Native Mobile Ads are on the Rise

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Information about Native Mobile Ads are on the Rise
Technology

Published on August 1, 2013

Author: techahead

Source: slideshare.net

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A new report by Business Intelligence (BI) shows The Emergence Of Native Ads On Mobile And explains What It Means For Mobile Advertising.

Native Mobile Ads are on the Rise

A new report by Business Intelligence (BI) shows The Emergence Of Native Ads On Mobile And explains What It Means For Mobile Advertising. According to BI, Mobile ad spend was up 83% last year, to $8.9 billion globally. But bulk of mobile ad revenue is still being driven by a desktop-based innovation: the search engine. Search accounted for 53% of global mobile ad revenues in 2012, up slightly from 51% a year prior.

There’s native advertising on mobile, and within this larger category, certain types of native ads that are mobile-only, because they leverage activities only possible on mobile devices. These are the native ad formats discussed in report: • Native ads on mobile: Native ads are ads that integrate with the flow of the user experience on a website, online service, or app. These might be on desktop or on mobile, but the stakes are higher on mobile. The screen is much smaller, so native ads that don’t disrupt engagement tend to drive much better performance than non-native experiences. Some of the main types of native ads on mobile are: in-stream, activity-triggered, and branded content. • Mobile-only native ad formats: These are native ad formats that have grown up around mobile apps and mobile experiences. They’re native to mobile in that sense, but they’re also native in the broader sense of being seamless with the overall experience, such as in-app ads tied to certain app activities or features. What are Native Apps?

What are Native Ads? “A native ad on mobile is an ad which organically appears to be part of the content that is on the device.The ads are seamlessly integrated into the experience and appear to be part of that content,” says Greg Crockart, co-president at mobile marketing agency Joule. Native ads are seamlessly integrated into the ebb and flow of a site or app’s mobile experience. It also, generally speaking, puts advertising front-and-center, meaning banner ads are almost never native ads.

How Does Native Affect The Broader Ecosystem? The emergence of natives ads will not ripple out evenly across the mobile ad ecosystem. Should they break through, it would clearly benefit a few players in the ecosystem more than others. The biggest winner would be publishers and the native-focused advertising companies that serve them. Native ads are generally appealing to publishers because they draw higher ad rates.They also present unique challenges, as the Atlantic found out with its Scientology debacle. Native ads also give publishers greater control over the mobile ad process. “It’s a lot easier for publishers themselves to introduce native ads because they control the content, they control the experience,” says Crockart of Joule, “Creating and establishing a native ad is a lot easier for them.”

So Will Native Bring Brands Into Mobile? Most observers concur that brand spend in mobile is crucial to jumpstarting the size and scope of the market. And most also agree that brand spend in mobile is minimal at the moment. The consensus around brand spend in mobile is increasingly “when,” not “if.” Unsurprisingly, everyone has a slightly different view of what will ultimately open the floodgates. Advocates of native see it as a natural outlet for brand spend as it moves into mobile.

•Native ads are tightly integrated with a mobile experience, placing the advertising front-and-center. Native advertising focuses on inventory creation, not monetizing existing inventory. •Three major mobile native ad formats are emerging: branded content, in-stream, and activity-triggered ads. None of them are wholly unique to mobile per se. •The mobile ad market will likely bifurcate into premium native inventory, and programmatically bought scalable inventory for reach. Brands will likely dabble in both. •Some incumbent players, like mobile ad networks and exchanges, will largely be bypassed by native ads, and instead will focus on programmatic buying and real-time bidding. Conclusion

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