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2015_era_of_engagement

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HOW CONTENT MARKETING
AND NATIVE WILL DRIVE A NEW
ERA OF ENGAGEMENT
A State of the Industry Intelligence Report for Brands...

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WHAT YOU NEED TO KNOW • 06
SEVEN KEY TAKEAWAYS TO BRING BACK
TO THE OFFICE
TABLE OF CONTENTS
UNDERSTANDING THE DEFINITIONS...

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Q2 2015 • State of the Industry Intelligence Report
Marketers understand the importance
of evaluating campaigns for both b...

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2015_era_of_engagement

  1. 1. HOW CONTENT MARKETING AND NATIVE WILL DRIVE A NEW ERA OF ENGAGEMENT A State of the Industry Intelligence Report for Brands and Publishers pulsepoint.com • sales@pulsepoint.com pulsepointbuzz
  2. 2. WHAT YOU NEED TO KNOW • 06 SEVEN KEY TAKEAWAYS TO BRING BACK TO THE OFFICE TABLE OF CONTENTS UNDERSTANDING THE DEFINITIONS AND LANDSCAPE OF CONTENT MARKETING AND NATIVE • 08 CONTENT MARKETING IS THE OVERARCHING STRATEGY; NATIVE IS ONE TACTIC OF EXECUTION WHERE THE DOLLARS ARE HEADED • 12 CONTENT MARKETING & NATIVE WILL CAPTURE MORE DOLLARS FROM DIGITAL DISPLAY & SEARCH BUDGETS INTRODUCTION • 04 PROVING THE VALUE OF CONTENT MARKETING AND NATIVE • 16 ENGAGEMENT METRICS WILL SOON REPLACE CTR CONTENT MARKETING AND NATIVE STILL HAVE A CATCH 22 • 22 INDUSTRY CHALLENGES MARKETERS & PUBLISHERS STILL NEED TO TACKLE ADVERTISING TECHNOLOGY WILL POWER CONTENT MARKETING AND NATIVE • 26 PROGRAMMATIC WILL SOON POWER THE TARGETING, OPTIMIZATION & MEASUREMENT OF CONTENT MARKETING CAMPAIGNS CONCLUSION • 28
  3. 3. Q2 2015 • State of the Industry Intelligence Report Marketers understand the importance of evaluating campaigns for both brand impact and tangible performance goals. While content marketing has helped brands create one-to-one engagements with audiences, scaling it has been a challenge. Advances in advertising tech- nology, specifically programmatic, are the final piece of the puzzle. Using pro- grammatic technology to deliver con- tent and native ads enables great story- telling at scale - it helps publishers and advertisers put the right content in front of the right consumers at the right time. How well we understand the nuances between content marketing and native advertising - how they differ, what ob- jectives they meet, their execution and implementation strategies - is crucial to understanding how both can be ampli- fied by today’s automation technology. The answers to these questions are more crucial now than ever before: 83 percent of marketers surveyed in our 2014 study on the intersection of programmatic and content marketing believed that content will be program- matic by 2017.* In the interest of clarifying the distinc- tion between content marketing and na- tive advertising, PulsePoint and Digiday polled over 500 brands, agencies, and publishers, digging into the formats, current trends being used and market- place challenges that define the content marketing and native landscape. Here’s what we found out. INTRODUCTION 1 *PulsePoint State of the Industry Report 2014
  4. 4. 6 pulsepoint.com • sales@pulsepoint.com pulsepointbuzzpulsepoint.com • sales@pulsepoint.com pulsepointbuzz6 WHAT YOU NEED TO KNOW The definitions are in: “Content Marketing” is a strat- egy to create and distribute valuable content to attract and acquire a defined audience. “Native Advertising” is paid media that matches the form and function of the platform on which it appears; i.e., advertis- ing that mimics the environ- ment it’s delivered in. 2 DEFINITIONS STRATEGY Agencies and brands (60 percent) view content market- ing as very significant to their overall marketing strategy. Publishers (61 percent) say content marketing is significant or very significant in terms of their revenue models, and a close 54 percent say the same about native advertising. Agencies, brands and publish- ers alike cited lack of resourc- es as the largest challenge they have with content marketing and native today. CHALLENGES SEVEN KEY TAKEAWAYS TO TAKE TO THE OFFICE Q2 2015 • State of the Industry Intelligence Report To support brand engagement objectives, 67% of marketers use content marketing and 66% use native. OBJECTIVES BUDGETS By 2017 content marketing and native ad budgets will grow 59 percent and 46 percent respectively, while display and search growth will stagnate. THE FUTURE As automation encompasses more of the content and native distribution process, real-time access to on-demand metrics and the potential to expo- nentially boost the reach of a campaign will be clear boons to advertisers from all corners of the industry. Publishers who can offer these capabilities will lead the pack. 83 PERCENT OF MARKETERS BELIEVE CONTENT MARKETING WILL GO PROGRAMMATIC BY 2017.* *PulsePoint State of the Industry Report 2014
