According to the eMarketer study, this year, online advertising will outstrip TV advertising on the following budgets: “In 2017 TV advertising spending will reach $ 72.1 billion, or 35.8% of the total advertising budgets in the US. Meanwhile, the total cost of online advertising in the same 2017 will be $ 77.37 billion, or 38.4%, respectively. “
2017 not only replaced the 2016, but also put an end to the whole advertising era. This year, advertisers in the US will send most of the budget not to TV advertising, as it was before, but to digital channels. In 2016, the cost of media advertising in the US, which is the leader in the amount of advertising budgets, amounted to $ 200 billion. For comparison, the budget of their closest competitor, China, is almost twice 2 times .
This article examines the most important trends in native advertising in 2017. Understanding and using these trends will help brands to adjust the marketing campaign and correctly allocate budgets through channels. Moreover, online publications that need sponsors and advertisers will be able to concentrate precisely on effective native formats .
After all, not all native is equally useful.
Analysis and forecasts
According to the Business Insider (BI) survey, native advertising will provide 74% of all advertising revenues by 2021. In addition, judging by the forecasts, budgets for the native in the US will amount to $ 21 billion as early as 2017.
Although the largest segment of native advertising is social media, the fastest growing – media native advertising and sponsorship content in online publications, the growth forecast for them is + 200% over the next 2 years.
Key projections of the Business Insider (BI) study:
- Native media advertising, including social networks and in-feed advertising on the websites of publications, will become the basis of income from native advertising in the period from 2016 to 2021. Its increase will be + 17% annually with a peak value of $ 36 billion. Native video advertising, especially in social media, will be the main driver of the overall growth of native.
- Social Media will generate most of the income from native advertising and will remain the main channel for marketing investments until 2021. The domination of social networks such as Facebook, Instagram, Twitter and Snapchat on mobile devices where the experience of interaction with the onslaught is the maximum, Increase their contribution to total revenues from native advertising in the next 5 years.
- Sponsorship content, which is separated into a separate category due to direct interaction between the publisher (platform) and the brand when creating formats, will remain the fastest growing one within the same 5 years. However, the high cost of production and the limited inventory will become constraining factors for the growth of this type of native advertising.
Species, formats, trends
The results of a survey conducted by the Native Advertising Institute and FIPP and published in The Huffington Post are also close to the forecasts of BI: according to their data, the share of revenues from native advertising in total advertising revenue will reach 33% by 2018.
In the same article, The Huffington Post, preliminary results of a study of the global market for native advertising are given: it can grow to $ 58 billion per year by 2018. The Huffington Post explains such incredible opportunities for investing in native formats in that brands believe in sponsorship content And text partner materials (see the table from the Native Advertising Institute and FIPP survey).
The following types of native advertising are considered in the BI study.
1. The native editorial advertisement as in the screenshot below, is placed in the block with the main news content with a special notation, like, for example, in Yahoo:
2. Native advertising in social networks for example, Nike’s advertising post on Facebook or promulgate about IBM, is posted in news feeds and looks like “regular” user posts. Sponsorship (partner) materials are paid by advertisers, but publishers publish them (sites: video blogs, news resources, Instagram posts, etc.) on their channels and in their manner of submitting information.
3. Native video advertising : experts expect that the channels and sites providing video content will introduce native formats into their business models.
4. Native virtual advertising – that’s what we’re going to. Futurists have long promised a flourishing of virtual and augmented reality, and some skeptics were silenced by one simple and promising application of Pokémon Go.
Forbes highlighted their success and reported that in the peak of downloads the company generated $ 10,000 of advertising revenue per day! This means that marketers can no longer ignore VR / AR. Users have already clearly demonstrated their interest in this channel.
The main trends in the creation and use of native advertising are diversification and customization . In a recent Forbes report, there is a big similarity between native advertising and the musical onslaught.
For example, “Pandora and Deezer experiment with partner songs, playlists, radio stations” – and already today advertisers display their brands’ logo and products in music videos.
Obviously, native advertising will capture all new formats. And here it is important to understand which of them to choose and how to use them as efficiently as possible.
Effective native advertising
Along with the advent of the digital era, the “big four” of digital formats appeared:
- advertising in social networks,
- video advertising,
- native advertising .
According to the research of Salesforce, during which 4,000 marketers were interviewed, native advertising currently divides the third place in popularity with video advertising.
Native advertising has come a long way before the New York Times, which later turned its attention to it, in January 2014 created its own full-service advertising agency for creating native formats with a staff of 100 people. Another example: The Daily Beast already now receives 90% of advertising revenue from the nativka. Most brands have already made native advertising a key component of their marketing must-have – despite the fact that the price tag on it is constantly growing.
Top publishers such as The New York Times and BuzzFeed have at least $ 100,000 to conduct a native advertising campaign, which suggests: do the invested funds pay off for brands and does the format work at all?
The authors attempted to answer this question during an in-depth study of native advertising conducted this winter in conjunction with the Tow-Knight Center for Entrepreneurial Journalism at CUNY. Based on the data of focus groups and 1212 clients, they not only revealed several big problems related to native content, but also established how it can bring a greater profit to advertisers.
Below are the 3 ways through which brands can make native advertising more effective in 2017.
