In what seems to be a timely intersection with the furor over rebates, fraud, and lack of transparency in the online advertising community, a recent survey from Deloitte, Industry Index, and Flashtalking “Confined by the Garden Walls” highlights the increasingly volatile but interdependent relationship between the biggest advertisers and walled platforms – namely, Google and Facebook. Its findings “illustrate the disconnect between what clients want from their advertising platforms and what they can expect to get.”
Despite the fact that rebate issue continues to get regular coverage by major media outlets like The Wall Street Journal and Ad Age, few advertisers are rushing to openly join the conversation. In the same vein, conclusions from the study highlight the ongoing struggle to understand the dramatic contradictions at play. To wit: While “only 22% of brands noted discomfort with Google’s data policies,” at the same time, “95% think data transparency at a user level is important or very important.”
While it’s easy to highlight the obvious conflicts at work here, making sense of the situation is more nuanced. Our take:
Consolidated Market Conditions Dramatically Favor Digital Giants. In Q1 of this year, Google and Facebook combined to realize 85% of online advertising market share. So it’s not surprising that the two companies don’t have to negotiate terms and conditions much. This situation won’t persist forever – with Bing investing significantly in its platform, and Verizon’s acquisitions of AOL and Yahoo! expected to impact the marketplace – but it’ll continue to be a bumpy couple of years for large digital advertisers, absent of significant regulatory changes, which seem unlikely.
The “Lure of Ease” Has Very Strong Appeal. Few brands have been able to construct digital marketing operations over the past decade that can provide the requisite scale. This will happen in due course, as “marketers at top brands have long realized that to own your customers you have to own your data”. And they’re investing furiously in marketing infrastructure to get there. In the meantime, they need to continue to nurture uneasy alliances with the digital behemoths in order to feed their own massive marketing engines.
Even With Challenges, Digital Preferable to Alternatives. Sure, brands are forecast to spend a smidge more on digital advertising this year than TV, for the first time, to capture $72 billion (36.8% share) in the U.S. marketplace – which is forecast to total $195 billion in 2016. But that means they will spend more than $120 billion on TV, radio, print, and out-of-home – all of which are generally considered to be inferior when it comes to ROI precision or user data access.
Alternatives Do Exist, But Require Work. Without question, Google and Facebook offer incomparable digital advertising scale and targeting – one-stop shopping at previously unimaginable heights. And their brands are of course blue chips, and no one appreciates top brands like marketers do. But taking a scrappy approach to digital marketing can pay dividends. Going off-brand allows advertisers to strike better deals, and not just lower prices, but also much greater transparency and data control. This is approach requires legwork and explanation up-and-across the organization about avoiding the recognizable brands, and might not even perform as well in the final analysis, but in some (possibly many) situations, a beat-up pickup truck can do the job almost as well as a shiny new Cadillac – and for a fraction of the cost.
Tim Bourgeois (@ChiefDigOfficer) is a partner at East Coast Catalyst, a Boston-based digital consulting company specializing in working with clients on strategic roadmaps, digital marketing audits, and online marketing optimization programs.
“What if we stopped focusing so much on traffic, and started focusing on experience?” I’m asked this question frequently. It’s a complex, divisive challenge for newsrooms, one I eagerly indulge.
I work directly with media companies of all shapes and sizes. I offer consultation on everything from using data to support editorial intuition, experimenting with audience development projects and honing tagging strategies. The best newsroom strategies start with someone saying to me: “It would be so interesting if we could…” and “What would happen if we tried…”. Data can provide the foundation for sussing out those new ideas while mitigating risk.
When I start to talk to clients about using engaged time, or any metric for that matter, the key is to set goals. What does success look like? But this prompts new questions: How do we stack up? Is this kind of engagement normal? Is it good? For us? For anyone?
There is no reliable comScore or Alexa rating for attention, thanks in no small part to various ways of measuring “time on site.” So if a publisher is eager to change the way they think about their audience, and their success, where could they start? I tried to find out.
