Quantcast
return Home

Here’s how native advertising plays out in the global media industry

Jesper Laursen, originally a journalist and now CEO of the Native Advertising Institute in Denmark, took to the stage on the second day of FIPP London to discuss his speciality.

Presenting research by the NativeAdvertising Institute and FIPP, Laursen outlined how they had collected data between April and May 2016, with 140 respondents from 39 countries - making it a truly global survey. They questioned both editorial and commercial executives, too. The full report will be available on the FIPP website in the coming weeks, but Laursen talked through some of the key findings so far:

Survey findings

Of those surveyed:

  • 52 per cent “already use” native advertising
  • 90 per cent find native advertising “important” or “very important” to their company

Furthermore, Laursen said, we should expect to see 33 per cent of all revenues coming from native advertising in 2018. Meanwhile native ad revenue from print will go down to 38 per cent by 2018, but this is expected, given that print revenue in general is reducing.

Organising native advertising

With regards to the organisation of native advertising, the results show that of those surveyed,

  • 76 per cent combine native advertising with other types of advertising
  • 67 per cent use editorial team to provide native advertising solutions

Challenges in delivering native advertising services

There are a couple of big challenges facing native advertising, Laursen highlighted. The biggest are:

  • Training the sales team (37 per cent have difficulties in the area)
  • Trouble convincing advertisers to tell real stories (37 per cent)
  • Creating effective strategies (29 per cent) - with native advertising, publishers often play a more active role in the strategy work, and this can be difficult
  • Explaining native advertising to advertisers (25 per cent) - because it’s often confused with content marketing, this presents a problem. To many brands, this is a very new idea, and agencies too are often unfamiliar with the concept; this makes it challenging to sell.

Threats to the growth of native advertising

Although it is growing, Laursen emphasised that there are threats to its progress which must be considered carefully. The main ones from the survey are:

  • Clarity - If it isn’t clear to the audience, there will be trouble. 45 per cent of respondents worry about lack of separation of the editorial and the commercial side of the business.
  • Poor labelling (29 per cent). Thirteen per cent of those surveyed do not label native advertising at all, which is interesting given that recent US Federal Trade Commission regulations have specified that native advertising “should be identifiable as advertising as consumers”, meaning non-labelling could lead to legal problems. The authorities are getting involved all over the world, in fact - if publishers don’t address this, Laursen warned, audiences could turn their back on native advertising as they did with banner ads, or even turn their back on publishers.
  • Involvement of editorial team - 67 per cent lets their editorial team get involved with native advertising but, as Laursen pointed out, this “makes it hard to maintain separation of church and state.”
  • Poor client understanding (40 per cent) - “Clients need to understand that NA is storytelling, not direct advertising” was one of the quotes from the survey. And native advertising is not effective if it doesn’t tell a good story. Trying to convince advertisers not to put in a commercial message, but to create good, valuable content for an audience, is key.

Opportunities ahead?

Laursen stressed that there are many opportunities ahead, and respondents think so too. “We’re in a changing ecosystem - a perfect storm is building for native advertising,” he said. “After all, audiences like native advertising, and the click-through rates are much higher than traditional ads.” What’s more, with traditional advertising not working as well any more - especially with the rise of ad blockers - this could be a huge opportunity for publishers.

He went on to say that from a brand perspective, organic reach on social media, especially Facebook, is down to something like 0.8 per cent - so it’s very low. So social media is clearly not the best way to reach people any more, and native advertising trends reflect this: 75 per cent of global marketing budgets were spent on traditional ads in 2015, and this is set to decrease to 50 per cent in 2020 - marking a definite shift towards native advertising and content marketing.

It’s all about content

To conclude, Laursen emphasised publishers’ strengths: editorial expertise, knowledge about audience preferences and behaviour, and an understanding of content that traditional agencies are yet to catch up on. “There’s an opp for publishers to position themselves in an active role in this ecosystem,” he added.

