Why Native Won (And the Roadmap for the Next $75 Billion)

Why Native WonAND THE ROADMAP FOR THE NEXT $75 BILLION
Dan Greenberg
CEO and Co-Founder at Sharethrough

NATIVE AD SUMMIT 2016
Native is now the
largest category
of digital advertising

WHY NATIVE WON AND THE ROADMAP…
The Future Belongs to ‘Native’ Ads, Is
Your Agency Ready? 
Published on August 03, 2012 - AdAge
‘The Best Way To Monetize Feeds Is
With Branded Content’ 
Published on April 21, 2014 - AdExchanger
Why Native Ad Formats Are the Future 
Published on May 03, 2012 - Digiday

The Future Belongs to ‘Native’ Ads, Is
Your Agency Ready? 
Published on August 03, 2012 - AdAge
‘The Best Way To Monetize Feeds Is
With Branded Content’ 
Published on April 21, 2014 - AdExchanger
Why Native Ad Formats Are the Future 
Published on May 03, 2012 - Digiday

Native is the largest category of
digital advertising
2016 2017 2018 2019 2020 2021
10
20
30
40
50
60
Dollars(Billions)
$16.8B
$13.2B
$20.9B
$13.4B
$25.2B
$13.6B
$28.9B
$13.6B
$33.5B
$13.0B
$36.3B
$12.8B
Non-Native Display
Native Display
Source: BI Intelligence, 2016

MARSHALL MCLUHAN
A human being in the digital age is quite literally,
“an organism that now wears its brain outside
its skull and its nerves outside its hide.”

Google is my brain,
Facebook and Snapchat
are my nerves

Sample Size:
350 18-30
People Ages

46%Take the finger!

59%!Take the finger!

“My phone keeps me connected…
I don’t NEED a pinky.”
- Anonymous survey response
“You need a phone to live a
normal life now.”
- Anonymous survey response

PRESENTATION NAME - XX/XX
The newspaper
The radio
The TV
My Phone
Our Phones, Our Selves

The newspaper
The radio
The TV
My Phone
Our Phones, Our Selves
…Me?

The radio
The TV
My Phone…Me?

The intimacy of the phone is a primary driver of change…
Source: BI Intelligence, 2016
2016 2017 2018 2019 2020 2021
10
20
30
40
50
60
Dollars(Billions)
$16.8B
$13.2B
$20.9B
$13.4B
$25.2B
$13.6B
$28.9B
$13.6B
$33.5B
$13.0B
$36.3B
$12.8B
Non-Native Display
Native Display

Intimate technologies 
render traditional business
models obsolete.

The Intimacy
Principle
The more intimate and
personal a device is,
the more integrated the push
messaging model must be.

WHY NATIVE WON
80% 50% 100%
Mobile Native Video Programmatic
$
100%

Total Native Ad
Spend Through
Sharethrough
Products
0
30
60
90
120
150
2012 2013 2014 2015 2016
Total Spend Through
Sharethrough Products (MM)
$

Total Campaigns Sold
Directly By Publishers
0
500
1000
1500
2000
2500
3000
Hundreds of Publishers
Selling Thousands of
Direct Native Ad Campaigns
2014 2015 2016

WHY NATIVE WON AND THE ROAD MAP…
v
Some People
Might Argue that
TV is Still King…

…But It’s Only Going
in One Direction

And We’re Already Seeing Native Enter Into the TV Ecosystem

“You can [interrupt] some people some of the time,
but you can’t [interrupt] all the people all the time.”

Attention Lives in the Feed
Browsing a social
or content feed
Search Shared
(directly via email, text)
0%
25%
50%
75%
100%
91%
8% 2%
Source: Qualtrics, “Millennials and Advertising” 2016

“How Would You Prefer Publishers Make Money?”
Millennials Prefer Native Ads
Native Ads Banners Subscription Pop Up Other
0%
25%
50%
75%
100%
58%
21%
4% 3%
14%

"Advertising is not the art of war,
it’s the art of syndicating the truth”

A New Era of
Straightforwardness

From Macroeconomics
To Microattention

Advertising Follows
Attention $

Total Ad Spend Has Been Consistent as a % of GDP for 70 years

But Time Spent on Mobile is Only GROWING (Still)

1920 - 2020: From Print to TV to Mobile
0%
20%
40%
60%
80%
100%
90%
70%
50%
30%
10%
1930 1940 1950 1960 1970 1980 1990 2000 2010
Television
Newspaper
Magazines
Radio
Digital
Mobile
TV
Newspapers
Magazines
Radio
Web
Mobile

Native is Now the Largest Category of
ADVERTISING

Because Feeds are the Largest Category of
ATTENTION

Microattention
Ads That Fit In are the Most Influential Ad Format We’ve Ever Seen

1
Native Ads Are Read, Not Just Seen Reading Influences The Brain
Two Scientifically Proven Truths about Native
2

Native Ads Are Read, Not Just Seen
READ
SEEN
Native Banners

Reading Native Ad Headline Creates Brand Associations
Attractive
Look
Fit
Headphones
Luxury BRAND
STYLE
COMFORT
Envious
Outfit

Considering
Thoughts
Secrets
Discovering
Relating
Updated
Years
Soon
Everyday
History
Diagonal
Skinny
Long
Tallest
Widest
Growing
Entering
Falling
Replacing
Appearing
INSIGHT TIME SPACE MOTION
Context Words Trigger Microattention

