NATIVE ADVERTISING. 1 www.greenlightdigital. ... Before this, inventory was mostly traded through direct ... Facebook, I
PROGRAMMATIC DISPLAY
DRIVING EFFICIENCY, IMMEDIACY AND CONTROL
MARCH 2017 Programmatic Display
PROGRAMMATIC NATIVE ADVERTISING
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Programmatic Display
CALLEN JOHNSON, DISPLAY EXECUTIVE
In the digital display and video
editorial. Different types of native
In 2016, the Interactive Advertis-
space, programmatic ad buying is
categories include social native,
ing Bureau (IAB) released OpenRTB
fast becoming the standard way to
sponsored content and native-style
Native 1.1 guidelines which
trade media; and now, thanks to
display. And with the introduc-
standardised the real-time trading
recent advances in both technology
tion of programmatic capabilities,
of native ads. Before this, inventory
and industry guidelines, native ad
digital marketers can now integrate
was mostly traded through direct
inventory can be traded program-
real-time data and ad technology to
channels, but now exchanges and ad
matically too. What are native ads
make native ads more specific and
networks offer the functionality to
exactly? They’re a form of paid
relevant, marking a very interesting
trade native programmatically.
media which blend seamlessly into
shift in the world of programmatic
site content, adopting a similar
display.
appearance and feel of surrounding
“Consumer interaction is 25% higher when targeted with a native ad, while intent to purchase increases by 18% when compared to standard display ads.”
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www.greenlightdigital.com | +44 (0)20 7253 7000
Programmatic Display
THE RISE OF NATIVE
will come from native (it currently
keters utilise first- and third-party
ADVERTISING
sits at 54%2), with similar growth
data in real time to make the most
expected in the UK thanks to native
of native ads’ capabilities, they can
Many social platforms such as
ad spend growing 29.9% in the first
also benefit from its ability to natu-
Facebook, Instagram and Pinter-
half of 20163.
rally blend with site content. As such,
est – which were early adopters of native advertising – already rely predominately on revenue from native formats. Although slightly behind, the publishing industry is now introducing advertising integrations to be able to trade a variety of na-
multiple images and copies can be
THE ROAD AHEAD
used per campaign, and more inter-
Despite the recent rise in programmatic native activity, there are still many challenges marketers must face. Currently, there’s no defini-
estingly the creative possibilities are quickly growing as native content continues to push the boundaries of what’s possible.
tive set of metrics used to measure
Native advertising is also undeni-
native campaigns, making it more
ably one of the best ad formats for
difficult for buyers and sellers to
mobile, as it exploits and easily
trade native ads, while also creat-
adapts to in-feed views. Due to this
ing confusion within the market on
advantage, programmatically traded
Although the introduction
what KPIs should be used for mea-
native ads are likely to account for a
of standard guidelines and
surement. That being said, native
large proportion of growth related
technological advancements has
advertising can incorporate many
to mobile inventory going forward.
propelled native adoption, an
engagement elements, so it’s im-
equally important catalyst lies in
portant that we look beyond clicks
In sum, native ads will help ad-
its overall effectiveness. Recent
alone to evaluate performance due
dress many challenges which have
research has found that consumer
to its strong ability to contribute to-
cropped up over the years as users
interaction is 25% higher when
wards brand awareness and affinity.
continue to show a preference for
targeted with a native ad, while
Other challenges include scalability,
mobile devices. Furthermore, as pub-
intent to purchase increases by 18%
consumer content expectations, and
lishers try to strike the fine balance
when compared to standard display
establishing native’s true position
between advertising and content,
ads1.
within the user funnel.
programmatic native ads mark an
By 2021, it’s predicted that 74% of
However, the positives outweigh the
which is more engaging for all par-
total display ad revenue in the US
negatives; not only can digital mar-
ties involved4.
tive ad formats, with the major DSPs (demand-side platforms) and SSPs (supply-side platforms) also taking note of this change.
important step towards a future
1. https://sharethrough.com/nativeadvertising/ 2. http://www.businessinsider.com/the-native-ad-report-forecasts-2016-5?IR=T 3. http://www.thedrum.com/news/2016/10/25/native-and-online-video-push-uk-ad-spend-up-52-99bn-despite-brexit-fears 4. http://www.thedrum.com/news/2017/02/02/gumtrees-head-programmatic-2017-wont-be-the-year-programmatic-tv
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