How does Parse.ly measure engaged time?
First, let’s clarify exactly what we’re talking about, because Parse.ly measures engaged time differently than other analytics platforms. On your site, a visitor is considered “engaged” if they 1.) Have a browser tab open, and 2.) take an action (scroll, click, mouse-over) at least once every ten seconds.
Analysis 1: How do we find an average engaged time for all content?
Weighted engaged time averages from a random sample of posts from 300 domains in our network gives a benchmark for engaged time.
I first set up an exploratory analysis across our network, to see if I could identify any clear patterns. Over time, I started to see the same sites consistently outperform other outlets in average engaged time per visitor. What initially struck me though was actually the lack of pattern: each site seemed so diverse in voice and size.
To identify what made them competitive, I needed to understand the bigger picture of engaged time across Parse.ly’s network. To do this, I sampled user experiences at random for content published within one month from 300 anonymized domains to first understand, “how many seconds can you expect a typical reader to remain engaged with a story?”
Here we see how attentiveness is distributed across Parse.ly’s network. This graph shows what we can expect for “normal” attention time from any given reader, to any given article for each of the sampled domains. You can see a majority of our publishers attract an audience willing to invest roughly 40-60 seconds of their time on an article, though plenty of publishers can expect a more invested audience.
Finding engaged time in Parse.ly’s dashboard
This provided a starting point for benchmarking engaged time, especially for my clients. Any Parse.ly user can easily find in their dashboard where their site, section or article falls on this curve. Teams can check to see if their stories and authors fall above or below the norm for their audience.
Understanding the context here is crucial though; not every article needs to outperform the average of the Entire Internet. There are better questions to ask. Where does your article fit in relation to what is expected for its section? How does that section perform in relation to the site as a whole?
Of course, there’s one more comparison that everyone wants to make: how does my site stack to the competition?
Analysis 2: How do we find the averaged engaged time for similar content?
This question helps you contextualize whether your work gets more attention than pieces that are similar to it and potentially predict how other topics, outside of your core competencies, might perform. For example, if you don’t normally write technology feature, it could help to understand the engaged time benchmark for tech publishing leaders. Here, we break down the analysis above further to understand how long a reader could be engaged on similar content.
Broken out by publisher type, it’s easy to see how nuanced attentiveness is across different types of content. I found it noteworthy that local news sites command more engagement than major news outlets, even with undoubtedly fewer resources.
I mentioned earlier when I began investigating engagement, I was struck by how, month after month, the same set of publishers kept leading the pack, albeit with no discernible pattern among them. Broadening the analysis to the network, broken down by these categories, most of these names resurfaced at the top of their respective categories. A pattern finally became clear: the most engaging sites within each type of publisher were highly recognizable brand names.
Also, now that we’ve broken out engaged time averages across Parse.ly’s network, it’s easy to see how using homogenized data from a heterogenous group of sites to set benchmarks could do more harm than good. Certainly, the same concept applies within the newsroom; measuring the average engaged time on an article against what is expected for that vertical or topic will provide better context.
What do we know about engaged readers?
We’ll continue to explore other patterns within the most engaging experiences. In the meantime, here’s a reminder of what we do know:
Facebook vs Twitter. We already know from a recent study with Pew Research that, in an increasingly mobile ecosystem, referral sources on mobile were an important factor in determining engaged time. Their research found that Tumblr and Twitter generate highly engaged audiences, while Facebook audiences were less engaged.
Readers can be highly engaged on mobile, though infrequently. In another section of the same report, we distinguished between long-form articles with 1000+ words and short-form articles. Long-form consistently outperformed short-form, though visitors to either do not frequently go on to other articles.
In the analysis conducted for this post, we found no correlation between page views and engaged time. A large audience is not necessarily an attentive one.
How to navigate this brave new world
We’ve found ourselves in somewhat uncharted territory in an effort to shift away from primary traffic metrics like page views and unique visitors. How do we define what makes something “good” anymore? Why should we care about engaged time at all?
