NATIVE ADVERTISING ROUNDUP
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October 2014
NATIVE ADVERTISING ROUNDUP
Native advertising, which some marketers, publishers and readers
see as little different than the old “advertorial” concept, is still nascent
enough that it’s difficult for many to define—and has different definitions
depending on who you ask. To help you stay on top of the latest trends in
native advertising, eMarketer has curated a roundup of some of our latest
coverage, including statistics, insights and interviews.
presented by
NATIVE ADVERTISING ROUNDUP
Overview
Native advertising, which some marketers, US Native Ad Spending, 2013 & 2018
publishers and readers see as little different than billions
$9.4
the old “advertorial” concept, is still nascent
enough that it’s difficult for many to define—and
has different definitions depending on who
you ask.
Market research firm Mintel defined native ads as paid
media where the ad experience follows that natural
form and function of the user experience in which it is
$1.3
placed, and estimated that spending would rise more than
sevenfold between 2013 and 2018.
2013 2018
Note: defined as a form of paid media where the ad experience follows the
And media buyers agree: While nearly three-quarters natural form and function of the user experience in which it is placed;
already employ native advertising, two-thirds said they CAGR (2013-2018)=48.5%
Source: Mintel as cited in press release; eMarketer calculations, Aug 5,
planned to use them more in the future. Just 7% of US 2014
177800 www.eMarketer.com
media buyers surveyed by TripleLift and Digital Media
Review said they would not be using native ads in
Current vs. Future Plans to Employ Native Advertising
the future. According to US Media Buyers, May 2014
% of respondents
About two in five of these media buyers also said they
thought it was possible to bid programmatically on native
advertising, though a majority were skeptical of this activity. No Same
27% 26%
Respondents said their top priority when evaluating media
for native ads was the audience, and that editorial content, No
Yes
Yes 67%
followed by images and user-generated content, were the 73% 7%
most compelling content types to use for native ads.
The benefits of native advertising are clear to many Currently employ Plan to employ more
in the future
advertisers, and include, according to research from
Source: TripleLift and Digital Media Review (DMR), "Digital Media Buyers Get
Advertiser Perceptions and Purch, increased brand Native: How Agency Executives Are Leveraging Native Advertising to
Connect with Customers," June 23, 2014
awareness, the opportunity to tell a product story and
178627 www.eMarketer.com
increased awareness of specific products or services.
But obstacles remain, and they can seem bigger than the
benefits. The same survey found that insufficient reporting
and ROI metrics were a problem for 46% of US advertising
decision-marketers—far more than the 31% who enjoyed
increased brand awareness. There were also problems
aligning campaigns with marketing objectives for 38% of
respondents. Just 13% said nothing was standing between
them and the perfect native ad campaign.
Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 2
Paid Social Ads Convert More Customers
Nearly nine in 10 social content interactions are in the middle of the path
to purchase
The digital marketing world has been abuzz Conversion Rates for Paid vs. Organic Social Network
for months about Facebook’s dialing-down of Advertising Worldwide, by Site, Q1 2014
organic brand content in the average user’s Twitter
3.9%
newsfeed—and the declining importance of 1.5%
the “like” or page follow in its wake. But Q1 Facebook
2014 research by Convertro and AOL Platforms 3.1%
3.0%
suggests that even if Facebook is doing what Pinterest
it can to push brands from an earned into a 0.2%
paid media model, paid ads on social networks 1.1%
Total
do have better conversion rates than 2.8%
organic content. 2.3%
Paid Organic
On Facebook, the jump in conversion rates among Note: represents data on the Convertro platform, broader industry metrics
Convertro platform users worldwide was just 0.1 may vary; among clients who have invested in paid social media
Source: Convertro and AOL Platforms, "Myth-Busting Social Media
percentage point, but on Twitter, ads were more than twice Advertising," Sep 4, 2014
179163 www.eMarketer.com
as likely as organic tweets to convert users. On Pinterest,
the situation was reversed, but overall, brands using
Stage of the Path to Purchase During Which
Convertro saw around a 25% lift in conversions with paid Customers Worldwide Are Most Likely to Interact
social ads vs. organic social content. with Social Network Advertising, by Site, Q1 2014
% of total among Convertro clients
For the most part, though, social media is not the last YouTube
18% 54% 14% 14%
or only touch for consumers on the path to purchase.
