Native Advertising
Native advertising has been getting tremendous buzz (and, in some cases, derision) and is primed to continue its upward arc in both presence and revenue. In its simplest form, the goal of native advertising is to make a message fit in naturally with the environment, so that the reader/viewer/listener can consume it in the same mindset that they would engage with non-sponsored content on the channel.
For example, imagine a quiz on Buzzfeed that is in the same format/style as Buzzfeed editorial, yet it is sponsored by a beverage manufacturer, and is focused on helping people discover what soft drink brand would be the best fit for their personality. Likewise, imagine listening to the local radio show where the host of the program comes back from commercial talking about a local auto repair shop and offers listeners a discount if they mention the name of the radio program.
In the radio example above, having the host talking about the auto repair shop will convey a sense of trustworthiness, and will make many listeners pay attention in a way that they wouldn’t during traditional commercials. Native ads also present marketers with a chance to make their message go viral in a way that traditional campaigns do not; as a quiz put together by a publisher like Buzzfeed is much more likely to be shared and talked about than a standard online display campaign.
Publishers across almost all channels are turning to native ads, and brands have embraced the new opportunities offered by these publishers. According to The Drum and Far Partners, 83 percent of UK agencies include native advertising in their media plans, and the format is expected to account for 15 percent of display budgets this year.
Projecting the size of the native advertising market can be difficult, since the lines between what exactly constitutes “native” are blurry, but according to Business Insider Intelligence, in the US alone, the market was at $7.9 billion in 2014, and will grow to $21 billion in 2018, with the number much larger when you factor in the UK and other global markets.
Over the past year, brands have started to shift significant resources into the space, and this will continue in the near future.
Jason Hill, GE’s global head of media strategy, recently told eMarketer that “traditional digital advertising has become wallpaper. It doesn't improve anyone's experience on a site and readers, myself included, pretty much look past it. Brands that have a strong point of view and great partners to help them express it can enjoy massive engagement [with native advertising].”
One key topic to watch over the next year is how publishers charge for native ads, and how performance is measured. As more and more marketers look for their native campaigns to go viral, there has been a sentiment to go towards a pay per engagement model, rather than charge a flat fee for a campaign.
Join us for the Native Ad Forum, presented in partnership with Sharethrough.
