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IAB in the News

Chat with Zane Furtado, Programmatic Director, AcquireOnline, on the topic of Native Advertising in NZ

Tue, 27 Oct 2015

Over the next couple of months, the IAB NZ’s Standards & Guidelines Council is out in the marketplace conducting a series of short interviews with key industry folk.

The concept is to ask the same four questions to a range of industry professionals working across agency, publisher, creative, and client facing roles.

We’re hoping to further the discussion and education around this topic.

It may identify a gap in thinking, perception and perhaps even process - and potentially help identify areas where the industry needs to work better together to help this category evolve here in NZ.

1. Is Native different to what you've done in the past?

Native advertising is still a fuzzy concept for most marketers. I feel that this particular definition of native is spot on – If you pay for placement of valuable, relevant content in a format similar to the third-party site, it’s native advertising.’

As a trading desk, we look at a range of options that can be purchased programmatically, including native. With multiple options now available within the programmatic ecosystem, we work with exchanges like LiveIntent and platforms like StackAdapt.

With LiveIntent, you can serve display ads when an email is opened. This opens up a realm of possibility like customising ads on a newsletter that is relevant to just you.

StackAdapt is a self-service platform that offers in-page native, within page sponsored posts where you can buy native at scale.

With native proving to be popular among publishers, you can now even negotiate a PMP (Private Market Place) deal, where terms are agreed on up front, as opposed to a RTB (Real Time Bidding) type of scenario.

From our point of view, these new options involve some upfront testing before we can build confidence in offering native at scale to our NZ clients. We test to look for NZ traffic volume, quality of the traffic and whether it is performing to make sure we’re getting it right for our clients.

 

2. How is it a changing process?

It is changing the game, essentially. Advertisers now want to explore different formats, not only what was traditionally offered.

We recommend different types of native formats based on the advertiser goals and objectives.

Complexity is an advantage in the programmatic environment. We can use all the tools available programmatically to overlay on native to create the right mix to reach the right audience.

With native, you cannot have a conventional call to action.This is not a programmatic problem, but a creative one. Some advertisers have not got the concept quite right yet, as with native you need to change the way you communicate with audiences.

Most of the native options in the programmatic landscape are in-feed formats. Of course, this is just one type of native advertising . If you want a customised option, you can call the publisher directly!

At this stage, the drawback with native is tracking post-bid viewability. Third party click, impressions and conversion trackers are supported.

 

3. How is this changing the overall landscape?

Traditional forms of online advertising are struggling to have an impact. The more it interrupts the reading experience, the more negatively consumers view it – leading to banner blindness.

Mobile native is the key as far as I see it, and I think there is the opportunity for clients to explore this further. Ad blockers are one of the key reasons native is going to thrive, with social media native leading the way.

From a New Zealand perspective, the percentage of native media spend is still relatively small. The biddable inventory follows this trend as well. We see this changing, but at a leisurely pace. Programmatic had a similar experience when it first knocked on our doors. Nobody wanted to use it initially, but look at it now!

 

4. What is the feedback from clients?

Programmatic creates new levels of accessibility. We live in an increasingly flat world and programmatic lets advertisers target overseas markets. A New Zealand client selling merino scarves has the opportunity to target American buyers using native ads and content discovery.

Our clients have been keen to explore social media native, as that format is more image driven. This is reflected in the trend of larger organisations adopting Instagram.

Also, since native is still relatively new, it’s seen as an independent and credible form of advertising. As consumers get more aware of this, that advantage will change over time.

We’ve also been part of success stories where clients have used in-feed native to reach their objectives.

Native is something our clients are excited about. It is constantly evolving and promises to deliver many more opportunities. If we have this discussion in another six months, it will be quite different. Native is set for big things.