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October 2014 presented by Native advertising, which some marketers, publishers and readers see as little different than the old “advertorial” concept, is still nascent enough that it’s difficult for many to define—and has different definitions depending on who you ask. To help you stay on top of the latest trends in native advertising, eMarketer has curated a roundup of some of our latest coverage, including statistics, insights and interviews. NATIVE ADVERTISING ROUNDUP

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Native advertising, which some marketers, publishers and readers see as little different than the old “advertorial” concept, is still nascent enough that it’s difficult for many to define—and has different definitions depending on who you ask. To help you stay on top of the latest trends in native advertising, eMarketer has curated a roundup of some of our latest coverage, including statistics, insights and interviews.

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Page 1: E marketer native_advertising_roundup

October 2014

presented by

Native advertising, which some marketers, publishers and readers see as little different than the old “advertorial” concept, is still nascent enough that it’s difficult for many to define—and has different definitions depending on who you ask. To help you stay on top of the latest trends in native advertising, eMarketer has curated a roundup of some of our latest coverage, including statistics, insights and interviews.

NATIVE ADVERTISING ROUNDUP

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Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 2

NATIVE ADVERTISING ROUNDUP

Overview

Native advertising, which some marketers, publishers and readers see as little different than the old “advertorial” concept, is still nascent enough that it’s difficult for many to define—and has different definitions depending on who you ask.

Market research firm Mintel defined native ads as paid media where the ad experience follows that natural form and function of the user experience in which it is placed, and estimated that spending would rise more than sevenfold between 2013 and 2018.

And media buyers agree: While nearly three-quarters already employ native advertising, two-thirds said they planned to use them more in the future. Just 7% of US media buyers surveyed by TripleLift and Digital Media Review said they would not be using native ads in the future.

About two in five of these media buyers also said they thought it was possible to bid programmatically on native advertising, though a majority were skeptical of this activity. Respondents said their top priority when evaluating media for native ads was the audience, and that editorial content, followed by images and user-generated content, were the most compelling content types to use for native ads.

The benefits of native advertising are clear to many advertisers, and include, according to research from Advertiser Perceptions and Purch, increased brand awareness, the opportunity to tell a product story and increased awareness of specific products or services.

But obstacles remain, and they can seem bigger than the benefits. The same survey found that insufficient reporting and ROI metrics were a problem for 46% of US advertising decision-marketers—far more than the 31% who enjoyed increased brand awareness. There were also problems aligning campaigns with marketing objectives for 38% of respondents. Just 13% said nothing was standing between them and the perfect native ad campaign.

billionsUS Native Ad Spending, 2013 & 2018

2013

$1.3

2018

$9.4

Note: defined as a form of paid media where the ad experience follows thenatural form and function of the user experience in which it is placed;CAGR (2013-2018)=48.5%Source: Mintel as cited in press release; eMarketer calculations, Aug 5,2014177800 www.eMarketer.com

% of respondents

Current vs. Future Plans to Employ Native AdvertisingAccording to US Media Buyers, May 2014

Source: TripleLift and Digital Media Review (DMR), "Digital Media Buyers GetNative: How Agency Executives Are Leveraging Native Advertising toConnect with Customers," June 23, 2014178627 www.eMarketer.com

Currently employ Plan to employ morein the future

No27%

Yes73%

No7%

Same26%

Yes67%

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Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 3

Paid Social Ads Convert More Customers

Nearly nine in 10 social content interactions are in the middle of the path to purchase

The digital marketing world has been abuzz for months about Facebook’s dialing-down of organic brand content in the average user’s newsfeed—and the declining importance of the “like” or page follow in its wake. But Q1 2014 research by Convertro and AOL Platforms suggests that even if Facebook is doing what it can to push brands from an earned into a paid media model, paid ads on social networks do have better conversion rates than organic content.