Facebook
According to Convertro’s figures, 87% of interactions with
11% 69% 10% 10%
social content were a middle touch, while just over one
LinkedIn 2%
interaction in 10 was either the last or only touchpoint. 11% 86% 2%
Google+
Still, some social venues are more geared toward 7% 76% 10% 7%
conversion than others. YouTube stood out in Convertro Pinterest 2%
and AOL’s research as the most likely social media property 6% 83% 8%
by far to turn a prospect immediately into a customer— Tumblr 1%
likely because video content like that hosted on YouTube 5% 89% 5%
can provide 100% of the information an online shopper Twitter 1%
2% 92% 4%
needs to make a purchase decision.
First touch Middle touch Last touch Only touch
The distance between a social touchpoint and a conversion Note: represents data on the Convertro platform, broader industry metrics
also depended on the type of product being purchased. may vary; includes both paid and organic; numbers may not add up to
100% due to rounding
The research found that more impulsive purchases—such as Source: Convertro and AOL Platforms, "Myth-Busting Social Media
Advertising," Sep 4, 2014
subscriptions to services like Birchbox or Dollar Shave Club, 179161 www.eMarketer.com
personal care items and local services—were more likely to
appear as social ads and lead immediately to a conversion,
as the last or only touchpoint on a consumer’s journey.
Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 3
What’s Next for Native Ads?
Social networks, media publishers see huge potential in native ads
Native advertising is flourishing across social included branding and brand affinity. Purchase intent and
media, content portals, news properties, video- lead generation were further down the scale, indicating
that native ads (at least on mobile) are more a branding
sharing sites and streaming services. Increased
play than a direct-sales driver.
mobile use of these venues has fueled much
of the growth, since native ads work best in the These findings are in line with what marketers and other
content streams that people tend to access on ad industry experts say is one of the qualities that makes
smartphones and tablets, according to a new native advertising especially appealing: its ability to engage
eMarketer report, “Native Advertising: Difficult to the user.
Define, but Definitely Growing.”
US Social Media Ad Spending, by Type, 2012-2017
billions and % change
Perceptions about what constitutes native advertising are
2012 2013 2014 2015 2016 2017
as varied as the ads themselves and the places where they
Display spending $2.9 $4.3 $4.9 $5.5 $6.1 $6.8
appear. There’s still disagreement over basic terminology —% change - 48.3% 14.0% 12.2% 10.9% 11.5%
such as “native advertising,” “sponsored content” and Native* spending $1.4 $2.4 $3.1 $3.7 $4.4 $5.0
“branded content.” Some make distinctions among those —% change - 71.4% 29.2% 19.4% 18.9% 13.6%
terms, while others use them interchangeably. Note: includes desktop and mobile platforms and local and national
spending; excludes social marketing/measurement platforms and services,
social commerce and virtual currency; *branded content integrated
directly within a social network experience
However, perceived effectiveness is fueling marketer Source: BIA/Kelsey, "Annual US Local Media Forecast: Social Local Media
investment in native advertising. In December 2013, BIA/ 2012-2017 (Mid-Year Update)"; eMarketer calculations, Dec 18, 2013
168167 www.eMarketer.com
Kelsey estimated native ad spending on social media
alone would grow from $3.1 billion this year to $5.0 billion
Leading Marketing Objectives for Native Mobile Ads
in 2017. As a percentage of total social ad spending, it According to US Digital Advertising Professionals,
projected native would rise from 38.8% in 2014 to 42.4% Aug 2013
% of respondents
in 2017.
