You can add several types of content in the content area, but only pages and folders allow you to work with information hierarchy – meaning that you can add sub-pages and sub-folders. As the two examples below.
The difference between using pages or folders in your information hierarchy
Folders allow you to add a title and a description, while pages allow you to add a title, a description plus an additional content field, where you can add as much content (text, pictures, video) as you want. We recommend always using Pages and not folders, that way you can always add a description later if the need arises. It's not possible to convert folders to pages at the moment.
A page with nothing typed in the description fields looks just like a folder to the users, so they is no downside to using pages instead of folders.
Note that pages have a dual functionality – they both work as items to build your information hierarchy, but also as content pages, where you can add readable text, pictures, videos etc. – as you know from for example Wikipedia and blog posts.
For a simple information hierarchy, folders would probably work fine, but for a more extensive hierarchy, the extra content field, when using pages, can add more value to the end user. You can give the end user more information about the specific content area and make it easier for them to navigate in the information hierarchy and find the content they need.
You can read more about how to design your information hierarchy strategy or how to facilitate a information hierarchy workshop.