The Rise Of Native Ads: How Native Advertising Became the Standard for the Mobile Era

The Rise Of Native Ads How Native Advertising Became the Standard for the Mobile Era

Tom Thacher VP at [email protected]

mailto:[email protected]?subject=

RISE OF NATIVE ADVERTISING

There were years and years of terrible ads…


Initially, Social Media Wasn’t Exactly A Well-Lit Place For Advertisers…


Then Facebook Happened And Feeds Were Born.

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And Even Had The Same Old Ads For A While.But Columns and Clutter Aren’t Well Suited for Small Screens.


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So They Made The Feed a Single Stream of Content(Initially with no ads but a lot of extra white space)


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And They Sold Lots and Lots of Ads. ($1.8B in 2010) All of Which Were Ads That Fit In.


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Twitter Passes 50M Users and Sells First Ads. Biz Stone Says the Ads are Just “Ordinary Tweets.” (ads that fit in)


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The Term “Native” Was Coined to Describe This New Monetization Paradigm

Native Became the Predominant Ad Strategy for Social Feeds


$0

$3,500,000,000

$7,000,000,000

$10,500,000,000

$14,000,000,000

2009 2010 2011 2012 2013 2014

Facebook Revenue All Magazines Digital Revenue

032010-14

Feeds and Native Monetization Took The Ad World By Storm


Facebook Revenue vs. Magazine Digital Revenue

$14B

$10B

$7B

$3.5B

$0

$3,500,000,000

$7,000,000,000

$10,500,000,000

$14,000,000,000

2009 2010 2011 2012 2013 2014

Facebook Time Inc News Corp

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Feeds and Native Monetization Took The Ad World By Storm

Total Revenue Comparison

$14B

$10B

$7B

$3.5B


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Some Publishers Begin To Sell Brand-Created Sponsored Story Ads (some in-feeds)


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Gradually, Content Publishers Move To Feed-Based Design and Native Monetization


Today, Millennials Consume Almost All Their Content In Feeds

0%

25%

50%

75%

100%

Browsing a Social or Content Feed

Search Shared (directly via email, text)

2%8%

91%

Source: Sharethrough Native Advertising Perception & Attitudes 2016


BUSINESS INSIDER, 2015

Brands and Publishers Are Shifting to Feeds Native Advertising Will Be A $4.7B+Market For Content Publishers This Year

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Publishers Now Prioritizing Their In-Feed Inventory Adoption of Native SSPs and Standardization of Native Units is Increasing the Prominence of Native Placements



$

2011

Publisher-Sold Sponsored Content

Programs

2013

Native Click-To-Play Video on Social and

Content Sites

2015

Native Instant-Play Video Becoming A

Standard Ad Format

2017

Open RTB For Display, Video and

Cards/Articles

2012

Sponsored Stories, Posts & Updates on Most Social Media

Platforms

2014

Publishers & Platforms Introduce

Native Content Cards & Instant Articles

2016

The OpenRTB 2.3 specification provides support for native ads

& Native Display

Native Evolution: Beyond Sponsored Content 2017: Any Creative Type. Any Media Strategy. Any Buying Format.


Promise of Native Ads Will Be Fulfilled in 2017. The best modern ad tech on the best environments for advertisers.

On Trusted Publishers Advertisers Have Always Loved

Modern Native Ad Products

Delivered Programmatically

Via Modern Ad Tech

Trends In Native Ads Heading into 2017 Programmatic and Video Will Fuel Native Growth in 2017

Ushering in The Native Video Era

The Rise of Native Programmatic

Native Starts Eating Display

1

2

3

50% 76% 75% 90% 100%

More Than Half Of Videos Now Consumed in Mobile Feeds Video Consumption Habits Are Ushering In The Post-Preroll Era



Native Video (In-feed + Autoplay) Is Now The Expected Experience

Source: Sharethrough Native Advertising Perception & Attitudes, 2016, Sources: Twitter, June 2015

of Millennials Find Autoplay Videos

Convenient

79%of Millennials Read

Headlines While Watching Silent Autoplay Videos

70%Lift in brand recall for

instant play versus other video formats

+14%

PRESENTATION NAME - XX/XX

Video Is The Fastest Growing Native Ad Format

Percent Of Ad Impressions From Video

56%29% 59% 100%

Source: Sharethrough Platform Data, Q1 2016

Brand Videos

Branded Editorial TV Spots

Promoted Press

Images

Ot

her

56%TV And Pre-Roll Creative Driving Surge in Native Video Demand


ADVERTISER PUBLISHERDSPAGENCY TRADING DESKS NATIVE SSPS

PERFORMANCE BUYERS

2017: Programmatic Native Ecosystem Complete Programmatic Buying and Ad Ops Will Mirror Display & Pre-Roll



+800%More than 2,100 Exchange Buyers in 2016: 800% YoY growth

261

2,139

0

2

4

6

8

Q1 Q2 Q3 Q4 Q1 Q2 Q3

Buyers On The Sharethrough Exchange

261

2,139

2,500

1,500

1,000

500

Demand: DSP Buyers Bringing Exponential Demand To Exchange

Source: Sharethrough Platform Data, Q3 2016

+380%YoY growth in publishers live on the Sharethrough Exchange


Supply: Publisher SSP Adoption Increasing Supply and Ease-of-Buying

500

288

1,092

1,000

750

500

1,200

0

4.5

9

13.5

18

Q1 Q2 Q3 Q4 Q1 Q2 Q3

Unique Sites & Apps On Sharethrough ExchangeSource: Sharethrough Platform Data, Q3 2016


Display Budgets Are Shifting To Native Open RTB has opened up native to trade desks and other performance buyers

0%

25%

50%

75%

100%

Mobile Video Native Social Display

25%

45%50%51%

60%

Digital Advertising Spend Growth Rates 2015

Source: IAB 2015

Native Display Ads Receive Twice As Much Visual Attention As Banners

Out of Feed Banner In-Feed Banner

Nielsen/Sharethrough, “A Neuroscience Perspective,” 2015 and 2013 IPG Media Labs Brand Study

Native In-feed

2X MOREvisual focus than

banners and are read in the same way as

editorial


Source: Sharethrough Platform Data, Q2 2016; IPG Media Labs and Sharethrough: Exploring The Effectiveness of Native Ads


10X HIGHERBecause native display ads are

always viewable and fit in; CTRs are up to 10x higher than display

ads

18% LIFTReading headlines improves quality of clicks; resulting in a lift in an 18 % lift in purchase intent compared to

non-native display

+

Headlines Are The New Tagline Programmatic Buying Enabling Display 2.0


All 50 of the Ad Age 50 Top Brands Use Sharethrough

200+ Employees

10 Offices in the US, Canada, the UK, and Japan

Founding Chair, IAB Native Advertising Committee

196 MillionUS Uniques

76%US Reach

NATIVE IN-FEED ADVERTISING

Thank You Tom Thacher, VP at Sharethrough

[email protected]

mailto:[email protected]?subject=

The Rise Of Native Ads: How Native Advertising Became the Standard for the Mobile Era

Marketing

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