why native won (and the roadmap for the next $75 billion)

Why Native Won AND THE ROADMAP FOR THE NEXT $75 BILLION

Dan Greenberg CEO and Co-Founder at Sharethrough

NATIVE AD SUMMIT 2016

Native is now the largest category of digital advertising

WHY NATIVE WON AND THE ROADMAP…

The Future Belongs to ‘Native’ Ads, Is Your Agency Ready?Published on August 03, 2012 - AdAge

‘The Best Way To Monetize Feeds Is With Branded Content’Published on April 21, 2014 - AdExchanger

Why Native Ad Formats Are the FuturePublished on May 03, 2012 - Digiday


The Future Belongs to ‘Native’ Ads, Is Your Agency Ready?Published on August 03, 2012 - AdAge

‘The Best Way To Monetize Feeds Is With Branded Content’Published on April 21, 2014 - AdExchanger

Why Native Ad Formats Are the FuturePublished on May 03, 2012 - Digiday

Native is the largest category of digital advertising


2016 2017 2018 2019 2020 2021

10

20

30

40

50

60

Dol

lars

(Bill

ions

)

$16.8B

$13.2B

$20.9B

$13.4B

$25.2B

$13.6B

$28.9B

$13.6B

$33.5B

$13.0B

$36.3B

$12.8B

Non-Native Display

Native Display

Source: BI Intelligence, 2016


MARSHALL MCLUHAN

A human being in the digital age is quite literally,

“an organism that now wears its brain outside its skull and its nerves outside its hide.”


Google is my brain, Facebook and Snapchat are my nerves


Sample Size:

350 18-30People Ages


46%Take the finger!


59%!Take the finger!


“My phone keeps me connected…

I don’t NEED a pinky.”

- Anonymous survey response

“You need a phone to live a normal life now.”

- Anonymous survey response

PRESENTATION NAME - XX/XX

The newspaperThe radioThe TVMy Phone

Our Phones, Our Selves

PRESENTATION NAME - XX/XX

The newspaperThe radioThe TVMy Phone

Our Phones, Our Selves

…Me?

PRESENTATION NAME - XX/XXThe radioThe TVMy Phone…Me?

The intimacy of the phone is a primary driver of change…

Source: BI Intelligence, 2016


2016 2017 2018 2019 2020 2021

10

20

30

40

50

60

Dol

lars

(Bill

ions

)

$16.8B

$13.2B

$20.9B

$13.4B

$25.2B

$13.6B

$28.9B

$13.6B

$33.5B

$13.0B

$36.3B

$12.8B

Non-Native Display

Native Display

Intimate technologiesrender traditional business models obsolete.


The Intimacy PrincipleThe more intimate and personal a device is, the more integrated the push messaging model must be.

WHY NATIVE WON

80% 50% 100%Mobile Native Video Programmatic

$

100%


Total Native Ad Spend Through Sharethrough Products

0

30

60

90

120

150

2012 2013 2014 2015 2016

Total Spend Through Sharethrough Products (MM)

$


Total Campaigns Sold Directly By Publishers

0

500

1000

1500

2000

2500

3000

Hundreds of Publishers Selling Thousands of Direct Native Ad Campaigns

2014 2015 2016

WHY NATIVE WON AND THE ROAD MAP…

v

Some People Might Argue that TV is Still King…


…But It’s Only Going in One Direction


And We’re Already Seeing Native Enter Into the TV Ecosystem


“You can [interrupt] some people some of the time, but you can’t [interrupt] all the people all the time.”


Attention Lives in the Feed

Browsing a social or content feed

Search Shared (directly via email, text)

0%

25%

50%

75%

100%

91%

8% 2%

Source: Qualtrics, “Millennials and Advertising” 2016


“How Would You Prefer Publishers Make Money?” Millennials Prefer Native Ads


Native Ads Banners Subscription Pop Up Other0%

25%

50%

75%

100%

58%

21%

4% 3%14%


"Advertising is not the art of war, it’s the art of syndicating the truth”


A New Era of Straightforwardness


From Macroeconomics To Microattention


Advertising Follows Attention $


Total Ad Spend Has Been Consistent as a % of GDP for 70 years


But Time Spent on Mobile is Only GROWING (Still)


1920 - 2020: From Print to TV to Mobile

0%

20%

40%

60%

80%

100%

90%

70%

50%

30%

10%

1930 1940 1950 1960 1970 1980 1990 2000 2010

TelevisionNewspaperMagazines

RadioDigitalMobile

TV

Newspapers

Magazines

Radio

Web

Mobile


Native is Now the Largest Category of

ADVERTISING


Because Feeds are the Largest Category of

ATTENTION


Microattention Ads That Fit In are the Most Influential Ad Format We’ve Ever Seen

1WHY NATIVE WON AND THE ROADMAP…

Native Ads Are Read, Not Just Seen Reading Influences The Brain

Two Scientifically Proven Truths about Native

2


Native Ads Are Read, Not Just Seen

READ

SEEN

Native Banners


Reading Native Ad Headline Creates Brand Associations

Attractive

Look

Fit

Headphones

Luxury BRAND

STYLE

COMFORTEnvious

Outfit


Considering

Thoughts

Secrets

Discovering

Relating

Updated

Years

Soon

Everyday

History

Diagonal

Skinny

Long

Tallest

Widest

Growing

Entering

Falling

Replacing

Appearing

INSIGHT TIME SPACE MOTION

Context Words Trigger Microattention


“Native is the antidote for the cohort of people who are no longer interruptible”


TV to Native


TV to Native

WHY NATIVE WON AND THE ROAD MAP...

