Regularly surveying your audience to understand their preferences, interests and pain points is the best way to ensure the content you’re publishing is relevant.
Check your website and newsletter analytics
Monitor performance metrics of your existing content. Look at things like overall engagement, time on page, and audience feedback.
Analyze your competitors
Check out similar publishers in the industry, what kind of sponsored content do they offer and how is their audience responding?
Perform some A/B testing
If you have an established audience, experimenting with A/B testing can help you understand how different formats, topics, and approaches to sponsored content are received by your readers.
15 Ideas for Sponsored Content
Local Business Spotlight Series: work with local businesses and organizations to highlight their stories, products and services, and community impact!
Neighbourhood Guide: create a guide to the best local restaurants, shops, events, and attractions in different neighbourhoods.
Home Improvement Tips from Local Experts: Partner with local contractors, designers, and tradespeople to share home maintenance and improvement advice.
Support Local Charities: help local charitable organizations spread the word by showcasing their work.
Local Event Previews/Reviews: work with event organizers to promote upcoming festivals, parades, concerts, and other happenings in your community.
Sustainability in the Community: highlight eco-friendly initiatives, green businesses, and environmentally-conscious residents.
Student Voices: partner with a local school to feature essays, interviews, and other content created by students.
Made in [City/Region]: showcase locally-made products, artisanal crafts, and homegrown entrepreneurial success stories.
Neighbourhood Oral Histories: interview long-standing community members about the history and evolution of their local area.
Commuter’s Guide: provide sponsored tips and resources for navigating public transit, traffic, and transportation issues.
Local Sports Spotlight: celebrate the achievements of youth, high school, and community sports teams and athletes.
Local Landmarks: explore historic sites, parks, and other points of interest.
Cooking with Community Chefs: partner with popular local restaurants, caterers, or home cooks to share signature recipes.
Seasonal Activity Guides: showcase ideas for seasonal activities, outings, and events in the local area.
Setting guidelines for sponsored content
One of the most important parts of selling sponsored content is setting guidelines:
Determine how many posts you can publish each month. Based on your publishing frequency, determine how many pieces of sponsored content you can publish each month. It’s important to ensure your original content is not being diluted by too many sponsored posts. For the average publisher, our recommendation is to limit sponsored content to 1 - 2 posts per month.
Decide where you want it to live on your website. Consider adding a Sponsored Content category to your website. This will allow you to set up a post archive that can live on your site in perpetuity.
Set a word limit. How long are the articles you typically publish? Set a word limit for your sponsored content based on your average post length.
Define the content and advertisers you are willing to work with. Clear guidelines on the type of content and advertisers that will be accepted will help you maintain editorial integrity and quality. You can also include content restrictions or prohibited subject areas.
Develop an asset request form. Let your advertiser know what assets you’ll need from them. This will typically include a logo file, header image, and some supporting images.
Define the process. Outline the content submission, review, and editing process for your advertisers. Determining the approval workflow, including who will review the sponsored content before publication is critical.
Disclosure is a must. All forms of sponsored content must include a disclosure to your audience. This could be as simple as “This post was made possible thanks to financial support from [Sponsor Name].”
Figure out what to charge
Sponsored content can be a great way to increase your publishing capacity while generating significant revenue. Here are some guidelines on pricing sponsored content.
Research the local market. Take a look at your competitors when determining pricing models. Consider things like ad placements, the length, exclusivity, etc.
Develop pricing levels depending on who is writing the post.
Who is writing the article?
If an advertiser is writing the article, price it so that your time is covered to project manage and edit the piece.
If you are writing the article or if you need to hire a freelance writer, price it so that a freelance writer is covered and make sure you include the time needed to project manage and edit the piece.
Sponsored content is high-value! Even if your audience is still growing, if you can demonstrate strong engagement from your audience, there is still significant value in your sponsored content offerings.
Launch the article in your email newsletter, share it on your homepage for a predetermined length of time, share it on your social media, and eventually archive the content on your website.
Don’t be afraid to start with a lower rate, you can always adjust it up as you better understand the value you’re providing.
Don’t forget to send impact reports
You should prioritize sending impact reports to your advertisers as part of your retention and renewal strategy. How do impact reports help you develop stronger relationships with your advertisers?
They provide transparency and accountability
Providing an impact report demonstrates that you are transparent about the results of the advertising campaign.
It demonstrates value
These reports allow you to showcase the actual performance and engagement metrics for the sponsorship. This helps the sponsor understand the value they are receiving for their investment.
They help you optimize future campaigns
The data and insights in the report can help you identify what strategies are the most effective. If a campaign doesn’t perform as anticipated, use these reports to dig into why and what can be done to improve.
An impact report can take a variety of forms and the specific metrics and cadence for reporting will vary depending on the sponsorship. Regularly sharing these reports demonstrates your commitment to the partnership and keeps your advertiser informed and engaged.
For a sponsored content impact report, we recommend the following key metrics:
Impressions/Reach
Engagement Rate
Click Through Rate
Conversion Rate
Referral Analytics
Sentiment Analysis
Benchmarks
Learning and Recommendations
In Conclusion
Sponsored content is a powerful way to diversify your revenue streams and build a more resilient business model.
By offering sponsored content opportunities, you can unlock new sources of funding while still protecting your editorial independence.
The key is to take an audience-first approach, creating sponsored content that provides genuine value to your readers. Follow best practices like setting clear guidelines, pricing strategically, and providing transparent impact reports to your sponsors. With the right strategy, sponsored content can be a win-win for you, your advertisers, and your audience.
As you explore sponsored content, remember that you have options beyond traditional sponsored posts. An alternative like underwritten content can give you more independence while still allowing you to tap into this lucrative revenue stream. The most important thing is to find the right approach that aligns with your editorial values and business goals.