programmatic native advertising - Greenlight Digital

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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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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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