Marketers will spend $7.9 billion on native ads this year and $21 billion on them by 2018, predicts BI Intelligence. But why pay writers? A startup is offering marketers the opportunity to take reviews from independent sources, such as CNET, and use that content in Facebook and mobile banner ads. The startup charges marketers for the curation.
So says "Brands Can Now Turn Positive Reviews Into Native Ads," an article that ran Wednesday in The Wall Street Journal.
"Using InPowered's search tool, an advertiser can find out what content has recently been produced about its products, and which of those pieces of content are resonating in social media," Mike Shields writes. "For example, Motorola, which has tested the InPowered ad product, according to people familiar with the matter, might snag a glowing review from CNET, and start running that as an ad on sites all over the Web."
According to the San Francisco startup's site, marketers including AT&T, Chevrolet and UPS have already used the technology.
What InPowered is doing for marketers does mirror some of what's already happening in native advertising.
According to Monday's Business Insider article about the BI Intelligence findings:
- Social native ads will account for the biggest share of native ad revenue during this time period, but native-style display ads will grow the fastest.
- Social-native, including Facebook News Feed ads and promoted tweets on Twitter, will draw a majority of native ad revenue between 2013 and 2018.
- Native display ads, like the splashy native ads on Yahoo's news pages and apps, will see the fastest ramp-up.
- Native ads perform better than traditional display. This is particularly true on mobile.
BI writer Mark Hoelzel cites research from Polar Media Group and Celtra regarding clickthrough rates for native ads: 0.15 percent on desktops and more than 1 percent on mobile.