Why Native Won (And the Roadmap for the Next $75 Billion)
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Transcript of Why Native Won (And the Roadmap for the Next $75 Billion)
Why Native Won AND THE ROADMAP FOR THE NEXT $75 BILLION
Dan Greenberg CEO and Co-Founder at Sharethrough
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 FuturePublished on May 03, 2012 - Digiday
NATIVE AD SUMMIT 2016
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 FuturePublished on May 03, 2012 - Digiday
NATIVE AD SUMMIT 2016
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 FuturePublished on May 03, 2012 - Digiday
Native is the largest category of digital advertising
WHY NATIVE WON AND THE ROADMAP…
2016 2017 2018 2019 2020 2021
10
20
30
40
50
60
Dol
lars
(Bill
ions
)
$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
WHY NATIVE WON AND THE ROADMAP…
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.”
WHY NATIVE WON AND THE ROADMAP…
“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
The intimacy of the phone is a primary driver of change…
Source: BI Intelligence, 2016
WHY NATIVE WON AND THE ROADMAP…
2016 2017 2018 2019 2020 2021
10
20
30
40
50
60
Dol
lars
(Bill
ions
)
$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
The Intimacy PrincipleThe more intimate and personal a device is, the more integrated the push messaging model must be.
WHY NATIVE WON AND THE ROADMAP…
Total Native Ad Spend Through Sharethrough Products
0
30
60
90
120
150
2012 2013 2014 2015 2016
Total Spend Through Sharethrough Products (MM)
$
WHY NATIVE WON AND THE ROADMAP…
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…
“You can [interrupt] some people some of the time, but you can’t [interrupt] all the people all the time.”
WHY NATIVE WON AND THE ROAD MAP…
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
WHY NATIVE WON AND THE ROAD MAP…
“How Would You Prefer Publishers Make Money?” Millennials Prefer Native Ads
Source: Qualtrics, “Millennials and Advertising” 2016
Native Ads Banners Subscription Pop Up Other0%
25%
50%
75%
100%
58%
21%
4% 3%14%
WHY NATIVE WON AND THE ROAD MAP…
"Advertising is not the art of war, it’s the art of syndicating the truth”
WHY NATIVE WON AND THE ROAD MAP…
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
TelevisionNewspaperMagazines
RadioDigitalMobile
TV
Newspapers
Magazines
Radio
Web
Mobile
WHY NATIVE WON AND THE ROADMAP…
Microattention Ads That Fit In are the Most Influential Ad Format We’ve Ever Seen
1WHY NATIVE WON AND THE ROADMAP…
Native Ads Are Read, Not Just Seen Reading Influences The Brain
Two Scientifically Proven Truths about Native
2
WHY NATIVE WON AND THE ROAD MAP…
Reading Native Ad Headline Creates Brand Associations
Attractive
Look
Fit
Headphones
Luxury BRAND
STYLE
COMFORTEnvious
Outfit
WHY NATIVE WON AND THE ROAD MAP…
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
WHY NATIVE WON AND THE ROAD MAP…
“Native is the antidote for the cohort of people who are no longer interruptible”
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
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
2016 2017 2018 2019 2020 2021
10
20
30
40
50
60
Dol
lars
(Bill
ions
)
$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
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
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
Attractive
Look
Fit
Headphones
Luxury BRAND
STYLE
COMFORT
Envious
Outfit
WHY NATIVE WON AND THE ROAD MAP...
$75 Billion Over the Next 3 Years
Source: Business Insider Intelligence, 2016
2016 2017 2018 2019 2020 2021
10
20
30
40
50
60
Dol
lars
(Bill
ions
)
$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
2016 2017 2018 2019 2020 2021
10
20
30
40
50
60
Dol
lars
(Bill
ions
)
Programmatic
Unlocks Magical Powers
THE NEXT $75B?
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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’; }
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TRACKING-TAGS { HTTP://NATIVE-PRES.07.19.16.COM; }
From Publishers to Advertisers
From Advertisers to Publishers
The “Bid Response”
WHY NATIVE WON AND THE ROAD MAP...
STX ExchangePackaged Deals Examples:
• Fashion Influencers
• Business News
• Product Reviews
• Celebrity & Real Time Culture
• Self Improvement
• Listicles
WHY NATIVE WON AND THE ROAD MAP...
we were going to put two or three
screenshots here of PMP launch partners
WHY NATIVE WON AND THE ROAD MAP...
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.
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: Qualtrics, “Millennials and Advertising” 2016
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: Qualtrics, “Millennials and Advertising” 2016
WHY NATIVE WON AND THE ROADMAP...
Source: Facebook
0
25
50
75
100
0 3 10 20 30
47%
0
25
50
75
100
0 3 10 20 300
25
50
75
100
0 3 10 20 30
Ad Recall Awareness Purchase Intent
CU
MU
LATI
VE C
AM
PAIG
N IM
PAC
T
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
WHY NATIVE WON AND THE ROADMAP...
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
WHY NATIVE WON AND THE ROADMAP...
Video Increasingly Dominating Sharethrough Platform
Video
Editorial
WHY NATIVE WON AND THE ROADMAP...
Major DSP’s Are Rolling Out Support for Native Video Ads
Highlight On:
WHY NATIVE WON AND THE ROAD MAP...
Source: Business Insider Intelligence, 2016
2016 2017 2018 2019 2020 2021
10
20
30
40
50
60
Dol
lars
(Bill
ions
)
$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