On Facebook, the jump in conversion rates among Convertro platform users worldwide was just 0.1 percentage point, but on Twitter, ads were more than twice as likely as organic tweets to convert users. On Pinterest, the situation was reversed, but overall, brands using Convertro saw around a 25% lift in conversions with paid social ads vs. organic social content.

For the most part, though, social media is not the last or only touch for consumers on the path to purchase. According to Convertro’s figures, 87% of interactions with social content were a middle touch, while just over one interaction in 10 was either the last or only touchpoint.

Still, some social venues are more geared toward conversion than others. YouTube stood out in Convertro and AOL’s research as the most likely social media property by far to turn a prospect immediately into a customer—likely because video content like that hosted on YouTube can provide 100% of the information an online shopper needs to make a purchase decision.

The distance between a social touchpoint and a conversion also depended on the type of product being purchased. The research found that more impulsive purchases—such as subscriptions to services like Birchbox or Dollar Shave Club, personal care items and local services—were more likely to appear as social ads and lead immediately to a conversion, as the last or only touchpoint on a consumer’s journey.

Conversion Rates for Paid vs. Organic Social NetworkAdvertising Worldwide, by Site, Q1 2014

Twitter3.9%

1.5%

Facebook3.1%

3.0%

Pinterest0.2%

1.1%

Total2.8%

2.3%

Paid Organic

Note: represents data on the Convertro platform, broader industry metricsmay vary; among clients who have invested in paid social mediaSource: Convertro and AOL Platforms, "Myth-Busting Social MediaAdvertising," Sep 4, 2014179163 www.eMarketer.com

% of total among Convertro clients

Stage of the Path to Purchase During Which Customers Worldwide Are Most Likely to Interact with Social Network Advertising, by Site, Q1 2014

YouTube18% 54% 14% 14%

Facebook11% 69% 10% 10%

Google+7% 76% 10% 7%

First touch Middle touch Last touch Only touch

Note: represents data on the Convertro platform, broader industry metricsmay vary; includes both paid and organic; numbers may not add up to100% due to roundingSource: Convertro and AOL Platforms, "Myth-Busting Social MediaAdvertising," Sep 4, 2014179161 www.eMarketer.com

Pinterest6% 83% 8%

2%

Tumblr5% 89% 5%

1%

Twitter2% 92% 4%

1%

LinkedIn11% 86% 2%

2%

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Native Advertising Roundup Copyright ©2014 eMarketer, Inc. All rights reserved. 4

What’s Next for Native Ads?

Social networks, media publishers see huge potential in native ads

Native advertising is flourishing across social media, content portals, news properties, video-sharing sites and streaming services. Increased mobile use of these venues has fueled much of the growth, since native ads work best in the content streams that people tend to access on smartphones and tablets, according to a new eMarketer report, “Native Advertising: Difficult to Define, but Definitely Growing.”

Perceptions about what constitutes native advertising are as varied as the ads themselves and the places where they appear. There’s still disagreement over basic terminology such as “native advertising,” “sponsored content” and “branded content.” Some make distinctions among those terms, while others use them interchangeably.

However, perceived effectiveness is fueling marketer investment in native advertising. In December 2013, BIA/Kelsey estimated native ad spending on social media alone would grow from $3.1 billion this year to $5.0 billion in 2017. As a percentage of total social ad spending, it projected native would rise from 38.8% in 2014 to 42.4% in 2017.

For media publishers, native advertising represents an opportunity to reverse the tide of flat or declining revenues. eMarketer estimates US print ad spending will decline from $32.16 billion in 2014 to $31.29 billion in 2018. Digital ad spending on newspapers and magazines will increase to $8.41 billion by 2018, from $7.48 billion in 2014, but these gains will still leave the industry essentially flat for the forecast period. With these numbers as a backdrop, it’s easy to see why media companies are so eager to create new revenue streams through native ads.