• Our phones are now part of our physical sense of self

• Intimate devices require intimate advertising

• Ads that fit in are the only sustainable ad format for the new web

• And it turns out that they deliver attention unlike anything we’ve ever seen

2016 2017 2018 2019 2020 2021

10

20

30

40

50

60

Dol

lars

(Bill

ions

)

$16.8B

$13.2B

$20.9B

$13.4B

$25.2B

$13.6B

$28.9B

$13.6B

$33.5B

$13.0B

$36.3B

$12.8B

Non-Native Display

Native Display











Attractive

Look

Fit

Headphones

Luxury BRAND

STYLE

COMFORT

Envious

Outfit


$75 Billion Over the Next 3 Years

Source: Business Insider Intelligence, 2016

2016 2017 2018 2019 2020 2021

10

20

30

40

50

60

Dol

lars

(Bill

ions

)

$16.8B

$13.2B

$20.9B

$13.4B

$25.2B

$13.6B

$28.9B

$13.6B

$33.5B

$13.0B

$36.3B

$12.8B

Non-Native Display

Native Display

2016 2017 2018 2019 2020 2021

10

20

30

40

50

60

Dol

lars

(Bill

ions

)

Programmatic

Unlocks Magical Powers

THE NEXT $75B?

DSP

Native SSP

Advertiser Publisher

Programmatic Native Landscape

PAGE { URL; CONTEXT: SOCIAL, PRODUCT, EDITORIAL; LAYOUT: IN-FEED, IN-ARTICLE, RIGHT-RAIL, BELOW-THE-POST; }

DEVICE { MOBILE=1, DESKTOP=0, TABLET=0; }

GEOLOCATION { @37.7991791,-122.4009608,20.39Z }

BROWSER { NATIVE-PRES.07.19.16; USER-ID=13454, ANONYMIZED-COOKIE=1EH5C4B; }

From Publishers to Advertisers

The “Bid Request”

BID {$12.50 CPM}

CONTENT { HEADLINE: ‘WELCOME TO NATIVE 2016’; CONTENT-URL: ‘HTTP://SHARETHROUGH.COM’; DESCRIPTION: ‘LEARN HOW TO WRITE BETTER HEADLINES, TRY OUR HEADLINE ANALYZER TOOL ON THE 2ND FLOOR’; }

THUMBNAIL { URL: ‘HTTP://IMGUR.COM/HAL.JPG'; }

BRANDING { LOGO: ‘HTTP://IMGUR.COM/STR.PNG'; NAME: ‘SHARETHROUGH'; }

TRACKING-TAGS { HTTP://NATIVE-PRES.07.19.16.COM; }

From Publishers to Advertisers

From Advertisers to Publishers

The “Bid Response”

WHAT PROGRAMMATIC UNLOCKS FOR NATIVE Beyond What it Unlocks for Standard Ads


STX ExchangePackaged Deals Examples:

• Fashion Influencers

• Business News

• Product Reviews

• Celebrity & Real Time Culture

• Self Improvement

• Listicles


we were going to put two or three

screenshots here of PMP launch partners


Private Marketplace [prahy-vit-mahr-kit-pleys] noun 1. Exclusive RTB auctions where

publishers invite select programmatic buyers to bid on their inventory at agreed upon rates.


VideoThe Once and Future King


Instant Play: The Format that’s Taking Over the Internet

WHY NATIVE WON AND THE ROADMAP...


In-Feed Instant Play Is The Expected Experience Millennial Native Video Research

79% of Millennials Find Autoplay Videos Convenient

70% of Millennials Read Headlines While Watching Silent Autoplay Videos



Source: Facebook

0

25

50

75

100

0 3 10 20 30

47%

0

25

50

75

100

0 3 10 20 300

25

50

75

100

0 3 10 20 30

Ad Recall Awareness Purchase Intent

CU

MU

LATI

VE C

AM

PAIG

N IM

PAC

T

Instant Play Native Video = Instant Brand Impact The first 7 seconds make all the difference

74%

32%

65%

44%

77%

Sharethrough Native Video Ads Instant Play Native Video Ads Now available to all publishers and on all buying platforms


ARTS & ENTERTAINMENT BUSINESS, NEWS & FINANCE HOME & LIVING MEN’S LIFESTYLE STYLE, FASHION & BEAUTY TECH & GADGETS SPORTS & FITNESS FOOD & DRINK

Top Publishers In Every Category Using Native Video Ads


Video Increasingly Dominating Sharethrough Platform

Video

Editorial


Major DSP’s Are Rolling Out Support for Native Video Ads

Highlight On:


Source: Business Insider Intelligence, 2016

2016 2017 2018 2019 2020 2021

10

20

30

40

50

60

Dol

lars

(Bill

ions

)

$16.8B

$13.2B

$20.9B

$13.4B

$25.2B

$13.6B

$28.9B

$13.6B

$33.5B

$13.0B

$36.3B

$12.8B

Non-Native Display

Native Display

$75B in Native Ad Spend in Next 3 Years

Ads that Fit in

Mobile Programmatic

PMP’s

Video

Content

• Quality

ROI

• Attribution

• Value of Attention

New Platforms

• AI/Bots • VR/AR • Pokemon?

2013 - 2014 2016 2017 2018 2019 - 20202015

Ecosystem Quality & ROI Future Platforms

@dgreenberg

why native won (and the roadmap for the next $75 billion)

Marketing