As digital content rises in popularity, it’s no surprise that many media outlets are struggling. With more and more free news and entertainment online, the need to pay for content is reducing rapidly. This, combined with a decline in revenue generated by print advertising, means many publications are turning to alternative methods of generating revenue, one of which is through the creation of paid content.

Also known as “sponsored content,” “native advertising,” and “advertorial,” paid content is exactly what it sounds like – content that has been paid for, most often by businesses and organisations looking to generate interest in a product or service.

Paid content is something of a dirty word in the media world, with a common perception that it is undermining traditional, independent journalism. Last year, John Oliver (pictured right) covered the issue, in a hilarious, if somewhat unsettling segment of his “Last Week Tonight” show.

Oliver’s view is not unfounded – after all, the media cannot remain entirely free and independent if no one is willing to pay for it – and it seems, no one is (except NBR readers, which speaks more to their target demographic than anything else).

But is paid content really as bad as it’s made out to be? In October, Inkers Marieke and Sophia attended the CAANZ Presscom event, discussing the merits and flaws of each. One of the main take-outs was that transparency is key to maintaining a balance, and respecting one’s audience.

Many believe that editorial and advertorial should be separated, the concern being that media consumers won’t be able to tell the difference between the two. Admittedly, in some areas, paid content is often not clearly identified, with businesses doing their utmost to ensure the disclaimer stating that content has been sponsored is as small and unnoticeable as possible. However, in New Zealand, our media is somewhat more upfront with the origins of their content. Paid content is generally easily identifiable, and we have a relatively media-savvy audience.

“Gone are the days when you can have something for nothing,” says Simon Wilson, Editor at large at Metro (pictured left). “We’re all in this together, and good ideas will shine, regardless of what format they take.”

Metro produces a small amount of paid content, but Wilson does not believe this compromises the magazine’s value or brand. Transparency is vital, he says, recognising that media consumers want honesty as much as they want quality. “The industry is changing, and publications will die if they don’t get it right,” he says. “What’s important is to strike a balance, and remain true to yourself and your audience.”

As it stands, paid content is one of the few things keeping print media alive and allowing media consumers to continue to access mainstream news sites like The Herald and Stuff.co.nz for free (although how long this will last is anyone’s guess, as talks of paywalls continue).

Tim Murphy, ex-Editor-in-Chief at The Herald, compares paid content to a sponsor speaking at an All Blacks game; it’s no one’s favourite part of the coverage, but we all realise that sponsor involvement is vital to keeping the game alive. He doesn’t believe paid content is any worse that other commercial messaging, which we’re subjected to constantly. “We’re totally commercialised from the day we start primary school,” he says. “We’re exposed to commercial messages from day one, but people are savvy – especially those in their 20’s – they’re quick to call bullshit on content masquerading as something else.”

This again, brings us back to transparency. Meredith Levien, Executive Vice President of Advertising at The New York Times Co. says “native advertising does not have to erode consumer trust, and good native advertising is not meant to be trickery. It’s meant to be publishers sharing their storytelling tools with marketers.”

With these tools available, marketers would be silly not to use them, right? If done well, paid content can compliment editorial, and provide additional value to readers.

Paid content 101: Don’t over-do it, remain true to your brand, respect your audience’s intelligence and be honest about the content you’re presenting. At the end of the day, we’re all after a good story, so does it really matter who pays for it?