Brand marketers and agencies do not have the same urgency as publishers, but they are just as eager to gain an edge over their competitors—and native offers a way to do that. In an August 2013 Sharethrough study, awareness was the top marketing objective for native mobile ads among US digital marketing professionals. Other leading objectives

included branding and brand affinity. Purchase intent and lead generation were further down the scale, indicating that native ads (at least on mobile) are more a branding play than a direct-sales driver.

These findings are in line with what marketers and other ad industry experts say is one of the qualities that makes native advertising especially appealing: its ability to engage the user.

billions and % changeUS Social Media Ad Spending, by Type, 2012-2017

Display spending

—% change

Native* spending

—% change

2012

$2.9

-

$1.4

-

2013

$4.3

48.3%

$2.4

71.4%

2014

$4.9

14.0%

$3.1

29.2%

2015

$5.5

12.2%

$3.7

19.4%

2016

$6.1

10.9%

$4.4

18.9%

2017

$6.8

11.5%

$5.0

13.6%

Note: includes desktop and mobile platforms and local and nationalspending; excludes social marketing/measurement platforms and services,social commerce and virtual currency; *branded content integrateddirectly within a social network experienceSource: BIA/Kelsey, "Annual US Local Media Forecast: Social Local Media2012-2017 (Mid-Year Update)"; eMarketer calculations, Dec 18, 2013168167 www.eMarketer.com

% of respondents

Leading Marketing Objectives for Native Mobile AdsAccording to US Digital Advertising Professionals, Aug 2013

Awareness 84.4%

Branding 67.5%

Brand affinity 53.2%

Purchase intent 33.8%

Customer acquisition24.7%

Thought leadership24.7%

Lead generation16.9%

Loyalty 16.9%

Note: includes tablet adsSource: Sharethrough, "2013 Native Media Survey Results," Sep 16, 2013164444 www.eMarketer.com

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Lenovo Joins Forces with NFL and The Onion for Video Series

Kevin Berman

Director, Advertising and Marketing Services

Lenovo

Having a clearly defined brand is essential for marketing objectives, and digital video is no exception. Kevin Berman, director of advertising and marketing services at computer and consumer electronics manufacturer Lenovo, spoke to eMarketer’s Danielle Drolet about best practices for digital video advertising.

eMarketer: What is Lenovo’s audience target for its video advertising?

Kevin Berman: Lenovo defines itself as the brand “for those who do.” We work to understand where our audience is spending much of what we have defined as their “do time”—the time that they spend on work, projects and passions that are really important to them.

For millennials, in particular, the work day is 9am to 5pm, but their “do time” is often after that. Our objective is to understand and reach people in those moments that matter to them, and using video is at the heart of reaching and engaging millennials during their “do time.”

eMarketer: What levels of the funnel do you focus on to reach your audience?

Berman: We have different kinds of digital video programs for different parts of the funnel.

In the fall of 2013, we launched a web series called “Tough Season” in partnership with The Onion and DigitasLBi. It was a mockumentary-style web series that was also a love letter to fantasy football. It featured several prominent NFL players as guest stars, and a never-before-seen level of real-time social engagement between a brand, series characters, NFL players and teams and fans. This was an upper-funnel program.

eMarketer: What were the objectives of the campaign?

Berman: Fantasy football players are some of the biggest doers out there—they’re incredibly passionate and engaged about the sport. There were a couple of different objectives here: to engage with as many millennials as possible, but to also cast a wide net for audience. Also, to increase Lenovo brand recognition and association as the official computer sponsor of the NFL.

“While the audience recognizes that advertisers are going to pay to reach them, you can do it in a way that feels more organic to what content they normally consume.”

Ultimately, the series was a success. The episodes and additional social video content garnered over 13 million views, and we’ve renewed it for season two.

eMarketer: What have you done for mid-to-lower funnel?

Berman: An example would be some of our product-led videos. We use those videos when we run on comparison-shopping engines like CNET, PC World, etc., in addition to Lenovo.com, email and our social channels.

