The Ultimate Guide to Sponsored Content

Updated Aug. 5, 2022 - First published on May 18, 2022

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

Since people have begun to ignore traditional ads, sponsored content is a fast way to build trust and credibility with your target market. It's much more effective than paid banner advertising.

Consumers have started to ignore many traditional advertisements. They realize the ad is a marketing action to get them to buy something. Sponsored content is a type of inbound marketing that doesn’t appear as an advertisement. It's much more effective than paid banner advertising. Native ads produce a CTR (click-through rate) nearly nine times higher than typical display ads.

Sponsored content is ideal for social media campaigns. It allows businesses to increase their brand awareness with creative and engaging content. By partnering with other brands, companies can increase their reach. In fact, 89% of marketers report that influencer-sponsored content is comparable to or better than other marketing channels.

Overview: What is sponsored content?

Sponsored content started with soap operas during the 1920s. At that time, radio was king. Radio stations created programs that told stories. Producing and distributing content was expensive, so radio stations approached household goods manufacturers for sponsorships.

Proctor and Gamble was the first to take advantage of sponsored content. They began marketing their laundry detergent on the radio. As the shows became popular, they were associated with soap and became "soap operas."

Sponsored content can appear as articles, infographics, and social media content, such as YouTube videos and social media posts. Brands will sponsor influencers or other companies to post about their products.

Sponsored content is an ad that doesn’t look like an ad. It feels like a natural part of the site. Companies use sponsored content because it feels more like a recommendation from a friend. It builds trust with your brand and provides value to the reader.

10 examples of sponsored content to inspire your content marketing campaigns

Select the type of sponsored content you'll use based on two things: your social media content strategy and where your target market consumes most of its content. Sponsored content partnership opportunities exist on all the social media platforms as well as in print advertising and traditional media. Even small businesses can partner with other businesses to create mutually beneficial sponsored content.

Here are some examples of high-quality sponsored content from a few channels.

1. Taco Bell and Snapchat

Taco Bell sponsored a Snapchat filter for Cinco de Mayo. Snapchat is a photo-sharing platform that lets readers use filters to alter photos. Filters entertain users, and they got Taco Bell’s message out. The campaign generated a lot of customer engagement as Snapchat users created their own pictures with the filter. The Taco Bell filter was viewed 224 million times.

Picture of Taco Bell’s taco filter on Snapchat.

The fun Taco Bell Snapchat filter turns your head into a taco. Image source: Author

2. Spotify and Buzzfeed listicle

Spotify sponsored this Buzzfeed listicle, 15 Bands That Probably Wouldn’t Exist Without Led Zeppelin. It provides content that many music lovers find interesting and contains a call to action to listen to the artists’ music on Spotify.

Picture of The Black Keys featured in the Buzzfeed article.

Spotify used a listicle to feature The Black Keys and other bands on Buzzfeed. Image source: Author

3. YouTube and Someecards e-card

YouTube sponsored Someecards to promote a few of their content creators. They used the satirical e-card website to promote Lilly Singh and Tyler Oakley. They created a basic e-card to be shared on social media. The most popular of YouTube’s e-cards was shared by almost 38,000 users.

Picture of YouTube-sponsored Lilly Singh Someecards ad.

YouTube created an e-card with Someecards promoting one of their top creators. Image source: Author

4. Marks & Spencer and Daily Mail Online article

Marks & Spencer sponsored an article on the funky new flower trends for fall with Daily Mail Online. The article features photographs of the floral trends they want to promote. It's written in the style of the Daily Mail Online, so users won’t have trouble adjusting to it.

Picture of roses and orchids in three bouquets.

Marks & Spencer introduces new bouquets in a paid promotion featuring their fall autumn collection. Image source: Author

5. Flight Centre and The Telegraph article

Flight Centre teamed up with The Telegraph to sponsor the article, Plan a gourmet road trip around Australia’s top foodie cities. The article entices you to visit southern Australia and sample the delectable foods. It uses vibrant images to capture your imagination and encourage you to travel to Australia.

An image of Australia’s cuisine featured in The Telegraph.

