In our last issue, we touched on the trend of sponsored content. Now, another recent post in The Observer caught our eye, titled Why Sponsored Posts Are a Waste of Ad Dollars. While last month we decried the trend of online media using this type of revenue generation model, this time we look at the impact this is having on the marketers.

Looking at the millions or billions of page views per month on a well-trafficked media site, many advertisers would think that this would be prime real estate. The owners of these pages believe that the more page views they can generate, the more money they can woo from these advertisers.

As the Observer article states, this can be a shortsighted and dangerous path for both the media property owner and the advertisers. Increasing the number of page views by throwing garbage onto a page, giving it a hype hook, and reader be damned can do nothing but damage the brand value of the property.

As the post concludes, marketers are falling for media sites that offer them the ability to post their own stories – at a price. These sponsored posts will rapidly (if they aren’t already) lose their luster as marketers see diminishing returns. Meanwhile the media sites will lose more than revenue; they will see their brand reputation and editorial credibility decline and ultimately readership will fall. And then who’s going to want to post "advertising articles" in their properties?