In terms of best practices, you need to have well-thought-out messaging and product strategy so that you can dynamically update and refresh content ... in unison with what your direct-response teams are doing. You don’t want there to be a disconnect in your brand’s voice.

eMarketer: What is most important when it comes to the creative and storytelling in video ads?

Berman: When we created “Tough Season” with The Onion, authenticity was the most important best practice. If you’re working with a publishing partner on your story, you have to really think about the tone, and make sure that it matches what the audience has come to expect from that publisher.

Your content should feel native to that partner. That way, while the audience recognizes that advertisers are going to pay to reach them, you can do it in a way that feels more organic to what content they normally consume. And it’ll drive a higher likelihood of engagement and more positive reception.

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Lenovo Joins Forces with NFL and The Onion for Video Series (continued)

eMarketer: How do you decide whether to develop new content or use repurposed TV creative?

Berman: When you’re creating a new campaign, you need new creative to help complete the story. Otherwise you’re force-fitting for your program. We don’t subscribe to matching luggage—we subscribe to the notion of original storytelling, and the role that creative plays in that. Unfortunately, if you’re trying to be unique and original in the digital space, repurposing TV creative could potentially come across as force-fitting.

“When you’re creating a new campaign, you need new creative to help complete the story. Otherwise you’re force-fitting for your program.”

The best practice is to create a custom original program with custom creative. That said, there are a lot of challenges there in regards to time, budget and resources. It’s a lot more work to do around orchestrating and collaborating with your client team, partner/publisher team and agency team to create a well-thought-out program from launch to completion.

eMarketer: How do you target? By context or by targeting audiences?

Berman: There isn’t just one silver bullet for targeting—it’s not an either/or dynamic. We balance who we’re buying against, figuring out how to reach them where they are and what their behavior is. That way we can optimize our programs based on engagement, response, sharing and more.

For example, we’ll work with partners like Google, AOL, TubeMogul, and others to buy against our target audience—millennials. Meanwhile, we work with partners like BuzzFeed and CNET on contextual targeting. It’s a combination method.

And we leverage retargeting in video to drive sales, working closely with our ecommerce team to integrate our in-market activity and capitalize on brand opportunity.

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Media and Entertainment Ad Spending 2014: CBS on Its Interactive Native Ad Program

Christy Tanner

Senior Vice President and GM, Media Group

CBS Interactive

Content and brand marketing helps CBS Interactive advertisers create more curated experiences for consumers. Christy Tanner, senior vice president and general manager of Media Group at CBS Interactive, spoke with eMarketer’s Rimma Kats about the rise of native advertising and what marketing channels its advertisers tend to choose.

eMarketer: How does native advertising and content marketing fit into the media and entertainment ad mix?

Christy Tanner: I see native advertising and content marketing as two different things. One of the challenges we face in the industry right now is that the definitions of those terms are different from company to company and brand to brand. The brands that I oversee are mostly entertainment-related, and in the entertainment space, the line between what is content and what is advertising is inherently blurred.

Content marketing has always been part of the ad mix in the entertainment space and what we’re seeing now is that something that’s an organic and integral part of the entertainment industry is expanding to other verticals.

“We sold over 200 Watch List native ad campaigns in the last two years and we have resold them to the same advertisers because they’re very effective ads for those marketers.”

eMarketer: Is CBS Interactive investing in native advertising?

Tanner: We offer native advertising on TV Guide, including on our mobile apps. The native ad units allow users to

add television shows, movies, sports teams or actors to a favorites list that we call the Watch List. We sold over 200 Watch List native ad campaigns in the last two years and we have resold them to the same advertisers because they’re very effective ads for those marketers.

The dollar that the marketers spend on a Watch List native ad unit is a dollar that they will see a return on for the life of that movie or TV show. When somebody has a call to action to add that show to their Watch List, it will stay on their Watch List until they take it off.

eMarketer: What is the mix between branding and direct response advertising in media and entertainment?