As I found in this analysis, the engaged time metric provides us an interesting exploration in how we can set a more relevant benchmark. In clinging to familiar traffic indicators like page views, perhaps we have systematically neglected not only the experience of our readers, but the nuance of our reporting. But coupling traffic metrics with engaged time helps us understand which articles create the most impact.
If your post gets hundreds of thousands of viral views, but no one sticks around to read it, did you really manage to convey anything meaningful? Increasing your newsroom’s dedication to understanding the relevancy of engagement in all its forms will lead to a deeper, better audience strategy.
Kelsey Arendt is a Customer Success Manager at Parse.ly. Previously, she worked with The Guardian’s commercial team where she managed a variety of projects for marketing and sales, including developing analytic support for sponsored campaigns and partner hubs. Kelsey is a Midwestern transplant to New York City, and is a passionate hiker, musician, and homebrewer.
The relationship between Facebook and the news media industry is increasingly complex, requires context, and has room for improvement, according to a new report released today by the International News Media Association (INMA). The 79-page report, “The Facebook-Media Relationship Status: It’s Complicated,” offers an executive-level overview of how the social media giant intersects with news publishers as of late 2016.
The report cites Mark Zuckerberg’s widely-reported remark that Facebook is not a media company, but rather a sort of Uber for the content industry. In other words, Zuckerberg believes that because his company doesn’t create content, it isn’t in the content business. However, as the report points out, from content aggregation to distribution and myriad “editorial” decisions (be they algorithmic or human), the distinction is blurry at best.
The report attempts to help better define Facebook’s role in the ecosystem as well as examine the market position of all of its platforms (Messenger, Instagram, and WhatsApp.) It provides an overview of major social media usage trends and patterns worldwide. And finally, the report takes a hard look at Facebook’s complicated relationship with the news industry (including a deep dive into the way in which its News Feed algorithms work), and analyzes different strategies that media companies use with regards to Facebook in an effort to help others do so strategically.
Among the takeaway’s from INMA’s report:
Software really is eating the world.
New technologies make traditional market-entry barriers disappear.
Value propositions are no longer defined by the industry but rather by customers and their changing needs. Thus, user experience becomes a competitive advantage.
New business realities blur distinctions between partners and rivals.
News media consumers no longer form a mass market but rather networks of individuals.
Users are flooded with content. News has become a commodity.
Data is becoming the new oil.
As Emily Bell pointed out in a recent Columbia Journalism Review article, “Facebook is being taken somewhere it never wanted to go.” Yet, while it may not have sought to be a pivotal media cog, the report points out that “clearly, Facebook needs to be a thoughtful partner to the news media industry — and vice versa. That is a partnership that should be based on transparency and mutual support.”
Top social media platforms registered strong revenue gains in Q2 2016, however, CPM increases varied according to the Salesforce Advertising Index Report for Q2 2016. Further, growth in mobile usage contributed to an overall increase in mobile’s share of revenue among social media platforms.
Facebook, often referred to as the king of social media, reported $6.4 billion in total revenue with a 59% year-over-year increase and $6.2 billion in ad revenue with a 63% increase year-over-year in Q2 2016. Mobile ad revenue for Facebook accounted for 84% of total ad revenue. Further, Facebook’s global CPM at $6.33 for Q2 2016 increased 65% from a year ago. CPM growth ranked highest in France and Canada at 130% followed by the U.S at 70% year-over-year.
Instagram’s mobile footprint is strong as well. Instagram users identify mobile as their most important device for getting online. In Q2 2016, Instagram’s global CPM registered at $6.30, an increase of 42% quarter-over-quarter.
Twitter reported total revenue of $602 million, a 20% increase year-over-year. Their advertising revenue totaled $535 million, an increase of 18% year-over-year. Twitter’s mobile advertising revenue accounted for 89% of total advertising revenue. Interestingly, while total advertising revenues increased, their global CPM at $4.29 declined by18% compared to a year ago.
