Local Media Association Native Advertising

“Native Advertising – The Next Frontier”

Presented by Nancy Lane, President, LMA and Peter Conti, Sales and Marketing Director, LMA

Social Native Advertising is on Fire

• Rick Ducey, Managing Director, BIA/Kelsey

“In April, 2013 BIA/Kelsey estimated that native spending in the context of US

social media advertising would

climb to $4.57B in 2017, from $1.63B in 2012. In every year in the forecast period,

native spending will grow at a faster rate than display

spending.”

Source- “All Eyes on Native Advertising, Despite Uncertainties” – eMarketer, 05/16/13

Why Wall St. is Excited

• Ron Josey, Managing Director, Sr. Internet Analyst, Equity Research, at JMP Securities

…Driven by Mobile, Video, Social, & Native

5

Sponsorship

Lead Generation/E-mail

Classifieds / Auctions

Banner Ads

Rich Media

Search

Digital Video

Mobile

-20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

U.S. Online Advertising Spend Three-Year CAGR (2013-2016)

Mobile and Video are the fastest growing advertising areas and Native Ads (as well as Social) are embedded in them throughout

Source: JMP Securities

Yet The Market Is Still Catching Up To Mobile

6

TV Digital (ex-mobile) Print Radio Mobile0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0% 42.2%

21.5% 20.9%

9.9%5.4%

38.4%

24.8%

4.5%

12.2%

20.0%

2013 Consumer Time Vs. Ad Spend

Spend TimeSource: eMarketer

• Native Ads are naturally embedded into a sites content stream and while clearly marked as an advertisement, they are found to be more impactful than traditional banner ads.

7

So what is Native Advertising?

• Naturally embedded within content

• Are targeted and contextually relevant ads

• Deliver higher conversion rates

• And are perfectly suited for social and mobile

environments

Said another way -- Native Ads are:

8

Mobile Native Ad examples

Source: Facebook, Twitter, Google

Facebook Twitter Google

9

Yahoo!’s New Splash Ads & Pinterest’s Promoted Pins

Source: Pinterest, Yahoo!

Pinterest Promoted PinsYahoo! Splash Ad

10

What Does The Data Say?

11

Native Ads Have Higher Conversion Rates

Source: Yahoo!

12

Native Ads are More Engaging...

Source: Sharethrough, IPG Media labs, 2013

13

…More Social…

Source: Sharethrough, IPG Media labs, 2013

14

…41% of Brands and 34% of Agencies are using Native Ad formats

Source: Hexagram and Spada, 2014

15

…With Awareness The Top Objective for Native Ads

Source: Sharethrough and eMarketer, September 2013

Pricing: Now a 7-Figure Biz for Deseret Digital

• Todd Handy, VP, Digital Business Development and Advertising Products, Deseret Digital Media

• Rick Ducey, Managing Director, BIA/Kelsey

• Display is dying– CPMs/CTRs↓

• Mobile is here– real estate ↓, U/X

↓• Demand is high

– brands need platform & audience

• It’s incremental inventory– or, shove another

ad in the right rail• Engagement is

higher– CTRs, time on

page, social sharing, etc. ↑

• $$$...

Why Native?

Source- “How Top Publishers Handle ‘Sponsored Content’” – Digiday, 06/14/2013

📍Buzzfeed- $100K for 4-5 listicles. As low as $5K with minimum spend of $50K.

📍Forbes- $50-75K/mo., minimum 3 months.

📍Quartz- $80-90 CPM.

📍Studio@Gawker- $300K-500K, including 12-16 pieces. Individual posts as low as $12K with minimum spend of $50K.

📍Business Insider- $5K sponsored post, $15K sponsored video.

📍HuffPo- $40K per post, including 4 days’ site promotion (20M impressions).

• Content Creation

• Homepage Impressions (headlines)

• Story Impressions (articles)

• Social Impressions (side door traffic)

• Social Actions (Likes, Comments, Shares)

• Article Actions (Shares, Comments)

• Engagement Time

• Story Completions

• Scroll Depth• Display Ad CTRs• Brand Lift• Guarantees (?)

What Do I Charge For?

$

$$

$$$$

$$$

How

Much

Do I

Charg

e?

Native Advertising Value Chain

Brand Strategy Content Strategy

Content Creation

Publication & Merch

Promote Externally

Analytics & Reporting

Understand brand message and target audience

Establish goals and metrics

Key brand messages

Linkage to publisher content

Execution: HeadlinesText ImagesVideo

Scheduling

Multiple access points

Relationship to other content

Social mediaEmail

Content distribution partnerships

CTR to story

Content views (Page views, video views, etc)

Social shares

Test brand lift and awarenessagency

publisher

promoter

integrated native publisher

Proposal For:

Prominent

Movie Studio

Content Pricing

Distribution Pricing

Promotion Pricing

• Which services do you provide? – Brand strategy, content strategy, content creation,

publication, promotion, distribution, amplification, reporting & analytics?