Awareness 84.4%
For media publishers, native advertising represents an Branding 67.5%
opportunity to reverse the tide of flat or declining revenues. Brand affinity 53.2%
eMarketer estimates US print ad spending will decline from
Purchase intent 33.8%
$32.16 billion in 2014 to $31.29 billion in 2018. Digital ad
24.7% Customer acquisition
spending on newspapers and magazines will increase to
24.7% Thought leadership
$8.41 billion by 2018, from $7.48 billion in 2014, but these
gains will still leave the industry essentially flat for the 16.9% Lead generation
forecast period. With these numbers as a backdrop, it’s Loyalty 16.9%
easy to see why media companies are so eager to create Note: includes tablet ads
new revenue streams through native ads. Source: Sharethrough, "2013 Native Media Survey Results," Sep 16, 2013
164444 www.eMarketer.com
Brand marketers and agencies do not have the same
urgency as publishers, but they are just as eager to gain an
edge over their competitors—and native offers a way to do
that. In an August 2013 Sharethrough study, awareness was
the top marketing objective for native mobile ads among
US digital marketing professionals. Other leading objectives
Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 4Lenovo Joins Forces with NFL and The Onion for Video Series
Kevin Berman Berman: Fantasy football players are some of the biggest
Director, Advertising and Marketing Services doers out there—they’re incredibly passionate and
Lenovo engaged about the sport. There were a couple of different
objectives here: to engage with as many millennials as
possible, but to also cast a wide net for audience. Also, to
Having a clearly defined brand is essential for increase Lenovo brand recognition and association as the
official computer sponsor of the NFL.
marketing objectives, and digital video is no
exception. Kevin Berman, director of advertising “While the audience recognizes that
and marketing services at computer and advertisers are going to pay to reach them,
consumer electronics manufacturer Lenovo, you can do it in a way that feels more organic
spoke to eMarketer’s Danielle Drolet about best to what content they normally consume.”
practices for digital video advertising.
Ultimately, the series was a success. The episodes and
additional social video content garnered over 13 million
eMarketer: What is Lenovo’s audience target for its
views, and we’ve renewed it for season two.
video advertising?
eMarketer: What have you done for mid-to-lower funnel?
Kevin Berman: Lenovo defines itself as the brand
“for those who do.” We work to understand where our Berman: An example would be some of our product-led
audience is spending much of what we have defined as videos. We use those videos when we run on comparison-
their “do time”—the time that they spend on work, projects shopping engines like CNET, PC World, etc., in addition to
and passions that are really important to them. Lenovo.com, email and our social channels.
For millennials, in particular, the work day is 9am to 5pm, In terms of best practices, you need to have well-thought-
but their “do time” is often after that. Our objective is to out messaging and product strategy so that you can
understand and reach people in those moments that dynamically update and refresh content ... in unison with
matter to them, and using video is at the heart of reaching what your direct-response teams are doing. You don’t want
and engaging millennials during their “do time.” there to be a disconnect in your brand’s voice.
eMarketer: What levels of the funnel do you focus on to eMarketer: What is most important when it comes to the
reach your audience? creative and storytelling in video ads?
Berman: We have different kinds of digital video programs Berman: When we created “Tough Season” with The
for different parts of the funnel. Onion, authenticity was the most important best practice.
If you’re working with a publishing partner on your story,
In the fall of 2013, we launched a web series called “Tough
you have to really think about the tone, and make sure that
Season” in partnership with The Onion and DigitasLBi. It
it matches what the audience has come to expect from
was a mockumentary-style web series that was also a
that publisher.
love letter to fantasy football. It featured several prominent
NFL players as guest stars, and a never-before-seen level Your content should feel native to that partner. That way,
of real-time social engagement between a brand, series while the audience recognizes that advertisers are going
characters, NFL players and teams and fans. This was an to pay to reach them, you can do it in a way that feels
upper-funnel program. more organic to what content they normally consume.
