Pundits’ take that Facebook has “solved” mobile advertising after its home run last week hid a bigger, behind-the-scenes story:
We’re finally seeing branding and direct response marketing merge in a meaningful and measurable way; Facebook is just one place where it’s happening most demonstrably.
Here’s important context: Facebook’s quarterly earnings beat projections last Thursday, driven by the 62% of its ad revenue that comes from mobile. Also note that Facebook’s only ad revenue from mobile is its in-feed ads (or native ads, or whatever you want to call them).
The in-feed ad is Facebook’s holy grail. If they can manage to position ads in users’ mobile feeds so that these ads: a) perform well, and b) don’t kill engagement with Facebook, then they can print money against their 1 billion-plus monthly active users.
Facebook knows they’ll need advertisers’ and their agencies’ help to achieve this. That’s why I want to draw your attention to a slightly less publicized study that came out of Facebook and two partners the week prior to its quarterly earnings announcement.
Working with the social ad platform Adaptly and Refinery29 (one of a new set of savvy content-driven eCommerce outlets), Facebook showed that social advertising that merges branding and direct response outperforms direct response ads alone, by a margin of about 70%.
No kidding. Isn't that marketing's job? To produce content? From advertising, to email, whitepapers, videos, blog posts, case studies, brochures . . . it's what marketing does, right? I'm surprised the result wasn't 100%. (I wonder what those 9% were doing instead?)
Hmm . . . sounds like a bad joke I used to tell about enterprise portals . . . except now it goes something like, "How is content marketing like teenage sex . . . ?" (You can look it up . . . )
While OneSpot and Resonance HQ (which offers a similar service) drive content engagement through banner ads, native advertising or sponsored content puts branded content straight into digital publishers’ editorial mix (often with “sponsored by” or “sponsor content” next to it). Vendors like Outbrain, Taboola, AdBlade, Sharethrough, LinkSmart, Nativo, Media Voice and AdsNative are vying for a $2 billion per year native advertising market that’s growing by as much as 20% year on year.
Add to this the plays by Facebook, LinkedIn, and Twitter that allow marketers to purchase visibility for their content in certain users’ timelines. For both Facebook and twitter, this is their only source of revenue for a growing proportion of mobile users, and it looks like Wall Street may be rewarding them for this mobile-driven success.