• Which elements do you include?– Site navigation, article(s), sponsor ‘section’, evergreen

content, 100% SOV of display ads

• Which platforms do you leverage?– Desktop, mobile (smartphone and/or tablet), app?

• Which pricing model do you prefer?– Sponsorship- less risk (both sides)– CPM- higher risk (both sides)

• How does this fit within your rate card for other digital products?– Display ad parity?– Recognition of value and ROI?– What will the market bear?

Niche Opportunities

• Brandon Erlacher, Publisher, The Elkhart Truth

Concept & Strategy

Niche Content Play: Food

Geographical boundaries (574)

StrengthsBuild off of Elkharttruth.com and Radio reachSEO playSame CMSLeverage packaging across brands

Huge differentiation advantage to publishers! Organic SEO and Trust…

Newspaper Food Content & Flavor

How does it work?All food content originates with

FlavorStory lives on Flavor

Newspaper Food Content & Flavor II

How does it work?All food content originates with

FlavorFood critic and blog live on FlavorBylines in newspaper have FlavorElkharttruth.com shares Flavor

stories via social SEO Larger audience, drive traffic Lends credibility

**Rule: We never post the same content on Flavor574.com and Elkharttruth.comA digital asset only lives in one place. Link to it from other brands…

Other ItemsHave a dedicated seller, but also make packages

available to media reps

User is first stakeholder. Quality content is key. Not advertorial. Evergreen content. Native is a win/win. Think Quality Score!

Staff includes a Project Manager who reports to Creative Services, a dedicated seller and shared reporting resources with newsroom for those who are passionate

Trusted, local, independent contractors (correspondents) are used to create the native content

12:0

0 AM

1:00

AM

2:00

AM

3:00

AM

4:00

AM

5:00

AM

6:00

AM

7:00

AM

8:00

AM

9:00

AM

10:0

0 AM

11:0

0 AM

12:0

0 PM

1:00

PM

2:00

PM

3:00

PM

4:00

PM

5:00

PM

6:00

PM

7:00

PM

8:00

PM

9:00

PM

10:0

0 PM

11:0

0 PM

0

100

200

300

400

500

600

700

800

900

1000

DESKTOPMOBILETABLET

Flavor Traffic (by Device and Time of Day)

Products

Cross-Selling

Newspaper

elkharttruth.com

Truth Radio

Events

Content Marketing (Native)Sponsored Articles

*Video

*Audio

Digital Advertising

Display Email *Pre-roll Video *Deals

Digital Publication• Google Play• App Store• Amazon

Content Examples

Digital PublicationPublished June 2014

Quarterly

Live Demo

Native. It is Here and it Works

INNOVATION MISSION 2014

699 Shares on Facebook in 24 hours – case study from The Elkhart Truth

Content That Sparks Engagement

• David Arkin, VP of Content, GateHouse Media, Inc.

• Local coverage that’s smart, informative and fun and fast online and deep in print

• Enterprise and watchdog work that tells me something I didn’t know and breaks ground

• Reader engagement that connects audiences with our journalism and journalists and makes the reader part of our products

OUR CONTENT STRATEGY

ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING

Three over-arching content goals

1 Making readers smarter: This is the water cooler question: Does

this story, website, front page make me smarter? Do I know something interesting to share?

2 Connecting emotionally: People take action when you touch their

emotions. They are more likely to share the story if they have laughed, cried, felt indignant … felt something.

3 Offering solutions: Readers have always wanted something more

than gloom & doom. Does this story challenge leaders to look for solutions, instead of just reporting problems? Does it help them find a solution to make their family life, their weekend life better?

OUR CONTENT STRATEGY


BuzzFeed’s model

• Three ways they try to connect with audiences: Bored in line, at work and at home

• 3 things determine if they will do a story:— This expresses my identity— This made me feel “x,” I want you to feel “x”— This supports a view I already have

ANOTHER STRATEGY


Whatever your strategy, have a goal, a criteria; don’t just blindly cover stuff

LOTS OF CHOICES


• Press releases• Articles• Blogs• Guest blogs• eBooks• Newsletters• White papers• Media

partnerships

• Photo galleries

• Video• Audio• Podcasts• Playlists• Email

marketing• User Generated• Q&A’s

• Surveys• Infographics• Social media posts• Slide shows• Customer

testimonials• Product reviews

Content can include everything from business profiles to trend pieces – key is to be aligned with advertiser’s brand strategy

What’s great native content?

• In tune with people's lives, what they're thinking about now

• Answers questions

• Provides information

• Provides entertainment, an escape

• Touches people's emotions

• Connects with categories that are critical to their everyday livesFood, home, health, education, auto, doing stuff

NATIVE ADVERTISING


GOOD CONTENT


GOOD CONTENT


GOOD CONTENT


GOOD CONTENT


GOOD CONTENT


What makes bad content

• Thinking that it's easy, it isn't a "real story," not taking it seriously

• Content that isn't tied into events, seasons, product launches

• It isn't tied into SEO, keywords

• It tells people to buy a product

• It doesn't offer information readers can use in everyday life

— Guardian

NATIVE ADVERTISING


What should you do?