LinkedIn’s Global CPM for Q2 2016 was $20.43, a 13% increase year over year. LinkedIn is known as a strong B2B platform with 60% of its total revenue generated from sponsored content.
Social media delivers a large and dedicated audience for advertisers, especially on mobile devices. Just as social networks drive mobile advertising’s growth, mobile drives advertising on social networks. Social media also continues to evolve with the addition of LIVE and VR playground to further build more immersive content and new opportunities to engage consumers.
New findings build on comScore’s “The Halo Effect” independent research
New York, NY—(September 27, 2016)—Digital Content Next (DCN) today released new findings it commissioned from comScore’s July 2016 research, “The Halo Effect”. The follow-up analysis of the original data found that video ads served on premium sites yielded 68% higher brand lift than video on non-premium sites and drove even higher brand lift when looking at sales funnel brand metrics. Overall, DCN sites outperformed non-DCN sites by 176%.
Additional findings from the follow-up study:
Gender: Ads on premium publisher sites had an overall stronger impact on men however women were particularly responsive to ads for mid-funnel metrics including brand consideration, brand loyalty, category usage intent, category favorability, brand favorability and recommendation intent.
Household Income: Households with an income of $75K or less showed more brand lift at the mid-funnel phase and households with an income of more than $75K, generated an average lift at one impression over two times the magnitude of a non-premium publisher.
Millennials: video ads on premium publisher sites are almost twice as effective with millennials.
“We wanted to dig further into the results of comScore’s ‘The Halo Effect’ research to understand brand lift for different demos and for video advertising in particular,” said DCN CEO Jason Kint. “We now have further proof that advertising on premium publisher sites drives higher brand lift for both display and video advertising.”
Key findings from comScore’s initial “The Halo Effect” research confirmed that the contextual environment in which the ad exposure occurs is an important driver of more than 50% higher effectiveness, and also showed:
Display ads on DCN publisher sites had an average of 67% higher brand lift than non-DCN publishers, confirming that premium sites deliver premium performance.
Premium publishers are 3x more effective in driving mid-funnel brand lift metrics, such as favorability, consideration and intent to recommend.
Premium publisher effectiveness is driven in part by higher viewability rates, which include lower levels of invalid traffic.
Consumers’ trust in the media fell to its lowest point this year. Only 32% of consumers said that they have “a great deal” or “a fair amount” of trust in mass media versus 68% who stated “not very much” or “not at all” reports Gallup Poll Social Series: Governance. While Gallup has seen consumer confidence in media decline in the last 10 years, this year’s findings represent an 8% declined compared to a year ago. Gallup’s survey definition of mass media includes newspapers, television and radio. It is important to note that digital and news and information from the internet were not included in their definition of mass media in the survey.
The collapse in trust is most significant among young and middle-aged adults. Interestingly, those who associate with being a Republican had a more negative view of the media than those who associate with being a Democrat.
In a recent article, The Atlantic offered a few hypotheses as to why consumer trust is declining in media. Their first hypothesis emphasizes the lack of sophisticated journalism in the marketplace. The articles and programs which should inform and provide insightful dialogues are no more than a show and tell of political bantering. Another likely factor that it is an election year. Lack of media trust is cyclical and declines are registered every election year. Media trust fell in 2004, and in 2008, and again in 2012, and now it’s at an all-time low in 2016.
The third possibility could be that public faith in financial, social and political institutions such as the church, the medical system, the presidency, the Supreme Court, banks, big business, and Congress has also fallen this year impacting overall trust scores. The fourth and final hypothesis from The Atlantic is the intense media competition. In an effort to capture consumer attention, there’s more hype than ever before and some journalists are willing to take exaggerate positions on a topic throwing aside their objectivity commitment to remain on neutral grounds. Consumers distrust this type of media behavior.
