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Native advertising comes in all shapes and sizes. Here is a native landscape snapshot today. This chart above is organized by the medium of content, or how that medium is powered. The most saturated sector of the market in terms of discussion today is sponsored posts/articles, but there are many other emerging forms of native advertising that are changing the game.
Native advertising is not a new concept. Custom content, advertorials and product placement strategies have long been in the advertiser’s toolbox to help drive brand awareness and user engagement. Yet the discussion around native advertising has grown steadily in the last couple years, and is strikingly more pronounced in 2013.
Why now?
If banner ads were successfully promoting branding messages for marketers, native advertising would not be receiving the attention that it is. Advertisers simply aren't seeing meaningful brand lift for the vast majority of their banner advertising campaigns.
The advent of real-time bidding has improved the efficiency of digital media buying by an incredible margin. But this efficiency has come directly at the expense of the publisher. One could very reasonably argue that this is simply a more efficient use of media dollars, but the issue is that this hurts the publisher’s bottom line. Native advertising offers publishers a new alternative to the ever-declining CPMs of banner advertising.
Mobile also presents a complex challenge for publishers. Users rarely intentionally click on ads generally – and mobile ads show a strikingly high rate of accidental clicks. Articles are often zoomed to exclude advertising content on the sides. And flash, the software language used for most ads, simply doesn't work on most mobile devices. But mobile represents a growing piece of a publisher’s traffic- often directly at the expense of desktop browsing.
There is no single reason for why now. Rather, poor banner ad engagement and declining CPMs incrementally stress publishers to consider alternative monetization sources. Mobile and tablet make banner ads less relevant for the future and require considerations for alternative revenue streams. Technology is finally getting to the point where native advertising can be scalable across multiple publishers without requiring unique content for each.
Find the full iMedia article on the Native Advertising Landscape here.
Even if the LUMAscape layout can’t give a complete explanation of the interactions within the ad industry, it is certainly one of the best references to illustrate the complexity of the display ad technology space. As contextual analysis and semantic data provider, we’re listed within “data aggregators”.
In our space of interactions—which range from Publishers & SSPs to Ad Networks & Ad Exchanges, Advertisers, Agencies, Trading Desks and DSPs—we offer a solution that automatically extracts the meaning in text, providing our partners and customers with rich, fast and flexible contextual data that improves advertising reach and lift. Reach and lift are improved through the power of semantic processing– the ability to distinguish one word with many meanings (lift) and many words that equal the same meaning (reach).
Online advertising budgets increase each year, but targeting and matching content to ads is harder than ever. Effective online ads must be related to the content with pinpoint accuracy. At the same time, brands must be protected from negative associations. ADmantX matches ads to content with accuracy, keeping readers engaged with content, maximizing impressions, utilizing all content, and responding to companies’ needs for online brand protection.
In a nutshell, we avoid the mistakes of keyword based systems for better matching, and higher click-through rates (CTRs). And we enable the use of all content for matching ads. This clears inventory and maintains higher ad prices overall. For publishers and advertisers alike, semantic targeting keeps impressions as premium ads.
Contact us today to see what we can do for your business!
