Native+Advertising

=Native Advertising for international marketing by Lukas Ritzel=

** Native Advertising ** ** What Is 'Native Advertising'? Depends Who You As ** Todd WassermanSep 26, 2012 [] Origin : First, some etymology: "Native advertising" appears to have come from a talk that investor Fred Wilson gave at OMMA Global last September. Wilson didn't use the term "native advertising," but he did mention "native monetization" for web properties, which he described as ads that were "unique and native to the experience" of the site. Dan Greenberg, the CEO of Sharethrough, liked the idea and began promoting it. Greenberg told Mashable he doesn't know if he coined the term "native advertising," but he began evangelizing the concept. ** The disruptive potential of native advertising ** By Felix Salmon APRIL 9, 2013 [] Quoted: ...a native ad is something that consumers read, interact with, even share — it fills up their attention space, for a certain period of time, in a way that banner ads never do...In terms of disruptive force, then, native has a huge advantage over banners in that it is much more effective in connecting with consumers. And there’s another way that it’s disruptive, too: it utterly upends the standard ad-agency business model. This is the real reason that ad agencies are less than enthusiastic about native — they can’t make money at it.....Native, by contrast, works on a very different model: you spend a certain amount of money putting it together, and then it lives online forever, generating marginal views at zero marginal cost. The agencies can still charge for their creative work, but they can’t charge for media buying any more — which is where the real money is.

As a result, most native campaigns tend to be worked out between publishers and brands directly, with ad agencies helping out but not driving the decision-making. It’s the beginning of the disintermediation of the agencies, and so it’s hardly surprising that they’re unenthusiastic about the trend. This is real digital disruption: native shops like BuzzFeed or Barbarian Group will never be as profitable as the huge ad agencies, but they can still cause those agencies to suffer very large drops in their digital revenues.