Flight Centre promotes travel to Australia through an article on the foodie cuisine in The Telegraph. Image source: Author

6. San Francisco Travel and Good Media infographic

This infographic, 7 Things you didn’t know about the Golden Gate Bridge, was sponsored by San Francisco Travel for Good Media’s website. It gives viewers interesting statistics they may not know about the bridge and the city.

Infographic of the San Francisco Travel Golden Gate Bridge statistics.

San Francisco Travel uses an infographic to present fun statistics to readers. Image source: Author

7. Jamerrill Stewart Large Family Table and Panda Pop video

Panda Pop promoted their game app on Jamerill Stewart’s YouTube channel. Jamerrill runs an online business helping mothers with large families plan and cook meals. Jamerrill featured the plush panda bears in her video and a clip of her playing the video game. She encourages her viewers to use Panda Pop as a fun way to relieve the stress that can come with being a mother.

Screenshot of Panda Pop video sponsored on Jamerrill Stewart’s YouTube channel.

The plush Panda Pop bears make an appearance along with Jamerrill Stewart’s cooking content. Image source: Author

8. Mohammed Al Nazal and Dunkin' Donuts Instagram post

Mohammed Al Nazal is an Instagram influencer who promotes men’s fashion. Dunkin' Donuts teamed up with him to promote their signature gingerbread latte. Mohammed wears a stylish leather jacket with the Dunkin' Donuts sign in the background of his Instagram post. He encourages his followers to download the Dunkin' Donut app in his Instagram captions.

Picture of Instagram collaboration between Mohammed Al Nazal and Dunkin' Donuts.

Dunkin' Donuts uses a sponsored post with Mohammed Al Nazal to promote their app. Image source: Author

9. James Corden and Starbucks video

Starbucks paid for a promotion on the Late Late Show with James Corden. They challenged James Corden’s staff to recreate their favorite Starbucks experiences at home. The staff created fun holiday decorations and drank their favorite Starbucks brew in the videos. The video aired and was then featured on their Facebook page. This created increased brand awareness for Starbucks in a fun and exciting way.

Picture of James Corden’s Starbucks challenge promotion.

Starbucks sponsored a video on James Corden’s television show. Image source: Author

10. Deliciously Savvy and TreCeuticals Twitter post

Deliciously Savvy promotes all things related to family, food, and fun. TreCeuticals sponsored a review and a tweet with Deliciously Savvy. Deliciously Savvy regularly reviews different products related to personal care and home life, so this review felt natural to their audience. It was aligned with the brand’s goal to help people feel more confident in their bodies.

Picture of the sponsored tweet between TreCeuticals and Deliciously Savvy.

Deliciously Savvy reviewed the Treceuticals brand of skincare. Image source: Author

Tips for creating compelling sponsored content

Compelling sponsored content will get your audience to engage with your posts and follow through on your calls to action. Consumers relate better to sponsored content because it's presented by an influencer or brand they already trust. But not all sponsored content is a hit with consumers, so follow these tips to create exceptional sponsored content.

1. Communicate the purpose of the post

Your target audience is looking for information related to their personal goals when they view content. Sponsored content should be in line with their goals. These goals can range from gaining information to being entertained. If your content or posts don't move the target audience closer to their goals, they'll start to ignore future postings.

Effective sponsored posts immediately communicate to the user they will receive value if they pay attention to the content. Make it clear why they should spend time reading or viewing your content.

2. Make it intuitive

Sponsored posts are an introduction to something new that isn't normally part of their typical newsfeed. They may not know what to expect right away. An intuitive design will guide the user through your content letting them know what to expect. Visually engage the audience with strong copywriting, simple sizes, and typography.

3. Make it natural

Whether it's a video or a post, sponsored content should not come across as a blatant advertisement. An example of this would be as you scroll through your feed, you see pictures of a granola bar with a caption saying how much the person loves them. They'll see this as just another advertisement.

Prominently featuring the product is fine for native ads, but for sponsored content, it should seem natural. Customers want to see the product being used in the influencer’s environment. Using the product in a natural way is much more interesting and believable for the consumer.