  5. 5. pulsepoint.com • sales@pulsepoint.com pulsepointbuzz8 Content marketing was identified pri- marily as “the strategy behind creating and distributing valuable content to at- tract and acquire a clearly defined audi- ence” (74 percent) and “content creat- ed, owned and distributed by the brand” (67 percent). Simply put, material that captures consumer attention by giving engaging and/or useful content that is associated with a brand’s core identity (versus a direct promotion). When it came to native, respondents were most likely to identify it as “paid media that matches the form and func- tion of the platform on which it appears” (73 percent) and “advertising that mim- ics the environment it’s delivered within” (71 percent). WE KNOW THE DIFFERENCE - BUT DON’T THINK ANYONE ELSE DOES UNDERSTANDING THE DEFINITIONS & LANDSCAPE OF CONTENT MARKETING AND NATIVE 3 Q2 2015 • State of the Industry Intelligence Report WHERE THEY INTERSECT Content marketing is the message. Native can be the envelope it is delivered in. HOW DO YOU DEFINE CONTENT MARKETING? HOW DO YOU DEFINE NATIVE? THE PRIMARY DIFFERENCE Content marketing is the overarching strategy. Native is one tactic of execution. While content marketing and native ad- vertising are not interchangeable terms, they do have traits in common. Survey respondents equally listed content mar- keting and native advertising as “spon- sored content aligned with brand mes- saging,” and while in-app or in-stream delivery was more often associated with native (39 percent), content marketing didn’t lag too far behind (29 percent). This crossover is likely because these factors are (or are becoming) essential to the larger mission of marketing, and crossover occurs in certain cases. While respondents seemed clear on the difference between content marketing and native, they were far less confident in the rest of the industry’s understand- ing. A little over half (57 percent) say the industry understands both formats and strategies “not too well” or “not at all.” Based on the findings, individuals are in fact more educated on the nuances be- tween content and native than most of us realize (or are giving credit for)! 74% 67% 73% 71% The strategy behind creating and distributing valuable content to attract and acquire a clearly defined audience Content created, owned and distributed by brands Paid media that matches the form and function of the platform on which it appears Advertising that mimics the environment it is delivered within
  6. 6. Is there a preference between content marketing and native advertising? Well, there are two sides to the coin: those who buy it vs. those who sell it. Agencies and brands view content mar- keting as much more valuable to their overall marketing strategy, with 60 per- cent saying it’s significant or very signif- icant. Only 29 percent said the same of native advertising. It could be because advertisers have been doing content marketing since the late 1800’s. But dis- tributing it strategically across digital media - something that native place- ments can certainly help with - is much newer territory. 61 percent of publishers say content marketing plays a significant or very sig- nificant role in their overall business de- velopment strategies, inline with brand strategies. On the other hand, publish- er’s perception of native is much more positive than brands and agencies, with 55 percent listing it as significant to very significant. THE POWER OF PERCEPTION 10 pulsepoint.com • sales@pulsepoint.com pulsepointbuzz WHICH IS MORE POPULAR? DEPENDS WHO YOU ASK 3 HOW SIGNIFICANT OF A ROLE DOES CONTENT MARKETING AND NATIVE ADVERTISING PLAY IN YOUR OVERALL MARKETING STRATEGY? 0% 20% 40% 60% 80% 100% Very significant Significant Somewhat significant Not too significant Not significant at all Q2 2015 • State of the Industry Intelligence Report HOW SIGNIFICANT OF A ROLE DOES CONTENT MARKETING AND NATIVE ADVERTISING PLAY IN YOUR OVERALL BUSINESS DEVELOPMENT STRATEGY? 0% 20% 40% 60% 80% 100% Very significant Significant Somewhat significant Not too significant Not significant at all BRANDS/AGENCIES: PUBLISHERS: Content Marketing Native Advertising Content Marketing Native Advertising
