I believe the Cluetrain Manifesto was way ahead of its time.
The online media landscape is constantly evolving and as it does it is presenting brand owners with equal measures of challenges and opportunities.
With regards to brand communications there were three key developments over the last year, firstly online has become a dominant channel; according to IAB the Internet now accounts for 18.7% of the advertising market with Press Display at 19.3% and TV at 21.7%, secondly within the online channel social media has captured a huge percentage of users time spent online, Time reported that social networking sites are now the most popular kind of site and lastly video has now become a common element of the online media mix, according to data from comScore, more than 27.4 million U.K. Internet users (78 percent of the total U.K. Internet audience) viewed 3.2 billion videos online in June 2008.
The challenge for brand owners is two-fold, how do you cost efficiently reach your audience through the ever growing number of fragmented media channels and how do you successfully engage them when each generation is becoming progressively more immune to interruptive advertising?
And here in lies the opportunity, with the disintermediation of media, brands are now able to reach their audience directly via social media and brand-owned sites. This saving in media expenditure, together with tumbling production costs, make investments in brand content strategies more viable than ever.
Branded content can take many forms but generally fall into two areas; branded entertainment and brand utilities.
Branded entertainment could manifest itself as anything from a 60sec movie clip to a MMOG (that’s massively multi-player online game for those not in the know). Brand owners who commission entertainment need to ensure they are authentically blending key brand messages into truly engaging content.
Brand utilities could be anything from a calculator widget to an ambitious utility strategy like Nike+, which has successfully embedded social networking functionality directly into the product itself. Brand owners commissioning utilities need to ensure they are delivering valuable functionality for their audience that encapsulates the brand promise.
In summary, with branded content enabling companies to build direct and more engaging relationships with their audience it looks set to play an ever increasing role in brand communications.