4. Use great visuals

Beautiful photos are more likely to be shared with friends online. Poor photography won’t make the grade in sponsored content. No one wants to look at blurry or poorly cropped photos where you can’t tell what's happening. Make sure your visuals are high quality, created with an HD camera.

5. Limit use of text

Photos with a text overlay are often ads or memes. Readers can quickly scroll past them on social media. Sponsored content should look natural, so don’t place text on it. Limit text to your caption, and don’t use too many hashtags. This can make a post feel spammy and decrease engagement.

6. Align your mission

When selecting partners, choose a company with a similar audience and mission. Search for companies with a similar target market and a complementary rather than competing product.

7. Follow FTC guidelines

Sponsored content is subject to specific Federal Trade Commission online advertising guidelines. Influencers and brands must clearly state their financial connection to a brand if the content is sponsored. To avoid regulatory issues, many influencers and brands now include a hashtag such as #sponsored or #ad on social platforms to disclose a sponsored post.

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Melinda Curle

Melinda Curle writes about small business marketing for The Ascent and The Motley Fool.

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If You Have a Wells Fargo Savings Account, You Should Switch ASAP. Here's Why

By: Steven Porrello | Updated Nov. 7, 2023 - First published on Nov. 7, 2023

These days, storing your savings in a Wells Fargo account pretty much serves one purpose: Quick access to cash at brick-and-mortar banks or ATMs. But if you have savings you're not spending anytime soon, a Wells Fargo Way2Save Savings account ranks high in the worst places to keep your savings. No offense if Wells Fargo is your favorite bank, but it's time to stop leaving money on the table. Here's why. Wells Fargo can't compare to today's top high-yield savings accounts As of writing this, the Wells Fargo Way2Save Savings account has a 0.15% APY, which is not only lower than the national average (0.60%) but also several times lower than today's top-paying savings accounts. At 0.15%, you'll earn about $15 annually for every $10,000 you save. Not exactly the most exciting reward for saving money. By comparison, many of today's top-paying savings accounts have rates above 5%. Case in point: the Western Alliance Bank High-Yield Savings Account via Raisin. This account has a mouth-watering APY of 5.26%, no fees, and a low opening deposit of $1. At that APY, you'll earn $526 for every $10,000 you save. That's 35 times more than the $15 you would have earned in your Wells Fargo Way2Save Savings account. Of course, the major benefit of the Wells Fargo Way2Save Savings account is that you can access your savings at Wells Fargo branches or via ATMs. That's important if you withdraw cash frequently, as online banks will make you transfer the money electronically to an account with ATM access. But even if accessing cash is important to you, there are still better options than the Wells Fargo Way2Save Savings. For example, the SoFi Checking and Savings account gives you a cash back debit card and access to over 55,000-plus fee-free ATMs. Plus, it has a decent APY of up to 4.60%. That's not the highest APY I've seen, but it's not bad for an account that combines checking and savings into one. What about the Wells Fargo Platinum Savings account?Now, the Wells Fargo Platinum Savings account does have a compelling offer right now. New savings customers can lock into a promotional APY of 4.62% when they sign up for a new Wells Fargo Platinum Savings account before Jan. 9, 2024, and maintain a daily minimum balance of $10,000. The emphasis there is on "new." According to the fine print, this offer is for new savings customers who don't currently have a Wells Fargo savings account -- whether that's Wells Fargo Platinum Savings or the Wells Fargo Way2Save Savings. So if you're already a Wells Fargo client, the bank will likely assign you the account's regular APY, which ranges from 0.25% to 2.51%, depending on balance.Again, if you're saving money at Wells Fargo, there's no question about it -- you're missing out on higher interest rates. You may have good reasons for using Wells Fargo, such as having greater access to your savings. But if you're fine with online banking, then trust me -- you deserve better than a rock-bottom APY. Take a look at today's top-paying savings accounts and see how much more you could be earning for your savings.