  7. 7. 12 pulsepoint.com • sales@pulsepoint.com pulsepointbuzz And that gap between display/search budgets and content marketing/native is only set to narrow, with content mar- keting and native ads marked as the top two formats to receive major increases in budgets in the next two years. The only other format getting anywhere close to that much attention? Digital video. Why? These formats elicit higher audience engagement, which is pivotal for brands with upper funnel campaign objectives. Both will capture more brand dollars. Brands, agencies and publishers report- ed that content marketing and native are both important to their organiza- tions and strategies. But are the ad dollars and digital inventory available to back them? The answer is definitively yes: both supply and demand are ex- pected to grow in the next two years. While display and search still command most of the ad dollars, 37 percent named content marketing as one of the largest spending buckets. WHERE THE DOLLARS ARE HEADED 4CONTENT MARKETING AND NATIVE GROWTH WILL OUTPACE DISPLAY AND SEARCH 0% 20% 40% 60% 80% 100% Native advertising Standard display Content marketing High impact/rich media Search Digital video Mobile display Mobile in-app Q2 2015 • State of the Industry Intelligence Report WHICH OF THE FOLLOWING USES THE LARGEST PROPORTION OF YOUR BUDGET? WHICH OF THE FOLLOWING DO YOU EXPECT TO SHIFT MORE BUDGET TO IN THE NEXT 2 YEARS? 0% 20% 40% 60% 80% 100% Native advertising Standard display Content marketing High impact/rich media Search Digital video Mobile display Mobile in-app CONTENT MARKETING AND NATIVE RATE OF GROWTH WILL SURPASS OTHER FORMATS IN NEXT 2 YEARS BRANDS/AGENCIES: BRANDS/AGENCIES: CONTENT MARKETING DIGITAL VIDEONATIVE ADVERTISING 46% 40%59%
  8. 8. The shift in brand/agency spend is good news for publishers. Currently, 70 per- cent of publishers name content market- ing and 65 percent name native as major sources of their revenue, and they ex- pect both sources of revenue to increase significantly in the next two years. The cause of this shift is clear: display (78 percent) and mobile display (65 percent) will continue to have their place, but their growth will slow as new- er digital formats prove more success- ful in creating stronger engagement between brands and their audiences. With brand dollars moving into content and native formats, there is a compel- ling case for publishers to offer more of these solutions and increase their revenue. Publishers should expect content marketing and native to soon displace mobile display, as both formats present a highly effective mobile alternative for reaching audiences. 14 pulsepoint.com • sales@pulsepoint.com pulsepointbuzz CONTENT MARKETING 69% PUBLISHERS ANTICIPATE SIGNIFICANT REVENUE GROWTH FROM CONTENT MARKETING AND NATIVE ADVERTISING OFFERINGS NATIVE ADVERTISING 79% DIGITAL VIDEO 71% Q2 2015 • State of the Industry Intelligence Report 4 WHICH OF THE FOLLOWING CURRENTLY BRINGS IN REVENUE FOR YOUR PUBLICATION? Respondents who aren’t currently buy- ing or selling content marketing and/or native are split into two camps. 59 per- cent of buyers/agencies and 71% of pub- lishers are right on the brink, saying they will be in the next 12 months. By contrast, approximately 28 percent claim they’ll never use those formats. Content marketing and native advertis- ing might not be for everyone, but the majority are clearly ready for it. 0% 20% 40% 60% 80% 100% Native advertising Standard display Content marketing High impact/rich media Search Digital video Mobile display Mobile in-app 0% 20% 40% 60% 80% 100% Native advertising Standard display Content marketing High impact/rich media Search Digital video Mobile display Mobile in-app WHICH OF THE FOLLOWING HAS THE POTENTIAL TO BRING IN MORE REVENUE FOR YOUR PUBLICATION IN THE NEXT 2 YEARS? PUBLISHERS: PUBLISHERS:
  9. 9. 16 pulsepoint.com • sales@pulsepoint.com pulsepointbuzz Why and how does this disconnect exist between objectives and measurement? To get to the heart of the differences between content marketing and native advertising, it’s useful to consider what marketing objective each supports. Brands/agencies overwhelmingly indi- cated that they use content marketing for upper funnel strategies: 67% list brand engagement as the number one objective best supported by content marketing and 55% list brand aware- ness. NATIVE ADVERTISING PERCHES AT THE TOP OF THE FUNNEL: 66% OF MARKETERS LEVERAGE NATIVE TO SUPPORT BRAND ENGAGEMENT CAMPAIGN OBJECTIVES AND CAMPAIGN MEASUREMENT ARE STILL DISCONNECTED PROVING THE VALUE OF CONTENT MARKETING AND NATIVE 5 Brand awareness Brand engagement Landing page traffic Lead generation Customer acquisition 0% 20% 40% 60% 80% 100% Sales conversions Brand awareness Brand engagement Landing page traffic Lead generation Customer acquisition 0% 20% 40% 60% 80% 100% Sales conversions WHICH OF THE FOLLOWING MARKETING OBJECTIVES ARE BEST SUPPORTED BY CONTENT MARKETING? WHICH OF THE FOLLOWING MARKETING OBJECTIVES ARE BEST SUPPORTED BY NATIVE ADVERTISING? Q2 2015 • State of the Industry Intelligence Report BRANDS/AGENCIES: BRANDS/AGENCIES:
  10. 10. ENGAGEMENT METRICS WILL SOON REPLACE CTR FOR CONTENT MARKETING AND NATIVE 18 pulsepoint.com • sales@pulsepoint.com pulsepointbuzz What’s interesting are sites that score content based on how long it takes to read [articles] and reporting on how far someone scrolls to give a sense of how much content was consumed - all of those granular scores are important. Bill Evan EVP and Chief Digital Officer, Team Chemistry, WPP Group The metrics marketers are using to gauge the performance of each format say a lot about their intentions, and it makes the situation a bit more complex. Brands and agencies are most often us- ing CTR and impressions to judge the success of native advertising, metrics best suited for lower funnel objectives. On the other hand, they’re more likely to use things like time on page and social engagements to measure content mar- keting’s performance, indicating an un- derstanding that with content, it’s often the quality and not the sheer quantity of interactions that matter. Unsurprisingly, publishers are currently offering CTR and impressions to brands and agencies at the highest frequency for both content marketing and native advertising. Additionally, an overwhelm- ing number of publishers indicated that they do not yet offer engagement met- rics like scroll velocity (80 percent). “ “ WHICH OF THE FOLLOWING METRICS DO YOU USE TO MEASURE THE SUCCESS OF CAMPAIGNS? 0% 20% 40% 60% 80% 100% Time in view Scroll velocity Scroll depth Social Enagements Time on page Impressions Viewability rate CTR Time in view Scroll velocity Scroll depth Social engagements Time on page Impressions Viewability rate CTR Q2 2015 • State of the Industry Intelligence Report Content Marketing Native Advertising N/A BRANDS/AGENCIES:
  11. 11. WHICH OF THE FOLLOWING CAMPAIGN METRICS DO YOU PROVIDE? 0% 20% 40% 60% 80% 100% Time in view croll velocity Scroll depth Social ngagements Time on page Impressions Viewability rate CTR Time in view Scroll velocity Scroll depth Social engagements Time on page Impressions Viewability rate CTR 20 pulsepoint.com • sales@pulsepoint.com pulsepointbuzz Content Marketing Native Advertising N/A PUBLISHERS: While publishers are providing some en- gagement metrics, they’re not offering enough to meet buyer demand. Pub- lishers are slightly more likely to provide social engagement metrics for content marketing (58 percent) than native ad- vertising (52 percent), showing that they are growing attuned to how their buy- side peers are assessing each. The metrics publishers offer could be due to a lack of awareness that mar- keters are using engagement to gauge campaign success or a technical inability to offer this type of data. As buyer de- mand for this grows, publishers will need to figure out how to offer more granular engagement and page level metrics – moving us all beyond CTR, and into the era of engagement. Q2 2015 • State of the Industry Intelligence Report What metrics are being used? Things from 15 years ago: clicks and page views. What should be used? Time and attention. Jason Kint CEO, Digital Content Next “ “
  12. 12. LACK OF DEMAND COMES FROM LACK OF RESOURCES - IN BANDWIDTH AND BUDGET 22 pulsepoint.com • sales@pulsepoint.com pulsepointbuzz The industry has a wider set of interwo- ven challenges to tackle before brands fully embrace content marketing & na- tive advertising strategies and before publishers can fully support them. Lack of budgets and resources to deliv- er high quality content efficiently is the number one barrier brands/agencies cit- ed today (55 percent). Being able to better measure ROI (which 50 percent listed as the second largest challenge), would help them to solve for this. By measuring the metrics that matter, brands and agencies can better prove ROI internally, which would in turn empower them to demand greater re- sources. Success begets success. CONTENT MARKETING AND NATIVE STILL HAVE A CATCH 22 6 Q2 2015 • State of the Industry Intelligence Report WHAT BARRIERS ARE PREVENTING YOU FROM DOING MORE CONTENT MARKETING AND NATIVE? Difficulty measuring/proving ROI 50% Inability to target and distribute at scale 34% Proving its value to my executives/organization 26% Lack of resources/budget to deliver high quality content efficiently 55% Lack of client demand 21% Not a priority/ unsure how to begin 13% BRANDS/AGENCIES: The barrier is overcoming this idea that it’s harder or more expensive or that it takes more resources. It’s just another way of structuring your marketing plan. I predict brands are going to take on more of the role of content publishers. Bill Evans EVP and Chief Digital Officer, Team Chemistry, WPP Group “ “
