One-Fourth Plan to Spend More Than 20% of their Budget on Native Advertising
NEW YORK (December 13, 2012) – Solve Media (www.SolveMedia.com) today revealed the results of an online survey showing that 49 percent of media buyers plan to make native advertising purchases in 2013. Although spending levels vary, two of five media buyers surveyed reported that they have allocated more than 10 percent of their 2013 budget to native advertising. While native advertising has received significant attention in the media and at industry events, this is the first insight into the impact it will have in the market in 2013. In addition to ad buyers, other industry stakeholders, including publishers, creative agencies and investors are focused on native advertising going into the new year.
There has been a lot of buzz around native advertising, but no substantive information around user experience or effectiveness. “Native advertising must create value for consumers in order to perform,” said Ari Jacoby, CEO of Solve Media, “At Solve Media, we save consumers 7 seconds per transaction or more than a full year of time, in aggregate, every single day. The industry talks about ‘serving’ ads and, in a very real sense, I feel they should ‘serve’ the consumer.”
Solve Media’s data indicates that native advertising is becoming an integral part of online advertising as it has garnered the attention of agency media buyers and creatives, online publishers, and even venture capitalists, private equity firms and angel investors. Key findings from the study include:
- Native Advertising is Important to Media Buyers – Nearly 60 percent of agency media buyers said native advertising was “very important” or “extremely” important in 2013. Additionally, buyers based in Chicago, Los Angeles, New York and San Francisco will spend the most on native advertising.
- User Experience is Key for Effective Native Advertising – Seven of ten agency Creatives noted that user experience is the most important component of native advertising.
- Publishers are Recognizing the Need for Native Inventory – Nearly 20 percent of online publishers are likely to add a native advertising option to their sites.
- Private Investors are Excited about Native Advertising– More than half of the venture capitalists, private equity firms and angel investors that invest in media and ad technology, said that they are likely to very likely to invest in companies that sell native advertising in 2013.
Consumer behavior and expectations evolved when social media became mainstream, and native advertising is the byproduct. “Native advertising adoption and spend—spurred by the rise of prominent social formats such as Facebook Sponsored Stories and Twitter Promoted Tweets - are accelerating quickly. Increasingly, consumers expect an integrated content experience,” said Jed Williams, Senior Analyst and Program Director at BIA/Kelsey, “This trend is only the beginning. We foresee continued momentum in original advertorial content, rich media, long form viral video and other formats in the years ahead. Solve Media’s Type-In ads are a compelling advance in native advertising that creates value for users and measurable performance for brands.”
Native advertising will continue to grow as the market introduces new and innovative ways to address users’ needs. “Native advertising isn’t a trend—it’s the new reality for publishers and marketers who are focused on both serving the consumer and satisfying the investor community,” said Gene Munster, managing director and senior research analyst at Piper Jaffray. “Solve Media is well-positioned to capitalize on this important marketplace shift.”
Results of the study and additional analysis can be found in the Solve Media White Paper on Native Advertising, which is available for download here.
Solve Media surveyed 800 media buyers, agency creatives, online publishers, venture capitalists, private equity firms and angel investors in the United States during September and October 2012.
About Solve Media
Solve Media was founded by veteran entrepreneurs and technologists focused on innovative Internet advertising solutions. The Company’s proprietary online advertising platform, the TYPE-IN™, was designed to create new and highly effective opportunities for brands to engage online. With the platform, Solve Media guarantees brand message delivery, brand lift and return on investment for advertisers. Additionally, the platform creates new revenue opportunities for publishers and saves time for consumers. Backed by First Round Capital, New Atlantic Ventures, AOL Ventures, Bullpen Capital and prominent angel investors, Solve Media is based in New York City and Philadelphia. http://www.solvemedia.com