Have a Chase Savings Account? You're Probably Missing Out on $400-Plus per Year

By: Steven Porrello | Updated Nov. 24, 2023 - First published on Nov. 24, 2023

Chase is the largest bank in the U.S., and one of the largest in the world. It has over 4,700 brick-and-mortar locations, more than 15,000 ATMs, and around a couple trillion in bank deposits. But for all this banking power, there's one thing Chase doesn't have: a savings account that can compete in today's high-rate environment. Seems as if a big bank like Chase would have at least one savings account that earned high interest, right? Truth is, banks lose money when they pay high interest rates and will forgo offering them if they don't need to attract customers. As the largest bank in the U.S., Chase is doing just fine and doesn't need high rates to bring in more deposits. But that leaves Chase clients in a bit of a conundrum. Just how much money are you missing out by keeping it in a savings account at Chase? Well, when you start to crunch the numbers, it can be a lot. The average American is probably missing out on $400 per year Today's most competitive rates on savings accounts are sitting at a two-decade high of about 5.25%. Most of these savings accounts are through the company Raisin, which is essentially a marketplace for finding high-yield savings and CDs. Last I checked, the highest rate on Raisin was 5.30% on a Customers Bank High-Yield Savings Account, followed by both VyStar Credit Union and DR Bank at 5.29%. How much could you make on 5.30%? According to a recent survey of U.S. Family Finances by the Federal Reserve, the median savings in 2022 was about $8,000. If you saved $8,000 in the Customers Bank High-Yield Savings Account powered by Raisin, you would earn about $424 within a year. In contrast, a Chase Savings Account pays out at a rock-bottom APY of 0.01%. At that rate, it's almost pointless to do the math but if you like your copper Abes, you'd make about $0.80 on $8,000 in 12 months.When is a Chase savings account worth it? I'm not going to lie -- I have a Chase account. I don't keep a lot of money in it, but I do keep some. The reason is that I live four blocks from the Chase bank in downtown Portland and like the security of having some money within reach. When I need to withdraw cash (rare but it happens), I can just go in person and use the ATM. And when I need to deposit cash -- birthday money, thanks Mom -- I can do it without jumping through hoops. If you want banking convenience like this, a high-yield savings account through Raisin or any other online bank will likely frustrate you. Raisin is a case in point: When you deposit money in a Raisin-powered account, you transfer it from an external account (which could be a savings account at Chase) into a service bank (Lewis & Clark Bank), which is then transferred into a custodial account at the bank account of your choice (a Customers Bank High-Yield Savings Account or a Western Alliance Bank High-Yield Savings Account, for example). If you want to withdraw this money, you have to transfer it back to your external account, which could take a few business days. For those who need cash fast, each nail-biting day might make that high yield not worth the stress. So you might have to diversify. Truthfully, it's best to keep a little money within easy access for emergencies, but not so much that you miss out on today's high rates. If you've engorged your Chase Savings Account, take a look at some other top-paying savings accounts to see how much you could earn in interest. If your savings is anywhere near the median -- $8,000 -- you could potentially pick up at least $400 on your savings.

Are CDs a Good Investment for 2024?