He made the point that the KPIs of publishers - engagement of audience, shares, etc. - differ greatly from those of brands. “What brands are really after is increased sales and brand awareness. Publishers need to be able to build a strategy for brands which reaches this end result for businesses.” Tangible goals needed - he used The Huffington Post as an example of a publisher with a very structured strategy which guides their customers through the process of native advertising.

“At the end of the day, other platforms are the way forward,” he said. Most publishers are getting very savvy about how to use social media - as Facebook Instant Articles and other platforms get more popular, publishers are more knowledgeable about how their content works on social media. The biggest successes in native advertising, therefore, come when publishers and advertisers leverage other platforms other than their own to reach more people.

Download Jesper Laursen's presentation at FIPP London

More like this

The Guardian is now calling native ads 'paid content'

2016 will be a crucial year for native advertising

Chart of the week: Native ads - the imitation game

  • How a ‘digital guy’ ended up running a fast-growing print paper

    We speak to The New European’s editor, Matt Kelly, on pop up publishing, identity media and how a ‘digital guy’ has ended up helming this year’s most noteworthy print success.

    18th Oct 2017 Features
  • New skills will drive future publishing - FIPP chairman

    Without bringing newly skilled people into newsrooms, publishers will not succeed in the future. This was the stark warning delivered by Ralph Büchi, COO of the Ringier Group, CEO of Ringier Axel Springer Switzerland and newly elected chairman of FIPP, the network for global media.

    16th Oct 2017 Features
  • Monetising video: a work in progress

    One of the topics under investigation at this year’s FIPP World Congress in London was the term ‘pivot to video’ and whether, given the relative cost of producing video content off extremely low CPMs (some as low as 15 US cents), pursuing a video strategy one that is paying off for content owners.

    16th Oct 2017 Features
  • Proof that magazine media still deliver the best results for advertisers

    Magazines are a shortcut to quality and continues to deliver top results for advertisers, according to Linda Thomas Brooks, CEO at MPA, USA, said during a keynote on the second day of the FIPP World Congress in London (11 October) last week.

    16th Oct 2017 Features
  • Proof that magazine media still deliver the best results for advertisers

    Magazines are a shortcut to quality and continues to deliver top results for advertisers, according to Linda Thomas Brooks, CEO at MPA, USA, said during a keynote on the second day of the FIPP World Congress in London (11 October) last week.

    16th Oct 2017 Features
  • Are digital editions dead?

    Digital editions have been around for a long time, going all the way back to the late 90's. But in 2010 when the iPad hit the digital runway, publishers jumped on the tablet bandwagon faster than they could shout, “Hallelujah!”. The struggling publishing industry had found itself a saviour.  

    16th Oct 2017 Opinion
  • Download the FIPP World Congress 2017 speaker presentations

    View and download the speaker presentations from the FIPP World Congress, 9-11 October 2017, London.

    19th Oct 2017 FIPP News
  • How Hearst UK repackages content across platforms

    “Smart repackaging” and "content swarming" are the main ways that Hearst UK’s titles are trying to reach a greater audience - and it’s working, according to Betsy Fast. Betsy, who recently moved from Hearst US to become Executive Director of Digital Editorial Strategy at Hearst UK, shared her insights from the stage on day two of the 41st FIPP World Congress (11 October).

    13th Oct 2017 Features
  • New skills will drive future publishing - FIPP chairman

    Without bringing newly skilled people into newsrooms, publishers will not succeed in the future. This was the stark warning delivered by Ralph Büchi, COO of the Ringier Group, CEO of Ringier Axel Springer Switzerland and newly elected chairman of FIPP, the network for global media.

    16th Oct 2017 Features

Video

Visit our Youtube channel

FIND OUT MORE

In this article

SUBSCRIBE

FIPP newsletters allow you to keep up with industry trends, research, training and events across the world

FIND OUT MORE

SHARE YOUR NEWS

Get global coverage of your launches, company news and innovations

FIND OUT MORE
Go to Full Site