This Week in Native Ads 11/9

Ben Young | November 9, 2018

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Welcome to all new readers who have joined this past week and a big congrats to the the winners at the Native Institute Awards.
 
One big thing
Ari Paparo’s piece on How business models change incentives in marketing technology is spot on. (CPM, usage, percentage of speed, SAAS).
 
It’s often an underlooked decision, how you buy technology impacts the buyer and seller and can mean your incentives are at odds.
 
For example, if it’s a percentage of ad spend. The technology provider is incentivized for ad spend to go up. For the brand they’re incentivized to begin picking and choosing what spend gets access.
 
A marketers technology selection is a reflection of their approach to the market. Their time is too precious to be adjusting the tech stack every quarter. If something is important, smart marketers align those incentives with the provider through SAAS. A fixed investment with incentives for investment from both parties to drive the agreed outcomes.
 
This is the best long term model hands down.
 
Notable stories this week

  • Vice to cut headcount by 15% with an expected loss of $50m this year. Related, Disney marks their $400m investment in Vice down $157m, implying a valuation of $2.5b.
  • 23andMe launched a brand partnership with The Grinch, Digg covers it. I think though, it’s a smart play for helping making DNA testing more accessible. Albeit a little strange.
  • Revenue in Q3 for The Trade Desk was $118.8m, revenue YTD is $316m, that’s a 54% YoY growth.
  • Enjoyed this riff from John Battelle on how we need to do better, be proactive, reduce waste.
  • Axios expects to double revenue to hit $20m this year.
  • What marketers pay for branded content distribution.
  • How business models incentivize different behaviors in buyers and suppliers of technology.
  • Instagram launches an auto promote for stories – to make advertising easier.
  • In-App programmatic video is the hottest trend. Is this users batting away videos in games?
  • [From us] How branded content drives business outcomes.
  • Top 10 native advertising trends for 2019.

 
Deals/M&A

  • S4 Capital closes in on a second deal, reportedly with Mighty Hive, for $140m-$200m off $25m revenue.

 
Campaign of the week



 

 
Smartest commentary

  • “Overwhelmingly, marketers want a mix of long and short term results (85%). Because the studies show putting money into your brand and looking at a longer term trajectory means your brand can grow and will have a high value"…..“But 48 per cent are measuring only short term. We need to be thinking about campaign strategy and deciding what to measure at that point, and not leaving it until the last moment. There needs to be way more strategy about what we are doing, and why."Jane Ostler, Global Head of Media Insights, Kantar

 
Datapoints of note

  • In an October 2018 survey by Ascend2 of 145 marketers worldwide, more than half of respondents said that integrating disparate systems was a challenging barrier in developing a successful strategy for utilizing marketing technology.
  • 65% of respondents have increasing marketing ROI as a leading priority, followed by improving efficiency at 57% and attributing revenue to marketing (39%).
  • 6 in 10 of client side marketers pay under $10k for branded content distribution on an average campaign.
  • Requests for video drive 5 billion searches per day.
  • 86% of brand marketers in the US plan to increase their investment in ‘Outcome-Driven Media’ over the next 24-48 months.
  • 77% of marketers said they analyze all media activity in-house.

 
Events

 
That’s it, Happy Friday.
 
-Ben

 
 
Measuring what matters.
Nudge is a content marketing analytics platform that drives performance for leading brand advertisers and premium publishers.

 
 


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