December 5, 2013 Part 1 of our 5 day series on Native Advertising
Native advertising is a fairly new term, but the approach and concept is not new at all. In fact, the elements of native advertising are included in the foundation of advertising. Show an engaging and relevant ad to the appropriate audience at the right time.
Recent data shows that native advertising is believed to be the fastest growing digital marketing channel by publishers, marketers, and investors.
If it’s not a new concept, what’s all the commotion about? There are three-key components driving the buzz:
1) Mobile Users.
More than 28% of the total internet traffic is from people using mobile devices. The mobile experience is limited to the small screen, where traditional banners don’t fit or perform well. To reach mobile users via digital ad strategy, advertisers and publishers have turned to native advertising— the only model that gets the paid placements into the content streams and onto the center of the mobile screen.
2) Content marketing is a big deal.
More than $188 Billion dollars will be spent on content marketing by the end of 2013. It’s effective and efficient way to advertise your brand. The problem with content marketing is content distribution. Native Advertising solves this issue effortlessly.
3) Native Ads drive an awesome performance.
In-stream ads on Facebook yield a CTR of 49x higher than the CTR of the right-rail banners. They cost less too! Avg CPC cost of the in-stream ad was 54% less than the right-rail banner ads.
These three key components are driving the revenue growth of native advertising—expected to balloon to $4.57Billion by 2017 and account for more than 70% of the total social ad dollars spent.
Native Ad Landscape
You probably see dozens of native ads every hour you spend online. They are in your Facebook, instagram and twitter streams, weaved into your news sites, and included in the posts of your favorite bloggers.
Among the many available networks there are closed networks and open networks. Mostly referring to the distribution and reach of each network, it also can influence content creation and scalability. Here’s a look at the native ad landscape as we see it today.
The landscape has changed drastically in the last 12 months. With demand on the rise and big brands throwing their hats in the ring, native advertising grew up and now boats it’s own set of ad networks and exclusive publishers with massive amounts of inventory.
“At the end of the day the idea that a brand can put content out and that content happens to advertise at the same time, I think that’s pretty amazing,” said David Hayes, head of canvas at Tumblr, New York.
Search Insiders Summit is scheduled for this weekend—December 8-11. eZdia co-founder and industry leader Alok Jain will be joining the awesomely experienced Native Advertising Panel (check out the other panel participants here) to discuss “When Search Marketers Go Native”.
For the next 6 days leading up to the panel’s discussion, we’ll be dishing up the latest in Native Advertising. Here’s our schedule.
Drop us a comment — Do you see the native ad landscape as a land of opportunity or risk?
About Padmini Murthy
Padmini is a marketer, a mom and a musician (the 3Ms). She loves to read about new and emerging technology. She has successfully led marketing initiatives for mobile, cloud, semiconductor and now, eCommerce. In her last position as a marketing head for a mobile company, she helped the company triple their revenue in less than 3 years. She has several marketing publications and her case study on InfoSys and the challenge of global branding was published by the Harvard Business Review.