Native Advertising:
Making Money with
Sponsored Content
www.RevSummit.com/takeaways
#RevSummit
Jason Kalin,
SVP Business Development, Nativo
Jamie Cohen
Head of Sales, Aggrego
Terry Ward
COO, KPC Media Group
www.RevSummit.com/takeaways
#RevSummit
Jason Kalin,
SVP Business Development, Nativo
www.RevSummit.com/takeaways
#RevSummit
Advertisers compete for attention like everyone else!
4
$44 billion projected to be spent on custom content
creation and distribution in 2014
Source: Custom Content Council, 2014
5
What is native advertising?
“Paid ads that are so cohesive with the page
content, assimilated into the design, and
consistent with the platform behavior that the
viewer simply feels that they belong.”
-- IAB Native Playbook 2013
6
True native advertising = fully integrated experience
LOOK
Matched to the look and
feel of the publisher
website.
LOCATION
Always within the content
stream
FULLY INTEGRATED & SITE SERVED
RELEVANCY
Contextually relevant
Publisher-served content for an integrated experience
and maximum user engagement
7
Native advertising’s value to brand marketers
“Native advertising is paying for the right to be
part of the user experience, as opposed to
the right to interrupt it.”
-- Jack Krawczyk, Pandora
8
78% of CMOs think custom content is the future of
marketing
Source: Hanley Wood, 2013
9
The catalyst for native is content marketing…
DIGITAL
Bulk of online advertising
proving ineffective for
brand building and
storytelling
0.1%
CLICK THRU
RATES FLATLINE
Average CTR In-Page
IAB Display Ads US
72%
SKIP RATES
SKY ROCKET
Average Skip Rate Preroll Video Ads YouTube
Source: Google/DoubeClick Display Benchmarks 2013, Google/YouTube TrueView Benchmarks 2013
10
Native drives authentic consumer engagement
80%
10x-30x
18X
16X
76%
40%
50%
of users read article previews
higher response rates vs. banners
90 seconds average time spent on content
- 18X rich media
Less than 3% bounce rate – 16X better
than an external landing page
recall the brand name and context of
the sponsored content
higher brand lift vs. banners
higher purchase intent vs. banners
Source: IPG Media Lab Study 2013, Nativo Internal Metrics (last 90-days),
DoubleClick Display Benchmarks 2013, Markerly Focus Group 2013, SEOMoz 2013
11
Marketing budgets are quickly shifting to native
billions
Source: BIA/Kelsey April 2013 & Mid-Year Update, “Annual US Local Media Forecast: Social Local
Media 2012-2017”, eMarketer June 2013,“US Digital Sponsorship Ad Spending 2012-2017, rev:12/2013
12
Native immediately enhances display sales & CPMs
“Publishers Are Luring
In Marketers With
Native-Ad Products…
…Forbes bundles
sponsored posts with
broader ad buys.”
13
Early adopters signal a massive revenue opportunity
“…publishers estimate upward of 20% of their
overall online revenue will come from native
advertising…most native advertising [is] sold
at a premium; anywhere from $8-$50 CPM…”
-- Forrester Study 2014
14
Early adopters began offering native in late 2010
15
Early majority now moving fast to launch offerings
16
Local media companies are mobilizing quickly
17
All Native Offerings are Premium Ad Vehicles
Pricing Mechanisms
•
•
•
•
Flat Rate per timeframe (Sponsorship Style)
CPM
vCPM
Not sold on a straight performance basis
Rates
• $15 - $52 CPM’s & vCPM’s
• Sponsorship model – varies by publication type
18
Miami Herald – Local Example
19
Miami Herald – Local Example
20
Johnson City Press – Local Example
21
Johnson City Press – Local Example
22
Technology has solved the scale challenge
AD SERVER +
CONTENT MANAGEMENT
True native content distribution with the precision,
flexibility & control of display ad serving
23
Sales training, pricing, and packaging = nothing new
24
Remaining challenges are mostly quality control
 Is advertiser content clearly labeled as “sponsored” or “promoted”?
 Is the content well produced and of high-quality?
 Is the content meaningful and relevant to my consumer?
 Does the content provide value and utility to my consumer?
 Does headline copy align with the promoted content?
 Will this content yield a positive experience for my consumer?
 Would I read this if it were relevant to me and my interest?
