The Conversation Starter

Native advertising is currently one of the most overused buzzwords in the advertising world. Many people are quick to roll their eyes at native advertising, thinking of the original click-bait nature of headlines and the cheesy descriptions publishers used to lure the audience in, only to have them immediately bounce out. The channel has now evolved from click bait headlines, to include video with engaging content the audience seeks out. The ability to retarget off each unit is another fantastic feature found in the native space. As a result, content can more closely resemble a publication’s editorial content across a website, lowering advertisers cost and increasing engagement.

Two main units we look at and the cost associated with them include:

Native Articles:

This placement has expanded from simple CPM (cost per thousand) buying to now include CPC (cost per click) and CPE (cost per engagement) depending on the buying objective. Now more than ever, the buyer and the content strategist can work as one tying together the goal of the content and how its written with how the ad is bought. For example, one piece of content in a campaign could be bought to generate awareness while the second piece to go live could utilize the generated awareness to increase website traffic and website conversions. As mentioned, native articles previously served as a vehicle for click bait, but now with vendors like StackAdapt and OutBrain, native strategies can be taken to the next level.

Penna Powers Native Article Averages:

CPM: $4.45

CPC: $0.83

CPE: $2.94

Time spent on site (LP): 1m 38s

Native Video:

Video has been on a hot topic for a few years now with YouTube popularizing video as an advertising placement. Depending on video length a video will fall into one of two native camps pre-roll, playing before other video content and out-stream with the later only playing when in-view. By now you’re most familiar with pre-roll running pre, mid, or post and out-stream videos running within a piece of content, breaking up a Forbes article for example. One of the greatest features of the native video placement is the ability to retarget an audience based on completed video views. This allows the advertiser to further engage with the audience and lower the cost of a conversion since the audience has previously interacted with the brand

Penna Powers Native Video Averages:

CPM: $13.04

CPCV: $0.03

Viewability %: 57.87

Completion Rate: 67.34%

CTR: 0.33%

Display working with Native

These days everyone either hates online ads or blocks them all together. Insert display ads working in conjunction with Native articles and/or videos. The key difference when using display in a Native campaign is the ability to bid on a CPE model if you’re looking for engagements on a piece of content. Display ads offered by vendors such as StackAdapt provide a great opportunity to retarget your native campaign audience, further increasing engagement and post-click activity.

Penna Powers Native Display Averages: (Currently we are only using native display in retargeting campaigns)

eCPM: $4.74

eCPC: $3.56

CTR: 0.13%

StackAdapt Benchmarks:

Native

eCPM: $3.00 – $5.00

eCPC: $0.80 – $1.50

eCPE $2.00 – $3.00

CTR: 0.40% – 0.80%

Avg time on site: 55s – 1m5s

​PreRoll Video

eCPM: $12.00 – $15.00

eCPC: $9.00 – $12.00

eCPCV: $0.02 – $0.05

CTR: 0.10% – 0.20%

Completion Rate: 70% – 80%

Native Video​

​eCPM: $12.00 – $15.00

​eCPC: $3.00 – $5.00

eCPCV: $0.05 – $0.07

CTR: 0.50% +

Completion Rate: 40% – 60%

Display

eCPM: $1.50 – $3.00

eCPC: $1.75 – $3.00

CTR: 0.10% – 0.15%

Despite the perception, native advertising is not going anywhere anytime soon. Based on a IPG Media Lab and Sharethrough study, consumers looked at native ads 52 percent more frequently than banner ads. Native advertising presents a huge opportunity for agencies and their clients to create a lasting engagement that leads to further brand interactions and sales.    

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