And it’ll drive a higher likelihood of engagement and more
eMarketer: What were the objectives of the campaign?
positive reception.
Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 5Lenovo Joins Forces with NFL and The Onion for Video Series (continued)
eMarketer: How do you decide whether to develop new eMarketer: How do you target? By context or by
content or use repurposed TV creative? targeting audiences?
Berman: When you’re creating a new campaign, you Berman: There isn’t just one silver bullet for targeting—it’s
need new creative to help complete the story. Otherwise not an either/or dynamic. We balance who we’re buying
you’re force-fitting for your program. We don’t subscribe against, figuring out how to reach them where they are
to matching luggage—we subscribe to the notion of and what their behavior is. That way we can optimize
original storytelling, and the role that creative plays in that. our programs based on engagement, response, sharing
Unfortunately, if you’re trying to be unique and original in and more.
the digital space, repurposing TV creative could potentially
come across as force-fitting. For example, we’ll work with partners like Google,
AOL, TubeMogul, and others to buy against our target
“When you’re creating a new campaign, audience—millennials. Meanwhile, we work with partners
you need new creative to help complete like BuzzFeed and CNET on contextual targeting. It’s a
the story. Otherwise you’re force-fitting for combination method.
your program.”
And we leverage retargeting in video to drive sales,
The best practice is to create a custom original program working closely with our ecommerce team to integrate our
with custom creative. That said, there are a lot of in-market activity and capitalize on brand opportunity.
challenges there in regards to time, budget and resources.
It’s a lot more work to do around orchestrating and
collaborating with your client team, partner/publisher team
and agency team to create a well-thought-out program
from launch to completion.
Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 6Media and Entertainment Ad Spending 2014: CBS on Its Interactive
Native Ad Program
Christy Tanner add television shows, movies, sports teams or actors to a
Senior Vice President and GM, favorites list that we call the Watch List. We sold over 200
Media Group Watch List native ad campaigns in the last two years and
CBS Interactive we have resold them to the same advertisers because
they’re very effective ads for those marketers.
Content and brand marketing helps CBS The dollar that the marketers spend on a Watch List native
Interactive advertisers create more curated ad unit is a dollar that they will see a return on for the life of
experiences for consumers. Christy Tanner, senior that movie or TV show. When somebody has a call to action
to add that show to their Watch List, it will stay on their
vice president and general manager of Media
Watch List until they take it off.
Group at CBS Interactive, spoke with eMarketer’s
Rimma Kats about the rise of native advertising eMarketer: What is the mix between branding and direct
and what marketing channels its advertisers tend response advertising in media and entertainment?
to choose.
Tanner: Most of the campaigns within CBS Interactive fall
more in the category of branding than direct response, and
eMarketer: How does native advertising and content
we certainly have tons of data throughout the company
marketing fit into the media and entertainment ad mix?
that demonstrates how those branded campaigns
Christy Tanner: I see native advertising and content drive sales.
marketing as two different things. One of the challenges
eMarketer: In terms of mobile, are advertisers turning to
we face in the industry right now is that the definitions
smartphones more than tablets to run their campaigns?
of those terms are different from company to company
and brand to brand. The brands that I oversee are mostly Tanner: Our users are increasingly on multiple devices.
entertainment-related, and in the entertainment space, The percentage breakdown of smartphones to tablet to
the line between what is content and what is advertising is website is pretty similar to what we’re seeing on the wider
inherently blurred. industry trend.
Content marketing has always been part of the ad mix in “A soda brand that wants to target 18- to
the entertainment space and what we’re seeing now is 24-year-olds can curate a channel of TV
that something that’s an organic and integral part of the shows and full episodes that appeal to
entertainment industry is expanding to other verticals. that demographic.”