Tanner: Most of the campaigns within CBS Interactive fall more in the category of branding than direct response, and we certainly have tons of data throughout the company that demonstrates how those branded campaigns drive sales.

eMarketer: In terms of mobile, are advertisers turning to smartphones more than tablets to run their campaigns?

Tanner: Our users are increasingly on multiple devices. The percentage breakdown of smartphones to tablet to website is pretty similar to what we’re seeing on the wider industry trend.

“A soda brand that wants to target 18- to 24-year-olds can curate a channel of TV shows and full episodes that appeal to that demographic.”

Our smartphone and tablet apps are very similar products, and the ad mix, in terms of the mix between native ad offerings and more standard or rich media offerings, is more or less the same between smartphones and tablets.

eMarketer: What video advertising opportunities do you offer advertisers?

Tanner: TV Guide has produced a mix of editorial videos for years and we allow advertisers to buy pre-roll on TV

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Media and Entertainment Ad Spending 2014: CBS on Its Interactive Native Ad Program (continued)

Guide-produced videos, but we also allow advertisers to curate channels within TV Guide.

For example, a soda brand that wants to target 18- to 24-year-olds can curate a channel of TV shows and full episodes that appeal to that demographic. We also curate a channel of a marketer’s own branded content. We’ve done a curated channel for AT&T, which features ads starring Will Arnett.

There are other ways to do it as well. State Farm Insurance wanted to sponsor movie trailers for Oscar-nominated movies and we created a channel of Oscar-nominated movie trailers sponsored and brought to you by State Farm. There are lots of ways that we’ve incorporated advertisers into the mix and upgraded organic, entertaining experiences for consumers in doing so.

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MEDIA VOICES: HuffPost Offers Unique Mix of Native Formats for Partners

Tessa Gould

Director of Native Advertising and HuffPost Partner Studio

The Huffington Post Media Group

To AOL’s Huffington Post, native advertising is the next generation of content marketing. Tessa Gould, director of native ad product for The Huffington Post Media Group, spoke to eMarketer’s Danielle Drolet about the online publication’s variety of ad units, and native’s advantage over display.

eMarketer: You’ve been involved in native advertising for some time. How did it start?

Tessa Gould: Before I joined the team, back in 2010, Huffington Post launched a dedicated hub in partnership with IBM called Smarter Ideas. We still have that partnership with IBM, where we feature relevant editorial content on breaking developments in technology. In addition, we supplement that hub with custom native ads that we create for IBM, allowing them to align themselves more directly with the topics of interest. This can be blogs from thought leaders at IBM or their partners on cloud computing, healthcare, green initiatives, etc.

eMarketer: What’s your approach today?

Gould: The core of our approach to native remains unchanged, that is, to create quality content experiences that are brand-aligned, fit with our editorial voice and resonate with our readers. We have innovated along the way, adding new formats and enhanced targeting capabilities, and expanding the team. Earlier this year, we rolled out a cross-platform offering to ensure that not only the sponsor’s native content, but also their surrounding ads, reach the relevant readers across all screens.

eMarketer: In what ways is your native ad program different from your competitors’?

Gould: One of our key points of differentiation is our diverse product suite. We have 15 native content formats available for advertisers and will work with brands directly to determine the best format to convey the particular story—be it an interactive infographic, a feature article, a quiz, a debate or a commerce-driven LookBook—the list goes on.

Technology is another major point of differentiation. Unlike many of our competitors, we serve our native content through our ad server. This means we’re better able to control delivery and ensure that the content reaches its intended audience by applying the same targeting capabilities that we utilize for our display ads to our native content. Ultimately this leads to better engagement.

We also pair our native content with display. Not because we have to, but because we have found that the combination of native content and display ads (from the relevant sponsor) on the same page leads to much greater lifts, 2 to 3.5 times higher for key brand metrics such as brand recall, favorability and intent to purchase vs. native content alone or display alone.

eMarketer: Who produces the native advertising content that runs on your platform?