By: Steven Porrello | Updated Nov. 28, 2023 - First published on Nov. 28, 2023

Certificates of deposit (CDs) offer high guaranteed returns in exchange for locking your money up at a bank or credit union for a term that you choose. While lackluster in previous years, CD rates have taken off in 2023, aided in large part by the Federal Reserve's continued interest rate hikes. These days, it's not rare to find a short-term CD paying out at a rate above 5%, with some paying out as high as 5.70%.With only a few weeks left in 2023, many of these CDs look like good investments going into the new year. But are they? If you're thinking about investing in one soon, let's take a look at what we know.Short-term CDs could make great investments, but don't ignore longer termsRight now, you can find the highest rates on short-term CDs, like those ranging from three to 18 months. For example, on Raisin's CD marketplace, all the CDs paying above 5% are within that short-term range.This isn't a coincidence. Rather, it reflects the expectation that interest rates will fall sometime in the future. Banks want to keep their CD rates competitive, but if they're paying 5.70% for five years, they could end up losing money.If your goal is to earn interest at a high rate, a short-term CD could be a good investment, especially if you're hesitant to lock into a longer term. Now might even be the best time to build out a CD ladder, combining short and long terms to stretch out today's high rates for longer periods.That said, I wouldn't ignore long-term CDs on the grounds that their rates are lower today. It's possible the Fed could start reversing course in 2024, hiking down rates to a more sustainable level. If that holds true, today's short term CDs could very well mature at a time when CD rates are much lower. You might lock into a 5.70% CD for six months, but a 4-year CD at 4.50% could freeze an elevated rate for a few years longer.A no-penalty CD could make a good investmentA major problem with CDs is that they come with early withdrawal penalties. These penalties are often equal to a few months worth of interest, though some could be as high as six to 12 months. If you withdraw from your CD before your term is up, you'll pay this penalty, which could sometimes result in you losing money.One way around this is to get a no-penalty CD. These CDs typically have a very brief no-withdrawal period, usually seven days or less, after which you can liquidate your CD account with no penalty. Traditionally, no-penalty CDs have low interest rates compared with regular CDs with the same term. But in today's high rate environment, you could easily pick up a no-penalty CD with an APY above 5%.For example, Raisin has several no-penalty CDs on its marketplace. As of writing this, the highest paying no-penalty CD comes from Greenwood Credit Union with a 5.37% APY and 12-month term. Other close contenders include Technology Credit Union (5.36%, five-month term) and Mission Valley Bank (5.35%, three-month term).What's great about these CDs is that you could break your contract to capture a different APY or longer term at a later date. Let's say, for instance, that the Fed indicates it's going to start lowering interest rates in 2024. You decide you're going to lock into a 4% rate on a 3-year CD. If you have your money tied up in a no-penalty CD, you could easily navigate out of the contract and open a new CD account. Likewise, if you have emergency savings, a no-penalty CD could help you earn at a higher interest rate, though I would recommend you consider a high-yield savings account first.Will CD rates stay elevated in 2024?CD rates are at a two-decade high, but they won't stay this high for much longer. Once the Fed feels confident inflation is under control, it won't be long before rates start to fall. I'd say if you're in the market for a CD, now is a great time to lock into one of today's top paying CDs. Take a look at different terms and see how much interest you could earn in 2024.

Does Your Income Make You Upper Class, Middle Class, or Lower Class?

By: Christy Bieber | Updated Sept. 5, 2023 - First published on Sept. 5, 2023

Incomes vary widely across the United States, with some people making many times the amount that others earn. If you've ever wondered how your personal finances stack up, and what "class" your income officially puts you in, here's what you need to know.What income do you need to be upper, middle, or lower class?Based on 2021 data, here's what you would need to earn in order to be in each class:Lower class: This is defined as the bottom 20% of earners. Those in the lower class have an income at or below $28,007.Lower middle class: This is defined as individuals in the 20th to 40th percentile of household income. Earnings among this group are between $28,008 and $55,000Middle class: The middle class is officially those whose earnings put them in the 40th to 60th percentile of household income. The income range is $55,001 to $89,744.Upper middle class: Anyone with earnings in the 60th to 80th percentile would be considered upper middle class. Those in the upper middle class have incomes between $89,745 and $149,131.Upper class: Finally, the upper class is the top 20% of earners and they have incomes of $149,132 or higher.Take a look at these numbers and see where you fall based on your own earnings. And remember, this is a snapshot in time -- your earnings can change throughout your life, and so can your class designation.Will your success be determined by your income and class?It's probably not a surprise that those in the upper classes or in the upper middle class do have a higher net worth than those in the lower class or the lower middle class. But the disparity is greater than you might think. While the median net worth of those with incomes of $149,132 or higher is $805,400, the median net worth of those in the lower class is just $12,000.Your income impacts how easy it is for you to build wealth. If you make more money, it is easier to save it and invest it in a brokerage account where it can work for you. If you make less money, then you may struggle even to cover the necessities out of your checking account, much less to buy valuable assets that help you grow richer over time.But that doesn't mean people who don't make a lot of money can't be a financial success. A lot depends on what you do with the money you actually have, including how much you spend and how much you save.There are plenty of people who make over $100,000 a year who live paycheck to paycheck, and plenty of people with incomes that put them squarely in the lower or lower middle class who have diligently saved and grown quite wealthy over many years.Here's how you can improve your standingDon't be discouraged if you aren't in the class you hope to be. For one thing, you have opportunities to increase your income by taking the following steps:Learning new job skills: You could obtain a certification, take part in a management training program at work, or take some classes to develop skills that may help you get promoted (such as computer training courses or public speaking classes), depending on your industry.Take on a side hustle: The average side hustle brings in $483 per month, which is a good amount of extra money that could make a meaningful difference in your income.Work some extra hours: If your company allows you to work overtime, take advantage of it, as many people are paid time and a half for overtime hours.Negotiate your salary: According to Pew Research, when workers negotiated for higher pay, 28% said they received the extra money they asked for and 38% indicated they were given more than originally offered but less than their ask. Whether you are getting a new job or staying at your current job but feel you're underpaid, it doesn't hurt to make a request for more money -- especially if you can find salary data to back up the fact that others in your industry are paid more.And even if your earnings never put you in the top 20% of earners, you can still have a rich life and end up with the financial security you deserve -- especially if you prioritize saving as much as you can for as long as you can.