“We sold over 200 Watch List native ad Our smartphone and tablet apps are very similar products,
campaigns in the last two years and we and the ad mix, in terms of the mix between native ad
have resold them to the same advertisers offerings and more standard or rich media offerings, is
because they’re very effective ads for more or less the same between smartphones and tablets.
those marketers.”
eMarketer: What video advertising opportunities do you
eMarketer: Is CBS Interactive investing in offer advertisers?
native advertising?
Tanner: TV Guide has produced a mix of editorial videos
Tanner: We offer native advertising on TV Guide, including for years and we allow advertisers to buy pre-roll on TV
on our mobile apps. The native ad units allow users to
Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 7Media and Entertainment Ad Spending 2014: CBS on Its Interactive Native Ad
Program (continued)
Guide-produced videos, but we also allow advertisers to There are other ways to do it as well. State Farm Insurance
curate channels within TV Guide. wanted to sponsor movie trailers for Oscar-nominated
movies and we created a channel of Oscar-nominated
For example, a soda brand that wants to target 18- to movie trailers sponsored and brought to you by State
24-year-olds can curate a channel of TV shows and full Farm. There are lots of ways that we’ve incorporated
episodes that appeal to that demographic. We also curate a advertisers into the mix and upgraded organic, entertaining
channel of a marketer’s own branded content. We’ve done experiences for consumers in doing so.
a curated channel for AT&T, which features ads starring
Will Arnett.
Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 8MEDIA VOICES: HuffPost Offers Unique Mix of Native Formats
for Partners
Tessa Gould Gould: One of our key points of differentiation is our
Director of Native Advertising and diverse product suite. We have 15 native content formats
HuffPost Partner Studio available for advertisers and will work with brands directly
The Huffington Post Media Group to determine the best format to convey the particular
story—be it an interactive infographic, a feature article, a
quiz, a debate or a commerce-driven LookBook—the list
To AOL’s Huffington Post, native advertising goes on.
is the next generation of content marketing.
Tessa Gould, director of native ad product for Technology is another major point of differentiation. Unlike
many of our competitors, we serve our native content
The Huffington Post Media Group, spoke to
through our ad server. This means we’re better able to
eMarketer’s Danielle Drolet about the online
control delivery and ensure that the content reaches
publication’s variety of ad units, and native’s its intended audience by applying the same targeting
advantage over display. capabilities that we utilize for our display ads to our native
content. Ultimately this leads to better engagement.
eMarketer: You’ve been involved in native advertising for
some time. How did it start? We also pair our native content with display. Not because
we have to, but because we have found that the
Tessa Gould: Before I joined the team, back in 2010, combination of native content and display ads (from the
Huffington Post launched a dedicated hub in partnership relevant sponsor) on the same page leads to much greater
with IBM called Smarter Ideas. We still have that lifts, 2 to 3.5 times higher for key brand metrics such as
partnership with IBM, where we feature relevant editorial brand recall, favorability and intent to purchase vs. native
content on breaking developments in technology. In content alone or display alone.
addition, we supplement that hub with custom native ads
that we create for IBM, allowing them to align themselves eMarketer: Who produces the native advertising content
more directly with the topics of interest. This can be blogs that runs on your platform?
from thought leaders at IBM or their partners on cloud
Gould: The HuffPost Partner Studio is a mix of content
computing, healthcare, green initiatives, etc.
strategists and ad people with editorial backgrounds—a
eMarketer: What’s your approach today? number of them have come directly from The Huffington
Post newsroom. We also have social media strategists and
Gould: The core of our approach to native remains are currently looking for a dedicated marketing specialist.
unchanged, that is, to create quality content experiences We have a designer and are looking to add a video expert.
that are brand-aligned, fit with our editorial voice and They’re all creative. We’re essentially an in-house creative
resonate with our readers. We have innovated along agency, geared to help brands play on that platform.
the way, adding new formats and enhanced targeting
capabilities, and expanding the team. Earlier this year, we eMarketer: By what metrics are your advertisers gauging
rolled out a cross-platform offering to ensure that not only the success of native ad campaigns on your properties?
the sponsor’s native content, but also their surrounding
Gould: The No. 1 [key performance indicator] that we’re
ads, reach the relevant readers across all screens.
looking for with the native content is engagement. Many
eMarketer: In what ways is your native ad program engagement metrics that we use are the very same
different from your competitors’? metrics that generalists in our newsroom use in their
own content.
Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 9MEDIA VOICES: HuffPost Offers Unique Mix of Native Formats for Partners
(continued)
The best-case scenario is that you want someone to read Post and many others in the industry are clearly disclosing
the copy and then take it into multiple social actions. this, not only for legal reasons, but to maintain the trust
Some people share content without reading it. But, for the and editorial integrity.
advertiser to really see improvements in brand favorability,
the reader needs to be actually reading and consuming the The industry has been doing a great job at setting forth its
content, as well as sharing it. own native advertising guidelines, including the Interactive
Advertising Bureau’s native advertising playbook. Today,
“The HuffPost Partner Studio is a mix of the industry is in a really great position to know what works
content strategists and ad people with for its platforms and for users, while the FTC has a really
editorial backgrounds—a number of them important role in regulating advertising.
have come directly from The Huffington
Post newsroom.” “The FTC’s focus has been on making sure
that the native ad is clearly disclosed
eMarketer: In December, you estimated that native and labeled.”
advertising revenue in 2013 would rise by 47% over 2012.
Did you hit the target? I attended the FTC native ad workshop in December
2013, and it was a great forum for discussing the issues
Gould: We did hit that target. Q4 actually ended up being surrounding native advertising. The FTC is doing its job, but
our largest quarter since we launched native in 2010. Not it’s not sure whether additional guidance in this area would
only did we see growth in revenue, but we also witnessed be helpful. It’s a bit of a wait-and-see area, but publications
strong growth in both the average deal size and the and players are taking responsibility for their own content.
number of native campaigns sold—up 63% year over year.
eMarketer: What wording do you use in your native ads to
eMarketer: Many people have expressed skepticism convey that they’re not editorial content?
about native advertising because it blurs the lines between
advertising and editorial. What’s your take on this so-called Gould: With our promotional or article preview units we
“slippery slope?” will say, “Presented by,” such as “Presented by Chipotle,”
“Presented by Chanel” or “Presented by Bravo.”
Gould: This highlights the importance of labeling and
disclosure because that protects both the brand and the Then, when you click into the article page, that same
publisher, and combats against this so-called slippery slope. language appears at the top of the article. The advertiser’s
Ultimately, at the end of the day, if the content is labeled ads will appear around the content, and then, depending
and disclosed and it’s good, people are going to consume on the content or the advertiser, there may be additional
it like they would any other content. The fact that it’s messaging—either within the content or perhaps in a
sponsored should hopefully not make a difference. social way—and we may integrate a campaign hashtag
or brand.
eMarketer: The US Federal Trade Commission (FTC) is
looking into the possibility of regulating native advertising
to avoid misleading consumers. What do you make of
this effort, and in general of the role of the government in
regulating advertising?
Gould: The FTC’s focus has been on making sure that the
native ad is clearly disclosed and labeled. The Huffington
Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 10SAP Sees Native Ad Space as the Industry’s ‘Kumbaya Moment’
Tim Clark Typically, we publish content first to some of our brand
Head of Brand Journalism sites. For example, we publish first on our SAP community
SAP network. The best of that content then gets [published] to
the Forbes platform. That’s the reverse idea there, but it
works for us because we want to create some connective
After three years and more than six million tissue. At the bottom of our pieces on Forbes, you’ll
notice the notation, “This story originally appeared on SAP
page views, software firm SAP maintains that
Business Trends,” which is SAP’s own branded platform.
its dive into the native advertising space—
through the Forbes BrandVoice content-sharing eMarketer: By what metrics are you gauging the success
platform—has been worthwhile. Tim Clark, head of your native ad campaigns?
of brand journalism at SAP, spoke to eMarketer’s
Clark: We look closely at the basics. Overall page views
Danielle Drolet about its pairing with Forbes, are still very, very important to us. If we’re not getting a
key metrics to track and just how involved with healthy number of page views, then something may not
native advertising he thinks the US Federal Trade be working well. Unique visitors and social shares are also
Commission (FTC) needs to be. important to us.
