Advertisers want it all when it comes to native and programmatic campaigns, according to a recent study.

Respondents to the survey of large U.S. marketer and agency decision makers say branding is the primary objective of native or sponsored-content efforts (71 percent), but sales and conversions aren’t far behind (65 percent). Similarly, respondents say sales and conversions are the top priority for programmatic campaigns (75 percent), though brand lift is also listed as a critical factor (51 percent).

“The take-away for digital content providers is that to stay ahead of the curve, you must find ways to customize and innovate on both of these offerings to achieve, and exceed, the branding and performance metrics put forth by advertisers,” says Mike Kisseberth, CRO of Purch, which commissioned the report.

The study also highlighted preferences and obstacles for each type of campaign moving forward. Not surprisingly, media buyers want their content to look and feel as close to editorial content as possible. Only a quarter of the media buyers surveyed would consider native executions that link to off-site landing pages.

And though the number of options for programmatic buying is rapidly increasing, dealing directly with publishers is still the preferred method, according to respondents. Just 23 and 21 percent preferred to deal with trading desks and DSPs, respectively.

The study was conducted by ad insight firm, Advertiser Perceptions, in Q1 of 2014.

By Michael Rondon, Folio

Read more: http://www.foliomag.com/2014/study-advertisers-want-both-branding-and-conversions#.U6Dhdo1dUb5

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New money continues to roll into the advertising industry. While companies offering programmatic and native advertising will likely capitalize on the move, a study examining both media uncovers challenges hidden in objectives highlighted by brands participating in the study.

Purch, which rebranded from TechMedia Network in April, said the common thread in its study analyzing opportunities and challenges points to awareness through branding and performance through conversions.

Some 71% of advertisers participating in the study — which focused on native and sponsored content — view branding as a main objective, with 65% citing sales and conversions as a top priority. About 75% said programmatic campaigns are typically assessed through performance metrics, yet 51% of advertisers using programmatic strategies include brand lift among their top evaluation metrics.

Purch commissioned the study conducted by Advertiser Perceptions in Q1 2014, with help from U.S. brand marketers and their agency partners spending $1 million or more on digital advertising. The average digital spend for the advertising participating in the survey was more than $16 million in the past year. The survey focused on their current use and future plans for native/sponsored content and programmatic digital advertising campaigns.

Despite predictions that marketers will spend triple the amount in native advertising by 2015, obstacles remain. Some 46% said insufficient reporting and return on investment (ROI) metrics are the biggest challenge to success; followed by 38% who believe a misalignment exists between campaign and marketing objectives; 26% who point to required time and resource commitment; and 24% who believe native programs are not sufficiently turnkey.

Although native advertising programs are rarely available through programmatic platforms, 42% of advertisers participating in the survey expect to begin purchasing the media that way within the next six months, and 79% expect to purchase them that way within the next year.

About 73% of advertisers agree that programmatic media-buying and direct sales can coexist, with each serving a distinct purpose.

The obstacles to increased use of premium programmatic, preferred or private auction deals negotiated with a publisher include a lack of premium inventory at 54% and inadequate targeting to preferred editorial brands and audiences at 37%.

Some 65% of brand marketers surveyed have used agency trading desks and 61% have used demand-side platforms to purchase programmatic media, but 36% prefer to purchase through publishers, followed by 23% trading desks and 21% who prefer to to so through DSPs. Agencies are more attracted to better performance when buying premium inventory than marketers, 46% vs. 36%, respectively. Marketers are more attracted to reaching targets without waste, 45% vs. 24%, respectively.

About 91% said audience insight and data are most important when buying through programmatic channels. When asked to pick more than one, ease of use followed with 90%; credible metrics, audience quality, transparency, inventory guarantees all came in separately at 87%, and access to first-party data at 81%.

By Laurie Sullivan

Read more: http://www.mediapost.com/publications/article/227973/native-programmatic-lead-ad-industry-growth-but.html

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While agencies and marketers are on the same side of the equation (buy-side), they each have a unique view on what programmatic offers.

Agencies are more drawn to the efficiency promise of automation than marketers (46% versus 36%), while marketers are more attracted to reaching targets without waste than agencies (35% versus 24%).

The data comes from a recent study released by Purch, a content and commerce platform formerly known as TechMedia Network. The study was conducted by Advertiser Perceptions, a media research firm.

Despite machines being front and center in programmatic, advertisers in general still prefer to deal directly with publishers when running programmatic campaigns. The majority of buyers (36%) prefer publishers as their programmatic partners, while trading desks (23%) and DSPs (21%) are the second- and third-most-preferred partners, respectively.

The study also found that a lack of premium inventory was the No. 1 element restraining “programmatic direct”  from further growth.

This “lack of inventory” roadblock was mentioned again at the RTB Insider Summit on Friday afternoon, when Rubicon Project’s head of seller cloud Kaylie Smith said that while there is a lot of buzz surrounding programmatic direct, it hasn’t been met with equal action. However, Smith said publishers are testing the waters and becoming more comfortable with the idea of transacting higher-quality inventory in a semi-automated fashion.

The study was conducted in Q1 2014 among “high level U.S. marketer and agency advertising decision makers, spending $1 million or more on digital advertising,” per a release. The survey topics included both programmatic and native advertising.

