INFOGRAPHIC: Native Advertising in Context

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INFOGRAPHIC: Native Advertising in Context

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The term “native advertising” is getting considerable traction in the online advertising community, but its definition has been confusing until now. Native advertising is not advertorial. Instead,......

The term “native advertising” is getting considerable traction in the online advertising community, but its definition has been confusing until now. Native advertising is not advertorial. Instead, it contributes value to any page it graces by improving user experience and adding value for consumers. Recent data confirms that publishers, agencies, marketers, and investors believe that native advertising is the fastest growing segment in the online advertising business. We created this infographic to take a deeper look into this growing segment:

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  • 1. NATIVE ADVERTISING IN CONTEXT THE INTERNET looks better today than ever before. Parallel with the rise in design standards, users and publishers have also come to recognize the vital importance of user experience. Traditionally, online advertising has compromised both. When publishers invest in native advertising, however, users are more engaged and everything on screen remains beautiful and relevant. NATIVE ADVERTISING refers to a specific mode of monetization that aims to augment user experience by providing value through relevant content delivered in-stream. Native advertising integrates high-quality content into the organic experience of a given platform. As a form of content, native advertising does not interrupt flow and is equal with user interaction. Automation does not ensure the essence of the content remains true to that of the brand content. Some of the most notable examples of native advertising in practice today, these are just the beginning. WHAT IT IS CHALLENGES CONTENT RENAMED ADVERTORIAL AD STANDARDS No set standards or performance benchmarks yet exist for most forms of this new advertising category. PRODUCT EFFICIENCY Unlike display ads, native advertising often requires creative management to tailor content to best serve the user. USER TRUST Publishers can maintain user trust by creating content that adds value and by refraining from disguising ads. BRAND INTEGRITY Preserving brand integrity may mean turning down easy money gained in the short term through brand partnerships. DELIVERED IN-STREAM AD BOXES SELECTIVE AUTOMATED WHAT IT IS NOT IN 2013: EXAMPLES LONGER FORM VIDEO WEB FILMS PHOTO STREAMS INTERACTIVE GRAPHICS “SPONSORED BY…” PROMOTED TWEETS SPONSORED STORIES PAID DISCOVERY 2012 .2% TRADITIONAL DISPLAY ADVERTISING such as banners, prerolls, and pop-ups continues to perform poorly due in no small part to vastly low public appeal. In a poll of more than 200 media buyers, the average increase in expected native ad spending in 2013 compared to 2012 is 12.6%. 99.8% of banner ads are ignored, and the preroll skip rate are rapidly increasing. 57% of venture capitalists, private equity firms, and angel donors say they are likely or very likely to invest in companies that sell native advertising. 70% of agency creatives say user experience is most important in native advertising. BANNER AD CLICK THROUGH RATE 34% of publishers say they are likely or very likely to add a native advertising option to their menus. Sources: AdExchanger | The Awl | Forbes | Dan Greenberg, CEO, Sharethrough | Mashable | PandoDaily | TechCrunch STRATEGY ENGAGE communications teams to establish long-term content strategies. AUGMENT content creation efforts by bringing in new talent (journalists, designers, etc.). CONTRACT with outside companies (creative agencies, content marketers, etc.). While some people caution against fully abandoning display advertising, native advertising remains the only viable form of advertisement for many publishers who chiefly value user experience. NOBODY READS ADVERTISING PEOPLE READ WHAT THEY WANT TO READ, AND SOMETIMES IT’S AN AD. -Howard Luck Gossage, Advertising Pioneer, 1969 2000 9% 34% 57% NATIVE ADVERTISING ADOPTION 70%