The Forbes platform provides a nice back-end look into
eMarketer: How do you define native advertising?
how each post is doing. They’re getting more robust with
Tim Clark: It means a lot of different things to a lot of those capabilities for BrandVoice partners. For example,
different people. We look at it as an opportunity to connect they have been updating their platform so that we are now
with an audience that may not be familiar with SAP. able to see where a post might have started to go viral. We
can look back and [identify] the first person who kicked
Ultimately, native is about “brand journalism” and getting it off.
the people, the profiles and the personalities out there. A
lot of this is pull marketing. People start reaching out to eMarketer: The US Federal Trade Commission (FTC) is
them, meetings are set up, sales cycles are kicked off and looking into the possibility of regulating native advertising
all that good stuff starts happening from there. to avoid misleading consumers. What do you make of
this effort, and in general of the role of the government in
eMarketer: What’s key to the success of your native regulating advertising?
advertising effort with Forbes BrandVoice program?
Clark: It’s a good idea for the FTC to educate themselves
Clark: What it comes down to for us is being authentic. and figure out what’s going on. But I’m not sure it needs to
With Forbes, we don’t assign a bunch of content to be regulated to the extent that the government would need
freelancers or agencies, then publish it and see what to get involved.
happens. We work very closely in-house with teams of
writers. It works for us when we can let people tell the For example, Forbes does a very, very good job of
story that they want to tell and be authentic. Then we distinguishing the content that is paid for. It says “Forbes
cultivate the talent in-house. SAPVoice” on our content. It’s a little moniker right next
to the story that follows the reader around everywhere
“Advertisers, marketers, publishers and on Forbes. It goes so far that if I were to comment on
writers are convening together. We’re all somebody else’s story on Forbes, it clearly says that I’m
singing Kumbaya together now.” an advertiser.
Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 11SAP Sees Native Ad Space as the Industry’s ‘Kumbaya Moment (continued)
“I’d like to think that the clickthroughs that blog, to download a white paper or whatever it is you’re
we get on stories that we publish are really trying to accomplish. That’s what you want anyway. Why
the new clickthroughs of banner ads.” not do more of that?
Those things make sense and they’re good enough. If too eMarketer: What’s your outlook for this form of
much regulation happens it might spoil some of these advertising for SAP and the advertising industry as
great collaborative conversations that are taking place right a whole?
now. Advertisers, marketers, publishers and writers are
Clark: It’s happening now, and is going to become a more
convening together. We’re all singing Kumbaya together
regular part of the media landscape. From my perspective,
now. It’s all blending. I don’t think that’s such a bad thing.
it’s very effective and everybody wins. You can’t ignore
eMarketer: Why does native advertising seem to be more those types of things, especially if the publishing industry
effective than display or banner ads? is looking for new revenue streams and looking to revamp
their business models.
Clark: I’d like to think that the clickthroughs that we get
on stories that we publish are really the new clickthroughs Business is one great way to do that. There are some
of banner ads. Those are what you want. You want the regulation concerns and people are wondering whether
engagement. This has been happening for a while. [native advertising] is from an advertiser or not. There
probably could be more scrutiny [for some of this content].
Many of the static banner ads that you see, for whatever But if you’re working with a partner like Forbes, there are
reason, don’t work anymore. They could be perceived as no issues as far as SAP is concerned.
a little old school, or even distracting. It’s really about the
story, the people reading and clicking, commenting on
them, even going to the call to action at the end of the
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