Welcome To Branded Content 3.0

There's a compelling argument to be made that we're entering the third age of branded content. The era of "BC 3.0" characterised by wider adoption and increasing creativity based on both new entertainment formats and fresh technology.

It's a long way from the branded magazines and newsletters that emerged with the first dawn (old stagers such as Saga Magazine - launched in 1984 - are still going strong). Then came the second wave, best described perhaps as broadcast programming supported by advertisers that resulted in shows such The Krypton Factor (the 1980s quiz show which returned to screens in 2009 funded by software business Sage Group).

Now we're seeing the emergence of campaigns such as Xbox's 'Everyday Tactician' created by McCann London and which stormed the show at Cannes Lions.

Ad-funded work that is indicative of advertisers and their agencies looking to inject the values of entertainment and wider culture into the DNA of branded content.

As a result of this shift, branded content seems more vibrant, exciting and ideas driven. And it's also big business with global spend on all "native advertising" forecast to reach $402 billion by 2025, up from $85.83 billion in 2020, according to research cited by the Branded Content Research Hub at the London College of Communication.

Agencies are ready for the opportunity. For example, WPP's dedicated Coca-Cola team Open X worked with the brand on an entertainment-based platform for its Christmas 2023 campaign.

Meanwhile, Co-Op Funeralcare has partnered with Channel 4 to produce a three-part series featuring celebrities who have a loved one arrange and carry out a funeral service in their honour.

But what's behind these heightened levels of adoption? Dan Wood, managing director of Creative Futures UK at EssenceMediaCom, says that it's based on the need to reach audiences on their own terms: "Increasingly people's time is spent in environments that are entertainment-driven and probably not ad-funded... shifting onto streaming platforms and into gaming environments - social places where traditional advertising isn't the most effective way of reaching people."

Lea Karam, consulting director at Behave, the behavioural consultancy backed by Total Media, believes that we're witnessing a transition whereby leading brands are becoming "media hubs" in order to create immersive experiences that stimulate people's senses.

Karam argues that this shift requires "that brands really have to show up in a way that resonates with community. You can't really talk to demographics any more, you have to talk to a sub-culture, a need, a behaviour."

Creative agencies are seeing, despite concerns over falling audience attention spans, demand for longer-form content continuing to rise. Tommy Smith, managing director of McCann London, says: "Especially amongst younger audiences who frequently choose to watch YouTube instead of settling into an evening of linear, or catch-up TV. This demographic, who are typically the target for our clients, can often be sceptical of traditional broadcast advertising, preferring content that provides entertainment or value."

Johnny Watters, ECD at OgilvyOne, says that the best examples don't feel like branded entertainment but contain a brand message that's "ruthlessly simple, leaving room for the entertainment to be actually entertaining."

Watters cites eBay as a prominent brand in the space. For instance, in 2022 it released an update of MTV motor makeover series Pimp My Ride on Netflix called Resurrected Rides.

Watters explains that the programming feels authentic, with the eBay message seamlessly woven in, "and the show is surprisingly good." He adds that the entertaining nature of the programme is most likely due to "two things... investment and creative freedom."

EssenceMediaCom works with eBay on its branded entertainment projects, and Dan Wood says the key is to be "Informative, helpful and additive to the audience. First what does the audience want to see, and then what can the brand add to that? It's that additive element that's the craft in this piece."

EssenceMediaCom also supported travel brand TUI on its development of The World Cook series on Amazon Prime Video. The idea for the programming came from a clear strategy to bring the worlds of travel and food together to showcase the hotel environments and destinations TUI has to offer.

Sara Ali, director of brand and content at TUI, says: "Travel gives us all the opportunity to experience different cultures, from food to music, architecture to trying new hobbies and everything in between. It’s important that we do this in a way that is authentic and matches the interests of our customers."

Ali adds that TUI is planning more branded entertainment partnerships this year. In terms of metrics that demonstrate the success or not of these initiatives, she says it's important to use dedicated research that looks at brand consideration, perception and intent alongside media data including viewing figures and minutes streamed.

Behave's Karam adds that taking a long-term view is essential when measuring the impact of branded entertainment and that it should be based on "softer terms" than traditional ad spots. Taking account of how the format shapes sentiment, emotion, perception, and engagement: "It's test and learn but as long as you're creating purposeful entertainment at least you have a strategy."

Karam says that these softer measures influenced her work on the film series 'Learn on TikTok' which was based on the idea of creating branded entertainment that resonated with the passions of audiences. Skin care afficionados, garden and plant enthusiasts, or people looking to make money from a side hustle.

Hard media metrics are available for those brands that need to quantify the effect of their branded content in detail. EssenceMediaCom's Wood says that ROI analysis remains "an overall marker of success" and that the core reason for investment is to "drive brand growth". Tools that measure awareness, talkability, word of mouth, and positivity towards the brand each come into play here.

Ultimately, though, the creation of the new wave of branded entertainment depends on the same values that underpin advertising - a deep understanding of brands together with strong consumer insight and an appreciation of the opportunity provided by streaming services and gaming platforms.

McCann London's Smith concludes that originality is also vital due to the risk of oversaturation making it harder for any one piece of content to stand out: "Brands need to create content that is not only high-quality but also distinctive and memorable. Society is made up of hundreds of eclectic sub-communities and there is not a one-size-fits-all approach to engaging with them. You need to deep dive into their worlds and unlock something that is important to them."