Native advertising is a more insidious encroachment into consumer media content than any prior form of advertising. Billions of banner ad impressions may annoy readers, but they don’t misdirect users by disguising the source of the message — and this is exactly what native does. If publishers and marketers aren’t careful, they are going to poison the well of digital ad communications by breaking consumer trust.
First, understand why publishers are so tempted to make native their future. Digital outlets are getting creamed by RTB on online ad inventory that avoids the comparatively high prices publishers charge for ads. If you want to reach a business executive, you could pay The Wall Street Journal a $17 CPM on its website, or you could use DSP audience targeting to reach the same executives at a $2.50 CPM. eMarketer estimates RTB will account for 19 percent of all U.S. display advertising in 2013, and if you factor in the lower costs per impression, that translates to about 44 percent of all online display impressions. (Any publisher saying RTB is substandard ad inventory must now be prepared to explain why nearly half of her inventory is lousy.)
Publishers see native as a way to convince marketers to spend more directly with them — and to charge higher ad rates. Like all marketing intrusions, native has a spectrum of annoyance; I classify it into three categories: “The Frame,” “The Insertion” and “The Misdirection.” At each level, native is growing more problematic.
As Ogilvy & Mather’s director of digital strategy, Jeff Stokvis works closely with the agency’s B2B clients and is a member of Ogilvy’s Mobile@Ogilvy cross-functional working group. Stokvis spoke with eMarketer’s Tobi Elkin for the B2B Perspectives series about the ways mobile is changing how B2B marketers communicate and the untapped business opportunities that mobile offers them.
Is there a low awareness among B2B marketers about the impact that mobile can have on their business?
Stokvis: Most B2B marketers are certainly aware of and have a broad understanding of the importance of mobile. There tends to be a little confusion as to where to get started across the spectrum of their enterprise and business, where to focus, and how to come up with a strategy that’s broad enough to be enterprise-wide yet narrow enough to deliver on specific business objectives.
Mobile ad spending around the world more than doubled last year, eMarketer estimates, and though growth will moderate this year, double-digit increases in mobile ad spending will continue in coming years as outlays approach $37 billion by 2016.
In 2012, mobile spending was at $8.41 billion, according to eMarketer’s forecast—up from just over $4 billion the year before and $2.34 billion in 2010. eMarketer’s estimates of worldwide mobile ad spending include dollars going toward display and search advertising only, and exclude spending on messaging-based formats. Spending on tablets is also included.
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