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Is Native Advertising Even Profitable for Brands?

Desperate for new revenue streams, publishers are turning to native advertising in droves.

They are handing over valuable real estate on their web properties to brands who are looking for new ways to drive traffic and build awareness.

And they are charging a premium for this space.

Examples of these native ads run from the advertorial to sponsored content to interstitial ads on mobile phone apps. And options are multiplying. As is the money spent.

The question brands must ask (even though there is no simple answer) is: are we getting a positive return on the dollars being spent on native advertising?

+Demian Farnworth asked a few players in the space what they thought. There answers will be in tomorrow's post. 

Stay tuned. 

Update: post is now live:

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Ouriel Ohayon's profile photoCaroline Gilbert's profile photoSean Jackson's profile photoRick Noel's profile photo
I've been writing "advertorial" profiles for years for businesses hoping an appearance in Forbes, for example, will confer prestige. Demand is still high, and I still believe in the strategy--but only if businesses understand and appreciate the necessity of a journalistic approach free of empty boilerplate and fluff.
I really like native advertising. I think its less intrusive, ever how manipulating it may be! 
I really don't get how so much money is being spent on "Mobile" ads with no measure of any ROI.
I'm old-fashioned advertising girl - a good marketing mix will do best.
Ilse -
Unfortunately this article is only surfacing one side of what native advertising really is about : brand building within paid content. but there is already a huge market (probably much larger) than it s counter part. Facebook is already making 2 to 3 billion dollars a year out of it. Google announced it s jumping on it. Yahoo and AOL too. twitter too.. Direct response app marketing. I wish Damien mentioned that too...
"Simply put, native advertising has an attention deficit disorder."

So true. That's our greatest challenge with improving our KPIs for in-feed advertising. Getting a visitor to dive deeper on a brand's page takes some time. Thanks for this article Demian!
Great piece +Demian Farnworth. I agree with your statement it may be time to proclaim yet another Year of the Writer. Writing is one skill with great ROI potential :)
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