Still others have suggested the decline in media trust is due to the overwhelming media options including one-sided and sensationalist approaches. As The Washington Post’s Executive Editor Marty Baron stated, “What distinguishes journalism and plain old content, is that we are digging beyond the surface. We are trying to find out why something happened, what are the consequences, who is affected – those deeper issues as opposed to just the bare-bones facts.” As the media landscape has expanded with so much user generated content including blogs, vlogs and social media, the trustworthiness of professional journalism is much harder to find among the clutter—but it has never been more important.
Sixty-nine percent of young millennials use at least one method of piracy (download, stream or mobile). Even more alarming, however, is the finding that 24% of those surveyed believe that both downloading and streaming piracy are legal, according to the report Millennials at the Gate from creative advertising agency Anatomy Media, which looks at the streaming, piracy and ad blocking behaviors of young (18-24) adults.
Other key findings include:
2 out of 3 young adults use an ad blocker
3 out of 5 young adults who stream content use a shared password or cable log-in
60% stream content without paying for it
While more than half say they share their parents’ log-in (58%), only 13% of those actually live with their family
According to the report, millennials use ad blockers “to assert control over their user experience, reduce their data usage and get access to their desired content faster.” However, they believe that millennials will accept advertising as long as it is “restrained, targeted and relevant.” Thus, Anatomy urges a focus on user experience overall.
Mobile isn’t just causing a seachange in consumer behavior by increasing our demand for formats and features that are easy and enjoyable to access on smartphones and tablets. Mobile is also causing a seismic shift in advertising spend allocation, a surprise trend documented in the Zenith Advertising Expenditure Forecast released earlier this month.
The forecast, upgraded from numbers the company published in June, still expects mobile advertising to overtake desktop–but the new forecast predicts this will happen much sooner.
In fact, forecasts for mobile growth this year are upgraded from 46% to 48%, and next year from 29% to 33%. While it may only amount to a few percentage points, the impact on the total is tremendous. Zenith now expects mobile ad spend to exceed desktop by $8 billion in 2017, up from the $2 billion that was predicted in June.
Overall, desktop is going to suffer a steep drop in 2017 – one from which it will not likely recover as Zenith further forecasts mobile to account for 60% of all internet advertising in 2018, up from it’s previous forecast of 58%.
Why is the shift to mobile causing desktop advertising to shrink faster than newspapers, magazines and TV? The answer is inextricably intertwined with consumer behavior and people’s preference for experience over interruption.
At one level, mobile ad spend is merely following the trajectory it must if brands and marketers are determined to be where their customers are. People are spending more time on mobile devices, so ad dollars must follow. This brings us back to the most “clipped” slide in the annual Mobile Internet Trends Report deck from Mary Meeker, Internet guru and partner at venture capital fund Kleiner Perkins Caufiled & Byers. In it Meeker pointed out the gap between time spend on media (specifically mobile) and percentage of media spend.
But the exodus of ad spend is also fueled by the hard truth that consumers are annoyed by banner ads, and reaching in increasing numbers to ad blockers in order to tune out interruptive display advertising on desktop (as well as mobile).
Another driver causing the rapid decline of desktop ad spend in no doubt the surge in social media and native advertising. Reams of research and campaign results shows social and mobile is an unbeatable combination–particularly since social media is a perfect fit with the fiercely personal nature of our mobile devices and aligned with how we spend the majority of our time on mobile (namely, engaging in social media conversations and the contextual ads that show up in our feeds).
Mobile is where we focus our time and attention, so it makes business sense for ad spend to shift to our “first” screen. However, the rise in mobile spend doesn’t mean the death of desktop. Zenith is bullish about the outlook for other desktop formats such as video, a format that it notes has “benefited from the transition to programmatic buying, which allows agencies to target audiences more efficiently and more effectively, with personalized creative.”
In a world where experience trumps–well– everything, all ad formats can count on being a line on the budget as long as they are highly engaging, not annoying, and highly relevant.
Peggy Anne Salz is the Content Marketing Strategist and Chief Analyst of Mobile Groove, a top 50 influential technology site providing custom research to the global mobile industry and consulting to tech startups. She is a frequent contributor to Forbes on the topic of mobile marketing, engagement and apps. Her work also regularly appears in a range of publications from Venture Beat to Harvard Business Review. Peggy is a top 30 Mobile Marketing influencer and a nine-time author based in Europe. Follow her @peggyanne.