25
Jamie Cohen
Head of Sales at Aggrego
Our Chicago Audience
Right Mix Of Process, Scale, Utility &
Soul
How It Works: Content Generation
Community Site
Community
News
Manager
Performance Report
Web
Presence
Manager
Performance Report
How It Works: Sales
Community Site
Legacy Sales
Staff
AGGREGO
Sales Staff
Local Advertisers
How It Works: Overview
Our Trusted Brand, Your Relevant Message
Optimized for Tablet and Mobile
napervillesun.suntimes.com
We Syndicate On Social Sites
We Syndicate On Our Partner Websites
Detailed, Powerful Performance Reporting
The Lead Funnel and ROI
Sponsorship Based SO-LO-MO Bundles
Terry Ward
COO, KPC Media Group
KPC Media Group
Inc. is a multimedia
firm reaching the
largest single
audience of any
media company in
northeast Indiana.
our portfolio of products:












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three daily
newspapers
three weekly
newspapers
four monthly
newspapers
regional business
publication
two coupon clippers
three shoppers
two real estate
guides
family magazine
three yellow page
directories
four premiere
multimedia news
sites
direct mail company
print & design unit
digital marketing
agency
Terry R. Ward
Chief Operating Officer
tward@kpcmedia.com
@TerryRWard
Terry Ward, COO
@TerryRWard
tward@kpcmedia.com
Sales & Digital Organizational Structure
Chief Operating Officer
Directory & Niche
Publications
Manager
Advertising
Director
Multimedia Sales
Manager
Multimedia Sales
Manager
Multimedia Sales
Manager
Classified Sales
Manager
Multimedia Sales
Executive
Digital Agency
General Manager
Digital Sales
Manager
Digital Media
Director
Creative Manager
KPC Print &
Design Manager
Online Editor
Graphic
Designer/Artist
Multimedia Sales
Executive
Multimedia Sales
Executive
Multimedia Sales
Executive
Multimedia Sales
Executive
Classified Sales
Executive
Multimedia Sales
Executive
Business
Development
Specialist
Web Developer
Online Editor
Multimedia Sales
Executive
Multimedia Sales
Executive
Multimedia Sales
Executive
Classified Sales
Executive
Multimedia Sales
Executive
Business
Development
Specialist
Search Marketing
Specialist
Digital Sales
Executive
National Sales
Multimedia Sales
Executive
Multimedia Sales
Executive
Classified Support
Inside Business
Development
Specialist
Content
Strategist
Digital Media
Assistant
Multimedia Sales
Executive
Multimedia Sales
Executive
Digital Copy
Writer
Inside Sales
Executive
Multimedia Sales
Executive
Graphic
Designer/Artist
KPC Direct
Manager
Notes:
Multimedia Sales
Executive
•
Positions noted in green have the ability to sell full suite of digital services.
•
Positions noted in red have the ability to sell a limited suite of digital services (sponsored
stories, social media, template website, listing cleansing, reputation monitoring)
•
All positions can sell traditional digital advertising (banners, buttons, tiles, contests, etc.)
Inside Sales
Executive
Position selling verses SEO
Sponsored stories stay on the site, easily accessible
Sales are focused on site
prominence rather than SEO
Prominent placement across the site
In the navigation bar on the home page: http://infortwayne.com
Prominent placement across the site
In a featured position on our home page: http://infortwayne.com
Prominent placement across the site
Mixed in with the features on our home page: http://infortwayne.com
Prominent placement across the site
Grouped together when you click through the Sponsored link
Prominent placement across the site
Each story has it’s own destination page to contribute to ongoing SEO.
Each story is clearly marked as a
sponsored story to eliminate confusion.
Local businesses are embracing the idea
Currently close to 30 sponsored stories on the site
In house content creation
All sponsored content is coordinated by our digital marketing agency
Digital Agency
General Manager
Digital Sales
Manager
Creative Manager
Business
Development
Specialist
Web Developer
Business
Development
Specialist
Search Marketing
Specialist
Inside Business
Development
Specialist
Content
Strategist
Digital Copy
Writer
Graphic
Designer/Artist
Jason Kalin,
SVP Business Development, Nativo
Jamie Cohen
Head of Sales at Aggrego
@Jcohenstl
Terry Ward
COO, KPC Media Group