• Establish a focus for your brands: Articles, social posts, their sites, your sites

• Content should meet the standards that your newsroom has for its news reports

• Produce interesting content and get beyond the business profile and Q&A; this isn’t advertorial

• Work with great companies that can help you do this; you’re not alone

• Have fun! This is an exciting new place you should own!

NATIVE ADVERTISING


Categories and How Companies Are Implementing Campaigns

• Katie Wilson, Digital Advertising Director, QCT Media Group (Lee Enterprises)

Native Advertising

• Quad-City Times pitch• Key Learnings from BMTN• Top Targets• Key Benefits

Katie [email protected]

• Position your business as the expert in your industry through informational articles sponsored by you

• We write the articles, it is not an advertorial, that can run in both online and print

• The online portion runs as an article through the homepage of our website and under another appropriate heading (ie., Health and Fitness)

• Clicks through to its own article pages with links back to your website• The content is written keyword heavy to be SEO friendly• Article remains archived on qctimes.com for a minimum of one year• We will also provide suggested social posts for you to put on Facebook,

Twitter and Pinterest to help drive traffic• Simply put- it’s an article that resembles a staff reporter’s work (making it

“native”), but it’s actually content written for an ad sponsor.

Native Advertising

Print Example

Online Positioning

Article Page

12x 6x 4xOnline Article Only $1,000 $1,300 $1,500 Online Article & Print* $1,500 $2,000 $2,300

Additional Options Social 1x $150 Slideshow (pics) 1x $375 Video 1x $500

Social Includes*2 Facebook posts2 Twitter posts1 Pinterest posts*provided for you to post on your businesses social networks

Native Advertising Rates

57

Content ClicksArticle Posts

BringMeTheNews—Key Learnings

Rick Kupchella’s BringMeTheNews.com June 2014 Study

• Food content: Food made up only 6% of posts, but 28% of clicks. This establishes the opportunity to advance more food content which the consumer is most interested in.

• Better targeted outdoors & sports: 23% of posts were outdoors and sports, but made up just 14% of clicks.

• Content Considerations: Consider publishing fewer “guide” category posts. These posts made up 29% of content published, but only 18% of clicks received.

BringMeTheNews—Key Learnings

Rick Kupchella’s BringMeTheNews.com June 2014 Study

• Automotive• Bridal/Jewelry• Entertainment/Food• Financial Services• Grocery• Health Care and Fitness• House and Garden• Lawyers• Real Estate

Top Advertising Categories/Targets

• Credibility of Native Ads: The trust and authority of the newspaper washes over the advertiser

• Authoritative: Positions the advertiser as the opinion leader in your community for his/her category of business

• Flexible: Article can appear in print and online• Impactful: Online article appears on home page as part of the news • Direct: Online article links to the advertiser’s site• SEO Friendly: Articles emphasize keywords important to the

advertiser’s rank in organic search• Long-lasting: Articles remain in archive for a full year

Key Benefits

Categories and How Companies Are Implementing Campaigns

• Jay Small, President, Informed Interactive,

Native advertising programs

• ‘Entry ads’ on index pages let search engines follow links

• Native ad article pages typically include text, images, sometimes video– Disclaimers and labels

• Writing style informational, with ‘soft’ reference to client as source

• Local properties set pricing, exclusivity

Analytics: Measure the Right Things

• Todd Handy, VP, Digital Business Development and Advertising Products, Deseret Digital Media

Native Advertising Value Chain

Brand Strategy Content Strategy

Content Creation

Publication & Merch

Promote Externally

Analytics & Reporting

Understand brand message and target audience

Establish goals and metrics

Key brand messages

Linkage to publisher content

Execution: HeadlinesText ImagesVideo

Scheduling

Multiple access points

Relationship to other content

Social mediaEmail

Content distribution partnerships

CTR to story

Content views (Page views, video views, etc)

Social shares

Test brand lift and awarenessagency

publisher

promoter

integrated native publisher

Source- “A Crisis of Confidence- The State of Content Marketing Measurement.” – Contently, 05/14

Source- “A Crisis of Confidence- The State of Content Marketing Measurement.” – Contently, 05/14

“20 native advertising benchmarks for premium

publishers.”

http://polar.me/benchmarks

Native Advertising!

Omniture DFP CMS Finance

• Which metrics did you sell?– Headline impressions, article impressions,

shares, social and article activity, side-door traffic, display ad impressions/SOV/CTRs, etc.?

• Which metrics can you measure (right now)?• Which partner(s) can you work with?

– Omniture, Google Analytics, DFP, ChartBeat, Polar, Nativo, DistroScale, Publish2, etc.

• Which platforms are you leveraging?– Desktop, mobile (smartphone and/or tablet), app

will all have different engagement and be informative/directional.

• What does all of this measurement tell you and your advertisers? How can it improve your native advertising?

Thanks!

[email protected]@localmedia.org

Localmedia.org#localmediaassoc

mailto:[email protected]

mailto:[email protected]