Mobile usage now represents almost two out of every three digital media minutes as we continue to see more and more consumer usage shift from desktop to mobile. In all, time spent in digital media grew 53% over the past three years, attributed to the surge in usage of mobile apps (+111%) and of mobile web (+62%) reports comScore’s newly released 2016 U.S. Mobile App Report.
Interestingly, the smartphone app is the biggest driver of digital media engagement, resulting in an 80% increase in mobile’s share of time spent over the past three years. However, while the mobile app audience spends more time on apps, comparing users of Top 1000 Apps vs. users of Top 1000 Mobile Web Properties, the mobile web audience is almost three times bigger than the app audience. Intriguingly, almost half of all smartphone users do not download any apps. Among the half of smartphone users that do download apps, they average 3.5 downloads per person per month. Industry experts forecast that by 2017, there will be 268 billion apps downloaded.
It’s difficult to build to build a mobile app audience. However, once the app users are engaged, they are an extremely loyal audience. To illustrate this point, app users spend more than three hours per month on the Top 1000 apps on average whereas mobile web visitors spend less than 10 minutes per month on the Top 1000 web properties. Males 18-44 tend to be the heavy app downloaders with approximately 5 new apps each month.
While all demographics are using their smartphones apps more now, persons 55-64 registered the greatest year-over-year increase at 37%. Further, all U.S. consumers, especially persons 18-24, spend the largest share of their web time on smartphone apps except for adults 65-plus, where screen size mostly likely acts as an inhibitor. In contrast, tablet app usage is down across all demographics.
Facebook and Google are a strong hold in the app marketplace; 7 of the Top 25 apps, based on unique visitors, are owned by these two companies. Of the Top 25 apps, the three leading categories, based on unique visitors, are Utilities (9), Social (6) and Entertainment (6 – tied). Facebook, the largest social platform accounts for 76% of all time spent on social apps. App position on smartphone correlates to usage. Not surprisingly, apps with easy access on the home screen showed strong audience reach. Smartphone users spend approximately 45% of their app time on their #1 most used app, and about 73% on of that time of their Top 3 apps.
Mobile devices are consumers’ constant companions. It’s where audiences are spending most of their time online. Since mobile users are spending more time on their apps, it’s important for digital publishers to continue to develop a platform strategy to attract and transition their large web audiences to loyal app users. Further, as the app market continues to expand “smart” device utilization (think loT like exercise trackers, home and car alarm systems, etc.) expands, it will only become more difficult to break through to the consumer’s screen.
Nine out of 10 (92%) European consumers think that changes need to be made to current online video advertising in order to improve the viewer experience, according to a new survey of 4,000 consumers in the UK, France and Germany, which was commissioned by online video solutions provider, Brightcove Inc.
According to the report, The Ad-Verse Consumer: European Video Advertising Tolerances in a Digital Age, when asked to pinpoint their specific objections to video advertising, consumers cited irrelevancy, volume and poor delivery – with 67% choosing to stop watching their selected content as a result of one of these issues.
The majority (82%) of respondents claimed to know what an ad blocker is and more than half of the consumers surveyed (51%) said they have downloaded, used or are currently using an ad blocker, with 23% reporting that they are contemplating using one. The top reasons given by those who had downloaded an ad blocker were that ads are too long (56%), not targeted and irrelevant (45%), and not interactive (20%).
About three-quarters of respondents felt that any online video ad shown on a smartphone or tablet should be no longer than 30 seconds, with this figure edging closer to 45 seconds if the viewing was taking place on a smart TV or laptop.
