When it comes to marketing, fintechs have options for gaining visibility and promoting their products or services. Two commonly used methods are advertorials and earned media coverage. While both offer opportunities to reach audiences, each approach comes with its own set of pros and cons.
In our latest blog, we explore the advantages and disadvantages of advertorials versus earned media coverage to help fintechs make informed decisions about their marketing strategies.
ADVERTORIALS
Pros of Advertorials:
- Control over Messaging: One of the primary benefits of advertorials is the level of control they afford fintechs over their messaging. Unlike earned media coverage, which relies on journalists or influencers to craft the story, advertorials allow businesses to tailor the content to their specific objectives and target audience.
- Guaranteed Placement: Advertorials offer fintechs guaranteed placement in a chosen publication or platform. This certainty can be particularly appealing for fintechs seeking to reach a specific demographic or niche audience, as they can select media outlets that align closely with their target market.
- Enhanced Brand Visibility: By paying for placement, advertorials ensure that fintechs receive visibility and exposure in the chosen media outlet. This increased visibility can help raise brand awareness, attract new customers and drive traffic to the company’s website.
Cons of Advertorials:
- Perceived Lack of Credibility: Advertorials are often viewed with skepticism, as they are perceived as paid advertisements rather than impartial editorial content. This lack of credibility can diminish the impact of the advertorial and lead to skepticism or distrust among audiences.
- Cost Considerations: While advertorials offer guaranteed placement, they can also be costly, particularly in high-profile publications or platforms. For fintechs operating on tight marketing budgets, the expense of advertorials may outweigh the benefits, especially if the return on investment is uncertain.
- Limited Reach: Despite guaranteed placement, advertorials may have limited reach compared to earned media coverage. Audiences may be more inclined to engage with content that is perceived as unbiased and editorially driven, leading to lower engagement and conversion rates for advertorials.
EARNED MEDIA COVERAGE
Pros of Earned Media Coverage:
- Credibility and Trustworthiness: Earned media coverage, such as news articles or features, carries inherent credibility and trustworthiness. When a fintech is featured in reputable media outlets, it benefits from the perceived impartiality and authority of the publication, enhancing its credibility in the eyes of consumers.
- Expanded Reach and Exposure: Earned media coverage has the potential to reach a broader audience than advertorials, as it is often shared and disseminated through social media, word of mouth and online platforms. Fintechs can leverage earned media coverage to increase brand visibility and attract new customers organically.
- Cost-Effective: Compared to advertorials, earned media coverage is generally more cost-effective, as fintechs do not pay for placement. While securing media coverage may require investment in media relations and outreach efforts, the long-term benefits of earned media often outweigh the initial costs.
Cons of Earned Media Coverage:
- Lack of Control over Messaging: Unlike advertorials, fintechs have limited control over the messaging and content of earned media coverage. Journalists or editors may choose to focus on aspects of the story that do not align perfectly with the company’s objectives or messaging.
- Uncertainty of Placement: Securing earned media coverage is not guaranteed, and fintechs may invest time and resources in media outreach efforts without achieving desired results. The competitive nature of media relations means that fintechs must compete for attention and coverage alongside other organizations.
- Potential for Negative Coverage: While earned media coverage can enhance brand visibility and credibility, it also carries the risk of negative publicity or criticism. While extraordinarily rare in our space, fintechs may find themselves at the mercy of journalists’ editorial decisions, which could result in unfavorable coverage or scrutiny.
Both advertorials and earned media coverage offer distinct advantages and disadvantages for businesses seeking to enhance their visibility and promote their products or services. While advertorials provide control over messaging and guaranteed placement, they may lack credibility and be costly. On the other hand, earned media coverage offers credibility, expanded reach and cost-effectiveness but comes with limited control and the potential for negative coverage.
Ultimately, fintechs must carefully weigh these factors and consider their marketing objectives, target audience and budget constraints when deciding between advertorials and earned media coverage.