Gould: The HuffPost Partner Studio is a mix of content strategists and ad people with editorial backgrounds—a number of them have come directly from The Huffington Post newsroom. We also have social media strategists and are currently looking for a dedicated marketing specialist. We have a designer and are looking to add a video expert. They’re all creative. We’re essentially an in-house creative agency, geared to help brands play on that platform.

eMarketer: By what metrics are your advertisers gauging the success of native ad campaigns on your properties?

Gould: The No. 1 [key performance indicator] that we’re looking for with the native content is engagement. Many engagement metrics that we use are the very same metrics that generalists in our newsroom use in their own content.

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MEDIA VOICES: HuffPost Offers Unique Mix of Native Formats for Partners (continued)

The best-case scenario is that you want someone to read the copy and then take it into multiple social actions. Some people share content without reading it. But, for the advertiser to really see improvements in brand favorability, the reader needs to be actually reading and consuming the content, as well as sharing it.

“The HuffPost Partner Studio is a mix of content strategists and ad people with editorial backgrounds—a number of them have come directly from The Huffington Post newsroom.”

eMarketer: In December, you estimated that native advertising revenue in 2013 would rise by 47% over 2012. Did you hit the target?

Gould: We did hit that target. Q4 actually ended up being our largest quarter since we launched native in 2010. Not only did we see growth in revenue, but we also witnessed strong growth in both the average deal size and the number of native campaigns sold—up 63% year over year.

eMarketer: Many people have expressed skepticism about native advertising because it blurs the lines between advertising and editorial. What’s your take on this so-called “slippery slope?”

Gould: This highlights the importance of labeling and disclosure because that protects both the brand and the publisher, and combats against this so-called slippery slope. Ultimately, at the end of the day, if the content is labeled and disclosed and it’s good, people are going to consume it like they would any other content. The fact that it’s sponsored should hopefully not make a difference.

eMarketer: The US Federal Trade Commission (FTC) is looking into the possibility of regulating native advertising to avoid misleading consumers. What do you make of this effort, and in general of the role of the government in regulating advertising?

Gould: The FTC’s focus has been on making sure that the native ad is clearly disclosed and labeled. The Huffington

Post and many others in the industry are clearly disclosing this, not only for legal reasons, but to maintain the trust and editorial integrity.

The industry has been doing a great job at setting forth its own native advertising guidelines, including the Interactive Advertising Bureau’s native advertising playbook. Today, the industry is in a really great position to know what works for its platforms and for users, while the FTC has a really important role in regulating advertising.

“The FTC’s focus has been on making sure that the native ad is clearly disclosed and labeled.”

I attended the FTC native ad workshop in December 2013, and it was a great forum for discussing the issues surrounding native advertising. The FTC is doing its job, but it’s not sure whether additional guidance in this area would be helpful. It’s a bit of a wait-and-see area, but publications and players are taking responsibility for their own content.

eMarketer: What wording do you use in your native ads to convey that they’re not editorial content?

Gould: With our promotional or article preview units we will say, “Presented by,” such as “Presented by Chipotle,” “Presented by Chanel” or “Presented by Bravo.”

Then, when you click into the article page, that same language appears at the top of the article. The advertiser’s ads will appear around the content, and then, depending on the content or the advertiser, there may be additional messaging—either within the content or perhaps in a social way—and we may integrate a campaign hashtag or brand.

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SAP Sees Native Ad Space as the Industry’s ‘Kumbaya Moment’

Tim Clark

Head of Brand Journalism

SAP

After three years and more than six million page views, software firm SAP maintains that its dive into the native advertising space—through the Forbes BrandVoice content-sharing platform—has been worthwhile. Tim Clark, head of brand journalism at SAP, spoke to eMarketer’s Danielle Drolet about its pairing with Forbes, key metrics to track and just how involved with native advertising he thinks the US Federal Trade Commission (FTC) needs to be.

eMarketer: How do you define native advertising?