Other key findings about European consumers’ experience with digital video advertising include:
73% have experienced poor video ad delivery (i.e. buffering, failing to load)
More than half (51%) are frustrated by the number of online video ads
74% have had a negative experience with the content of an online video ad
Over a third (36%) rarely or never see an ad relevant to their personal interests
Two thirds (66%) of surveyed consumers reported that the length of the content that they want to view affects whether they are willing to watch an online ad in order to get it
50% of consumers say that they are not willing to pay for any type of online video content
According to Brightcove’s findings, the good news for publishers is that the majority of consumers said that they understand the necessary trade-off between online ads and free content and — here is the crucial bit — feel that it is fair. This was especially the case in the UK where almost eight in ten consumers (76%) agreed with the ad-supported model.
While this is encouraging, the report points out that “this goodwill will only stretch so far before it snaps,” with many consumers opting to look elsewhere for content rather than tolerate poor ad experiences. Given the growing specter of ad blocking, the findings suggest that publishers need to carefully consider their approach to monetizing online video content or risk losing out on viewers and associated revenue.
Magazine publications are still growing strong across both print and digital platforms. In fact, in 2015 there were over 7,000 magazines in print, an increase from both five and ten years ago according to the Magazine Media Factbook 2016/17, published by the MPA (The Association of Magazine Media). Just last year, 237 new magazine brands launched. Not only are the number of publications growing but the audience is too. The total gross brand impressions for magazines grew to 1.75 billion across platforms from 1.65 billion in 2014, an increase of 6.2%.
Magazines have a valuable and loyal audience with adults 18+ reading 8.6 magazine issues each month. While the magazine audience skews toward baby boomers and older, the median age at 47.1 years old is similar to users of most traditional media as well as reflective of the U.S. population at 46.8 years old. The digital audience, the core contributor to magazine’s overall multiplatform growth, continues to increase with the total number of adults increasing year-to-year.
Digital magazines have given publishers new ways to experiment with storytelling structures, platforms, formats and revenue streams. Magazines’ digital capabilities are also appealing to a growing audience. Print editions can also be used to offer a unique experience especially for a special edition (e.g. anniversary or a particular event) distinct from what digital magazines can provide. Regardless of platform, magazines must have a distinct brand proposition and identifiable storytelling.
Jens Henneberg Executive Vice President and Editorial Director at Bonnier Publications in the UK comments on the distinct qualities of the print magazine, “Magazines represent the best way to deliver information on paper: they incorporate pictures and graphics in a way that’s more visually engaging than other mediums, while they also use the best printing techniques. This combination of visual and text elements allows magazines to provide the best overview and in-depth knowledge of a topic.” However, the digital platform offers an extension of this format with the ability to include responsive features to interact with the audience and strengthen engagement.
Magazine publishers still face challenges in the marketplace. Google and Facebook, while they drive traffic to digital magazines, also use the content and audience to increase their own ad revenue model. As magazine publishers evaluate the readers experience across their websites, tablet editions and distributed content, they should also assess their extended reach and visibility and audience engagement of their branded experience.
When it comes to native advertising, publishers are walking a fine line between reader trust and new revenue streams. For much of the short history of native advertising, publishers and media watchers have been debating about its transparency—or lack thereof—but in late 2015 the FTC weighed in and laid out a number of guidelines for publishers and advertisers to abide by.
According to the FTC, in general, disclosures should be:
in clear and unambiguous language;
as close as possible to the native ads to which they relate;
in a font and color that’s easy to read;
in a shade that stands out against the background;
for video ads, on the screen long enough to be noticed, read, and understood; and
for audio disclosures, read at a cadence that’s easy for consumers to follow and in words consumers will understand
As recently as April, however, AdWeek reported that 70% of Native Advertising did not comply with the FTC’s recommendations. Now Polar has taken a (slightly different) look at “The State of Disclosure.” The report found that 7.5% of native ads still aren’t using any terms to label their sponsored content. Yet, even with the hold outs, the report concludes, “2015’s FTC Guidelines for Native Advertising have influenced the levels and types of disclosure premium publishers are using on native placements.”
