MBPT Spotlight: In-App Native Ads Drive Revenue for Video Streaming Services
Native advertising is nothing new to most advertisers. The concept has been around a long time—advertorials, sponsored articles and content integration are all iterations of what is now called “native” advertising. It’s a well-established industry buzzword.
But the sudden rebirth of this tactic has seemingly created a gold mine of success for mobile advertisers, and it’s being further enabled by the evolution of today’s media buying and hyper-targeting technologies. Gaming app advertisers were the first to catch on and now we are seeing more music streaming services use this method to further engage their users within their mobile apps.
So what does this mean for cable and broadcast networks looking to expand their mobile streaming services? Now is the time to take full advantage. As the popularity of content apps such as HBO Go, WatchESPN and AMC continue to rise in popularity on mobile devices, it makes sense to optimize your mobile advertising program.
Native ads are simply disruptive without being disruptive. They serve the same purpose as a standard banner ad—to attract attention and present the consumer with a call to action. The only difference is native ads provide more context and are presented in a way that makes them look like they are an integral part of the app content.
And it’s capturing the attention of app users. In fact, mobile advertisers are seeing a 35% increase in customer lifetime value (LTV) when using native ads compared to full-screen banner ads—meaning users are spending more money. In fact, users exposed to in-app native ads spend five times more than when they are engaged by a standard banner ad.
These statistics make a lot of sense. In-app native advertising allows advertisers to provide more information to users while they’re using the app, exposing them to additional features and benefits. If done right, this can open up a lot of new opportunities for revenue.
In-app native ads also present advertisers with an unfamiliar format to engage mobile users. It’s simply something new.
Standard banner ads have become so commonplace that users almost always automatically ignore them when they pop up. This could be a big reason for the substantial decrease in click-through rates, which means advertisers don’t have the user’s attention and can’t engage them.
Even if we have the ad in front of the right audience, the unpopularity of banner ads could eliminate potential opportunities to drive revenue.
The mobile ecosystem can also provide cable and broadcasting advertisers with access to a huge amount of information if they know how to tap it. A variety of performance-based technology and post-install data has greatly increased the rate at which these ads are getting in front of the most relevant audience.
Providing a highly contextual ad, such as an in-app native ad, to the best possible user will greatly increase the chances of that user purchasing or upgrading their services.
What are some possibilities for native advertising in broadcast and cable mobile apps?
This trend can be relevant in two ways:
1.Buying users more effectively. Broadcast and cable network apps are expected to increase spending on mobile user acquisition this year since it has become clear that mobile will be an increasingly growing target for the industry. When doing so, focusing on buying native ads that target users more likely to engage with additional content and services will increase the success of the campaign.
2.Media monetization. If a network or cable company is considering monetizing their media by selling ad space, they should think about how to incorporate native ads to maximize the media’s potential.
It’s become clear that native advertising offers tremendous advantages for mobile advertisers of all stripes. In-app native ads for broadcast and cable content apps can be a conduit for additional revenue from subscribers.
Bareket is cofounder and CEO of Taptica, a global performance-based demand-side platform (DSP) serving brands and digital agencies. She previously served as the CEO of Logia Mobile, which managed the content activities for Israel’s largest mobile operator, Cellcom, as well as for 25 other leading operators around the world. Her background includes content development, app creation, mobile content marketing and content team management. She also founded and managed Bookid, a startup company that turned classic children’s books into interactive mobile apps.
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