Tim Clark: It means a lot of different things to a lot of different people. We look at it as an opportunity to connect with an audience that may not be familiar with SAP.

Ultimately, native is about “brand journalism” and getting the people, the profiles and the personalities out there. A lot of this is pull marketing. People start reaching out to them, meetings are set up, sales cycles are kicked off and all that good stuff starts happening from there.

eMarketer: What’s key to the success of your native advertising effort with Forbes BrandVoice program?

Clark: What it comes down to for us is being authentic. With Forbes, we don’t assign a bunch of content to freelancers or agencies, then publish it and see what happens. We work very closely in-house with teams of writers. It works for us when we can let people tell the story that they want to tell and be authentic. Then we cultivate the talent in-house.

“Advertisers, marketers, publishers and writers are convening together. We’re all singing Kumbaya together now.”

Typically, we publish content first to some of our brand sites. For example, we publish first on our SAP community network. The best of that content then gets [published] to the Forbes platform. That’s the reverse idea there, but it works for us because we want to create some connective tissue. At the bottom of our pieces on Forbes, you’ll notice the notation, “This story originally appeared on SAP Business Trends,” which is SAP’s own branded platform.

eMarketer: By what metrics are you gauging the success of your native ad campaigns?

Clark: We look closely at the basics. Overall page views are still very, very important to us. If we’re not getting a healthy number of page views, then something may not be working well. Unique visitors and social shares are also important to us.

The Forbes platform provides a nice back-end look into how each post is doing. They’re getting more robust with those capabilities for BrandVoice partners. For example, they have been updating their platform so that we are now able to see where a post might have started to go viral. We can look back and [identify] the first person who kicked it off.

eMarketer: The US Federal Trade Commission (FTC) is looking into the possibility of regulating native advertising to avoid misleading consumers. What do you make of this effort, and in general of the role of the government in regulating advertising?

Clark: It’s a good idea for the FTC to educate themselves and figure out what’s going on. But I’m not sure it needs to be regulated to the extent that the government would need to get involved.

For example, Forbes does a very, very good job of distinguishing the content that is paid for. It says “Forbes SAPVoice” on our content. It’s a little moniker right next to the story that follows the reader around everywhere on Forbes. It goes so far that if I were to comment on somebody else’s story on Forbes, it clearly says that I’m an advertiser.

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SAP Sees Native Ad Space as the Industry’s ‘Kumbaya Moment (continued)

“I’d like to think that the clickthroughs that we get on stories that we publish are really the new clickthroughs of banner ads.”

Those things make sense and they’re good enough. If too much regulation happens it might spoil some of these great collaborative conversations that are taking place right now. Advertisers, marketers, publishers and writers are convening together. We’re all singing Kumbaya together now. It’s all blending. I don’t think that’s such a bad thing.

eMarketer: Why does native advertising seem to be more effective than display or banner ads?

Clark: I’d like to think that the clickthroughs that we get on stories that we publish are really the new clickthroughs of banner ads. Those are what you want. You want the engagement. This has been happening for a while.

Many of the static banner ads that you see, for whatever reason, don’t work anymore. They could be perceived as a little old school, or even distracting. It’s really about the story, the people reading and clicking, commenting on them, even going to the call to action at the end of the

blog, to download a white paper or whatever it is you’re trying to accomplish. That’s what you want anyway. Why not do more of that?

eMarketer: What’s your outlook for this form of advertising for SAP and the advertising industry as a whole?

Clark: It’s happening now, and is going to become a more regular part of the media landscape. From my perspective, it’s very effective and everybody wins. You can’t ignore those types of things, especially if the publishing industry is looking for new revenue streams and looking to revamp their business models.

Business is one great way to do that. There are some regulation concerns and people are wondering whether [native advertising] is from an advertiser or not. There probably could be more scrutiny [for some of this content]. But if you’re working with a partner like Forbes, there are no issues as far as SAP is concerned.

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