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Updated for the Atlanta Native Advertising Summit. Building a native ad product requires much more than simply slapping a sponsored tag on content. It takes connecting deeply with your users to understand the role your product plays in their life, and translating that promise into a branded experience that will merge with their expectations. Jack will discuss the steps needed to better connect your user experience with branded partners.
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The Key Ingredients of a Native Ad Product
Jack Krawczyk !@jackk!!June 27, 2013!
Combining the Ingredients
1
2
3
Fragmentation of the Media Experience!
Pressure on the Core Economics!
Revenue: The Lagging Indicator!
Advertising Used to be Pretty Easy
1985
34%
19 reach among
US households!
average # of channels per home!
1995
21%
41 reach among
US households!
average # of channels per home!
2011
13%
135 reach among
US households!
average # of channels per home!
Audiences are Fragmenting
0
200
400
600
800
1000
1200
1400
1600
0
5
10
15
20
25
30
35
40 19
70–1
971
1971
–197
2 19
72–1
973
1973
–197
4 19
74–1
975
1975
–197
6 19
76–1
977
1977
–197
8 19
78–1
979
1979
–198
0 19
80–1
981
1981
–198
2 19
82–1
983
1983
–198
4 19
84–1
985
1985
–198
6 19
86–1
987
1987
–198
8 19
88–1
989
1989
–199
0 19
90–1
991
1991
–199
2 19
92–1
993
1993
–199
4 19
94–1
995
1995
–199
6 19
96–1
997
1997
–199
8 19
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999
1999
–200
0 20
00–2
001
2001
–200
2 20
02–2
003
2003
–200
4 20
04–2
005
2005
–200
6 20
06–2
007
2007
–200
8 20
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009
2009
–201
0 20
10–2
011
2011
–201
2
# of
com
mer
cial
TV
stat
ions
% re
ach
Reach of #1 TV Show in US vs Total # of TV Stations
% reach # of commercial TV stations
Source: Nielsen, TVB
Combining Your Ingredients
1
2
3
Fragmentation of the Media Experience!
Pressure on the Core Economics!
Revenue: The Lagging Indicator!
Fragmenting audiences make advertising much
more expensive.
The Economics Say So
Content!Producer! Studio! Network!
Brand!
Audience!
Content!Producer! Studio! Network!
Brand!
Audience!With more channels, the cost of acquiring audiences increases.
Content!Producer! Studio! Network!
Brand!
Audience!Higher audience acquisition cost puts pricing pressure on content.
Content!Producer! Studio! Network!
Brand!
Audience!
GRP rates increase to offset audience & content costs.
Content!Producer! Studio! Network!
Brand!
Audience!Audience fragmentation leaves content producers earning less…
…and brands paying more to reach their target audience.
So Brands are Investing in Building Their Own
Audiences
Content!Producer! Studio!
Audience!
Brand!
Network!
Content!Producer! Studio!
Audience!
Brand!
18
19
20
These brand-produced assets are becoming
increasingly portable.
Content!Producer! Studio!
Audience!
Brand!
Content!Producer! Studio!
Audience!
Brand!
Digital Properties!
It’s the same content.
Just repurposed for its native consumption.
Pandora -> Audio [stations]
Twitter -> Tweets Facebook -> Posts Pinterest -> Pins YouTube -> Videos [channels]
Content!Producer! Studio!
Audience!
Brand!
Digital Properties!
This is where native advertising lives.
Combining Your Ingredients
1
2
3
Fragmentation of the Media Experience!
Pressure on the Core Economics!
Revenue: The Lagging Indicator!
Good User Experiences are Good Brand Experiences
Longer Session Length
=
Happy User!
Longer Session Length
=
Longer Brand Engagement!
Transitive Property of Native Advertising…
Happy User
=
Longer Brand Engagement!
Hold Native Ad Products to the Same Standards
as Core Products
What is the main user behavior on your service?
<- Branded Radio
What are the main drivers analyzed for consumer
success?
485,000+ Station
additions !
519,000+ Hours of total
listening!
96% Driven on
mobile!
Don’t just build things because brands will pay
you for them.
Metrics to Evaluate Your Native Ad Product
Metrics to Evaluate Your Native Ad Product
Retention!
Session!Length!
Latency!
Revenue!
Do no harm.
History + Economics - Harm =
Native Ad Product
Hit me up:! @jackk!