Polar found the most commonly used disclosure term is “Sponsored”—and all of its variants—appearing in over 55% of native ads. “Promoted” comes in next. Terms like “Partner” and “Presented By” are less popular than just not disclosing at all.
“Promoted” however is the best performing term, with a 0.19% CTR, compared to “Sponsored” with a 0.16% CTR. Still, there is more to the story. For desktop audiences, the term “Sponsored” marginally outperformed “Promoted” by approximately 26%. On mobile devices “promoted” dramatically outperformed “sponsored” by 105%.
So why aren’t companies hopping on board with “Promoted” if it delivers more clicks? Carla Johnson, an executive level strategist at Type A Communications, says, “I think this is for a couple of reasons. One is that the term ‘sponsored’ is a more commonly used term than ‘promoted’ and companies want to use terms with which people are familiar. It could also be that many companies don’t know the performance difference between the two. The interesting thing about the statistic is what the performance of both would be if they were used in equal volume.”
“This remains a thorny issue for publishers and advertisers alike—see Jon Oliver’s coverage of the topic on his HBO show for a good laugh—and publishers seem to just prefer the ring of ‘sponsored’ to ‘promoted’, even though the differences are indistinguishable,” according to Tim Bourgeois, Executive Editor of ChiefDigitalOfficer.net, and digital strategist at East Coast Catalyst. “Also, while most marketers and agencies are increasingly embracing data-driven tactics, they are also constantly making trade-offs between performance and aesthetics, and this is an example of where aesthetics is winning out, at least for the short term.”
When it comes to disclosure, it isn’t all about terms. Polar found that over 85% of native ad units contained only one disclosure term, but most incorporated two to three design elements—such as shading, a distinct border, or “info icons.” This is where things get murky. Relying on your audience to understand that a slightly grayed out box, or a different color border means that a post is actually a native ad—and not just a design choice—is less than transparent. For those immersed in the world of digital media and marketing these may seem like clear indicators of native content, but to the average reader, they don’t mean much. If these elements are accompanied by a clear “Sponsored” disclosure they can only serve to further call attention to the nature of that content, but without it, they are virtually meaningless.
Even with clear disclosures, audiences seem to still struggle to identify the difference between native ads and editorial content. MediaPost reported that in a Grady College experiment, “Overall, only 17 out of 242 subjects—under 8%—were able to identify native advertising as a paid marketing message in this experiment.” Experimenters “displayed 12 different versions of the ad, with varying types of disclosure labels (“advertising,” “sponsored by,” “brand voice,” and “presented by”), as well as different positions for the disclosure label including at the top, middle, and bottom of the page.”
With results like that, one has to wonder if the only thing left to do is point a giant neon arrow at sponsored posts. But readers’ inability to separate editorial from advertising content also says something else about native advertising—maybe even something good. If the goal of native advertising—and, more widely, content marketing as a whole—is to provide content that is on par with editorial content, then “Mission Accomplished!”
With Folio reporting that “Over two-thirds of magazine publishers leverage their own editorial teams to produce native advertisements, according to a study from FIPP and the Native Advertising Institute” it seems only natural that the quality of the content would make it virtually indistinguishable from the editorial. Whether or not you think that’s ethical depends on your outlook.
If you’re a marketer looking to deliver great native advertising, you’re probably thrilled that your audience can’t tell the difference between your copy and editorial. If you’re a reader, you might not be thrilled that you’re being fed advertising in the guise of editorial.
Here’s what it comes down to: If you’re a publisher you need to clearly mark your native advertising with disclosure terms, not just “design elements,” and continue to strive to make the content as compelling and useful as your editorial. From there it’s incumbent upon audiences to be more discerning—to pay more attention to what they are reading or watching—because unless there is a major sea change in the business of digital content (and audiences’ willingness to pay for it) native advertising is here to stay.
By day, I am the editor of EContent, where I cover the world of digital media and marketing. By night I am a reader and writer of books (including Inside Content Marketing), NPR addict, and avid gardener. Find out more at TheresaCramer.com or @TheresaCramer on Twitter.