By Tyler Loechner, MediaPost

Read more: http://www.mediapost.com/publications/article/227988/agencies-marketers-see-different-benefits-in-prog.html

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New Research Commissioned by Purch Reveals Prevailing Trends and Obstacles to Native Advertising and Programmatic Buying

NEW YORK, NY (June 10, 2014) – Purch, the leading content and commerce company for connecting buyers and sellers of technology and SMB products and services, today announced the results of a new commissioned study conducted by Advertiser Perceptions, the leader in research-based advertiser insight for the media industry. The study examined native advertising and programmatic buying, two of the top trends in the advertising and marketing industry, defining their growth and identifying specific objectives and challenges for each.

Native advertising and content marketing are beginning to garner budgets rivaling standard digital display. Per the study, native/sponsored content advertising spending is growing fast and expected to triple from 2013 to 2015. Programmatic buying is already nearly ubiquitous with 78 percent of high-level decision makers confirming their use of programmatic across campaigns.

The common element driving the growth of both native and programmatic is advertisers’ desire for the combination of branding (awareness) and performance (sales and conversions). The study indicates that most native/sponsored content advertisers have branding as a main objective (71 percent), with a large majority (65 percent) citing sales/conversions as a top priority. Programmatic campaigns are typically assessed through performance metrics, including sales/conversion rates (75 percent). Yet a majority of programmatic advertisers include brand lift among their top evaluation metrics (51 percent).

“Advertisers’ desire to create brand lift, while also driving sales, has cemented the use of both native and programmatic for publishers and marketers alike,” said Mike Kisseberth, CRO, Purch. “The take-away for digital content providers is that to stay ahead of the curve, you must find ways to customize and innovate on both of these offerings to achieve, and exceed, the branding and performance metrics put forth by advertisers.”
Additional key findings include:

NATIVE ADVERTISING
• Most prefer native programs that live directly in the hosting site’s content well. According to Purch’s findings, 47 percent are extremely likely to execute in-feed sponsored content that is consumed in an editorial-like environment on the hosting site. Only 28 percent are extremely likely to use in-feed campaigns that link to an off-site landing page.
• Though native spend is projected to triple by 2015, critical obstacles remain. Insufficient reporting and ROI metrics (46 percent) are the biggest challenge to success, followed by misalignment between the campaign and marketing objectives (38%), required time and resource commitment (26 percent), and native programs being insufficiently turnkey (24%).
• Advertisers have come to anticipate and expect an exceeding fast pace of change in the industry. Even though native advertising programs are very rarely available through programmatic platforms, 42 percent of advertisers expect to purchase them that way within the next six months, and 79 percent of advertisers expect to purchase them that way within 12 months.

PROGRAMMATIC BUYING
• Advertisers prefer to deal with publishers directly for programmatic campaigns. A majority of those surveyed have used agency trading desks (65 percent) and demand side platforms (61 percent) to purchase programmatic. The preferred programmatic provider, however, is publishers (36 percent), following by trading desks (23 percent), and DSPs (21 percent).
• Agencies and marketers find different benefits in programmatic. Agencies are more attracted to increased efficiencies in buying premium inventory than marketers (46 percent versus 36 percent), while marketers are more attracted to reaching targets without waste (45 percent versus 24 percent).
• Important criteria when selecting a premium programmatic partner include: audience insight and data (91 percent), ease of use (90 percent), credible metrics (87 percent), audience quality (87 percent), transparency (87 percent), inventory guarantees (87 percent) and access to first-party data (81 percent).
• The obstacles to increased use of premium programmatic (preferred or private auction deals negotiated with a publisher) include lack of premium inventory (54 percent) and inadequate targeting to preferred editorial brands and audiences (37 percent).
The study was conducted in Q1 2014 among high level U.S. marketer and agency advertising decision makers, spending $1 million or more on digital advertising. The survey focused on their current use and future plans for native/sponsored content and programmatic digital advertising campaigns.

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It seems obvious marketers should only pay for ads people can see, but when it comes to Internet advertising that hasn’t always been the case.

In an attempt to remedy that situation the online media industry is changing. Marketers are increasingly opting to purchase only ads they have some certainty are visible to users, as opposed to ones tucked away on parts of Web pages that are never exposed to users’ eyes.

This move towards “viewable” advertising will have a significant impact on ad-supported websites. Most will have fewer ads to sell, which could cause their revenues to dip unless they figure out a way to charge more for the ads they’re left with.

Last week the The Media Rating Council — the  industry association that establishes common media measurement standards — gave its seal of approval to new technology that measures whether a display ad is able to be viewed or not. It advised that marketers should begin buying ads based on these new “viewability” metrics if they wish.

Ad sellers are now figuring out how best to adapt their ad practices for this new landscape. Despite challenges, some predict the shift will actually have a positive impact on their businesses in the long-term.

According to Mike Kisseberth, Chief Revenue Officer at technology publisher TechMedia Network, viewable ads will deliver better performance for marketers, which will in turn increase demand for that ad space.

“Increased demand for a class of inventory, when managed properly, should result in increased yield,” Mr. Kisseberth said, describing viewable ads as “great news for the industry that in the long-run will benefit everyone.”

 

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