1. Insist on explicit marks
Although native advertising has an “ancestor” in the form of advertising articles that were previously published in print media, online advertising on the publishers’ websites is a separate, unique format. As stated in the FTC manual: “In digital media, native advertising is often not different from editorial content for design, style and functionality.”
The fact that advertising materials do not differ from advertising materials, poses a potential threat to the entire advertising campaign. Can users understand that this is sponsorship content? Will they be disappointed? Do not you stop trusting online publications?
But the results of the research say something else: brands almost do not lose anything if they add an appropriate note to native advertising. For example, the most “advertising” native advertising with an appropriate note from the study was from The New York Times: the advertising post about the freshness of products in the American chain of fast food restaurants Wendy’s food was also the most effective. 83% of readers understood that this was sponsorship material, but at the same time they continued to read it, and 56% noted that their interest in the brand and the desire to make a purchase in Wendy’s appeared or intensified.
Making appropriate notes from sponsor content is logical. If native advertising is made qualitatively, the brand will want to place its name and logo in it in a prominent place.
2. Tell the story of the brand
It is believed that users are not loyal to native advertising, completely focused on its sponsor. The results of the study suggest the opposite.
The same example from The NYT and the Wendy`s food chain was the most “brand-concentrated” of the 4 native materials examined. Already from the heading “Fresh food: from the farm – right into the plate!” It is clear that all longrides are completely devoted to how Wendy’s uses fresh food in cooking fast food. Nevertheless, this native advertising was the most popular and brought the greatest commercial effect to the advertiser.
Why this happened, it became clear in the course of the focus group interview.
“In general, I do not go to Wendy’s, but they came to me with their own history:” Our products are fresh, that’s how we grow them, that’s how restaurants and personnel work, that’s how our warehouse system, we support the ideal Purity, etc. And the like, “- says Patricia, 53 years old. “After that, you think, and will not they have a chance?”
According to the study, users rated native advertising, which influenced their decision to buy. Although this does not mean that self-promotion is the best option. Opposite tactics are also working.
Native advertising from GE in Business Insider interested 80% of users, while the name of the brand there was not mentioned once. The material was useful for readers, because he told about the Internet of things. 37% of those polled said that they would be more likely to buy it in GE because of the article they read.
Lauren Reddy, director of audience development at The NYT, explained the approach to creating such an advertisement: “We work closely with each brand to find the most interesting story that he can tell. Often the center of such stories becomes the brand itself, sometimes they tell about common problems, including those solved by the sponsor, or cover topics that are indirectly related to it, but are in one thematic area. I think it all depends on the purpose of the advertiser, it is based on it that we build a strong story. ”
It is more likely that in the future, native advertising will come as close as possible to commercial TV commercials and other traditional advertising formats, where the brand is both an object of advertising and a hero of history, rather than content that looks like editorial materials and news and misleads readers.
3. Correctly target
At the dawn of native advertising to promote campaigns, publishers used only the relevant section on the main and internal pages. Today, most of the traffic to native formats is provided by sponsorship posts on Facebook.
Interesting situation, considering that respondents who participated in the survey noted: they quickly realize that they are facing native advertising on the site, if they first saw it on Facebook. At the same time, such advancement and announcement does not affect the overall effectiveness of the native campaign.
As a result, publishers can get the best CPC indicators for native formats if they promote them on Facebook on their own.
“If the site brand has the credibility and value to users, it’s more effective to promote sponsorship posts among its readers on Facebook than from sponsor’s subscribers and on its behalf,” says Alex Magnin, director of sales and marketing at Thought Catalog.
Here the risk is that the publisher can collect the cheapest non-targeted traffic, which is beneficial for him in terms of budget savings, but not beneficial to the advertiser. That is why the latter need to insist on clear targeting of the audience in terms of the relevance of materials to the interests of users and the provision of full and transparent reporting on the results of placement.
As the focus group participants noted, they were more willing to interact with native Facebook ads if it was relevant to their interests.
So, what do we have in the end:
1. In the next 5 years, marketers will redistribute budgets in favor of native advertising. Consider this in your annual media planning.
2. Strengthen undervalued in terms of profit native formats – sponsorship content and native video advertising. The emphasis should be on text formats – users trust such materials.
3. Customize and differentiate: native, in fact, everywhere, think about how you can associate your brand with a music podcast or light your logo in a popular YouTube video.
4. Be sure to use the appropriate notation from sponsorship and promotional materials to remind your readers once again and not to mislead them.
5. Tell the story in the framework of the advertising project: the stories are fascinating, inspiring and they want to share. It is the effect that everyone expects from advertising.
6. Track who, where and when sees your native advertising – it should be relevant.
And at the end of 5 steep examples of native advertising from our and foreign publishers, we learn and are inspired:)
1. Infographics on vc.ru about the special tariff from MTS for almost “smart home.”
2. Test from the “Medusa” and IMAX about whether it is possible to crack the brain based on the recently published “Ghost in the Shell.”
3. Presentation on presentations on TJ.
4. Interactive Longride on The NYT about using behavioral psychology to work with drivers in Uber.
5. Special project – a short film on The Village about dogs in all of the manifestations with the support of Pedigree
Some skeptics say that this problem has arisen because of registration: it is more profitable for brands to not label a positive article about him as sponsor, because users are more loyal to editorial materials.