“Native is the antidote for the cohort of people who are
no longer interruptible”

TV to Native
TV to Native

WHY NATIVE WON AND THE ROAD MAP...
• Our phones are now part of our
physical sense of self
• Intimate devices require intimate
advertising
• Ads that fit in are the only sustainable
ad format for the new web
• And it turns out that they deliver
attention unlike anything we’ve  
ever seen

2018 2019 2020 2021
B
$25.2B
$13.6B
$28.9B
$13.6B
$33.5B
$13.0B
$36.3B
$12.8B
Non-Native Display
Native Display
advertising
ever seen

advertising
ever seen
Attractive
Look
Fit
Headphones
Luxury BRAND
STYLE
COMFORT
Envious
Outfit

$75 Billion Over the Next 3 Years
Source: Business Insider Intelligence, 2016
2016 2017 2018 2019 2020 2021
10
20
30
40
50
60
Dollars(Billions)
$16.8B
$13.2B
$20.9B
$13.4B
$25.2B
$13.6B
$28.9B
$13.6B
$33.5B
$13.0B
$36.3B
$12.8B
Non-Native Display
Native Display

Programmatic
Unlocks Magical Powers
THE NEXT $75B?

DSP
Native SSP
Advertiser Publisher
Programmatic Native Landscape

PAGE {
URL;
CONTEXT: SOCIAL, PRODUCT, EDITORIAL;
LAYOUT: IN-FEED, IN-ARTICLE, RIGHT-RAIL,
BELOW-THE-POST;
}
DEVICE { MOBILE=1, DESKTOP=0, TABLET=0; }
GEOLOCATION {
@37.7991791,-122.4009608,20.39Z
}
BROWSER {
NATIVE-PRES.07.19.16;
USER-ID=13454,
ANONYMIZED-COOKIE=1EH5C4B;
}
From
Publishers
to Advertisers
The “Bid Request”

BID {$12.50 CPM}
CONTENT {
HEADLINE: ‘WELCOME TO NATIVE 2016’;
CONTENT-URL: ‘HTTP://SHARETHROUGH.COM’;
DESCRIPTION: ‘LEARN HOW TO WRITE BETTER
HEADLINES, TRY OUR HEADLINE ANALYZER
TOOL ON THE 2ND FLOOR’;
}
THUMBNAIL {
URL: ‘HTTP://IMGUR.COM/HAL.JPG';
}
BRANDING {
LOGO: ‘HTTP://IMGUR.COM/STR.PNG';
NAME: ‘SHARETHROUGH';
}
TRACKING-TAGS {
HTTP://NATIVE-PRES.07.19.16.COM;
}
From
Advertisers
to Publishers
The “Bid Response”

WHAT PROGRAMMATIC
UNLOCKS FOR NATIVE
Beyond What it Unlocks for Standard Ads

STX Exchange 
Packaged Deals
Examples:
• Fashion Influencers
• Business News
• Product Reviews
• Celebrity & Real Time Culture
• Self Improvement
• Listicles

we were going to put two or three
screenshots here of PMP launch partners
Private
Marketplace
[prahy-vit-mahr-kit-pleys]
noun
1. Exclusive RTB auctions where
publishers invite select
programmatic buyers to bid
on their inventory at agreed
upon rates.

Video 
The Once and
Future King

Instant Play: The Format that’s Taking Over the Internet

WHY NATIVE WON AND THE ROADMAP...

In-Feed Instant Play Is The
Expected Experience
Millennial Native Video Research
79% of Millennials Find Autoplay
Videos Convenient
70% of Millennials Read Headlines
While Watching Silent
Autoplay Videos

Source: Facebook
0
25
50
75
100
0 3 10 20 30
47%
0
25
50
75
100
0 3 10 20 30
0
25
50
75
100
0 3 10 20 30
Ad Recall Awareness Purchase Intent
CUMULATIVECAMPAIGNIMPACT
Instant Play Native Video = Instant Brand Impact
The first 7 seconds make all the difference
74%
32%
65%
44%
77%

Sharethrough  
Native Video Ads
Instant Play Native Video Ads Now available to
all publishers and on all buying platforms

ARTS & ENTERTAINMENT BUSINESS, NEWS &
FINANCE
HOME & LIVING MEN’S LIFESTYLE STYLE, FASHION & BEAUTY TECH & GADGETS SPORTS & FITNESS FOOD & DRINK
Top Publishers In Every Category Using Native Video Ads

Video Increasingly Dominating Sharethrough Platform
Video
Editorial

Major DSP’s Are
Rolling Out Support
for Native Video Ads
Highlight On:

Source: Business Insider Intelligence, 2016
2016 2017 2018 2019 2020 2021
10
20
30
40
50
60
Dollars(Billions)
$16.8B
$13.2B
$20.9B
$13.4B
$25.2B
$13.6B
$28.9B
$13.6B
$33.5B
$13.0B
$36.3B
$12.8B
Non-Native Display
Native Display
$75B in Native Ad Spend in Next 3 Years

Ads that Fit in
Mobile Programmatic
PMP’s
Video
Content
• Quality
ROI
• Attribution
• Value of Attention
New Platforms
• AI/Bots
• VR/AR
• Pokemon?
2013 - 2014 2016 2017 2018 2019 - 20202015
Ecosystem Quality & ROI Future
Platforms
@dgreenberg

Why Native Won (And the Roadmap for the Next $75 Billion)

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