I Love Costco -- but Here Are 3 Products I Won't Buy There Again

By: Maurie Backman | Updated Nov. 21, 2023 - First published on Nov. 21, 2023

I shop at Costco weekly. And most weeks, I pick up groceries such as milk, cheese, fruits, veggies, and snacks.Although I'm a bit set in my ways when it comes to Costco buys, I'm also more than willing to take a chance on a new product. Case in point: A few years ago, I bought these Kirkland cashew clusters on a whim, and they've become one of my favorite snacks to bring along on a hiking trail.One of my favorite things about shopping at Costco is trying out different products. And another thing I love is reaping savings thanks to Costco's ultra-low prices. But I've also had my share of Costco purchases that just haven't worked out. These items fall into that category -- and I probably won't buy them at Costco again.1. AvocadosThe price of avocados at Costco varies based on the season as well as supply. But usually, a six-pack of avocados at Costco is equivalent to roughly three or four avocados at a regular supermarket where I live. That's what tempted me to buy avocados at Costco in the past. But I won't do that any longer because I've realized that avocados are just not a product I can buy in bulk.I've found that when I buy a batch of avocados, what'll happen is that they'll be rock hard...until they aren't. But it doesn't help me to have six avocados ripen at the same time. And yes, I've tried the paper bag method. I find that it shaves maybe half a day off of the ripening time, which means spacing things out doesn't really work.Consumers often risk losing money to food waste by buying the wrong products in bulk. So think carefully before doing the same, especially when it comes to produce that isn't ripe and ready to eat at the time you've bought it.2. Kirkland paper towelsKirkland paper towels tend to be a lot cheaper than Bounty, my go-to brand. A 12-count online costs $22.49, which is $2.19 per 100 square feet. Bounty costs $4.57 per 100 square feet, or $29.99 for a 12-pack of rolls. That's clearly a lot more expensive.But there's a reason I'm loyal to Bounty -- the stuff works. And when you have a household full of kids, you need a good paper towel.Although I normally find Kirkland products to be high in quality, its paper towels are the one exception. As such, I don't see myself buying them again.You may have a certain budget you're trying to stick to for things like toilet paper and other household essentials. But it's important to recognize when it pays to spend a little extra. In this example, Kirkland paper towels are considerably cheaper than Bounty. But if you need four sheets of Kirkland to do the job of one sheet of Bounty, you're not really saving money in the end.3. Sandwich breadBecause my daughters take a sandwich to school for lunch almost every day, we go through bread somewhat quickly in my house. But I still find Costco's two-pack of sandwich bread to be too large a quantity to buy at once.It's similar to the avocado issue -- only with the bread, I don't have to wait for it to become edible, because it's edible as soon as you bring it home. But because of that, I find that it tends to get moldy somewhat quickly. By the time I'm only part of the way into my second loaf, I have to toss it out.Buying in bulk can often be a big source of savings. But it's important to know which bulk items do and don't work for you. For me, bread is a no. Before you go shopping, think about your eating habits. You may find that even if you go through a lot of bread, you're better off paying a little bit more at the regular supermarket and buying one loaf at a time.Costco is a wonderful place to shop. But these three products no longer have a place on my Costco list.