  13. 13. PUBLISHERS STILL FEAR “SPONSORED STIGMA” 24 pulsepoint.com • sales@pulsepoint.com pulsepointbuzz Similarly, publishers listed insufficient in- ternal resources and the overhead allo- cations required to support an increase in these placements as their top barrier (44 percent). As with buyers, increased revenue would lower the barrier to entry by making more resources available. The second highest barrier listed, at 38 per- cent, is more difficult to solve: the fear of “sponsored stigma,” or the desire to avoid losing editorial integrity by host- ing sponsored content. Developing clear guidelines and best practices on how to maintain a clear division of “church and state,” and the metrics that will best prove client success, are critical to over- coming potentially negative perceptions and limited funding for content market- ing and native tactics. Q2 2015 • State of the Industry Intelligence Report WHAT CHALLENGES ARE HOLDING YOU BACK FROM EMBRACING CONTENT MARKETING AND NATIVE? Lack of internal resources and overhead allocation Technology infrastructure doesn’t support high impact/native formats No clear definition of ad standards Concerned about preserving publication/editorial integrity Inability to drive engagement Limited data and/or reporting to share with advertisers Insufficient buyer demand 37% 44% 20% 21% 38% 15% 24% PUBLISHERS:
  14. 14. 26 pulsepoint.com • sales@pulsepoint.com pulsepointbuzz In this new era of engagement, both marketers and publishers agree that the data-driven, automated technology that powers search and display today will soon do the same for content marketing and native campaigns. While they don’t see technology getting heavily involved in the creation and production process, they do feel that automation will help them not only scale content marketing and native, but enable better targeting, measurement and optimization tech- niques. 60 Percent believe advertising tech- nology will provide more precise, data driven targeting to distribute content marketing and native ads in front of the right audience in the right environment at scale. ADVERTISING TECHNOLOGY WILL POWER CONTENT MARKETING 7 Q2 2015 • State of the Industry Intelligence Report support high impact/ Creating quality content faster and easier 29% More precise data-driven targeting 60% Distributing content at scale 45% Better measurement and optimization techniques 58% It won’t 11% HOW WILL ADVERTISING TECHNOLOGY AUTOMATION IMPROVE CONTENT MARKETING AND NATIVE IN THE FUTURE? 58 Percent anticipate that technology will bring better measurement and optimization techniques. And this reality is right around the corner: 83 percent of marketers surveyed in our 2014 study on the intersection of programmatic and con- tent marketing believed that content marketing will be programmatically powered by 2017.
  15. 15. 28 pulsepoint.com • sales@pulsepoint.com pulsepointbuzz CONCLUSION 8 Digital content marketing and native ad- vertising have seen significant growth and maturation and both are set to see a period of positive, rapid change over the next two years. The rise and adoption of programmatic technology will make all of this easier. As automation encompasses more of the digital advertising ecosystem, content marketing and native distribution will benefit. Real-time access to on-demand metrics and the potential to exponen- tially boost the reach of a campaign will yield clear benefits to advertisers; and publishers who can offer these capabili- ties will lead the pack. Standard digital ads have continued to focus on direct response while content marketing has allowed more creativity and engagement with the consumer - things further up the funnel like building brands and changing perception. ““Jason Kint CEO, Digital Content Next Q2 2015 • State of the Industry Intelligence Report
  16. 16. PulsePoint is a next-gen advertising technology platform that fuses the science of programmatic targeting, distribution and optimization with the art of content marketing. Our platform is powered by terabytes of impression-level data, allowing brands to efficiently engage the right audiences at scale while helping publishers increase yield through actionable insights. Investors in the company include Draper Fisher Jurvetson (DFJ), Gotham Ventures, New Atlantic Ventures (NAV), Investor Growth Capital, Updata Partners and VantagePoint Capital Partners. The company is headquartered in New York City with offices in San Francisco and London. ® pulsepoint.com • sales@pulsepoint.com • pulsepointbuzz NYC SF LON 20 BROAD STREET 6TH FLOOR NEW YORK, NY 10005 (212) 706-4800 sales@pulsepoint.com 351 CALIFORNIA STREET SUITE 1210 SAN FRANCISCO, CA 94104 (415) 937-8208 sales@pulsepoint.com ONE EUSTON SQUARE 40 MELTON ST LONDON NW1 2FD, UK +44 (0) 203 574 4607 uksales@pulsepoint.com Download the electronic version today at goo.gl/5ImW0B Q2 2015 • State of the Industry Intelligence Report
  17. 17. pulsepoint.com • sales@pulsepoint.com pulsepointbuzz

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